Apparel manufacturers with quality people and production equipment are everywhere. However, the right fit for your brand that grows with your brand is difficult to source. Why do people find searching for the proper apparel manufacturer tricky? There are many reasons for this, and it is even more difficult for a startup. There are several reasons why people find it challenging to get the right fit for their brands. Let’s find out the reasons for and solutions to the problem. I am a tech pack designer and consult many fashion startups throughout their apparel design, tech pack, and production process. I believe 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 multiple stages. So, the apparel production process is complex and diverse and goes through numerous units in some order. It makes a brand navigate and source the suitable unit that meets its needs. The only possible way is if the brand has a blueprint of its design ideas. This will help the brand understand the process and source the suitable 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
A brand’s primary concern is quality products. They constantly worry about whether or not the clothing manufacturer will deliver quality products. So, ensuring consistent quality is crucial in apparel manufacturing. Quality control should continue throughout the clothing design and garment manufacturing process. Sourcing a manufacturer who consistently does so is a big challenge.
For this reason, brands often need to conduct thorough research. They can do this by conducting multiple factory visits, testing samples before production, and engaging a quality assurance agency to monitor and control quality output. However, this is a costly affair, and brands with limited investment cannot afford it. So, they either gamble or compromise on certain aspects of production.
Communication Barriers with Overseas Apparel Manufacturers
Communication is critical 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 hinders the apparel industry’s communication and smooth workflow. As a result, it leads to misunderstandings and delays in the production process. The example here is that in China, people speak Mandarin, and in the Western world, they speak English or Spanish. It becomes challenging to make these two parties communicate with each other effectively. The solution is to find an 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 is open to learning the language the client speaks and understands.
Minimum Order Quantities (MOQs) of Apparel Manufacturers
Clothing manufacturers work on a batch of 10 t- 12 Tailors working in a row. To feed the batch daily, 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 planning to produce clothing at a low quantity level. Usually, when the production quantity goes up, the price goes down. Also, finding a manufacturer that offers competitive pricing while maintaining quality standards isn’t easy. So, brands often must balance cost with other factors, such as the clothing manufacturer’s quality, reliability, and ethical practices. Established brands have made their network and have been in a comfortable position. However, for startups, it is a bit of a challenge and a struggle to find a reliable and quality manufacturer.
Understanding Target Cost in Apparel Manufacturing
Manufacturers always try to determine the target price the brand owner wants. The same applies to brand owners who 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. More prominent brands take a scientific approach. They prepare the bills of materials. With that, they can guess the closest possible price they can afford for the production. Those who follow guesswork and trust their negotiation skills 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 buy groceries at the market. You may have a specific 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 beef 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. 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 manufacturer’s expectations. 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 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 materials 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 then determine what material you should use and in what quantity. Then, it’s 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, preparing tech packs before you approach a clothing manufacturer is an excellent practice. 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 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.
Are you 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 seamlessly into your collection. With Urban Purple, you’ll be all set for production quickly. Start building your brand with us today!