Significantly, Bangladesh, Cambodia, El Salvador and Honduras — along with Pakistan — were the cheapest of the USA’s leading ten clothing suppliers in 2010, and their success reflects the fact that US buyers continued to seek out low cost supplies as the recovery in the US economy remained tentative.
Honduras continued to achieve success in the first two months of 2011, wherein Honduras’s supplies to the USA were up by 19%.
The country appears to have achieved its growth in 2010 by supplying the US market at lower prices than their competitors — and this looks set to continue in 2011.
Admittedly, Honduras increased their prices in the first two months of 2011 — but so did their competitors, in response to the recent surge in raw material prices. In fact there was an increase in the average price of US clothing imports as a whole.
Prices are expected to increase for much of 2011. Although the cotton price started to fall in April 2011, many clothing buyers have placed forward orders at prices which reflect the high cotton prices prevailing in 2010 and early 2011.