Every day, the general manager of the Umgee USA apparel brand receives price quotes from the Chinese vendors who stitch his trendy dresses and tops, which end up at stores from Forever 21 to Macy’s.
“Some of it is more expensive over there!” said Stan Park. “Every day I get an e-mail from China saying ‘This costs so and so.’ It’s just not worth it.”
Park and others have solved the problem of rising sourcing costs from China by making much of their product domestically in hubs like Los Angeles. But for larger brands that require the big volume that only China can supply, rising prices are a reality.
“Apparel prices are going to go up. It’s as simple as that,” said Perry Ellis Chief Executive George Feldenkreis, who said a rise of up to 10 percent will be seen next year. “The American consumer will have to accept it.”
That is hard to swallow for retailers big and small, who have been battling erratic sales trends this year amid high unemployment and lingering financial insecurity.
Finessing price strategies were a priority this week for vendors and retailers at the Magic apparel trade show in Las Vegas, where buyers place orders for the newest styles.
“Because the economy hasn’t quite gotten back on track, we can’t raise our prices quite yet,” said boutique owner April Bullock. “It’s still a little scary for us — we’re not sure what the future holds.”