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    How Did The Clothing Industry Try To Raise Prices After Years Of Deflation?

    2010/9/13 10:10:00 37

    Deflation In Garment Industry

    recently

    Chanel

    In the global price range, some classic styles even rose by 30%, not to mention that the shortage of stocks frequently made the buyers anxious.


      

    Apparel industry

    RichardNoll, chairman and CEO of Hanesbrands, recently concluded that "the era of deflation in fashion is over."

    The prices of raw materials and cotton for clothing increased by 50% over the previous year, and labor and freight rates were also climbing. Moreover, a large number of garment factories went bankrupt in the 08 financial crisis. These factors have restricted the supply volume today in the demand surge.

    The rise in the RMB exchange rate against the US dollar is even worse, resulting in higher cost of clothing for China's exports.


    "Global consumers have noticed that the price of products is rising, not only because of the increase of production costs, but also by the imbalance between supply and demand."


    Noll said, "there is no doubt that the series of price increases we are seeing now will affect the overall price of clothing in 2011."


    In order to control costs, reduce inventory and speed up the flow of goods, the distributors in apparel industry have become the trend, which brings many turnover pressure to suppliers.

    In order to pport goods from Asia and Central America back to the United States, Hanesbrands has spent $15 million on air freight this year.

    Nol frankly, "when leadtime (the time of ordering to delivery) is limited, you need to deliver goods at the fastest speed.

    Air pportation is our only option, which is much more expensive than shipping. "

    Sports brand Columbia also said on Thursday that they were also faced with the upward pressure caused by freight charges in order to bring the autumn products to market as soon as possible.


    Retailers and dealers, of course, want to turn these extra expenses to consumers.

    But at present, the economy has not yet fully recovered, the unemployment rate of up to 9.5% of the United States, this is undoubtedly a major challenge.

    EricWiseman, chairman and CEO of VF group, the world's largest apparel producer, warned that this would be a "resurgence of the fashion industry".

    Rest

    "


    Indeed, there are more and more signs that the pressure of rising costs in these production processes will be accepted by consumers sooner or later.

    But this may be a long process, and the price will continue for more than a decade.


    According to us trade department data, clothing prices began to slide after reaching a high level in 1992, except for 2 exceptions, including a slight increase of 0.6% last year.

    Despite these small growth, the price of clothing in 2009 is still lower than it was 17 years ago.

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