Apparel manufacturers with quality people and production equipment are everywhere. But the right fit for your brand that grows with your brand is difficult to source. Why do people find it extremely difficult to search for the right apparel manufacturer? The reasons are many and for a startup, it is even more difficult. There are several reasons why people find it difficult to get the right fit for their brands. Let’s find out the reasons and solutions for the problem. I am a tech pack designer and I consult many fashion startups throughout their apparel design, tech pack, and production process. In my view, fashion startups find it difficult to source the correct manufacturer for one of the following reasons.
Complex and Diverse Structure of the Apparel Industry
The structure of the apparel industry is diverse and complex. There are various sub-units and supporting units. Apparel production goes through various stages. So, the process of apparel production is complex and diverse and goes through various units in some order. It makes a brand navigate and source the right unit that meets its specific needs. The only way it is possible is if the brand has a blueprint of its design ideas. This will help the brand understand the process and then source the right unit. A fashion tech pack explains the processes. And how a style should be constructed through its stitching and garment construction detailing. Based on this the garment manufacturing unit follows the process in the same order and the production follows through the units as mentioned in the tech pack.
Sourcing Manufacturer that Maintains Quality Control Measures
Quality product is the main concern of a brand. They always worry if the clothing manufacturer will deliver quality products or not. So ensuring consistent quality is crucial in apparel manufacturing. Quality control should continue with the whole clothing design and garment manufacturing process. Sourcing a manufacturer who consistently does so is a big challenge. For this brands often need to conduct thorough research. Brands can do this by multiple factory visits, testing samples before production, engage a quality assurance agency to monitor and control for quality output. This is a costly affair and brands with limited investment cannot do this. So, they either gamble or compromise on certain aspects of production.
Communication Barriers with Overseas Apparel Manufacturers
Communication is key when it comes to manufacturing. Apparel Industry is a labor-intensive industry. And people working here are from different cultures, they speak different languages and work in different time zones. This difference becomes a barrier in the process of communication and smooth workflow in the apparel industry. As a result, it leads to misunderstandings and delays in the production process. The example here is in China people speak Mandarin and in the Western world speak English or Spanish. It becomes difficult to make these two parties communicate with each other effectively. The solution is to find out apparel manufacturer who understands the language and can communicate with the client smoothly. India is a better option because almost 70% of the workforce understands English and they are open to learning the language that the client speaks and understands.
Minimum Order Quantities (MOQs) of Apparel Manufacturers
Clothing manufacturers work on a batch which consists of 10 t- 12 Tailors working in a row. To feed the batch for a day you need to give at least 100 – 200 PCS/style per color. This is a bare minimum standard for a small unit. So, many manufacturers have their minimum order requirements. This limits the options available to fashion startups and makes it harder to find a manufacturer.
Cost Factor Considerations
The cost of production is always a factor in manufacturing. Especially when you are a startup and you are planning to produce clothing at a low quantity level. Normally, when the quantity of production goes up the price comes down. Also, it is difficult to find a manufacturer that offers competitive pricing while maintaining quality standards. So, brands often need to balance cost with other factors such as quality, reliability, and ethical practices of the clothing manufacturer. Established brands have made their network and have been in a comfortable position. But for startups, it is a bit of a challenge and struggle when it comes to finding a reliable and quality manufacturer.
Understanding Target Cost in Apparel Manufacturing
Manufacturers always try to figure out the target price the brand owner wants to pay. And same applies to the brand owners as they also want to know the target cost. This serves as an initial step towards price negotiation. It helps the manufacturer make a decision based on the potential profitability. But for brands, it is a tricky situation. Bigger brands take a scientific approach. They prepare the bills of materials. With that, they can guess the closest possible price they can afford to pay for the production. Those who go by guesswork and trust their negotiation skills, just take a chance. The price negotiation between a clothing manufacturer and a brand depends on the following scenarios.
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The Market Analogy and Consumer Behaviour
To illustrate this concept, consider a scenario when you go to the market to buy groceries. You may have a certain price in mind for each item. For instance, you might think that lamb meat should cost $50 per kilogram. However, if you find the same meat priced at $40 per kilogram, you would feel happy because you saved $10 per kilogram.
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Importance of Target Cost
The apparel manufacturer seeks to understand how much you are willing to pay per piece. And your response helps the manufacturer access potential profits. If your offer price exceeds the manufacturer’s expectations, they make more profit. The same goes the other way around when your price is within the expectation of the manufacturer. This understanding is crucial as it decides the feasibility. The collaboration between both parties depends on how both parties come together.
Managing Profit Margins
It is natural to worry about overpaying and negotiating hard to avoid it. However, it is essential to strike a balance and not lose out on a genuine clothing manufacturer. Many brands tend to lose good and reliable manufacturers due to overly aggressive negotiations.
Effective Price Negotiation Strategy with Apparel Manufacturer
To negotiate effectively, you should be able to meet the MOQ requirement. This is the first step. If you can do that the best way to come up with the right price is through bills of materials. Bills of material are the material specifications created based on the tech pack. This provides a detailed technical design of the garment and specifies the material. You can get to know what material you should use and at what quantity. Then it’s a simple math.
Importance of Tech Packs
Get the tech pack and spec sheet prepared for any size of production you want to do. Tech packs ensure accurate pricing. It also acts as a tool for price negotiation. So, it is a good practice to prepare tech packs before you approach a clothing manufacturer. A tech pack designer with ground-level experience comes in handy. So, Invest in tech packs before you even think of production.
By leveraging tech packs and BOMs, you can negotiate prices more effectively, ensuring a win-win situation for both your brand and the apparel manufacturer. Are you a fashion startup looking to build your brand from the ground up? Look no further than Urban Purple! We specialize in helping startups establish a strong foundation with expert tech pack designers, pattern makers, and spec technicians. Our team will work closely with you to create robust tech packs that meet your brand’s unique needs. But that’s not all – we also offer expert consultation services to connect you with the right manufacturers. With us, you can rest assured that the production process will be smooth and efficient.
Looking for tech pack templates and apparel mockups to kickstart your collection? Visit our tech pack template store today! Choose from a variety of options and incorporate them into your collection seamlessly. With Urban Purple, you’ll be all set for production in no time. Start building your brand with us today!