Rise in cotton prices

Be prepared for emptier purses in the up and coming months as clothes shopping is about to cost a lot more than it has recently.

High street retailers and local fashion shops are also set to suffer from the increase as the cost for their clothing material will rise quite highly. 

The feature to the left demonstrates the concern a shopper has on this concept and how they feel the industry will be affected. 

A more global look on the increase...

With cotton prices on the increase it is likely that there will be no such thing as 'cheap clothes'. Clothing prices in the US are predicted to rise by 10% in the coming months. Due to the growing cost of labour and raw materials, manufacturers are forced to increase prices and retailers in turn are likely to to pass this onto shoppers. 

India is the world's second-largest cotton exporter next to China have already produced cotton shortages. Over the last year, according to the International Cotton Advisory Committee, has doubled. On Friday 11th February, it hit a 150 year high at $1.90 per pound of cotton. 

For decades now, clothing prices have dropped because of cheap overseas labour and retailers forced to slash prices during the recession. The extra costs will soon be evident at some of America's most popular retailers. 

Levi Strauss & Co., Wrangler jeans maker VF Corp., J.C. Penney Co., Nike and designer shoe seller Steve Madden are among those planning to raise prices.

"All of our brands, every single brand, will take some price increases," confirmed Eric Wiseman, chairman and CEO of VF Corp., whose brands include The North Face, Nautica, Wrangler and Lee. 

"Retailers are uneasy about rising costs though, and have expressed concern that the spike in sales over the holidays may not last.

"Stores that cater to low and middle-income shoppers will have the hardest time passing along price increases.

"We have been so used to deflation for years and years,' said David Bassuk, managing director in retail practice AlixPartners. 

"Customers are going to be surprised."