Dealing with rising prices of “down”

An article in the Wall Street Journal (May 8,2012) describes the impact of rising prices of goose down ($12 per pound in 2009 to $28 now) and duck down ($9 to $19). The driver of these price increases range from less farming in China as people move to cities, increased consumption of meat and fish and not duck and geese. Some retailers are switching to more duck down to maintain prices, others are increasing prices 50 to 60%. Yet other retailers are either using synthetics or wool. Will product adjustments be the approach to deal with price increases of down, or are retailers better off passing along higher prices ? Will the substitution of synthetics result in a permanent demand reduction for down, thus lowering prices ? Do you expect production in other countries to increase to compensate for China’s reduced production ?

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About aviyer2010

Professor
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