Cotton Price Increase May Have Knock-On Effect
An increase of 50% in the price of cotton, along with the VAT rise, may make price increases inevitable in 2011
Here at Clive Mark we have been only too aware of the ongoing rise in the price of cotton, so a recent announcement from the Schoolwear Association regarding this is not surprising.
Our policy has always been to keep prices as low as possible and we will continue to do this for as long as possible in 2011. However the scheduled rise in VAT to 20% will impact prices and we may also need to review our pricing in relation to the rise in the cost of raw materials.
We whole-heartedly agree with the Schoolwear Association that value does not mean the cheapest item and that school uniform should be made to be durable, thus providing value through a long lasting garment.
If possible in a period where money is spent on other things, we would encourage parents to think ahead and stock up on any uniform you need before the planned VAT rise comes in to effect on 4th January 2011.
Schoolwear Association Notice:
"The increase in the price of cotton has come as no surprise to our members. We have been aware of this ongoing rise in the cost of raw materials for some time, and the fact that cotton has increased in price by 50% since last year will no doubt affect our industry, particularly as inflation rises and the full impact of the increase in VAT is felt next year.
The supermarkets will be barely phased by this increase in price using School Uniform as they do often to draw in customers to buy food and other products. The price battlefield for market share has been unsustainable and we expect to see increases in prices everywhere. These cost increases will of course impact on the majority of UK households.
We provide specialist uniforms for as many as 75% of the UK’s schools with our sole product being school uniform. We do not advocate the recent trend towards “disposable clothing” believing instead that parents want quality and exceptionally good value. It is especially important that uniform lasts and does the job properly. Good value is not necessarily the cheapest item as many parents will testify. As a sector we have suffered greatly and we call upon parents to help support their local Schoolwear supplier who aims to stock all items all year rather than for just six weeks of the year at Back to School. We need to join forces with all levels of the supply chain to deliver best quality and value for school uniforms. This way we will be able to minimise the impact of inflation on our customers."