Analysis Of Clothing Import Prices And Retail Prices In The United States In Recent Ten Years

American importers and retailers clearly assume higher Asian production costs.

In the first half of this year, the price of clothing imports increased significantly in the United States, the highest level in ten years.

American Apparel retail prices do not follow the same trend, and the profits of American brands and retailers will inevitably be affected even if prices compare or even decline a year ago.

As Asian production costs rise and their retail prices fall, american apparel importers are now facing a downward spiral of profits.

According to official data in the past 6 months, the import price of woven garments increased by 1% to 3.1% over the same period last year. For example, the import price of non woven garments (category HS62) rose by 2.3% in April and increased by only 1% last year.

Over the past ten years, the import prices of woven garments decreased from 1999 to 2006, which rose slightly in 2007 and increased significantly in 2008.

Import prices for knitted garments (category HS61) increased slightly in the first half of the year, mainly due to stable production costs in Central America and Mexico.

The United States imports quite a lot of woven garments from Asia, and is protected by close market and tax-free exporters of knitted garments in Central America.

In April 2008, the import price of woven garments returned to its level 10 years ago, even more than the average price of 3% in 1999, and the price of knitted garments returned to its level ten years ago.

If the import price of garments in the first half of this year increased significantly, the retail price of garments in the United States would be far less than that.

According to data from the US Department of labor, the US clothing CPI declined by 1.9% in the first half of this year, which is quite a decline compared with the price changes in the past ten years. It only dropped 2.1% in the first half of 2003.

Last year, the retail price of garments fell by only 0.3%.

By comparison, the total consumer price rose by 5.5% in the first half of 2008, and the consumer price rose by 2.3% even without the food and energy sector.

At present, clothing consumption in the United States is slowing down and exerting pressure on retail prices, and importers are not allowed to be pferred to consumers due to increased production costs in Asia.

In the past ten years, the cost of production in Asia has been relatively low, so the price of clothing has declined. Now, the poor financial situation of US retailers and suppliers may lead to the re integration of retail industry.