Customers might have to pay an extra 15% for the new spring-summer collection that the brand will start launching from January because of the increased cost of production in the textile sector since the pandemic.

The cost of production in the textile sector has risen around 25% in the last one and a half year because of the increase in cotton yarn prices, transport costs, said Rahul Mehta of the Clothing Manufacturers Association of India. Brands will now start passing on this cost to customers in the new collections they’ll start launching January onwards, said Mehta.

Because of the increase in crude prices, freight cost has gone up 300-400%, cotton yarn/fabric has also shot up, and it is still not relenting, said Sanjay Vakharia, Co-founder, CEO, Spykar Lifestyles. While some of the cost has been absorbed, some will have to be passed on to customers, Vakharia added.

However, not all brands that ET Now spoke to, will start passing on the cost from their new spring-summer collection itself.

Manish Kapoor of Pepe Jeans said that increased production cost will start reflected in the spring-summer collection, but major reflection will be in an autumn collection.

“We might take 6-8% increase in prices in the new spring collection but major reflection will be seen in the autumn collection,” said Kapoor.

While for House of Anita Dongre has a different strategy to manage this increased cost of production. Hose of Anita Dongre that shelters brands like Global Desi, AND, says they have rather taken this opportunity to reduce discounts significantly but have kept the prices sharp.

We reduced our discounts by over half during the pandemic but haven’t increased prices of products,” said Kavindra Mishra, MD, CEO House of Anita Dongre. 

AND, Global Desi will nevertheless take price hikes during autumn collection by 5-10%, but mostly it will be reduced discounts that will be used to counter increased cost of production, added Mishra.