Indians could soon have access to a wider range of British beauty products, fashion labels and gourmet items, thanks to the India-UK free trade agreement (FTA). The deal, which significantly slashes tariffs on British imports, is expected to prompt more UK brands to enter the Indian market, and push existing ones to expand.India’s average tariff on British goods is set to drop from 15% to 3%, allowing brands to price more competitively. That’s likely to boost demand, especially among young and affluent shoppers increasingly drawn to international labels.“For UK-based brands, the FTA will bring down the cost of entering India and this will allow them to pass on the benefits to consumers. For us as a platform, it means easier registration and onboarding of British brands,” said Radhika Ghai, founder and CEO of Kindlife, an online marketplace that helps launch and distribute global beauty brands. Ghai, speaking to TOI, informed that the company is already in talks with over half a dozen UK cosmetic brands eyeing an India debut.Big brands, bigger pushSeveral British brands, including The Body Shop, Pret A Manger, Burberry, Asos and Next, already operate in India. The trade agreement gives them room to expand, particularly as duty reductions make imports cheaper.“Currently, 90% of our portfolio is imported from the UK, and the FTA has the potential to further lower import duties on UK-made beauty products, which will directly benefit customers,” said Shriti Malhotra, executive chairperson of Quest Retail, the franchise partner for The Body Shop in India.Imports from the UK currently make up a small slice of India’s $20 billion beauty market—just about Rs 250-300 crore. But experts see huge headroom for growth.Beyond metros, into smaller towns“The existing British retail brands will be the biggest beneficiaries of the deal as they already know the India market,” said Rahul Guha, senior director at Crisil.Others agree that a lower duty environment will encourage more brands to ink franchise deals, tap e-commerce platforms and even expand beyond the big cities.“For brands generally, it will become easier to get listed online and ink franchise agreements to enter small towns,” said Anand Ramanathan, partner and consumer industry leader, Deloitte South Asia.The deal could also spur marketing investments and partnerships. “Establishing joint venture partnerships with Indian companies may be an option now going forward,” said Suresh Nair, indirect tax partner, consumer products and retail at EY India.With tariffs falling and the market opening up, British brands, spanning value to luxury, are gearing up to grab more shelf space and more Indian wallets.With inputs from TOI
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply