Apparel manufacturer with quality people and equipment for production are everywhere. But the right fit for your brand that grow with your brand is difficult to source. Why people find it extremely difficult to search the right apparel manufacture? 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 fir for their brands. Let’s find out the reasons and solution 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 below 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. An 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 difficult to navigate and source the right unit that meet its specific need. The only way it is possible if the brand has a blue print of their 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 follow through the units as mentioned in the tech pack.
Sourcing Manufacturer that Maintain Quality Control Measures
Quality product is the main concern of a brand. They always worry if the clothing manufacturer will deliver quality product or not. So ensuring consistent quality is crucial in apparel manufacturing. The quality control should continue with the whole clothing design and garment manufacturing process. Sourcing that manufacturer who consistently do so is a big challenge. For this brands often needs to conduct thorough research. Brands can do this by multiple factory visits, test samples before production, engage quality assurance agency to monitor and control for quality output. This is a costly affair and brands with limited investment do not have the capacity to do this. So, they either gamble or compromise on certain aspects of production.
Communication Barriers with Overseas Apparel Manufacturer
Communication is key when it comes to manufacturing. Apparel Industry is a labor intensive industry. And people working here are from different culture, they speak different language and work on different time zone. This difference becomes a barrier in the process of communication and smooth workflow in the apparel industry. And as a result it leads to misunderstanding and delays in production process. The example here is in china people speak Mandarin and the western world speaks English or Spanish. It becomes difficult to make this two parties communicate with each other effectively. The solution is to find out apparel manufacturer who understand the language and can communicate with the client smoothly. India is a better option because almost 70% of the workforce understand English and they are open to learn the language that the client speaks and understands.
Minimum Order Quantities (MOQs) of Apparel Manufacturer
Clothing manufacturers work on a batch which consist of 10 t- 12 Tailors working on 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 manufacturers.
Cost Factor Considerations
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 practice of the clothing manufacturer. Established brands have made their network and have been in a comfortable position. But for startups it is bit of a challenge and struggle when it comes to find 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 with 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 take 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 guess work and trust on 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. Same goes the other way round 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 loose 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 are able to do that the best way to come up with a right price is through bills of materials. Bills of material is the material specification created based on the tech pack. And this provides 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 handy. So, Invest on 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 for 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!