In 2011 there will be new challenges and new opportunities for apparel manufacturers, retailers and brands. Based on insights from this month's just-style management briefing, Just Style's Leonie Barrie looks at what the industry can expect in the year ahead.
Photos courtesy clashofstyles.com and louisvuittonsaleoutlets.com
- Prices are absolutely going to be going up. It's a question of when. Retailers have been working hard to keep a lid on prices, but ultimately it's not possible to hold every price the same in a world where everything that goes into making that item is going up.
- The next 12 months will continue to be tumultuous with cotton prices remaining high. World cotton production may increase by a modest 5m to 6m bales, but all of that increase is likely to disappear into state reserves and not be available to mills.
- Supply chains need to get creative. The answer to higher costs is not to lower them but to counter them with better efficiencies, new processes and innovative management practices. For buyers, the challenge of 2011 is learning to handle inflation - techniques like value engineering, cross-costing, negotiation skills with suppliers will grow in importance.
Comments