Clothing, footwear prices expected to see 10-15% price hike — sector representative


[28-10-2021 01:35 PM]

Ammon News - The prices of imported footwear, clothing and fabrics are expected to increase from 10 to 15 per cent by the end of next month, according to a sector representative.

“The market is suffering, merchants are withdrawing from the market gradually,” As’ad Qawasmeh, a representative of the clothing and jewellery sector at the Jordan Chamber of Commerce (JCC), told The Jordan Times.

Qawasmeh said that the expected price increase is due to the increase in international shipping fees, especially from the Far East countries.

He added that merchants used to pay $2,000 for a container to be shipped from a Far East country to Jordan, but now they pay $12,000 for shipping a container instead.

The increase in shipping prices and fees will be reflected on the final prices of the imported products, he continued, and higher prices result in low demand, which eventually leads to inflation.

“Products imported from the Far East countries are expected to see 10-15 per cent price increase, meanwhile, products imported from Turkey, Europe and the UAE are only expected to see a 3 per cent increase, while prices of locally manufactured products are not expected to increase,” Qawasmeh added.

He noted that customers’ demand dropped by 20 per cent during 2021, in comparison with the demand that was recorded during 2020.

“Retailers need to pass on the higher price of freight in addition to customs and taxes fees to the end customer,” said Kareem Sa’adeh, a clothes and footwear retailer.

Sa’adeh added that major retailers in the Kingdom have already flagged price rises because they have seen the cost of importing goods increasing from five to six times during 2021.

“The government can help retailers by lowering import taxes and sales taxes. Retailers are unable to pay their monthly expenses,” Saleem Al Haj, a clothes retailer, told The Jordan Times.

Haj stated that as a luxury brands retailer, surviving in the Jordanian market has become “very challenging”, as purchasing power is low, consumers are buying the bare minimum and replacing brand names with generic brands due to the extremely high cost of living.

*jordantimes




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