Man-made Fiber

I was at a meeting with a brand designer from U.K. the other day. While everything was going great, the price question just popped out of nowhere.

Yeah, I know that behind every purchase decision lies a question must be answered. This question happens to be always around the price.

Honestly, I like it when people ask me for a price quote even it can be a straight up deal breaker. What intrigues me is their answer. In this particular case, the answer was “Wow! So much for man made fiber”, said the designer.

I hate to admit it, somehow it makes sense. Unlike cotton which grows out of branches or cashmere that shed out from goats; nylon and polyester are made out of synthetic polymers.

How can you beat something that comes from nature! (cottontown.org; worldnews)

Then, I remembered an economics professor of mine in college once said; the market determines the price and supply and demands determines the market! Although, this actually brings back a lot of horrible and painful memories from the past but the theory makes a lot of sense as well.

Now, I must work my brain to the maximum capacity to solve this dilemma and I guess, I am gonna have to go with what my professor said this time J

I am glad that I was fairly a good student over my academic years so that I am able to list out a few good reasons why demand curve shifts to the right over the past few months,

1.      Crude Oil Price

2.      China’s Anti-pollution Campaign

3.      Environmental Factors

4.      ECFA (Economic Cooperation Framework Agreement)

I'll get into more detail later, but long story short, I don't expect nylon or ploy price to go down anytime soon.