Tuesday, June 21, 2011

Chinese Goods and US Prices

"The Chinese supply 78% of the footwear imported into the U.S.; 71% of the ties; 55% of the gloves; roughly 50% of the dresses and baby clothing; and 90% of house slippers, according to Commerce Department data."

The article in Wall Street Journal this morning here. The following chart highlights the trend:

The article ends with a quote from Bernard Leifer, chief executive of SG Footwear:

""There's been a shift in who is holding the cards," Mr. Leifer says. "It used to be that the retailers would demand lower prices. Vendors like us would demand lower prices from the factories. And the factories would generally acquiesce. The whole thing has now flipped. The bottom line is the American consumer is going to end up paying more.""

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