Reduced consumer spending: A recent survey by US consultancy firm First Insight, Inc on 1,000 US citizens showed that the consumers’ shopping habits have changed in response to rising prices, with 42 per cent saying that they are now shopping for deals—such as sales or shopping the clearance racks. Forty per cent are now staying within a budget, 28 per cent say they are buying less overall, 25 per cent are shopping more online, and 25 per cent are shopping in bulk stores or using warehouse retailers.
Effect of inflation on the textile and apparel industry:
The global fashion industry was set for a complete recovery in 2022 as COVID-19-induced supply and demand constraints were finally easing, but now shoppers will have to reconcile themselves with the price surge. Prices of textiles, like many other raw materials, are soaring on resurgent post-pandemic demand and the rocketing cost of both energy and transport. Cotton, linen, silk and wool, as well as synthetic materials derived from petroleum, saw surging prices in recent months.
Reduced consumer spending: A recent survey by US consultancy firm First Insight, Inc on 1,000 US citizens showed that the consumers’ shopping habits have changed in response to rising prices, with 42 per cent saying that they are now shopping for deals—such as sales or shopping the clearance racks. Forty per cent are now staying within a budget, 28 per cent say they are buying less overall, 25 per cent are shopping more online, and 25 per cent are shopping in bulk stores or using warehouse retailers. To cope with rising prices, 31 per cent of consumers say that they will reduce their spending on fashion products. The retail sales of clothing and clothing accessories in the United States totalled $25.76 billion in June 2022, slightly lower than that in May and April, according to the US Census Bureau.6
High input costs: An increase in input cost means more expensive yarns, textiles, and apparel. The price of cotton fibre has risen recently while the price of polyester fibre has also grown noticeably since 2021. Due to the increase in cotton prices, polyester fibre demand has increased but input costs have been impacted by rising crude oil prices due to the Russia-Ukraine war. Companies are left with low-profit margins as they cannot pass this cost burden onto their customers in the short run. The small industries are impacted more than the large manufacturers or factories as they have less scope to absorb these shocks.
at Fibre2Fashion.
