Editorial: US apparel retailers hold on to their price gains after the cotton price hike

US apparel retailers appear to have held on to the price gains they made after a 154% hike in cotton fibre prices, according to research by Jon Devine of Cotton Incorporated and Alejandro S Plastina, formerly with the International Cotton Advisory Committee (ICAC). During the hike, which occurred between August 2010 and March 2011, cotton fibre prices rose more steeply that at any time since records began. Consequently, no one knew for certain how much, or how quickly, the hike would affect the prices of yarns, fabrics and apparel in the manufacturing supply chain, and the prices which consumers would have to pay for apparel items in retail stores. In the event, the hike resulted in an increase in the apparel retail price of just 6-7% by the time it had filtered through the supply chain. More recently, the price of cotton fibre has fallen noticeably but apparel retail prices have remained at more or less the same level as when they peaked. In this report, Robin Anson discusses the effects of the hike throughout the supply chain and speculates what may happen to cotton supply, demand and prices in the future if, as has been predicted, global demand for cotton fibre grows faster than the ability of producers to supply it.

To read the full report buy issue 174 now	Subscribe

Six times a year, Textile Outlook International provides up to 200 pages of intelligence, expert analysis and insight on the global textile and clothing industry.

What's in it? Each issue provides an authoritative source of information on key industry topics, including: circularity; cotton; environmental sustainability; fibre prices; innovation; production and consumption forecasts; imports and exports; industry giants and emerging brands; international trade fairs; key geographical markets; recommerce; retail; supply chains; textile and clothing trade; textile machinery; trade and production trends; world markets; and yarn and fabric manufacturing. A single issue of Textile Outlook International includes: an editorial think-piece on a topical issue from an industry expert a report on textile and apparel trade and production trends a round-up of the latest international trade fairs a feature on textile and clothing imports and exports or fibre prices, production and consumption a report on a key geographical market insight and analysis of a key market leader or fast-growing start-up An annual subscription to Textile Outlook International is a cost-effective way to keep informed about trends and developments in the global textile and clothing industry. Subscriptions are available in printed and/or digital formats. Printed and digital subscribers receive each issue in printed format in addition to a digital PDF file, which is available immediately on publication. Like all Textiles Intelligence publications, Textile Outlook International is a reliable source of independently sourced business information, and it does not carry advertising. This is what our customers say: "I truly appreciate Textile Outlook International and especially the chapter on Prospects for the Textile and Garment industry in China, which provides invaluable insights for business in the region." (Hasina Raonimahary; Designer; MERAVIGLIA Pte. Ltd, Singapore)