Ask Clive
CUT TO FIT
A perfect storm of the pandemic, energy crisis and supply chain chaos is resulting in rising garment prices, says Clive Allcott
W
e are all increasingly aware of the global economic situation affecting prices across many products and services. Over the last decade it became common fare for the clothing suppliers to the promotional market to increase prices on average 7-9% per annum based on the cost of living and increases in raw materials. In the last two years, and more so in the last six months, price increases are now being introduced on a monthly basis across all garments and cotton-based products including bags. These pricing increases are due to the restart of activity worldwide in 2021 and the increased demand from the textile industry. Textile prices, like many raw materials, are soaring on resurgent post-pandemic demand and the rocketing cost of both energy and transport. Cotton, linen, silk and wool, as well as synthetic materials derived from petroleum, are facing surging prices boosted also by the global
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supply-chain crunch. You can also add into the equation that cotton prices started climbing last year on account of sanctions by the West on China’s textile hub, Xinjiang, and power shortages in China. While supply is constrained, demand has been strong due to the opening up of economies and this in turn has been putting pressure on prices. In India cotton prices have gained nearly 40% in 2022 and are at an 11-year high
JULY/AUGUST 2022
with ongoing Covid restrictions impacting cotton yarn spinners and cotton-based textile and garment manufacturers, forcing many to cut down or close operations. It’s not just garment prices going up, as one of the promotional industries core items, the cotton shopper or tote bag has also seen rises. In the wider marketplace that influences the promotional sector, recession-scarred retailers, who are just starting to recover from the pandemic, are facing the turmoil again. Analysts feel that they might pass on some of their pressure to the apparel shoppers as higher prices for apparel. This is putting pressure on both distributor and suppliers to offer product and hold prices for schemes and web shops which are often negotiated annually. A crystal ball would be the ideal companion at this time however market pressure is being responded to in a positive way which hopefully will benefit us all in the long run. Happy selling, Clive (The Bag and Clothing Guru).
www.productmediamagazine.co.uk
