7 July 2009
Marks & Spencer India is cutting prices, in an effort to encourage shoppers into its stores. The company has already cut prices by up to 20% but is looking to make further cuts, with a 12% reduction on its summer ranges. Mark Ashman, CEO of Marks & Spencer Reliance India said the retailer will continue to cut prices this autumn, allowing it to offer greater value to customers. Ashman added that this is part of the company’s strategy to localise itself, with plans to dramatically increase the proportion of locally sourced products from 40% to 70% in five years. In the summer 2008 it was close to 20%. By moving to local sourcing M&S is able to become more price competitive, avoiding hefty import charges of up to 40% on some products. The retailer is also planning to change the styling, colour patterns and designs for India, making it the first country where it has deviated from its global strategy. The joint venture with Reliance Retail has opened one store in Mumbai, with plans to open a number of others. Ashman added that as part of the company’s strategy to localise, smaller packs had been introduced as they had found these to be more popular with Indian consumers.