WHY FAKE LINEN PROJECT FAILS

In May-June of this year, the prices of linen yarn and fabric soared dramatically.

To address this issue, fabric mills in China, India, and Bangladesh introduced an innovative alternative: replacing linen fabric with cotton-based options. These alternatives were marketed under various names, such as:

• Fake linen fabric
• Linen-look fabric
• Linen-look cotton fabric

Why It Seemed Promising

This alternative was seen as a breakthrough because it offered a significant cost advantage. For example:

• 55% linen, 45% cotton fabric (130gsm, plain weave): $3.30/yard
• 100% cotton linen-look fabric: $2.50/yard

This meant that manufacturers could produce garments that mimicked the appearance of linen at a much lower cost. It seemed like an innovative and exciting solution.

Why the Project Failed, Especially in the U.S.

Despite the initial promise, the "fake linen" project struggled in the market, particularly in the United States. Here’s why:

1. Limited Cost Savings for Finished Garments

While the fabric itself was cheaper, the overall cost of the garment didn’t reflect significant savings.

• Custom Duty Disparity: Cotton fabric incurs an 20% duty in the U.S. Linen fabric incurs only a 2% duty in the U.S.

For example:

• A garment made with $2.50/yard 100% cotton linen-look fabric has an FOB (Free on Board) price of $7.00 per piece. After applying duties, the garment price rises to $8.40 per piece.
• A garment made with $3.30/yard 55% linen, 45% cotton fabric has an FOB price of $8.60 per piece. After duties, the garment price becomes $8.72 per piece.

No savings at all, making the switch less attractive.

2. Higher Costs for Embellished Garments

For garments with prints or embellishments, the FOB price increases. This narrows the cost difference further and can sometimes result in no savings—or even a higher price for fake linen garments.

3. Consumer Perception Issues

End customers were unwilling to pay the same price for a fake linen garment as they would for real linen.

• Perceived Value:
• When customers checked the care label and saw the composition was 100% cotton, they felt the garment lacked the premium appeal of real linen.
• Even though the fabric mimicked the look of linen, it was perceived as a cheaper, less authentic alternative.
• Appearance: Fake linen fabric fails to copy the authentic linen appearance.
• Branding Challenge: Linen is associated with luxury and quality. The term "fake linen" or "linen-look" undermined this premium perception, making customers reluctant to pay higher prices.