- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
- Fed's Kohn Sees No Asset Bubbles Building in US
- Buffett's Berkshire Hathaway Boosts Stake in Wal-Mart
- Time Warner to Spin Off AOL on December 9
- Gates Boosts Waste Management, Coca Cola Stakes
- What's Kept Stock Rally Going? Fear, Not Confidence
- Citi Shares, A Strange Indicator Of Unemployment?
- Millions Could Have to Repay Part of Obama's Tax Credit
- US Cities With Most Underwater Mortgages
- Hollywood Turns to Porn as Unemployment Rises
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- BofA Ex-Counsel: I Was 'Stunned' When I Got Fired
- U.S. May Wind Up Green With Envy
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Solar Emerges From A Dark Period
- Stanford Receiver to Release Funds Of Frozen Acounts
- Snoop Dogg Talks Biz
- Millions May Have to Repay Part of Obama Tax Credit
- Oil Tomorrow
ABOUT THIS BLOG
|
This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
Text Size 
 |
Courtesy of Cody Ross |
Designer Cody Ross is one of those former hedge fund guys who got out of the financial business at just the right time and is now using that business acumen to help launch his true passion--design house Priestess.
 |
Courtesy of Cody Ross |
While Ross designs out of his West Village studio, most of the Priestess line is manufactured in China. Recently though Ross has moved some sourcing to Vietnam. The same rising labor costs that are increasing the price of business for toy manufacturers are also inflating prices for apparel companies and design houses.
Ross says that labor costs are causing 10-15 percent price inflation. While designers have the option of avoiding this increase by pushing sourcing to factories outside the major Chinese commercial hubs, Ross says he finds these cheaper alternative plants often lack the production knowhow and skill set.
More expensive clothing isn't just a story for high-ticket lines like Priestess. Consumers - expect pricier t-shirts, jackets and staples at your local Macy's [M
Loading...
()
] , JC Penneys [JCP
Loading...
()
] and other mainstream stores.
 |
Courtesy of Cody Ross |
One retail executive told me recently that clothing price inflation can actually be a good thing for stores. Why? That higher-ticket means the store gets to register a bigger, more impressive sale when it comes to monthly same store sales results.
Also, the current level of price inflation simply means a small bump up in ticket price. Consumers won't trade down to cheaper stores when prices jump a few dollars. It is an entirely different story when the hike is significant (greater than 10-15 percent.) An interesting counterintuitive perspective.
Anyhow, check out Cody Ross' site at: www.priestessnyc.com. We'll be interested in following how his career develops.
Questions? Comments?
- Where, what, how.
- CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
- Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
- De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
- Why are the Chinese concerned about the progress of U.S. health care legislation?
- CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
Data is a real-time snapshot *Data is delayed at least 15 minutes