Panic in the curtains industry as fabric costs go up

The prices of raw resources such as clothing and polyester has increased a lot in the recent past and carrying on this raising on a daily track. The rate of cotton has raised between 60% - 80% during last 7-8 months and keep moving to increase in price because of shortages caused by low level inventories being held during the recession period and this year’s crop again being hit by bad weather and intense rain in China, Pakistan and India who in total produce around fifty percent of the world’s textiles.

Few big names have been providing ideas that cotton manufacturing may not make up with consumption for almost two years. This has been combined with a higher than predicted increase in requirement not only from the USA as it stretches out of recession but also from the competitive markets in the Far East. The rate of polyester has also increased sharply in the last few weeks with growth of 30-40 percent on raw stuff with holders thinking that this raise in rates is expected to continue for the next few years. The blow on cause of this has been rapid buying in the markets and many

manufacturing companies have actually stopped fabrication this week. The situation is so unbalanced at the time being that we have been clued up by one of the reliable retailers that they expect 60% of the manufacturing companies to have stopped up production by the month end.

The larger corporates like NEXT are also disturbed to rising prices and have announced to consumers that 2011 will be having a rate increase throughout their clothing. A personal shopper in Primark yesterday only told me that a piece which was £4 in 2010 January is currently £7 in 2011 April. This is actually 75% hike in rate!

Andy Ryman, Director of one of the UK’s largest online curtains and cushions shopping store, recently outcome in a meeting that since January 2011 they have been up-warding their textile related retail prices by 15-35 percent. No doubt you’ll think this is a huge boost up in prices. When queried if sales have been up down, the response was, "Yes definitely, look at these curtains and cushions for instance, we previously retailed the cushions for only 5euro/cover. Now the costs are 9 euro with a massive cut back in profit to sustain value for our clients. This has immensely affected sales through all our channels and we are fortunate to be diversifying into former industries outside of textiles to survive. Many firms without this external advantage will definitely suffer. Clients now only acquire what they wish for and cart totals are distinctly low on our website. Clients are not choosing accessories such as tie backs to convey their curtains without thought, now it’s developed into a consol to have them with your curtains!"



Going for a round in one of the storerooms I couldn’t restrain myself but notice the empty shelves; which was kindly explained by Andy, that it is a end result of manufacturers in China who are refusing to send the commodities in anticipation of rising rates in future, even though they had material available for shipment. Take example she added "The readymade cushions and tie backs made exclusively from cotton have been the most demanding assortment in terms of quantity, but we are not even able to authenticate any orders due to deficiency in supply".

Polyester and cotton is hurriedly growing as a commodity like gold; who would have ever thought that!