The larger distributors in the industry to announce strong price increases, which will be introduced at the commencement of the winter collections.
It shows that the following reasons underlying them
- Appreciation of the Chinese currency in relation to the dollar, buying in China is much more expensive now.
- Rising labor costs in China due to stringent rules regarding working conditions and the introduction of a minimum wage.
- Tighter rules on the pollute of the environment.
- Appreciation of the dollar in relation to the Euro (about 20% in the recent months).
- Rising prices by the significant demand for products from Chinese factories. In 2009 there was, due to the crisis, ordered less by wholesalers from Europe and there is now a catch-up going on.
There is also a significant increase in demand from the local Chinese market, making the commodity prices under even more pressure.
- Rising transportation costs from China to Europe.
Expected is that increases of 10% to 30% won´t be an exception.
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