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Denim prices to rise on surging raw material prices
Feb '11
As the production cost of denim is going high with soaring prices of cotton and cotton yarn, the denim producers in Japan's Sambi region are forced to shift this cost burden to the end users, to save their businesses from incurring losses. But then, such abrupt rise in the prices of raw materials are also deemed to have had raised the global competitiveness of Japanese denim.

According to a leading denim manufacturer, it is essential for them to continuously monitor the current price system in order to sustain in the business as textile producers. Also that, the sharp rise in the input costs too is positively helping them to face the international competition. The denim producers, in the emerging economies with low labour cost and higher cost of inputs, are required to increase the prices of their products at higher rates.

The producers of high value-added denim with comparatively lower input cost are in a position to increase their prices at lower rates, and thereby to decrease the price gap with the denims from the newly emerging economies.

Further, as stated by the denim exporters of Japan, there has been a meagre rise in the prices of Japanese denims as compared to the rise in the prices of denim from other competing nations, and this serves as a reason that the overseas buyers may prefer buying Japanese denim.

Also a denim producer from Japan, who recently took part in the Premiere Vision, said that, a denim producing brand from Turkey is likely to raise its price by 30 percent, while a denim manufacturer from India is to raise it by 15 percent. But as against this, the Japanese manufacturer is to raise its price by a meagre five percent.

Thus, with rising prices of denim, some of the global buyers are likely to turn to newer markets to fulfil their demands, while leaving back the conventional markets.

Fibre2fashion News Desk - India

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