| The last decade of lower prices in textiles was | | | | percent for 2008. However, Rajat M. Nag, |
| mostly due to the large quantity of exports on | | | | managing director general at ADB predicts that it |
| the international market, coming mostly from | | | | will be higher. With rising prices all over Asia, |
| developing economies. Exports from countries | | | | production and labor costs will continue to increase |
| such as China and India were mainly responsible | | | | in developing countries. As we speak many people |
| keeping the prices of textiles low. From the late | | | | in Asia, who work in the textile industry, are |
| 1990s till 2007, China doubled its market share in | | | | feeling the pinch on their margins. In the west, the |
| terms of clothing imported by the US to more | | | | same effect will be amplified as textiles make |
| than 16 percent. However, as commodity prices | | | | their way down to the retail chain. |
| are on the rise all over the world, the era of | | | | The rise in textile prices is partially due to the fact |
| cheaper apparel prices may have come to an end. | | | | that rising food prices have such huge impact on |
| Energy prices, the price of crude oil and stable | | | | wage-earners in developing countries. In certain |
| foods have increased at an unprecedented rate | | | | countries, food accounts for 40 percent to 70 |
| over the last year. To the dismay of many | | | | percent of the monthly spending of citizens. Thus |
| people around the world, this is no sign that this | | | | any price hike in food in these types of countries, |
| trend will subside in the near future. Along with | | | | especially in that of staple foods, will have a |
| other commodity prices, the price of clothing has | | | | significant impact-not only on expendable income, |
| increased dramatically as well-especially that of | | | | but also quality of life. For instance, food prices in |
| women's clothing. According to EzineArticles.com, | | | | Vietnam rose 22 percent in May 2008 alone and |
| increases of 20-30 percent should be expected in | | | | as much as 50 percent in other Asian countries |
| clothing prices in some parts of the world. | | | | this year. Wages are starting to increase to |
| Consumers in the West, who are accustomed to | | | | counteract the inflation and are thus contributing |
| having a wide range of cheaper imported | | | | to higher production costs. In certain situations |
| clothing-either made or assembled abroad-are in | | | | where they have not, workers in the textile and |
| for an unwelcomed shock. This is especially true in | | | | other industries have joined forces to try to |
| the United States, where the dollar has fallen | | | | force companies to absorb at least a portion of |
| substantially against most other currencies. The | | | | the price hike. Nike is one such company who was |
| depreciating dollar will result in more expensive | | | | faced with large-scale strikes. In the end, they |
| imports and therefore even more daunting retail | | | | were forced to raise wages by as much as 10 |
| prices for American consumers. | | | | percent in some of their factories. Higher cost of |
| If US consumers take a look at fine print on their | | | | labor means higher retail prices. |
| clothing tags, chances are they will rarely see a | | | | The staggering price of crude oil is also |
| tag that says "Made in the USA." Most clothing in | | | | accountable for the increasing apparel prices in the |
| the US and Europe is imported from | | | | West. Higher transportation and shipping costs, of |
| abroad-where cost of labor, raw materials and | | | | both finished goods and raw materials, will be |
| production is much cheaper. However, inflation and | | | | dearly felt by the consumer at the other end of |
| increases in wages have led to increases in the | | | | the price tag. However, textiles such as clothing |
| cost of production in large exporting countries | | | | and bed sheets are a necessary commodity; |
| such as China and India. According to | | | | consumers will not stop buying these goods |
| Emergingtexttiles.com, the inflation rate in China | | | | because they are more expensive. It will be |
| was 4.80 percent in 2007 and is expected to | | | | interesting to see how higher textile prices will |
| reach to 5.50 percent in 2008. The inflation rate in | | | | effect consumption patterns. Will consumers opt |
| Vietnam, another large textile exporter, reached | | | | for cheaper goods or choose to sacrifice quantity |
| 23 percent in June 2008. Overall, the Asian | | | | for quality? |
| Development Bank's official for Asian inflation is 5.1 | | | | |