The nation has been up in arms about the disappearance of their favourite fast food menu item and their Christmas dinner turkey being at risk, but industry insiders are now warning that clothes and bedding, amongst other cotton products, are set to be in shortage as the textiles industry is also facing a crisis this Christmas.
Mark Green, Head of Procurement at Happy Linen Company, has shared insight on how the pandemic, 40% increase in value of cotton, and ongoing supply issues are putting the textiles industry at risk of shortages and extreme price hikes this Christmas, as well as what this means for consumers.
“There has been a great deal in the news about the impact that Brexit is having on food shortages, and how this might affect Christmas. However, consumers may not have realised the ongoing supply chain issues surrounding other Christmas goods, such as textiles, which have been exasperated by the pandemic,” said Green. “Across our businesses, we see a 400% increase in demand for bedding at Christmas time, which is in line with the bedding industry overall.”
“The entire consumer goods industry is facing surging prices in shipping containers, with an increase of over 900% on costs for shipping containers – a 40ft container now costs over £20,000, compared to £2,500 last year. For the textiles industry specifically, there has been a 40% value increase in cotton, whilst the actual quantity of cotton available has reduced. Therefore, even if clothes, bedding, towels, and other textile manufacturers pay the higher costs for cotton, this does not mean they will receive the amount ordered, in turn posing a threat to supply chains.
“It’s not just the pandemic that has caused a decrease in the amount of cotton being produced; environmental disasters and the consequences of global warming has impacted cotton production significantly. If a retailer was to pass these additional costs onto the consumer, many textile products, such as soft furnishings and clothes, could more than double in cost. Of course, such a significant increase in price won’t be possible for many retailers and would likely deter both new and existing customers, but it’s expected that price increases will hit the textile industry this Christmas.
“The bigger issue, however, is a lot of Christmas stock simply won’t arrive on time, causing an overall shortage of goods. One of the major ports in China for Christmas goods, Ningbo, has seen closures due to covid, whilst UK ports are already at capacity themselves. Therefore, not only has the number of products being shipped reduced, when these goods do reach the UK there will be an unprecedented backlog that may prevent many containers from being cleared before Christmas.
“These shipping issues have led to some suppliers relying on Air Freighting goods in, but the costs of Air Freighting has increased by over 30% due to covid-related airport closures. While we currently have good stock of all our product lines, the uncertainty of supply means future shipments are being delayed. We’re continuing to work on diversifying our supply chain, however, this issue is being faced across Europe and the rest of Asia as well.
“This shortage is only going to further drive prices of textile products, and other consumer goods, up for consumers this Christmas. With these ongoing issues, consumers may see that the price of items increases and stock that hits the shelves closer to Christmas is more expensive than previously. Consumers have to shop smartly and in advance, to ensure they are able to get all the gifts and goods they need this Christmas.”
