Textile Prices Going Up!

Wednesday 13th of October 2010 03:26:02 AM

Textile Prices Going Up!

Textiles Intelligence is a global business information business that tracks prices and other data. Recently it reported that clothing and footwear prices are going up. The reason for the price increase is rising raw material prices and higher labour expenses. Clothing and footwear prices have not risen since 1992 so the increase of .9% in September compared to the prior September is quite significant.

Fashion United interviewed Katherine Miles who is a consultant with Verdict Research. She was quoted as saying, “Upward cost pressures in a number of areas have driven clothing prices to increase for the first time in 18 years. Currently cotton prices are at a 15 year high, transport costs continue to climb, labour costs in the Far East are rising and the pound remains weak, which all contribute towards driving up inflation. These mounting costs have resulted in retailers’ margins being squeezed and are now at a level where retailers have no choice but to pass on some of the costs to the consumer.”

The price increases come at a time when households are still trying to cope with the economic impact of the recession. Rising prices will impact all textiles including items for the household and all clothing like t-shirtsand work uniforms. The rising labor costs were expected because many of the raw materials manufactured in developing nation textile mills have been working to raise sub-standard labour wages.

Another reason mentioned for rising prices is the 20% VAT tax scheduled to begin in January 2011. Retailers are slowly raising prices now so that consumers aren’t shocked in January by a sudden large price increase. The hardest hit clothing sectors are predicted to be Womenswear and Menswear. If you know you need new t-shirts, polo shirts or sweatshirts, a good time to buy is now.