Research firm says clothing prices will rise
20/07/2010
The company’s comments were specific to the situation in the UK, but several of the reasons Verdict offered for the price-hike concern issues that affect the whole industry.
Consulting director, Neil Saunders, told the Financial Times: “Prices can’t defy gravity forever, and ultimately over the next few years the only way will be up.”
The company said many retailers and apparel brands increased business with outsource manufacturers in China last year when manufacturers were keen to widen their customer base after a fall in orders from the US. Since then, labour costs in China have risen, as has the cost of many raw materials. Verdict said the cost of cotton, for example, had risen by about 50% in the past year, and is trading close to its highest level in 14 years.
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