Edito march 2012
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Description
While during the first half of 2011 companiesÂ’ main source of worry was coping with the rising cost of sourcing, since late summer concerns have shifted focus to the issue of dwindling consumption all throughout Europe. Nonetheless, the fact remains that sourcing costs stayed high all last year. Labour costs continued to rise in many production regions and the average price of cotton in 2011 was approximately 1.50 USD. According to the IFM study of retailers conducted late last year, retailersÂ’ strategies for dealing with high sourcing costs basically involved three responses: 90 % of retailers raised their sales prices, 75 % altered their product ranges, (for example, offering more fibre blends and fewer 100 % cotton products), and 68 % modified their supply structures.
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