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Current apparel prices are not realistic - Experts
25
Aug '11
Experts say that the current apparel prices in China are not realistic in view of several labels increasing their price by 10-20 percent this year. Some brands have increased the price of their apparel by even 50 percent.

Apparel brands explain the rationale behind the increase in prices by saying they have used cotton procured at high price before the Spring Festival. But, experts say that the cost of raw materials do not form a big portion in the final selling price of branded items.

They also say that generally raw material is procured several months in advance. The raw material is procured up to18 months in advance for yarn production, 12 months for fabric production, and six months for apparel production.

Calculating on the basis of transmission speed, the impact of high price of cotton should be felt by the end of the current year or early 2012. Hence, experts feel that the current prices of apparels are not realistic.

Fibre2fashion News Desk - China


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