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Global apparel brands priced double in Pakistan

An internal survey done in Pakistan reveals, prices of international apparel brands in Pakistan are sometimes double the original retail prices. According to the World Bank, Pakistan’s adjusted net national income per capita was $1,444 (nearly $120 per month) in 2016 whereas the price of a single top of international apparel brands like Debenhams, Mango, Next and Splash often exceeds a quarter of that income. This implies that these brands are targeting high-end customers unlike global trends.

The difference in pricing is due to additional operational and logistics costs that these brands have to incur. A customer might find the price of a product at Mango’s store in Spain very reasonable when compared to the price of the same top of the franchise in Pakistan. Being among the largest textile manufacturers, Pakistan also has the potential to manufacture these brands locally with some value addition, which could help save some of the operational and logistics costs. However, these franchises are restricted by the brands from manufacturing their products locally.

In some cases, brands like Levi’s have set up their manufacturing outlets in Pakistan, making it comparatively more convenient for retail stores and helping the national economy as well.

 

 
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