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girlawhirl gets a case of sticker shock while shopping
Apr 2, 2008

Checking out the spring clothes from some of her favorite European designers recently, Girlawhirl got hit with a bit of sticker shock. A Weekend by Max Mara T shirt, always a bit of a splurge at past season prices that ranged from $80 to $95 has practically doubled to $160. Of course she's aware of the fact that the dollar is weak, and has encountered the issue when she's out of the country, but truth be told, her shopping expedition was the first time it was quantified for her - in dollars and cents - stateside...

It's a reality: clothing prices are going up. With increases coming from all angles, there really is no single solution. Here are a few reasons why Girlawhirl will be paying more, even from stores she counts on for less expensive items this season:

 

Energy costs are at all time highs. This affects everything from how much it takes to produce fabrics and yarns – because the manufacturer's overhead increases – to shipping the raw materials to where they'll be cut and sewn or knit into garments. Where again, the factory is hit with higher overhead.

 

Raw materials are also increasing in price. Wool prices have skyrocketed due to the drought in Australia, where most of the sheep that produce wool are raised. Synthetic fibers often are petroleum based, so their prices go up along with the cost of oil. Even the price of cotton, used to make so much of what the world wears, is increasing. Add into the mix the trend for organic cottons and fabrics made from sustainable fibers like bamboo, all of which cost more than traditional fibers.

 

Factories that pay workers a fair wage cost more than those that don't, and most brands and US based companies monitor their factories to make sure this is the case, adding some extra overhead, on the US side, to the final cost of a garment.

 

With China's economy surging, and all the changes that go along with that, it's getting more and more expensive for clothing manufactures. Workers there have a myriad of new jobs to consider – from service work in restaurants, to the expanding retail industry – so factories have to pay more to keep them. Throw in the high energy costs and factories are closing down, which leads to less price competition. And once again the weak dollar plays a part. US companies that manufacture in China, pay for the finished product in US dollars, that a year ago, were worth 20% more against China's currency, the RMB, meaning the product costs 20% more now on the weakened dollar alone!

 

So Girlawhirl knows that she's going to be paying a bit more for clothes these days. She's got to shop smart, and make sure that every item works well within the rest of her wardrobe.

 

 


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