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Since the start of this year, rising costs have become a major concern for the apparel industry. With increasing prices for raw materials like cotton and higher labor expenses, many companies have been forecasting significant price hikes in clothing. But are these predictions actually coming true? Are consumers still buying as before, or are they starting to feel the pressure? And how are different brands responding to these changes?
Leading brand companies, such as Xtep, Anta, Li-Ning, and Youngor, have already started raising their retail prices. According to financial reports, Xtep saw a 13.9% increase in average selling prices, while Anta reported a rise from 49.6 yuan to 53.1 yuan. Li-Ning even announced a 17.9% price increase for its products in the fourth quarter. These well-established brands have strong consumer loyalty, so their customers tend to be more price-insensitive, focusing more on quality and brand value than on cost.
Meanwhile, export-oriented manufacturers have seen improved profits in the first half of the year, thanks to increased demand and stable pricing. For example, the average export price of knitted garments rose by 6.33% in the first six months of 2024, with wool knitwear seeing an impressive 27.08% increase. However, despite these gains, many export companies are struggling with rising input costs, which have squeezed their profit margins.
On the other hand, domestic SMEs—especially those without strong brand recognition—are under immense pressure. Many of them are not raising prices at all, choosing instead to absorb the increased costs. In the wholesale market, unbranded or small-label clothing is being sold at almost the same price as last year. One wholesaler said, “We don’t want to raise prices because it might scare off our retailers and customers. We’re forced to cut costs wherever we can.â€
Industry experts suggest that some companies are trying to offset rising costs by simplifying production processes, using cheaper materials, or reducing design complexity. However, not all firms have the flexibility to do so. Smaller companies are particularly vulnerable, as they lack the resources to absorb these pressures.
For merchants and businesses, adapting to these changes is essential. Understanding the market dynamics and making informed decisions based on your position in the supply chain can help you stay competitive in this evolving landscape.