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How To Deal With Brand Shoes And Apparel Consumer Rise Prices

Time is now undoubtedly the buyers, which limits the speed of global economic recovery. Los Angeles jeans brand BishopofSeventh CEO and creative director ChachiPrasad that any form of price increases will stimulate the customers to choose other brands, "now have no loyalty to a brand called to say, consumers of every tricks cents. "

The question is: how manufacturers and retailers in this cost is not going to last under the pressure of price hikes. If the price increases, will scare away many price-conscious consumers?

Price pressures have spread to the entire fashion industry. Rising costs in the production chain in almost every aspect of this trend is not the slightest sign of abating. From an economic downturn led retailers to reduce inventories to the raw materials such as yarn, fiber and textiles and other rising costs, as well as China and Bangladesh as the main producer of the appreciation of the labor force, and finally the increase in the number of military reserve vessel so reduce the number of transport ships, shipping prices and shipping time. Increased costs everywhere, but often used alternatives unsatisfactory. Although air can accelerate the speed of transportation, but will continue to increase the pressure of rising costs. And the current production line in China's coastal areas to inland areas of China and even transferred outside of China, what will the product quality and speed of transportation to bring too many unknown factors.

Prices of raw materials have

LFUSA is Li & Fung Limited, a subsidiary, the company president RichDarling, that "the current trend of rising costs should begin to stabilize in 2011. But from now until that day comes, the price will continue to be volatile. The most Unfortunately, this costs more than time, consumers will not easily accept the current price. "

HMSProductionsInc. SpenserAlpern CEO added, "This year, freight costs have gone up by about 300%, raw material prices increased by 10% -20%, labor costs than in previous years by 10% -15% higher, plus the U.S. dollar against the RMB exchange rate this year will continue to decline about 3%. All of these factors increased the overall cost will add up to 5-10%. in the economic environment is not fully recovered, less power consumption, is not the time to increase. On the other hand, if from the other links to start with, including up to cut costs in the design is unwise. "

As a major producer of many products, speeding the development of Chinese economy, so that labor costs are rising rapidly. To seek lower labor costs, the industry is trying to facilitate the production line equipped from the traffic to the inland coastal areas of China outside of China or even to move. Darling noted that, in order to reduce production costs, such areas of Indonesia is seen as "key market", while Bangladesh is still "full competition", despite recent local workers went on strike for pay increases, where labor costs are better than China's coastal areas cheap. JonesApparelGroupInc (Jone) CEO WesleyCard said Jones has now put some production lines to Vietnam and Bangladesh, but still mainly knitwear and footwear production in China.

Raw material price instability is a big problem. Cotton prices continued to rise after a year finally reached a stable level, but we also need to pay attention to Darling told the price trends of other raw materials. "Leather upper large price fluctuations, the price per foot jumped 40% -50%, so products such as shoes and purses leather products, price pressure will rise more than apparel."

"The more important material product, the easier it is directly affected by rising costs." JeffEdelman the U.S. Department of consultants RSMMcGladreyInc retail and consumer products, head of consulting services, he said "those who hold the pricing power of the brand giants will benefit. For example, focusing on the design of high-end handbags brand Coach, has a strong brand influence of Nike, and a wide range of products, a senior men's brand PoloRalphLauren. "

Rising production costs, the impact of price are often unable to accurately measure the different brands the differences between different products is also great.
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Article Added on Thursday, March 8, 2012
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