Soft Cotton, Hard-Hitting Prices

Calling all shoppers: the price of clothing is expected to continue rising due to high labor costs and high demand for goods. With the record high cotton prices, the clothing industry seems to be negatively impacted.

According to an Associated Press article , cotton can cost as much as a whopping $1.90 per pound, doubling in price from last year. It hasn't been that high since the Civil War, when cotton cost $1.89.

Jon Devine, an economist at Cotton, Inc., says this is a series of high prices in the United States, China, India and Pakistan, jumping to a 150-year-high.

The global recession has kept cotton production low, but with the economy slowly bouncing back, the supply is now struggling to keep up with high demands. With these demands, the prices for the commodity have dramatically increased. And the unfavorable weather conditions in Pakistan, China and India is causing difficulty for them to produce cotton to sell to other nations.

How will these high cotton prices negatively affect the clothing industry in America?

"It has made business decisions very difficult throughout the cotton supply chain," Devine said. "Yarn supplies are tight and fabric manufacturers are facing very high yarn prices."

Devine says that it's been reported that fabric price quotes have gone up nearly 30 percent or more relative to levels years ago.

In this new cotton climate, shoppers hitting the stores are faced with higher prices. Clothing stores, including ones in the surrounding New Haven area, have certainly been affected as well. According to a New York Times article, the Bon-Ton chain, which has a location on Dixwell Avenue in Hamden, has raised its private-label lines about five to eight percent.  The V.F. Corporation, the maker of The North Face, which can be found at Denali on Broadway in New Haven and Trailblazer on Elm Street in New Haven, says many of its brands will cost more.

What can be done to accommodate the higher prices and not lose shoppers? Many companies are looking for alternatives to cut the rising cost of cotton. Bon-Ton will be turning to more acrylic blends, rather than 100 percent cotton, to cut the rising costs. They are also switching cotton production to countries with cheaper labor costs, such as Egypt and Nicaragua.

Will the average consumer still shop for cotton even with the increased prices?

"Yes, at least for me, I feel like you have to, it's in almost everything," said Sarah Beyel, a senior public relations major and marketing minor. "I'd rather buy cotton-made clothing than polyester, no matter the price."

(Source: http://www.quadnews.net/lifestyles/soft-cotton-hard-hitting-prices-1.2485310)