The end of cheap fashion?

Not only are biofuels competing with food cultivation, but also with cotton yields, aka “the white gold”.

When food scarcity hit, yields producing fuel will not be hit first – cotton will. Food and energy is more essential than fashion, besides growing biofuels have higher monetary value than growing cotton.

“The overall shift in agricultural priorities is bound to change the rules of the fashion game. The ability to pay adequate prices to secure raw materials and guarantee a stable cotton supply will be key to survival. Cotton prices will in all likelihood rise until its cash crop value is aligned with that of food and fuel crops.”

What to do for fashion companies?

“The ability to pay adequate prices to secure raw materials and guarantee a stable cotton supply will be key to survival.”

Three otions remain:

1. Squeeze margins for suppliers. This will however probably lead to reduced salaries, and with NGO’s closely watching fashion companies, this alternative could ultimately hurt reputation and finally sales.

2. Squeeze their own margins – but considering the stock market expectations, it is not a favourable option

3. Pass on raw material price peaks to consumers

Read the full article from The Guardian here

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Comments
One Response to “The end of cheap fashion?”
  1. Monkey says:

    Lil Birdie Rules!

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