India Retail News

Before the global apparel industry has recovered from the economic crisis, it has been struck with another blow. Commodity costs in general and cotton prices in specific have begun to rise. The volatility of cotton prices has affected the global apparel industry. Cotton prices, rising labor costs, inflation, the vagaries of natural calamities and a few other factors are wreaking havoc on retail prices and the margins of global players. It is anticipated that consumers will face the heat in the form of an increase in apparel retail prices by 10% to 15% in next few months of this year. Unless product differentiation and consumer insights are followed closely, the brand companies, wholesalers, distributors and even retailers will have to sacrifice margins. This paper presents and discusses a GeoMapping Analysis of various local, regional and global events and their direct/indirect impact on the complete value chain of the apparel industry starting from planning and product development to retailing. It also has recommendations for companies and suggests a re-examination of key strategies such as supply chain efficiencies, product mixing, postponement strategy and technology solutions.