In This Article:
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* Drought fuelling record wool prices in top exporter Australia
* Some cloth mills passing on higher prices of wool
* Some retailers raising prices, cutting wool content in clothes
* Increased popularity of woollen active ware underpinning demand
By Sonya Dowsett and Jonathan Barrett
MADRID/SYDNEY, Nov 21 (Reuters) - A jump in the price of wool from drought-ravaged Australia, the world's top exporter of high-quality fleeces, is rattling through the global clothing supply chain, with some mills passing along costs and retailers cutting down on wool or raising prices.
Italian clothmaker Botto Giuseppe, which supplies luxury brands Giorgio Armani SpA and Max Mara, says it has increased prices on average by 7 to 8 percent in the last year on wool fabric, while high-end Swiss-based sportswear label Mover has put up the retail price of its merino wool t-shirts by 15 percent.
"The wool price has increased consistently over the past three years," said Silvio Botto Poala, Chief Executive Officer of Botto Giuseppe, a 142-year-old company. "But the big jump has been in the past year."
Neither Armani or Max Mara immediately responded to requests for comment.
Meanwhile, Swedish fast fashion company H&M has cut down on the amount of wool it uses in production, it said in an emailed response to Reuters' questions, thus avoiding price rises on items like wool-blend sweaters and coats. It declined to give further details.
Botto Giuseppe has increased the price of wool flannel fabric used for suits to 19.50 euros per metre compared to 18 euros a year ago, CEO Botto Poala said.
Pure merino wool t-shirts from Swiss skiwear label Mover retail for 75 euros ($85), compared to 65 euros last year, CEO Nicolas Rochat said.
Pendleton, a sixth-generation-owned, Oregon-based textile company known for its plaid woolen shirts, said it would put up some of its prices next year due to higher wool prices.
"We won't go into less expensive wools, we will just have to take a sharper margin and we'll have to increase the price," said John Bishop, CEO of the company which has collaborated with Nike on a range of plaid wool sneakers.
The privately-held company declined to give details on how margins will be affected. Nike did not respond to several requests for comment.
Wool has become increasingly popular for use in sportswear due to its temperature regulating properties and a surge in demand for sustainable fabrics, particularly from younger consumers, manufacturers and farmers say.
But the jump in demand has coincided with a sustained drought in the east of Australia, which supplies over 90 percent of the world's exported high-quality wool used in clothing.