Tesco Lotus to maintain clothing prices despite rise in output costs

Corporate February 11, 2014 00:00

By Matavee Tunrungwetjarun

4,080 Viewed

Tesco Lotus says it will try not to raise its clothing prices even though garment-production costs have risen.

Thanuruj Tehchasipaitoon, deputy managing director of the garments and men’s wear division of Tesco’s Ek-Chai Distribution System Co, said there had not been an increase in its garment prices for two years despite continuing rises in production costs.
One factor was the increase in the daily minimum wage to Bt300, while the costs of some raw materials also rose.
Meanwhile, per-purchase spending on clothing by consumers has increased. 
Garment prices start at Bt79 for a T-shirt (Britain’s F&F brand), “green” products begin at Bt249, and jeans start at Bt429. 
Tesco Lotus expects clothing sales to grow by 10-15 per cent this year, down from the normal growth of 20-30 per cent, because of consumers’ weaker purchasing power and the prolonged political unrest. 
Tesco Lotus says it will continue to increase the proportion of green products and support environmental-preservation programmes such as reforestation, and aims to cut in half its carbon-dioxide emissions by 2021. 
The retail giant currently sells 300 green products, such as energy-saving light bulbs and utensils made from sugar cane. 
With a Bt500,000 research-and-development budget, Tesco Lotus in conjunction with F&F brand has produced men’s garments made with recycled polyester fibre derived from plastic bottles. 
Such green garments currently comprise 20-30 per cent of the menswear sold by Tesco Lotus. 
Electrical goods will be the next in line for green, energy-saving products, Thanuruj said. 

Most view