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Elluvi

Why the same serum costs three times more here

A serum with an international list price of around Rs. 1,800 routinely appears on a Pakistani shelf at Rs. 4,500. Nothing about the formula changed on the way here. The gap is made of duty, freight, tax, margin and an exchange rate, and it is worth understanding — because it explains both why imported skincare is expensive and why the cheapest listing of an imported product is the one most likely to be fake.

A white skincare bottle standing beside an opened cardboard shipping box with tissue paper.

The landed cost is not the list price

By the time an imported cosmetic reaches a Pakistani shelf it has absorbed customs duty, additional and regulatory duties where they apply, sales tax, freight, clearing costs, importer margin and retailer margin. Each one is a multiplier, not an addition.

That compounding is the part people miss. A twenty percent margin applied after duty and tax is twenty percent of a much larger number than the original price, so the layers do not add up — they stack, and the final figure ends up two to three times the origin price without anyone in the chain behaving unreasonably.

The rupee moves and the shelf price does not move back

Import pricing is set against the exchange rate at the time stock was bought. When the rupee weakens, prices rise on the next shipment. When it strengthens, prices rarely fall, because existing stock was already paid for at the old rate.

This is why skincare prices in Pakistan feel like a ratchet. It is not usually opportunism — a distributor holding six months of inventory bought at a worse rate genuinely cannot discount it. It does mean that price is a poor signal of current value in this category.

What a formula actually costs to make

Raw actives are cheap. Niacinamide, glycolic acid and hyaluronic acid cost very little per bottle. The expensive parts are barrier lipids like ceramides, stabilising an active at the right pH, packaging that survives heat and transit, and the testing that proves it holds.

This is the uncomfortable fact under every skincare price argument. In a Rs. 4,500 imported serum, the ingredients are a small fraction of the number. Most of it is border, brand and shelf. Which is not a scandal — it is simply what you are buying, and it is worth knowing that you are buying it.

Why grey imports are cheaper, and what you get instead

A listing far below the official price has usually skipped part of the formal chain — parallel import, unofficial stock, an old batch bought at clearance, or a counterfeit. The saving is real; so is what it costs you.

For a shampoo the risk is mostly disappointment. For an active serum it is different: an oxidised vitamin C, an under-dosed retinol or a formula that has spent a summer in an unconditioned warehouse simply does not work, and the conclusion people draw is that the ingredient does not suit them. It is a genuinely expensive false economy.

The other direction: why local pricing looks high too

Locally sold skincare carries costs an international list price does not assume — cash on delivery, failed deliveries and return legs, small production runs without volume pricing, and marketing to a market that has been burned by counterfeits and is right to be sceptical.

Small batch sizes are the biggest of these. A brand producing thousands of units pays substantially more per unit than one producing hundreds of thousands, and there is no way around that until volume arrives. The trade a small brand makes is whether to protect margin by thinning the formula or to hold the formula and accept a smaller one.

Where our own prices come from

Elluvi formulates in Germany and ships from Lahore, so a finished retail product does not cross a border with duty attached at the end of the chain. That is the main reason a 120 ml moisturiser with ceramides and 5% niacinamide sits at Rs. 1,249 rather than in the imported tier.

It is not a claim to be cheap. It is a claim about where the money in the price is: formula, packaging, testing and delivery, rather than customs and three intermediaries. The way to check that claim is the ingredient list and the stated percentages, which is the whole reason we publish them.

How to spend well in a market priced like this

Compare per millilitre, not per bottle. Spend on the leave-on products and save on the rinse-off ones. Treat a price far below the market as a warning rather than a find. And judge a product by stated percentages rather than by what it costs.

Price and quality are only loosely related in this category, and in the imported tier they are barely related at all. The most reliable thing you can do is stop using price as a proxy for how good something is, and read the label instead.

Common questions

Customs duty, sales tax, freight, clearing costs, importer margin and retailer margin stack on top of each other, and the exchange rate sits under all of it. A product can land at two to three times its origin price without anyone in the chain overcharging.

Looking for step-by-step answers instead? Our guides cover routines, serums and how to use each active ingredient.