Looking Good About To Cost More

— Tue, 24th August 2010 —

From big-ticket items to spare socks, the best time to buy might be now. That’s because the price of clothing (and likely all manner of accessories) is going up, up, up, industry execs tell The New York Post. “Apparel prices are going to go up. It’s as simple as that,” says Perris Ellis Chief Executive George Feldenkreis. “The American consumer will have to accept it.” By next year alone, Feldenkreis expects prices to increase a full 10%. What’s driving the upward trend? Apparently rising production costs in China. As a result, more brands are making their products domestically in hubs like Los Angeles. Good news, right? “But,” as The Post points out, “for larger brands that require the big volume that only China can supply, rising prices are a reality.”

  1. Not gonna happen. The sales (as in discounts) may never be this good, but retailers have ZERO pricing power right now, and they ain’t gettin’ it back for years. Good luck with that experiment, Mr. Feldenkreis. I’m sure it’ll work out swell, for ya.

  2. Agreed with Jon. Retail suicide if they try to jack up prices in this recession. People are making less and working more. I expect more fast fashion to be on the rise, and the demise of companies such as Steven Alan, etc.

  3. perry ellis should fire george. maybe costs will go up for the producer but when there’s a glut of supply because the retailer is down for the count and the retailer sells goods for 80%, the people who take it on the chin are the sellers, not the buyers.

  4. Consumers of fashion–rather than guys who are getting the suits they need for work–have a lot of elasticity. In other words, we don’t need to buy this stuff if we don’t want to. This makes raising prices, particularly in the middle of a recession, very difficult.

  5. Wow, you guys are being very unrealistic here. Commodities price has been going for years. Plus with such low cost labor in China & the 3rd world. Product cost had been low for a long time. The only reason why certain retailers have to high mark up because the real estate, fuels & etc. are going up, but the money is not directly going into the manufacturers. Factories in China are working on an extremely tight margin. Even made in US products are facing a tough time with all these increasing costs. I don’t know what the solution here, but I totally understand why the prices will go up.

  6. @ATTW – look at today’s #s. there is no end in sight for the recession. in fact, analysts are saying we’re in a full fledged depression after the #s from the housing market came back today, not to mention the 3rd alarm from the hindenburg omen. i understand that companies such as perry ellis are trying to save themselves by jacking up the prices to consumers, but they will fail. big. fast fashion will thrive at times like these, as it has for the past few years, while a select few upper tier designers will be able to just stay afloat.

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