Imperium set for textile trade war
House Poritrin’s new range of fabrics has set the scene for open economic conflict as it continues to expand into neighbouring markets. House Poritrin, already one of the largest economies and a major CHOAM shareholder, has invested heavily into developing a new silk based fabric that changes colour to adapt to its environment. Sources inside of House Poritrin recently leaked sensitive information that House Corrino had been offered an exclusive wardrobe of the new silk in a bid to gain an edge over the current market leaders and current CHOAM luxury goods charter holders, House Leontis. Such a move, if successful, will undoubtedly win a significant market share and mark the yet un-branded silk as the superior product.
Analysts speculate that such a move will force a retaliatory response from House Leontis if they wish to protect their exports and valuable CHOAM holdings. Of greater concern, mentat projections also compute that this publicity stunt in isolation will not be enough to secure a dominant market position and House Poritrin will need to take more extensive measures in order to compete on a more significant level. This leads to fears of escalation into a “trade war” between the two Houses. Although such conflicts are normally non-violent, they revolve around crippling the competitor’s economy, usually by means of trade embargoes and industrial sabotage. Comparisons have already been drawn between House Ginaz’s attempts to enter the munitions market some months ago. This move was met with a serious political and economic backlash from House Wikkheiser , the leading munitions manufactures in the market, including an embargo which forced House Ginaz to back down. Any such conflict will have serious repercussions to the luxury goods markets and the Imperial economy as a whole, with CHOAM profits likely disrupted.
House Leontis, the main exporters of high quality silk in the Imperium, has until recently dominated the market, with full scale production planned to go online in the next few months. Leontis’s strategic investment into large scale production facilities and collaboration with high profile textiles merchants has produced significant results and has since been awarded a CHOAM charter for its efforts. House Poritrin’s investment has been on a much smaller scale, its industrial capacity currently at a lower level, and some doubts remain it could match a jump in demand. However, its product is highly original with a large marketing and branding potential. Coupled with House Poritrin’s already substantial economic base and resources, overcoming barriers to entry and expanding production will not be issue. It’s economic muscle would also make them a difficult to compete with in any trade war. .
It must be bared in mind that several key variables are not available for computation at this time. House Leontis currently has the more advanced facilities and future capacity for higher output, as well as valuable market knowledge and a network for distribution. House Poritrin’s innovation gives them the superior product, coupled with a much larger economic base and resources that gives them an edge. However, the key deciding factor will be how far both Houses are willing to go in pursuit of profit and ultimately, economic dominance of the market.
CHOAM will be monitoring future developments with great interest.
