Clothing and leather prices to increase by 40%: FEI

CAIRO – 19 June 2017: Many Egyptians flock to retailers during the Eid holiday to purchase clothes. The ready-made garment sector typically flourishes during this time of the year.

But this season comes amid various economic challenges, especially with prices rising, which leads to an increase in the price of raw materials.

“Prices of local ready-made garments will increase during Eid Al Fitr season, in a rate ranging between 30 and 40 percent compared to the same season last year, while imported ones have increased at a rate ranging between 60 and 70 percent. It is expected that sales in this sector will witness a slump in a rate of 30 percent,” according to Mohamed Abdel Salam , a head of the ready-made garment chamber at the Federation of Egyptian Industries (FEI).

“Production cost of clothes has increased by 50 percent while the price hike in this sector could not cover the production costs, ruling out new increases next period as manufacturers seek to attract consumers, introducing the best quality to them, especially now that the clothing export volume has decreased.”, Abdel Salam added.

“Currently, clothing export volume does not exceed 25 percent because of the exportation volume decrease in the last period due to currency price hike. I expect that prices will decrease with the decrease of dollar price in the future.” Abdel Salam explained.

It is expected that leather products will increase in price up to 40 percent compared to last year due to the unprecedented increase in the prices of production requirements.

Head of the leather industry chamber at FEI Gamal El Samaloti, revealed that production requirements’ prices have increased by 100 to 120 percent, adding that leather prices have increased between 40 and 50 percent, while price of the “leather foot,” the main part in shoe production, increased by 100 perecnt.”

“Purchasing during Eid Al Fitr will be decreased, especially since purchasing in the first half of Ramadan decreased, which is considered as an indicator of the purchasing scene of the season.”, Samaloti added.