Currently, international cotton prices reached a record high this spring and has fallen by 53% compared to cotton as a clothing important raw material, its price should fall to promote a decline in clothing prices. In the process of cotton price fluctuations, specifically the production of T-shirts and jeans, low-priced goods such as clothing companies are the most affected.

   "We need more dollars to import clothing"
    At present, the continuing "high fever" of the cotton price has dropped off. As the most important as the clothing of the costs of cotton continue to fall, the U.S. clothing retailer, the brand manufacturers are not so lowering prices? At this stage, the U.S. textile and apparel What influences the price? These issues become the focus of recent industry.

    Clothing prices remain high

     In July, the U.S. retail market ushered in a rare strong sales situation. End of the quarter benefited from the promotional strategy, Macy's and Bloomingdale's department stores (Bloomingdale's) strong sales growth in July sales of $ 1.612 billion total same-store sales growth of 5%. Another retail giant Nordstrom department store (Nordstrom) 7 month total sales jumped 11.5 percent year on year, reaching $ 993 million. Same-store sales rose 6.6%.

     From selling the product category, department store Saks Fifth Avenue boutique of women's shoes, men's and men's jewelry sales best. Retailer Ross (Ross Stores) the results of eye-catching dress and footwear, Site Zi (Stage Stores) children's wear, footwear, apparel and swimwear best selling junior high school students, state Dayton (Bon-Ton) of the men's and   women's sportswear the most sought-after.

     Surprisingly, cotton products are not the darling of the market at this stage, compared to shoes, men's silk dress and jewelry hand hot. On the other hand, the decline in cotton prices has not bring clothing prices fell sharply, on the contrary, prices of U.S. apparel market is still showing growth.

     Currently, international cotton prices reached a record high this spring and has fallen by 53% compared to cotton as a clothing important raw material, its price should fall to promote a decline in clothing prices. However, CNN released the latest statistics show that the U.S. market, gasoline, food and clothing and other necessities continue to rise the price of showing momentum, and prices rose higher than expected. July, apparel prices rose 1.2 percent in the past three months, has risen 3.9%. Clothing prices this year, a record growth rate of the fastest level since 1992. Data show that consumers need to purchase clothing and other consumer goods spending 3.6% more than in the past. Bank of Montreal senior economist Jennifer analysis, prices partly because of the dollar's recent weakness pushed up prices of imported goods. "We need to pay more dollars to import clothing from China and other places."

     Multiple factors affect the pricing

     International Cotton Advisory Committee (ICAC), said that with the increase in cotton production and inventory, 2012, cotton prices will fall further in 2012 cost price inflation is expected to be greatly reduced. Consulting firm Kurt Salmon (Kurt Salmon), a retail analyst Vinod ? Ruige Run that reduce the cost of reducing inflation expectations, but not necessarily lower clothing prices, because in addition to the price of cotton is also affected by many external factors impact.

     "For example, the target market salary levels of workers. It will cause great impact on clothing prices." Vinod says, "For example, in the Chinese market, China has raised the wages of workers by 15% to 20% , ability to pay will lead to an increase in consumer spending, thus stimulating the production of China's domestic market demand, when demand is greater than the supply of goods, the price will rise, not just by the impact of cotton price fluctuations. "

    "Some experts suggest, in the production of fiber with different varieties to adjust the price of clothing prices, but we can not guarantee the low price of varieties of fiber materials can solve the rise in clothing prices." Vinod said.

     At the same time, low cotton prices will dampen the enthusiasm of farmers of cotton, the farmers turned to cultivation of higher yielding corn and other crops. If so, prices will not only not fall clothing, but also because of insufficient supply of cotton production declined and was pushed further. "At present, only the cotton for about $ 1.25 / pound price, in order to ensure the stability of the cotton acreage." Han Bai's (Hanesbrands) CEO Noel said.

     In addition to these reasons, transportation costs, climate change, accumulation, or market speculation and other factors, to varying degrees, affect textile and apparel prices. Cotton prices fell hard to drag the clothes in unilateral price "diving."

     Clothing companies are still waiting to see

     Although the outside of the U.S. apparel market price movements, there are many guesses, but some large U.S. clothing manufacturers there is no substantial adjustment in price plans.

     In the process of cotton price fluctuations, specifically the production of T-shirts and jeans, low-priced goods such as clothing companies are the most affected. Because raw material costs in total costs account for a greater proportion. Well-known apparel maker VF Corporation, said the price of cotton has never been so volatile. However, the company does not plan to cut prices on clothing, hoping to maintain the current price level.

     It is understood that fiber costs in the clothing of the costs accounted for about 30% to 60%. As the production of high-end T-shirt and underwear maker Han Bai Company, its 2 / 3 of the raw material is cotton. This seems to imply the company's cotton clothing prices lower and lower with the possibility of great. But the company CEO Noel said, prices for clothing will depend on market demand, cotton prices will reduce to some extent, may affect the company's product line.

     Now, in order to attract customers to buy, increasing sales, window shopping street in the United States put on an early autumn. Because there are many clothing prices affecting the uncertainty, the future of textile and apparel prices is difficult to predict, the current practice of U.S. companies is cautiously, such as cost control, pricing and inventory and so on.

     Analysts and economists agree that, although U.S. stocks experienced a few weeks oscillations, but the U.S. economic outlook may soon dissipate some pessimism, because consumers continue spending, and the plant continued production. "The U.S. economy may be stronger than we think. Halloween and the United States as the biggest Christmas shopping season approaching, the United States will usher in a new round of peak consumption." An economist optimistic about the U.S. market trend.