Clients and Friends,
I want to make you aware of some major news in the apparel industry that may affect you both in your purchases with Sonic and on the retail level.
As you may have already read or heard, the price of cotton is currently at an all-time high.
In response, suppliers across the country have announced a 5-10% price increase effective November 1st. This is in addition to a previous increase of the same amount in June 2010.
"The main cause is a massive hike in the price of raw cotton. In the 18 moths between March 2009 and the end of September 2010 this rose by 127%, from 51 cents/lb to almost 116 cents/lb."* As recently as November 2nd, cotton prices reached 134 cents/lb.
We are led to believe that there will be additional increases in the coming months, and the price is expected to level out in mid-2011.
Retail sales have been affected too. In Europe, "price increases between August and September alone were the biggest since records began, at 6.4%."* The United States retail sector should expect similar increases shortly after the holidays.
This is truly an unprecedented time in global manufacturing and sourcing. At Sonic Promos, we are committed to providing our customers with quality items at affordable prices, but we are also affected by these rising costs.
If you have any questions about this news, please feel free to contact me or your Sonic Promos representative, and we will be happy to help in any way we can.
Thank you for your continued business,
Director of Outside Sales
*Textile Intelligence Press Release, October 19, 2010 with excerpts from Textile Outlook International Issue No. 147