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Cotton Prices Rose By &Nbsp; &Nbsp; Underwear Prices Surged In 2011.

2011/2/23 16:30:00 136

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Recently, the major media in the United States have written to remind consumers: this spring, if you want to add some new clothes to yourself, you may have to weigh your wallet and not be as you want to be.

With the recovery of the economy and the rising demand for raw materials, the low price of cheap labor and moderate inflation over the past ten years has brought about a low price.

Clothing Era

Will come to an end.

Bott Fliging, President of strategic resource group, a consulting firm in the US retail industry, points out that in the next few months, the price of clothing in the United States will increase by about 10%, while the second half is expected to reach the highest level.

The cost of producing a garment accounts for 25% to 50% of the raw material and 20% to 40% of the labour force, depending on the complexity of the manufacturing process.

As far as the price rises, cotton prices and labor costs are undoubtedly the two most important factors.

According to the introduction of the International Cotton Advisory Committee, now the United States

Cotton price

It has jumped to a 150 year high of 1.90 dollars per pound, more than doubled from the same period last year.

The rise in cotton prices began in August last year, and the harsh climate conditions led to a major reduction in cotton production, including China, the United States, Pakistan and Australia.

Meanwhile, as the second largest exporter of cotton after China, India's restricting export policy has also exacerbated the shortage.

More importantly, the global economic recovery has become a powerful driving force for the rising demand for cotton, making prices rise all the way up to now.

Eric Wiseman, President of the famous clothing manufacturer VF, has announced that the prices of many famous brands including TheNorthFace, Nautica, Wrangler, Lee and so on will rise to varying degrees, especially for jeans. Half of their cost comes from cotton prices.

Similarly, in the past century, the "brook brothers", with high quality materials, has raised the price of ironing shirts from $79.5 to $88.

In addition, many brands such as Levi, s, Nike (Nike), Steve Madden (SteveMadden), Jesse Pani (J.C.Penny), A&F and so on have all expressed a price increase plan.

In order to shift the cost of rising cotton prices, manufacturers began to switch to synthetic fibers such as rayon, and minimize the decorative items on jeans. The range of colors available for consumers has also been greatly reduced.

From the point of view of production, some Chinese garment factories that have stopped production during the recession have not yet fully regain their productivity.

Analysts believe that the shortage of labor has forced producers to pay more. Although manufacturers have shifted to cheaper countries such as Vietnam, "this has basically reached the limit, with little success."

American consumers have been calculating their own prices.

A housewife in New Jersey said, "I won't spend more than 50 dollars to buy jeans. I'll keep my money for rainy days."

Even those who are well off, their spending power has been affected.

A 47 year old man who has always been keen on the "Booker brothers" brand shirt said he would set a "quota" for his own shopping. "Before buying two shirts, you can only buy one shirt and two socks."

Not only consumers have to go through a difficult period, including WAL-MART.

Retailer

They are also facing pressure to raise prices.

In a recent interview, WAL-MART CEO Mike Duke claimed that "the price increase is no doubt, but no one wants it to be the only solution. After all, these costs will be added to consumers."

However, in February 17th, the latest report released by the US labor department showed that the US CPI grew by 0.4% in January, although the absolute value of the increase is not large, but it has been rising for seventh consecutive months, higher than the average market expectation, which is benefited from the rising prices of clothing and housing.

Economists worry that the inflationary pressures of the United States are accumulating, and that more businesses are going to shift costs to consumers.