I am constantly being asked why are my supplies are putting
their prices up in a recession as retailers are nervous in this price
competitive environment of raising prices and feel they just cannot charge more… well here
are a few answers that I hope will help you understand why.
Rising costs and price increases are a worry for everyone,
not just retailers. Manufacturers, distributors, and sales people are all just
as concerned. All costs are increasing and have been for a few years now. Sadly
there are many contributors; perhaps the single biggest factor is the increase
in raw materials, particularly cotton which was caused by poor harvests and also
synthetic textiles which have been directly affected by rising petroleum prices,
which also affect everyone throughout the supply chain as they transport goods
around the world. Another detrimental influence has been the wage increases in
China and other Asian countries due to improved living standards and
competition from wealthier sectors in China, combined with an artificially
strong currency. Finally to add yet another nail to the coffin was the big
strengthening of the Euro 9 months ago, which ensured that European brands had
to adjust their prices.
