Company VF Corp, which owns well-known denim brands such as Wrangler и Lee, said that due to the completely unstable situation in the cotton market, the prices of the clothes it produces could rise significantly.
The cost of cotton fabrics that are used in sewing jeans is growing rapidly. And if earlier a single price was set, which did not change during the year, now it increases quite spontaneously, reports Financial Times. In the past year alone, the price increase amounted to 37% percent. Cotton growing companies have reduced their output. At the same time, due to the revival of the economy, a significant increase in demand is expected. Thus, the shortage of cotton will inevitably lead to an additional rise in prices.
Apparel prices should be expected to rise early next year as apparel manufacturers will use up old stocks this year.
However, opinions have already appeared on the Web, according to which, VF Corp and other clothing manufacturers deliberately escalate the situation, citing market volatility, in order to justify the increase in product costs.