Cotton Prices Skyrocket! Puts Pressure Onto Retailers

My Submission to RetailProphet.com

With over 25 million tonnes of cotton being consumed each year, a shortage was to be inevitable - not to mention the natural disasters that have devastated the crops of many of the world's largest cotton producing nations. To businesses, a cotton shortage means increased costs as the price of cotton doubled the last year, which will subsequently be passed onto the consumers. To combat this situation, some retailers have started to use synthetics like polyester as substitutes or to create blended cotton. However, if synthetics of chemical compound are fused with cotton, they cannot be recycled or properly disposed and some fashion retailers have been falsely positioning themselves as being sustainable. Outdoor apparel retailer, Patagonia, has taken the innovative approach to promote environmentalism. They launched the “Common Threads Program” which declares that they will take everything back they’ve produced to recycle, reuse or repair. The program has proved to be a huge success.

A New Era: Mobile NFC

My Submission to RetailProphet.com

Do you believe that the traditional methods of retail are becoming less effective as new technologies and concepts emerge? Retail is continuously maturing and with so much competition in the industry, new methods to entertain customers and promote productivity are being introduced. We’ve seen E-retail, RFID technology, self-checkout and much more! As the industry advances forward once again, we're entering into an era of mobile retailing. Retailers have already started creating apps with incredible features for smartphones. But smartphones are no longer just smartphones. With the new NFC (Near Field Communication) technology that is available on latest models (not on iPhone 4s), it is virtually a credit card – but better! There are several functions of NFC on your phone, but definitely one of coolest is“contactless transactions”. How will this technology impact the retail industry and the world as it is incorporated into stores, buses, subways, restaurants? So many possibilities!

Detour

"For you were like a straying sheep, but now you have returned to the Sheppard and Guardian of your soul."

- 1 Peter 2:25

Testimony

Today I was baptized at my local church in front of many witnesses to publicly manifest my allegiance to Christ. I was required to write a short testimony of how I came to walk with Christ and I wanted to share it here.

He Welcomes My Blackened Soul.
- Testimony of David Yoo

I am writing this testimony to proclaim God’s glorious work in my life and in hopes to encourage at least one more person to rejoice together in His greatness.

Growing up, I was that wild, immature juvenile who had a routine of getting suspended from school every other week. I’d always somehow get involved with the wrong crowd or in unfavourable situations and every time, I had to watch my mother in tears, as she begged the school to overlook it.  Stupidity. That was my motto and I’d do foolish things to the point I’ve been arrested and even obliged to receive therapy. Perhaps I was deprived of attention from home and was seeking it somewhere else, but clearly, there was something very significant missing in my life – guidance. My family wasn’t exactly ideal, mainly due to my violent father. My family lived in constant fear of his abuse and as much as he cruelly disciplined me, he never offered me the guidance, attention and provision I needed. Being the ambitious entrepreneur that he is, he wasn’t satisfied with his promising company that he had and left my family 6 years ago to pursue a greater venture in China. My father was absent during the most important years of my life and ever since he left, I’ve yet to seen him more than once, leaving me alone in my masculine journey of becoming a man. The consequence of my father investing heavily in his new enterprise resulted in my family becoming financially unstable and my mother was forced to work part-time jobs to raise me and my sister alone. I hardly got to see my mother’s weary face anymore and the most beloved people in my life seemed to be slowly drifting away into dusk, one by one. Mentally and spiritually, I became an orphan. My dearest grandfather who was living with me at the time fell terribly ill and was diagnosed with brain tumour. He unexpectedly left me a short time after. It came to my realization that he was hiding his agonizing illness until he could no longer hide his seizures, because he didn’t want to become a burden to my financially struggling family. I fell into a black hole of guilt, telling myself that he would still be with me if only I’d known sooner. I would’ve sold my soul to come up with the money to give him the proper medical care that he needed. I blamed my broken family and every misery in my life on money – not having enough of it. My obsession with money grew and I declared my sole purpose in life to become filthy rich. It was the lowest point in my life as I looked to worldly pleasures to fill this emptiness in my heart. Alcohol, girls, sex and entertainment were only temporary means to escape from my reality and eventually I was left devastated, depressed and broken. As I was desperate to pursue lasting happiness in my life, I envied the lives of my Christian friends because they seemed to be filled with joy and passion. How can they be so content living in this bitter world? Their answer was Jesus Christ. I was hesitant to seek Christ in my life because my very existence is so dirty and tainted, hence I believed I wasn’t worthy for God’s love. My long endured battle of repenting and committing to become a Christ follower was a great hurdle, but only through my brokenness it was made possible. Brokenness shattered my self-reliance and revealed my need for God. Brokenness exposed my flaws, weaknesses and mistakes. Brokenness purified my motives and suppressed my pride, greed, selfishness, jealousy and lust. Brokenness allowed me a deeper understanding of myself and God. Brokenness equipped me with the compassion and understanding for others' sufferings. My brokenness was a sign of God's love and activity in my life. My brokenness led me to Christ – my new father.  

I was lost but now I am found. No longer was I alone in my endeavours. The only things that were lost were my burdens and worries which He replaced with confidence and aspirations. God was in control of my life. My obsession with money was all directed towards God’s glory, yet my ambitions and motivation were greater than ever before. As I prayed that He would use me for a great purpose and that He would prepare me for that purpose, God provided me with guidance and everything I need in my journey ahead. My family couldn’t support me financially to attend University but a miracle was bestowed upon me. God desired for me to go and made it possible by blessing me with over $50 000 worth of scholarships. I found victory in anything I attempted, as well as achieving high academic success. Humbly, I can only say with a grateful heart, “I can do all this through Him who strengthens me” – Philippians 4:13

We may not realize it, but like the air that we breathe to be refreshed or the gentle breeze that cools us on a scorching summer day, God is always working in our lives even if we cannot see it. Even during the times of my brokenness, God indulged me with the strength and direction to get back up on my feet and persevere.  With every pain endured, I grew in spirit and with every battle fought, I became stronger. My journey with Christ has only just begun and through my sinful nature, I still struggle with temptations of self-image and lust. However, I am not dismayed because of the unconditional love that God spoils me with. Ever since I have accepted Christ as my Lord and saviour, I have come upon the one and only everlasting joy in which I find peace. My life, inclusive of my past, present and future is portrayed in Psalm 23. I’ve made my own translations on the side.

Psalm 23

A Psalm of David

The LORD is my shepherd, (Father)
I have everything I need. (Providence)
He makes me lie down in green pastures, (Comfort)
he leads me beside still waters, (Refreshment) 
he restores my soul. (Healing)
He guides me along the path of righteousness (Guidance)
for his name’s sake. (Purpose)
Even though I walk through the valley of the shadow of death, (Testing)
I will fear no evil, (Protection)
for you are with me, (Faith)
your rod and your staff, they comfort me. (Discipline)
You prepare a table before me, in the presence of my enemies. (Hope)
You anoint my head with oil, (Commitment)
my cup overflows. (Abundance)
Surely your goodness and love will follow me all the days of my life, (Blessing)
and I will dwell in the house of the LORD (Security)
forever.. (Eternity)

A Designer?

I'm taking a studio class this semester in the fundamentals of design & colour and as I was reading through my textbooks, I stumbled upon something very captivating which lead to a deluge of thoughts.

"Chapter 1: What is design? - Everything that does not happen by accident happens by design. Design is both a problem solving process and a product. It is the organization of parts into an understandable whole. It is a process of purposeful creation and includes everything intentionally created. In visual terms, design is the organization of materials and forms to fulfill a specific purpose." - Design & Colour For Fashion, by Alice Chu

Perhaps we were created - created for a purpose and not just for the sake of living. Perhaps everything in this world was created for a purpose, a reason, a unity. Just like how every part of the human body has a function or how our emotions seem like they are rhythmically desinged to change and adapt to different situations. Even the existence of worthless fruit flies play a major role in the balance of the food chain. If we weren't created by a designer, the only other alternative is that you & I were made by nature through complete chance. But what are the odds? - The odds of the world appearing out of nothing through a big bang. The odds of Earth being the only planet on which water can be in liquid form. The odds of the Earth being exactly 149 597 870km away from the Sun so that we have a climate which makes life possible and accommodate seasons. The odds of your mother and father meeting within the 6.9 billion people in the world. The odds of them even existing in the same period of time and not in different generations.The odds of your father marrying your mother throughout all the females he has met in his lifetime. The odds of you being born into this world instead of the other infinite number of sperm cells. So if you add up all the odds and do the math, the chance of your existence is probably next to...nothing or impossible. Therefore we could say that "life" is equivalent of winning the lottery every second for the next thousand years, which is pretty unlikely if you ask me. So potentially, the odds of there being a creator that created all things could be higher? The sole reason why people deny God's existence is because He is not physically visible - although no one has seen the big bang either. But we believe in intangibility such as; love, jealousy, anger, pain, morals, conscience, air, wind, gravity, time, etc - so why not a creator? Maybe because all the intangibles I've listed can be experienced? But how do you expect a child living in a third world country to know how sweet chocolate tastes only by hearing stories of it, unless they actually take a bite of it - unless one tries to seek God. Also, if there is no creator, is it possible to prove (using science or logical reasoning) the origins of these intangibles? Food for thought.

My conclusion: There must be a designer who created the world and everything in it with purposeful intentions. It's just too beautiful and in perfect unison to be made only by chance, hence by accident - otherwise it would result in a random world of hopelessness and despair.

ISAIAH XLI.X

Dedicated to my cherished friend and an older brother I never had.

There are chapters in our lives where we feel like the world is falling apart, leaving us devastated, depressed and broken. God's graceful ways of discipline and preparations are painful and at times we may be crushed. He demolishes the insecure walls of our hearts, only to replace it with a refined fortress containing solid foundations - only to strengthen us and prepare us for the wondrous plans that he has for you & I. Tragedies, struggles, and mistakes deeply influence and shape us to who we become. With every battle fought, we become stronger. We must be broken before God can use us. Brokenness shatters our self-reliance and reveals our need for God. Brokenness purifies our motives and suppresses pride, greed, selfishness, jealousy and lust. Brokenness exposes our flaws, weaknesses and mistakes. Brokenness allows us a deeper understanding of ourselves and God. Brokenness equips us with compassion and understanding for others' sufferings. Brokenness is a sign of God's love and activity in our lives. Brokenness is a step closer to Christ.

Our God is always present and He will provide us with strength and guidance, especially during times of our brokenness.

"So do not fear, for I am with you. Do not be anxious for I am your God. I will strengthen you and help you; I will uphold you with my righteous right hand."
- Isaiah 41:10

Bad News for Fashion Lovers

Remember when gas was just 60 cents in the early 2000s and late 1990s? Soon we will all remember the days when Fashion was "cheap" as well. With over 25 million tonnes of cotton being consumed each year, a shortage was to be inevitable. To businesses, a cotton shortage means a loss of profits and to the common consumers, it could mean a consistent rise in the price of clothing, as the cost of cotton alone doubled the last year. But why is there a cotton shortage? First of all, China - the world's largest cotton producer, suffered from a major drought and unusually cold weather which devastated the cotton fields. Meanwhile, India - the world's second largest cotton producer, set very strict trading policies to limit their exports in order to maintain the balance of supplies and protect their country's economy from fluctuating prices. Then to make this situation even more preposterous, Pakistan - the world's fourth largest producer, was hit by a disastrous flood, severely damaging their cotton crop and subsequently another flood in India. Wait. I forgot to mention that the growing labor shortages, especially in China, are resulting in wages being higher than ever which is driving up the cost of cotton even more! Wow.

Due to all of the unfortunate events, the textiles industry is in an extremely dangerous position and businesses are fearing the sky rocketed prices of cotton and other raw materials acting as substitutes such as synthetic or polyester as designers look for cheaper alternatives - which I will explain later. To clarify the results of the shortage with the basics of economics, the "law of supply and demand" states that if QS (quantity supplied) is less than QD (quantity demanded), the price will rise to meet the new equilibrium (point where demand & supply curve intersect). In addition the "law of demand" regarding "prices of related goods" or "substitutes" state that an increase in price of one good leads to an increased demand for the related good - and an increase in demand means an increase in price as well. An example of a retailer that has been hit hard by the cotton shortage is the fashion giant and "hipster-loving" American Apparel. If you didn't know by now, AA is on the brink of bankruptcy. Besides the countless sexual harassment lawsuits, declining sales and having a $91 million debt, I believe that the primary reason why they are facing a crisis is because 80% of their products are organic cotton. Just about two years ago no one would have imagined for AA to have fallen this low because they had an exceptional competitive advantage over other retailers for being vertically integrated - a retailer that also manufactures, wholesales, markets and distributes their own products. Unfortunately, the bigger they are, the harder they fall.

I had the privilege of attending a Michael Belcourt Lecture where Don Green and Michael Budman, co-founders of Roots Canada were speaking. At the end of the lecture they were asked about how the rising price of cotton would affect Roots. They replied by saying there won't be much change and they will take the innovative approach. But cotton is a major component in Roots and in many other retailers. The ICA (International Cotton Association) is doing everything they can to combat this situation but businesses will undoubtedly take a big hit. Ultimately the increased costs will be passed on to the customers and we will likely see more blended cottons and other alternative fabrics being used in the future.