Foreign media: Global petrochemical raw material transportation is hindered, clothing prices may rise by 15%

[Global Times Special Correspondent Ren Zhong] "Planning to update your wardrobe this summer? Industry insiders suggest: please act quickly." The Hong Kong South China Morning Post reported on March 30 that clothing manufacturers and industry analysts are warning consumers to prepare for a 10% to 15% increase in clothing prices. Currently, South Asia's $50 billion garment export industry is suffering from the impact of tensions in the Middle East. Meanwhile, airports in the Gulf region, especially Dubai Airport, have been hit by drone and missile attacks, causing air freight costs for fast fashion orders to rise by as much as 70%. With rising costs, many international clothing brands have indicated that prices will increase in the future. According to The Guardian, British clothing brand Next stated that if tensions in the Middle East continue into the fall, factories will continue to face rising energy and fabric costs, and clothing prices may rise by 4% to 10%. The brand's representative Wolfson said in an interview that if the conflict lasts for three months, the company's related costs could reach £15 million, and if the conflict extends into the fall, the company will have to "significantly raise prices" to pass on costs. He also mentioned that considering retailers and suppliers will implement cost-saving measures to mitigate the impact, the actual increase will ultimately not exceed 10%. Katsuyuki Tominaga, president of Japanese sportswear brand ASICS, also stated that if the conflict between the U.S. and Israel continues, the company will raise product prices. In a recent interview, he mentioned that the rise in oil prices triggered by tensions in the Middle East is causing ASICS' transportation costs to soar. Currently, the company is still shipping sneakers produced in factories in Indonesia and Vietnam to Europe and the U.S. via the Suez Canal. However, earlier this month, ASICS indicated that the company might consider changing its shipping route from the Suez Canal to go around the Cape of Good Hope, which could extend transportation time and increase costs. "The extent and speed at which the clothing industry's rising costs are passed on to consumers mainly depend on the brand's positioning in the market," said Wasim Khan, CEO of the Lahore-based manufacturer Cotton Web. He noted that budget and mid-range brands often maintain original prices until inventory runs out, after which they reprice; while high-end brands are more likely to absorb "some" of the increase to maintain customer loyalty. Regardless, he agrees with analysts' predictions: if the conflict continues, clothing prices could rise by as much as 15% by the end of this summer. Julia Hughes, president of the American Fashion Industry Association, expects the impact to manifest within weeks. According to the South China Morning Post, nearly two-thirds of clothing globally contains synthetic fibers such as polyester and nylon, with their raw materials primarily sourced from petrochemical products in the Middle East. In addition to the obvious rise in raw material costs, a shortage of natural gas supply has also led to soaring electricity costs in many garment production bases. IBISWorld analyst Jaqeel Ahmad stated that since orders were fixed at prices months ago, many South Asian textile suppliers are facing a situation of "sharp profit compression," leaving almost no room to pass on higher energy and raw material costs to buyers. Large suppliers can negotiate their way through the crisis, accepting thinner profits or prioritizing service to their most valuable customers. However, smaller suppliers have far fewer options Ahmed stated that small suppliers may face the risk of fulfilling loss-making orders due to limited cash reserves and weak bargaining power, or completely lose future business due to order cancellations caused by delays