Prices set to rise in Spring 2011

Due to the nature of brands and how far in advance they work the buying for Spring 2011 is due to start in the next couple of months but it could be more expensive than the Independents thought.

According to an article on Drapers Online over the weekend the brands have been soaking up increased costs such as a rise in cotton prices, a weakening of the dollar and the increased cost of manufacturing but they just can't continue to do that any longer.

The reluctance to pass on the costs was due to a fear of the resulting fall in sales volume but now, the margins are so low that they just can't afford to soak up any more cost rises such as an increase in VAT and they will have to pass some of those costs on the retailers and consumers.

Obviously that will have an impact, especially at a time when the economy is still not fully recovered and consumers are still worried about jobs, income security and other factors that could affect the amount of disposable income they have.

So, if you are thinking about your orders for Spring 2011 be prepared. It could be more expensive than you expected and you might not need to same volumes as you were hoping for.

It seems there are still tough times ahead!