Reduced Egyptian cotton exports leave U.S. retailers struggling to maintain prices
U.S.-based ExceptionalSheets.com, an online retailer of luxury bedding products such as Egyptian cotton sheets, said it would not raise prices despite the reduced supply of Egyptian cotton. Other retailers have raised their prices by 30% in order to maintain inventory due to higher export prices.
Known for producing the finest extra-long-staple cotton in the world, Egypt is a major supplier of Egyptian cotton to U.S. manufacturers of premium apparel and bedding. The 2011 Egyptian revolution led to restrictions on exports of Egypt’s most coveted cotton, of which the United States is one of the largest consumers. Higher export prices and a lack of export capacity due to the Egyptian revolution have led many U.S. retailers of Egyptian cotton products to increase prices, limit supply, or switch to alternative materials.
Yet while the conflict continues to hit Egypt’s economy hard, primarily its export capacity, cotton as a whole continues to thrive on both sides of the Nile. In fact, recent research suggests that Egyptian cotton may be more adaptable to extreme local conditions, such as water shortages and intense heat, than earlier expected. Research suggests that Egyptian cotton may survive any national conflict.
Scientists believe that the rapid evolution of Egyptian cotton over the past few thousand years proves that the coveted cotton plant contains more evolutionary adaptations than other crops. What’s more special is that despite the decrease in water resources (mainly due to the Egyptian revolution and population increase), Egyptian cotton continues to grow in this desert country.
In addition to its strong vitality, Egyptian cotton is the best extra-long-staple cotton in the world, stronger and softer than cotton from other countries. There are many importers of high-quality Egyptian cotton. Egyptian cotton sellers try their best to maintain the price competitiveness of Egyptian cotton, but they are still profitable because the export price of Egyptian cotton increases. Paul Saunders, owner of US-based Exceptional Sheets, a luxury bedding retailer, refuses to let the current conflict affect the company’s ability to sell quality bedding at competitive and affordable prices.
“This is a good example of the ‘supply and demand economic model,'” Sanders said. “The demand for our products is always increasing. If the supply of Egyptian cotton is restricted, one of three things will happen: Increase the price. , supplies are limited, or ingredients are substituted, and we promise to avoid all three of these situations.”
Recent data from Egypt suggests that export volumes have begun to pick up. According to the Alexandria Cotton Exporters Association, Egypt agreed to export 9.5 million tons of cotton by April 12, 2012. Since September 2011, Egypt has exported 68,000 tons of cotton, with an export value of less than $21,400.
Egypt’s recent unrest continues to affect their cotton exports. At the same time, American retailers like ExceptionalSheets.com believe that the quality and vitality of this luxury product are more important than demand, and they will continue to provide customers with high-quality products at reasonable prices.
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