What Can We Buy in London Which Is Cheaper Than India?
What Can We Buy in London Which Is Cheaper Than India?: A Complete Guide
London tends to have a reputation among Indian travelers for being an expensive city to visit. This is proven through the video that went viral on social media in which an Indian lady could only manage to buy carrots worth a packet when she attempted the ₹100 grocery challenge in London. However, there are some items that cost the same as in India while others may be cheaper than in India. These include luxury fashion brands, branded cosmetics, and other electronic gadgets. Here is your ultimate guide on the best things to buy in London.
The Purchasing Power Reality
Let us start with a harsh reality: when it comes to ordinary goods, London is much costlier compared to India. The popular ₹100 challenge made it evident that even an ordinary cheese and onion sandwich was worth £1.50 (approximately ₹190), a 500 ml water bottle was priced at £1.15 (approximately ₹145), and cabbage was priced at £0.89 (approximately ₹113) all worth more than ₹100. However, the sole product Watford Private Hire available under the ₹100 budget was a carrot costing £0.60 (approximately ₹75).
Yet again, such comparisons tend to overlook the income angle. An income of £108,000 per year in London may sound good on paper, but the reality is that the professional is left with about £6,100 per month after taxes. Even after spending around £2,200 per month for a small one-bedroom apartment in Zone 2 of London, it remains a decent amount and upper-middle class income but certainly not luxurious. On the other hand, ₹45 lakh per year in Bangalore offers better purchasing power parity and allows luxury apartments and even the luxury of household help and apps. The bottom line is that day-to-day goods in London cost more than in India, but some expensive goods become competitive.
Luxury Fashion and Designer Brands
And that is where the advantage of shopping in London lies for Indians. Traditionally, luxury products in India enjoyed a sizable margin because of heavy taxes on imports. Yet in the recent past, luxury brands from across the world have started to take measures to reduce the price margin between India and Western countries. Prices now vary typically between 10-15%. This margin is also reduced through the VAT refund policy of the UK government (VAT refunds are possible only for tourists, for which they pay back the 20% VAT at the customs).
However, the real strength is in the variety and exclusivity of the products offered. For example, brands like Louis Vuitton, Gucci, Dior and Chanel have a greater variety of products in their stores in London compared to India, with seasonal collections and exclusive items not always found in India. The better shopping experience and the allure of shopping from "London" and "Dubai" keep Indians buying abroad. Moreover, India has a 20% tax on expenses made abroad under the Liberalised Remittance Scheme, which could encourage luxury shopping domestically. But at the moment, London is still one of the best places for luxury shopping in fashion.
Electronics: Premium with a Price Caveat
In terms of electronics, the situation becomes unclear. The VAT rate applied in the UK to discretionary purchases such as laptops, mobiles and TVs is 20%, which is more than the 18% GST in India, thereby making the UK not necessarily cheaper when it comes to consumer electronics. Nonetheless, international brands tend to base prices according to market trends, and thus, there might be discounts during sales periods in London.
Comparison with the iPhone 17 is quite interesting as well. Its basic version sells in the United Kingdom at the price of £799, i.e. roughly ₹84,200, while in India, where the iPhones are quite expensive due to their high GST and other charges, the iPhone costs ₹82,900. It means that the UK is not one of the cheapest places to buy an iPhone, as one can find cheaper options in the USA, UAE, Japan, and Hong Kong.
Cosmetics and Beauty Products
Cosmetics, makeup products, and perfumes can be more affordable in London than in India. International cosmetic companies, such as Estée Lauder, MAC, Clinique, and other luxury perfumery, usually sell their goods at cheaper rates in the UK because of higher import duties and taxes in India. With the recent FTA agreement between India and the UK, there will likely be a reduction in tariffs on various cosmetics. However, currently, London duty-free shops and department stores, including Harrods and Selfridges, provide significant discounts.
Scotch Whisky and Imported Spirits
In India, there are high import duties levied on any imported alcohol products, thus making premium Scotch whiskey expensive. However, in London, the same bottle may be acquired at a much cheaper price, sometimes by 30-50%, especially when shopping for duty-free products in airports. Consequently, Single malts and premium blends are some of the best buys that Indians can make. In addition, the India-UK Free Trade Agreement will lower taxes on Scotch whiskey in future, although currently, acquiring stocks in London is quite wise.
What to Avoid Buying in London
Essentials and Groceries: As evident from the viral video, even the most basic needs such as water, bread, and vegetables are unbelievably expensive. Go for meal packages or roadside food, but stay away from buying essentials used in India.
Restaurant Food: Eating out or having a sit-down dinner at the restaurant is extremely costly as compared to Indian cities.
Fashion Items: Big clothing chains, such as Zara or H&M, are not much cheaper in Europe as compared to India.
Most Electricals: As mentioned, even laptops and iPhone prices are usually similar or even higher.
The Traveler's Strategy
For maximum saving on your visit to London:
For luxury items and fashion items: Visit the flagships stores on New Bond Street which is the most expensive place to shop in the world.
For alcohol and perfumes: Always make sure that you check the duty free rates at the airport upon return; these are usually the best prices.
For cosmetics: Compare the prices in the departmental stores with the duty free rates; you may find very good bargains and even gifts when buying.
For transportation logistics: Always try and pre-arrange your transportation for bigger luggage shipments. In case of shopping that requires many bags, you will find that pre-arranging transport will definitely be easier than transporting parcels via the Tube to your suburb storage places. Also, when going to the airport, pre-arranging a Watford to Luton Airport Taxi makes the whole process easier.
Final Verdict
The city is not a place for thrifty everyday shopping. But if one wishes to buy luxurious clothes, top-notch make-up items, fine whisky, and limited edition brands, then London will be worth visiting, especially taking into account the larger variety and the possibility of VAT refund. With this approach, you can have an exciting time in London without overspending on your shopping needs. Otherwise, for everything else, one should just stick to the markets at home.
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