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    British Clothing Prices Rose For The First Time In 18 Years.

    2010/11/22 9:36:00 71

    British Garments

       Affected by Asian tableland cost and wages The rise in clothing and footwear prices in British (2010) September has been the first since 1992. Although only 0.9% higher than the same period last year, Textile Intelligence said it now faces unstable economic growth, doubts about the two economic downturn and the rise in unemployment caused by the British government's spending cuts. Between August and September, the price range of clothing reached the maximum, reaching 6.4%. The rise in prices is very similar to the warnings put forward by some chain retailers in the UK, including Next and Primark; another company says there will be a price rise. Chain dealer It's Sweden's H&M.


       The main reason for the increase in prices is a sharp rise in cotton prices. From March 2009 to September 2010, cotton prices rose to 127% from a pound of 51 points (cent) to 116 points in 18 months. The shortage of cotton is mainly due to the fact that cotton growers have been cut down when cotton prices are very low, and the utilization rate of cotton has increased due to the strong retail demand of mainland China and India. The fatal blow is the big floods in Pakistan.


    Many textile mills have changed to the use of polyester as a cheaper alternative, but such additional demand has also raised the price of polyester. The average price of polyester staple fibers in mainland China increased by 30% as of mid October. In addition to the rising cost of raw materials, many textile factories located in low wage cost countries also bear high salaries. In the past 4 years, Bangladesh has increased 80% of the monthly minimum wage for the lowest level workers under the pressure of workers' endless struggle and trade unions.


    The increase in labor costs and the shortage of labour also perplex factories in mainland China, especially in coastal areas. Foreign workers have been sent back to their country after the global economic crisis, which makes the problem of job shortage worse. Although production has been restored again, many workers are unwilling to return to the working environment of employers in the plateau. In remote counties and cities, labor costs are still low, but in the era of fast fashion, transporting products from these places to the eastern and southern ports of the mainland takes too long, let alone send goods to the west by sea. market 。


    Western retailers also have to pay higher prices because of the currency appreciation in mainland China. In dollar terms, if the wage increase and the appreciation of the RMB are taken into account, the average monthly labor cost in Zhejiang will grow by 140~220% between 2006 and 2010.


       Many buyers look for low-cost areas everywhere, but no other country can compare with China in terms of quantity, product diversity, professionalism and quality. In view of the fact that the high price of cotton may continue for some time, it is difficult to predict the price of storefront selling to the low price enjoyed by consumers in Europe and America over the past 10 years.

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