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    US Apparel Retailers Plan To Raise Overall Price By 10%

    2011/4/27 10:06:00 40

    American Apparel Retailing

    According to FT's Chinese language report, Fitch, a credit rating agency, said that

    Cotton price

    As China's labor costs continue to rise, American retailers will be forced to raise their clothing this year.

    Price

    The highest will be 15% higher than last year.


    In the past year, new

    market

    Demand for consumer growth pushed up commodity prices, exacerbating inflation in the west, and cotton prices rose by 120%, hitting a peak of more than $2 a pound in early March.

    The wage expenditure of China's garment factories is also rising.


    The price increase will affect many from Lo J Faith (North Face) to Levi's (Levi 's).

    brand

    It will mark the end of an era of twenty years: in the past twenty years, the cost of clothing has been declining as western manufacturers have shifted more production to low-cost emerging markets.


    Mike Mike, chief executive of JC Penney, a mid-range department store, predicted last week that the whole Ullman Penney

    industry

    In the second half of this year, the price of clothing will be increased by 5% to 20%.

    JC Penney sells many brands of clothing, including Ali Shi Fagafaga Bong (Liz Claiborne) and docks (Dockers).


    Levi's Levi (Strauss) warned this month that

    clothing

    "There will be a two digit price increase."

    It said consumers' response was "unpredictable" and warned that rising prices could lead to reduced sales.

    Levi's's Levi's jeans usually contain 90% of its cotton.


    Aga Wall estimates that the rise in costs will lead to a 0.3% to 0.5% drop in gross margins of US apparel retailers.

    The gross margin of American apparel retailers is usually between 38% and 40%.

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