The USA retail market place is now receiving the Fall Back to School, orders that should be all complete in the stores by August 9th. Now what?
These products are primarily in the younger market of apparel, and also Fall 1 – Men’s and Women’s collections, East Coast and Midwest, should be in all stores at the same time. Practically, West coast retail can wait until Sept. 1, 2010. In the meanwhile, the merchandisers and designers are sampling for Spring 2011, starting with early delivery mid December 2010, East Coast only. Some have already placed Fall 2, and starting to finalize Holiday delivery.
With the cotton prices fluctuating as they still are, I do question, how much Holiday is being placed?
We as importers are holding off as much as possible, for the obvious economic issues of the day.
With what the EU countries are planning to do as soon as possible, by cutting spending, I question whether Holiday or even Spring 2011 for the EU purchasing will come close to last year. Therefore the Hurry Up & Wait, will be the way of purchasing this last half of 2010.
Is the global economy going into what is being called the second RECESSION, or Double Dip going to take place?
The USA present administration at the G20 says ‘spend and stimulate’, all the other participants say cut budgets, and lower spending! I am not wise enough to be stating which way is better, cutting services issued by the different types of governments, or stimulating entrepreneur’s to seek new sales revenues, but I do know that doing nothing in these times will be the wrong tactic.
The RISK FACTOR involved has become the KEY, to the flow of monies needed to fuel markets.
Banks have money, but scared to lend it. Venture Capitalist have more money, but looking for past returns on investment, that are just not available. Credit is at a very costly premium, or non existent in many markets.
Jobs! Jobs! Jobs! are the key to a vibrant economy, and Government jobs, in the USA economy are not in any way helping our GNP or GDP. In the USA market, it is the small and medium size business that creates jobs, not the Government.
With the very unstable cotton market, I foresee a very rough time for the textile/apparel industry ahead for at least 6 months if not more. The Hurry Up & Wait! Explanation comes as the few orders you will be receiving will come later, and you will have to rush to meet deadlines, and nothing or very little in-between. If you are in the large commodity volume product arena, I suggest, to lower your costs to just break even, so you can maintain your experienced work force, and when things start to pick up you will be able to raise your gross margins, as you will have maintained your customers.
I try to give you the most updated facts, so you can adjust your plans, to be able to execute and supervise your manufacturing future, with a more even growth by establishing a solid foundation that will withstand our global economy.
