Posts Tagged ‘asia’

That Custom-Made Suit Is Going To Cost You

Wednesday, January 12th, 2011


credit: John_Brennan

If you’re not sure what inflation looks like in real life, try asking your tailor. Having suits and dresses made to order in Hong Kong or Singapore used to be the secret to looking good on a budget. But all that is starting to change. Here’s why:

1. Inflation! The apparel industry has been safe from inflation for a long time, but fabric today is more expensive than it was a few years ago. In 2010 alone, the price of cotton in Hong Kong went up by 91%. More expensive materials = a more expensive product.

(And because inflation generally raises prices across the board, tailors are demanding higher wages so they can keep up with the cost of everyday living.)

2. Consumer demand! More people have the money to order custom clothing these days, and tailors and materials are in short supply. That means more work for tailors, and a higher price tag for customers. In other words, the supply of materials and producers has stayed the same, but the demand for finished products has increased. When demand exceeds supply, you’ve got a price increase on your hands.

New Prices:

  • A custom suit made in Singapore with expensive luxury fabric runs about $5,400. A similar suit by an Italian producer might cost $10,000.
  • In 2009, a custom shirt from Singapore cost $177; today it would cost about $330.

“We’re so busy that we’re having to turn some people away.” – Mark Cho, Co-Founder of The Armoury in Hong Kong

Strong Quarter, Weak Economy?

Friday, July 16th, 2010

Although second quarter reports look strong, the economy may start to level out.

  • Fear of an economic slowdown caused the stock markets to dip.
  • Airlines are expected to make their first annual profit since 2007  due to fuller planes and higher fares.
  • Stronger Asian economies are increasing exports, which helps struggling U.S. shipping companies.
  • Despite all this, there has been poor job growth in the U.S in the past few months.

Facts and Figures

  • New home sales fell 33%, and existing home sales fell 2.2%.
  • Air shipments (mostly Asian exports) increased 30% from last year.

Best Quote

“Bottom line is earnings may hold up, but sales growth is slow and companies aren’t going to invest their record cash holdings until it improves.” – Howard Silverblatt, Senior Index Analyst of Standard & Poor

Asia Is Going Green And Leaving The U.S. In The Dust

Friday, September 25th, 2009

If you thought that the U.S. and Europe were the powerhouses of green technology, you should probably check out what Asia is proposing to do below. Just a hint: it involves a lot of money!

  • In August, leaders from China, Japan, and South Korea will try to work out a plan that proposes sharing resources and technology to create a green-technology powerhouse.
  • Japan and South Korea have highly advanced technology sectors while China is one of the strongest manufacturing powers in the world. By combining forces, they hope to easily dominate the green economy.
  • The U.S. and Europe may respond to the Asian countries’ effort with renewed intensity and investment or could find themselves falling behind in a new low-carbon economy.

Facts & Figures

  • In their economic stimulus programs, green investments account for 81% of South Korea’s and 38% of China’s spending – the U.S.’s is at 12%.
  • Estimates put Europe’s investment in clean energy at $50 billion for 2008, while North America’s is only at $30 billion.
  • In June 2009, the U.S. started a $25 billion program to help car makers retool their assembly lines for more fuel-efficient car production.

Best Quote

“[South Korea hopes to create] a new paradigm of qualitative growth which uses less energy and is more compatible with environmental sustainability.” – Han Seung-Soo, Prime Minister of South Korea