The Govt latest notification about relaxation of MRP norms for single brands
All the packaged goods in India have to mandatorily bear the MRP. This demands labeling activity at the time of final packaging and costs a bomb to the manufacturer. This directly impacts the price of the product and eventually, bear by the end consumer as well as restricts them to do any amendments.
Therefore, to bring down prices for end customers government has changed labeling norms for single brands such as IKEA, Decathalon, Forever21 and several other chains. Prices can be pasted on the racks itself or in the large display for customer ease. Plus, all the products will be barcoded and the customers will get the barcode scanners to know the product price. This will help them to bring down the cost and offers the products at much economic cost. Plus, this will provide the ease to decide the product price considering the location, logistics cost and other expenses. eg. A store in a posh locality with higher rentals can charge more for a product compared with a store in a rural area. Currently, companies hedge the overall production cost and calculate an average as MRP.