Why Apparel Promotions May Cost More
If you’re planning any promotions that will incorporate branded apparel, take note! The last time cotton prices were this high was during the 1860s, when blockades interrupted the flow of the commodity from the U.S. to Europe. A variety of factors, including high demand in Asia and disappointing crops in several countries, have driven cotton prices to their highest level since the Civil War. Before trading stabilized yesterday, cotton futures reached $1.19 per pound, an increase of 80% compared to last year.
This is the fifth consecutive season that the global demand of cotton has overwhelmed the supply. There are many factors driving these price increases including poor weather in Pakistan (one of the world’s largest cotton exporters) and export restrictions in high-producing India.
The increase in cotton prices is starting to trickle down, and several major apparel retailers, including Levi Strauss & Co., have already announced price increases. Analysts expect retail prices to steadily climb, with the most noticeable markups found in relatively low-cost items like T-shirts.
What does this mean for you as a marketing professional? T-shirts and other cotton-based apparel are the number one item used in promotional marketing, often because of their comparatively low price. With cotton prices rising, marketers on a tight budget should consider alternatives other than apparel for promotions, or expect to increase budgets to accomodate rising prices.
There are so many clever ways to use promotional products and prohibitive apparel prices shouldn’t stop you from having a unique and creative promotion. Give us a call and let’s talk about some of the alternatives now so you won’t get hit with sticker shock on T-shirts at the last minute!