Edition #16: GST 2.0 Unveiled, Nike Cuts Jobs, Q-comm Ad Rates Climb & Armani's Legacy

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📰 India Retail Pulse

GST 2.0: The New Tax Regime Effective from September 22, India’s new GST 2.0 regime has simplified the tax structure from four major slabs to just two: 5% and 18%. The move, which also introduced a new 40% tax slab for luxury goods, is aimed at boosting consumption by placing daily-use items in a lower tax bracket. 🔗 Read More

Nike to Cut Corporate Jobs Amid Turnaround Effort Nike plans to reduce its corporate workforce as part of a broader cost-cutting initiative. The move is part of the company's "turnaround effort" to streamline operations and become more agile in the face of intense competition. 🔗 Read More

FMCG Stocks Soar on GST Cuts Following the GST rate cuts on essential items, major FMCG companies like Emami, Colgate-Palmolive, and Britannia saw their stocks soar. Analysts believe this policy shift from capital expenditure to consumption will stimulate urban demand, which has been subdued. 🔗 Read More

Hunch Ventures Takes Over Jamie Oliver India Restaurants Hunch Ventures has acquired sole ownership of the Jamie Oliver Restaurants in India, buying out its joint venture partner, International Market Management (IMM). Hunch Ventures plans to invest ₹200 crore over the next three years to expand the brand into Tier 2 and Tier 3 cities. 🔗 Read More

Q-comm Ad Rates Climb 50% in a Year Quick commerce (Q-comm) has emerged as a significant retail media channel in India, with ad rates surging by 30-50% year-on-year. Advertisers are increasingly willing to pay a premium for visibility on platforms like Swiggy Instamart, Zepto, and Blinkit, due to rising user engagement and proven performance outcomes. 🔗 Read More

No Change for Advertising as GST 2.0 Kicks In While the new GST 2.0 regime is overhauling the goods sector, the advertising industry remains largely unaffected. Digital advertising will continue to be taxed at 18% GST, and print media advertising will remain at 5%, providing stability for media planners and brands. 🔗 Read More

🌍 World Retail Headlines at a Glance

Legendary Italian Designer Giorgio Armani Dies Giorgio Armani, the legendary Italian fashion designer and founder of the Armani Group, has died at the age of 91. Known as "King Giorgio," he built a global fashion empire from scratch and was credited with revolutionizing global style with his unstructured, elegant designs. 🔗 Read More

France Fines Shein $176 Million Over Cookies France's data protection authority has fined online fast-fashion retailer Shein 150 million euros ($176 million) for the improper use of cookies. The fine was issued because the company's website continued to place cookies on users' computers even after they opted out, a violation of data protection regulations. Shein has stated it will appeal the decision. 🔗 Read More

Ulta Expands Globally with Mexico Store Openings Ulta Beauty is expanding its international footprint by opening its first two stores in Mexico. The move, developed in partnership with retail company Axo, is part of Ulta's long-term growth strategy to bring its unique assortment of beauty brands and services to new markets. 🔗 Read More

G-III’s Q2 Profits Fall as Tariffs Settle In G-III Apparel Group reported a drop in its Q2 profits, with net sales and adjusted earnings down from the previous year. The fashion conglomerate, which owns and licenses brands like DKNY and Karl Lagerfeld, is facing headwinds from tariffs and is navigating a challenging retail environment. 🔗 Read More

Gap Is Expanding in the Beauty and Accessory Space Gap Inc. is making a strategic bet on beauty and accessories to fuel its growth. The company will be expanding its assortment of these products in its stores, aiming to capitalize on its stronger financial footing and cultural relevance. 🔗 Read More

Mattel Restructures Its Brand Leadership Team Mattel is reorganizing its brand leadership team with the goal of accelerating its brand management strategy and growing its entertainment business. The restructuring includes the promotion of Roberto Stanichi to the new position of chief global brand officer, while Chief Brand Officer Lisa McKnight is exiting the company. 🔗 Read More

McDonald’s Escalates Restaurant Industry’s Fight Over Tipping McDonald’s has reignited a debate within the restaurant industry by pushing back on the rising trend of digital tipping, instead focusing on offering value and affordable prices. The company is reintroducing its "Extra Value Meals" and other value platforms to attract price-sensitive customers. 🔗 Read More

Burberry Returns to FTSE 100 Blue Chip Index After a period of share price struggles, luxury brand Burberry has returned to the FTSE 100 blue chip index on the London Stock Exchange. The move signals renewed investor confidence and a significant recovery for the company. 🔗 Read More

Unilever Aiming to Become a Beauty and Well-being Powerhouse Unilever has announced its long-term strategy to transform into a beauty and well-being powerhouse. The company is betting on the growing consumer trend that links physical appearance with mental well-being, leveraging its science-led research and a portfolio of brands like Vaseline and TRESemmé. 🔗 Read More

🔥 Top Funding & Quarterly Results

Former Flipkart Exec’s Quick Comm Startup FirstClub Raises $23M Quick commerce startup FirstClub, founded by former Flipkart executive Ayyappan R, has raised $23 million in a new funding round. The capital injection, led by Accel and RTP Global, has boosted the company's valuation to $120 million, enabling plans for operational expansion and new product categories. 🔗 Read More

👔 Key Retail Appointments

Sharon Supriya joins Premom Health India as CDO Sharon Supriya, previously with Times Group, has been appointed as the new Chief Digital Officer (CDO) at Premom Health India. In her new role, she will lead the company’s digital strategy and brand growth to expand its presence in India’s health-tech and fertility care sector. 🔗 Read More

Heather Hopkins Freeland joins LinkedIn as its first Chief Brand Officer LinkedIn has appointed Heather Hopkins Freeland as its first-ever Chief Brand Officer. Freeland, who previously served on Spotify's CMO Advisory Council, will be responsible for overseeing the professional networking platform's brand and consumer marketing. 🔗 Read More

🤖 Deep Dive: India's GST 2.0 — The Biggest Tax Overhaul in a Decade

What Is Happening

India has unveiled a comprehensive Goods and Services Tax (GST) reform, effective from September 22, 2025. The new GST 2.0 regime simplifies the previous four-slab structure into just two main rates: 5% and 18%. A new, higher 40% slab has also been introduced for luxury and "sin" goods. The changes, aimed at easing the burden on the common citizen, are expected to significantly impact consumer spending across various sectors.

Why It Matters

The tax rationalization is a major push to boost consumption and economic growth, which has been facing external headwinds. Economists project that the GST overhaul could add 0.2-0.3 percentage points to India's GDP in FY26. The move is also expected to put more disposable income in the hands of consumers and help offset the economic impact of global trade tensions.

Some Highlights:

• Daily Essentials Get Cheaper: A wide range of daily-use items have been moved to the lower 5% slab. This includes packaged food, hair oil, shampoo, toothpaste, and medical essentials like thermometers and glucometers. Individual life and health insurance policies will now also be exempt from GST.

• Aspirations Become More Affordable: GST on consumer durables such as air conditioners, dishwashers, and televisions (above 32 inches) has been reduced from 28% to 18%. Similarly, small cars and two-wheelers (under 350cc) will now be taxed at 18%, down from 28%.

• Real Estate Gets a Boost: The GST on cement has been cut from 28% to 18%. Other construction materials like granite, marble, and fly ash bricks have moved from 12% to 5%. This is expected to lower construction costs and provide a festive boost to the real estate sector and homebuyers.

• Luxury Goods Face Higher Taxes: GST has been raised on items like luxury apparel and clothing accessories priced over ₹2,500, which will now attract an 18% tax, up from 12%. High-end cars, SUVs, and other luxury vehicles, along with aerated drinks and tobacco products, have been moved to the new 40% slab.

What’s Next

The government has estimated a revenue loss of ₹48,000 crore from these cuts. However, officials are confident that increased buoyancy and higher consumption will help offset this in the long run. The new simplified structure is expected to ease compliance for businesses and is seen as a major step toward making the GST regime more efficient and growth-oriented.

📚 Sources:

The Economic Times | Livemint

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