Fashion Industry Network

The Fashion Industries Favorite Business Network ...

Don't fear raising prices to your buyers...

The unfortunate reality is that clothing prices are rising. If you have not already felt the pinch from your factories I would be surprised. The cost of cotton has gone thru the roof.

Here is a cotton price chart. I am NOT an expert on commodity prices but this chart appears to show a significant increase in cotton pricing from 2009.

I obtained this chart from http://futures.tradingcharts.com/chart/CT/M You can use it to get cotton price charts for additional time periods if you wish. You can also get intraday cotton prices, daily cotton prices, weekly cotton prices, etc.

Other fibers are following suit. In addition, labor cost has increased dramatically.

I read from one report from July 2010, that the labor ministry in Balgnadesh agreed to increase the garment workers minimum wage. The wage increased from 1,662 taka ($25) monthly wage to 3,000 taka. In an artilce I read in November 2010 it said, "In an important step towards a living wage for the country's garment workers, the Bangladesh Garment Manufacturers Exporters Association (BGMEA), an association of factory owners, announced that next month it would begin paying workers the new national minimum wage." So, if the cost of garment production labor increases, the cost of garments increase.

Labor cost has also incresed in China and other countries as well.

Anyway, my point is that the factories are charging more money for garment production. Therefore, you may want to (or need to) increase your selling price to clothing retailers in 2011. However, obviously you will need to hope that your competitors are not keeping their old (lower price), if you try to raise your price to your buyers. My feeling is your competitors will also need to raise pricing, but this is something you will have to carefully monitor on your own.

Good luck... 2011 will be another challenging year. Hopefully cotton prices will come back down to earth... For now, they are out of control high...

Views: 2183

Comment by Apparel1 on December 11, 2010 at 8:44am

If you are interested in cotton pricing or other aspects of cotton, you can check the cotton fiber directory on Apparel Search.  You can also find cotton pricing and information at the USDA website.  If you would like to keep an eye on other textile fiber classifications, you can monitor current events at the textile fiber newsdirectory section.  It is important for members of the fashion industry to keep an eye on textiles news and textile prices.

Comment by Apparel1 on December 15, 2010 at 4:09pm
Comment by Apparel1 on December 15, 2010 at 7:59pm

Here is some more information on how you can watch cotton prices so you can make educated decisions regarding the buying price and selling price of clothing and fashion accessories made with cotton.

Comment by Apparel1 on March 15, 2011 at 12:10pm
Make sure not to miss Jane Hamill's new blog post on the subject of cotton prices, "Price of cotton going up? What does that mean for your line?"
Comment by Apparel1 on July 27, 2011 at 10:24am
Cotton pricing has fortunately come "down" since my previous posts.  Here is a cotton price update for July 2011.

Comment

You need to be a member of Fashion Industry Network to add comments!

Join Fashion Industry Network

Fashionable Suggestions

Review more fashion:

Members

Photos

  • Add Photos
  • View All

Badge

Loading…

Fashion Industry Network

Here are some fashion links of interest:

Fashion Industry

Fashion Jobs

Fashion News

Fashion Calendar

Shopping 

Fashion Blog

It is always a good time to learn more about clothes, shoes, style, or accessories.

We hope that you love the apparel industry as much as we do.

© 2019   Created by Apparel1.   Powered by

Badges  |  Report an Issue  |  Terms of Service

  Thank you for using the Fashion Industry Network.  Have you helped another member today? Answer questions in the forum. It brings good luck.