Cotton shortages across the globe saw the price of the fibre rise to $1/lb last week (September 21st 2010).
Limited supplies, partly caused by devastating floods in Pakistan, have made cotton prices rise to their highest level since 1995.
Retailers are currently facing a number of increased costs; including rising cotton prices as well as the UK slump.
Many of the industry experts expect prices to go up in the next six to twelve months.
Rising cotton prices would not only hit UK traders but businesses across the world.
Higher cotton prices and transport costs and the increase in VAT, (from 17.5% to 20%) planned for the UK in January, will put even more pressure on profit margins next year (2011).
Cotton and polyester are the leading fibres in the clothing and bedding market. Will this lead to higher prices in the high street and online? This depends entirely on the retailer. The option for retailers is to either increase prices, in an already fierce market place, or to absorb the price hike and keep clothing and bedding prices at the same level thus reducing profit margins to stay competitive.
DuvetsOnline have no planned price rises in their bedding and Egyptian cotton departments. Duvets, with 100% cotton covers, will remain the same for quite some time regardless of the worldwide cotton price increase.
