The Cost Of Clothing In The UK Will Increase By More Than 20 Years.

Seemingly unrelated renminbi appreciation and labor disputes in China have made a heavy blow to the British clothing industry.

According to Verdict, a retail research firm, clothing prices in the UK will rise 4.4% this year, the highest level since 1986.

Neil Sanders Saunders, Verdict consultant, said that although it would bring additional pressure to consumers, the price of clothing could not decline forever, and it would only increase in the next few years. Neil

The report points out that consumers have become accustomed to the low price of clothing, and that the reduction of personal income due to fiscal tightening measures will aggravate people's concerns about inflation.

A senior British retailer executive said that the price of the entire industry will inevitably rise.

Because of the reduction in orders from the US last year, the opportunity for British retailers to take advantage of it has reached a very competitive agreement with Chinese suppliers, which has offset the rising cost of sterling depreciation, but now China's labor disputes have increased wages and increased labor costs, squeezing favourable space.

Luca Solca (Luca Solca), an analyst at SanfordC.Bernstein, points out that British retailers are suffering from the "attack" of the devaluation of the pound and the appreciation of the renminbi.

In fact, it is not just the United Kingdom, but also the US consumers who have always preferred "made in China" to the end of the era of cheap and good quality.

Reuters reported that a US retail executive said that the appreciation of the renminbi, the increase in primary commodity prices and the rise in wages of Chinese workers all provided the manufacturing cost of Chinese products.

As China's infrastructure and employment teams have reached a certain scale, there will not be a large number of enterprises withdrawing from China, which will lead Western consumers to buy clothing and electronic goods at a higher price.

But when British consumers sigh that goods are no longer cheap, they should pay more attention to their "consumption tax".

According to the British fiscal tightening plan, the consumption tax will rise from 17.5% to 20% in January 4, 2011, thereby increasing taxes over 13 billion.

Some analysts point out that this will lead retailers to either digest their own costs or pfer them to downstream suppliers, and consumers will be affected.