Expect the Price of Jeans to Rise in 2011

27/10/10

Beleaguered consumers were hit with more bad news, the price of cotton is rising alarmingly. Jeans are made from denim, which is a coarse twill textile made from cotton. So, along with other popular garments - such as T-shirts - expect the price of jeans to rise in the short term.

The price of cotton is rising due to increased demand from manufacturer's in China, and decreasing supply, due to freak global weather conditions effecting yields, and farmers in the west switching to more profitable crops. This has resulted in the price of cotton rising to a one hundred and forty year high in the US.

Inflation for clothes was running at 5-6% during August-September in the UK. Clothes made from cotton was the chief inflation driver, which probably represented a figure higher than 6%. Therefore, it is within reason to expect jeans to rise by 5-10% during the upcoming months.

The rise in production costs has not effected the confidence of brands such as Wrangler and Lee. Sales are up by 4% in the US, and up an astounding 43% in Asia. Therefore, price inflation does not appear to be stalling the demand for jeans, and it remains a highly profitable business for manufacturer's.