Unable to Stretch Further, Apparel Makers Raise Prices

Apparels such as Hanesbrands Inc, Jones Group Inc. and VFCorp. are now shooting up prices up to 10% for next year because cotton has become more expensive. Many third world countries such as Pakistan, India, and China are big producers of cotton, but being hit by mother nature with several floods, retailers such as these can no longer continue to keep their prices low as their raw materials keep increasing. "Apparel is just one of a number of industries caught between sluggish demand and rising costs for raw materials."


Southeast Asia is one of the largest producers of rubber, but due to the Cyclones and flooding Goodyear Tire & Rubber Inc are beginning to feel the lack of raw materials for their companies.  


Just as we thought retail was getting better because the economy was slowly rising, this happens. You can't beat mother nature. I makes sense that if brands such as Hanesbrands can no longer sell as cheaply as they are now, the only alternative is to raise prices and hope that they don't lose their costumers.


-Jacky


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