The prices of basic clothing continue to rise outrageously.
Between October 2021 and March 2022 we received a total of 6 updates to the prices of the clothes supplied to us by the main brands we work with (Kariban, Sol's, TH Clothes).
To give you an idea of the scandal, in a typical year we have a price update. In a bad year, we have two (and this is an exception that has happened in 2 of the last 15 years).
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I can explain it another way.
In the last six months, the basic clothes we sell have gone up (in percentage terms) more than in the last decade. We have items that have gone up in price by almost 50 per cent.
This is the current state of the textile market.
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What's the reason for this increase?
Well, that's something we've already talked about here. In fact, these are problems that have been dragging on and accumulating over the last two years.
- It started with the lack of labour in Asia, after massive layoffs due to COVID;
- It continued to have logistical problems due to the shipping container crisis;
- It was exacerbated by the absurd rise in the price of cotton on the international markets, the result of the problems mentioned above but also the lack of rain;
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You can see in the graph below how the price of cotton has changed in recent years.
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This development will certainly have consequences for a sector that is already struggling on its own and with low margins (the promotional textiles sector relies heavily on low-cost clothing for merchandise production).
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Will the increases stop here?
There's no way of guaranteeing what the future will be like, but as I write this, a war has broken out in Europe and fuel prices have risen by around €0.30/L in the space of two weeks at the same time as the price of energy on the international markets has reached €700/mW (or €0.70/kW), a record never before imagined.
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In my opinion, no, the increases in the price of cotton and plain linen won't stop there and this will only be the start of a "second wave" of difficulties for companies in this sector.
On the clothing decoration side, too, the situation is difficult, after 40% increases in embroidery consumables and similar increases in screen printing consumables.
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What do you foresee for the immediate future?
