Since January, 2010 we have been very bearish on the stability of prices in the wholesale custom t-shirt market. On Friday March 18, 2011 Gildan announced immediate price increases of 8% - 12.5% on core products. (See Announcement) All other mills will follow shortly. In my article dated March 16th, 2010 I specifically stated that Gildan would lead the way on price increases due to market dominance. We see Gildan’s overwhelming market share as an impediment to competition in the market place. On Setember 23, 2010 we boldly predicted three price increaees by the end of the first quarter of 2011.

Since January 1, 2010 Gildan has led the way on every price increase as we predicted and all competitors have followed suit. While the broader economy is struggling to maintain a bearish status quo, the custom print t-shirt market looks vulnerable. Many consumers of custom t-shirts may begin to evaluate their purchases as non-essential to their business operations. That thought disturbs us. Many of the larger internet t-shirt retailers may have already priced themselves toward the higher limits of consumer tolerance. Look for further search result drill downs by consumers searching for bargains. We believe cheap custom t-shirts may not be that cheap any more.

Blue Heron Industries, Inc. is a leading wholesaler of custom t-shirts, direct-to-garment printing and embroidery.

03/21/2011
Little Falls, New Jersey 07424