The impact of rising cotton prices I have always been very sceptical and concerned by how certain large clothing stores could sell t-shirts at just £2. Of course it’s great for the consumer who can enjoy purchasing a whole new wardrobe for just £20! But as we all know, everything has a price… With every garment made there are associated overheads, which extend far further than just the price of the cotton.
Firstly of course buying the cotton, making the garment, transporting the garment to the UK and beyond, the associated costs with running a store, as well as the huge costs of marketing a brand… Therefore it’s not really surprising that selling a t-shirt for just £2 is astonishing! Of course when you are selling millions of pieces a year, then all the other overheads and costs are divided and become low, but still £2 is absurdly cheap! Surely the only way the maths can work (bear we me here as maths is not my best subject) is for someone, somewhere along the long chain, to be ‘short changed’. In other words, being paid a pittance for their hard work…
Conversely, just because you spend £100 on a t-shirt also does not mean the maker is the one benefitting. The costs are probably going into a marketing budget as well as the stores pockets. It seems whatever the payment (unless the company has a fair trade policy) the maker is usually the one who is the worst off, despite it being their work…
However due to the recent floods in India, cotton prices are on the rise. The floods have destroyed over 4.25 million acres of land, affecting an estimated 25per cent of the cotton crop. In one month, the wholesale price of one pound of cotton increased from $0.1 to $0.83, which is its highest level for 15 years. Allen Terhaar, executive director of Cotton Council International, said: ‘Cotton is 15-20per cent of the textile component of what people are wearing. ‘Consumption worldwide is now exceeding production and prices are going up’.

So, I am interested to know how these huge stores will deal with the rising cotton prices… Of course it will mean that clothes prices will in turn increase, however to prevent clothing prices from spiralling and to keep the consumer happy, what will the stores do? Reduce marketing budgets? Increase redundancies? Or reduce the price they pay the maker even further?? I personally feel the latter is the most likely, as marketing is needed to increase brand awareness and attract customers and staff are of course needed to deal with the increasing footfall.
Perhaps the stores will reduce costs elsewhere such as director’s bonuses or by streamlining the business operations… I just hope that the after effects of this terrible natural disaster do not lead to even further human suffering.
These are merely my personal thoughts. I would love to know what you think. Do you believe clothing retailers will turn to more man-made fibres or alternatively try and squeeze the maker even further, in a bid to keep clothing prices low? Email me or reply with a comment to let me know…
Alex x





