Understanding Apparel Manufacturing:
The ApparelMagic Guide - Manufacturing Section
Now that you have a better understanding of the laws that apply to the fashion industry, we’re going to discuss clothing manufacturing in depth. In this section, you will learn about the types of manufacturers that exist, the pros and cons of domestic and overseas manufacturing, what to look for in a manufacturer, how to communicate with potential manufacturers, and how to find one in the first place. We will also cover some of the top clothing manufacturing markets around the world and provide additional resources to set you up for success.
What Types Of Clothing Manufacturers Are There?
It’s a little bit of a no-brainer that apparel manufacturers take fabric and convert it into clothing based on the specifications that are set forth by a brand or specific designer; but as you read in the introduction, some manufacturers offer other services. The exact services that a particular manufacturer offers will depend on what type of manufacturer they are. Your choices include CMT Manufacturers and FPP Manufacturers.CMT Clothing Production
CMT stands for “cut, make, trim.” CMT manufacturing is the more basic option out of the two. These types of manufacturers simply cut fabric based on the patterns that you supply, make the garments according to your specifications, and complete any necessary finishing touches in the trim process. The primary benefit of choosing a CMT manufacturer is that you get to retain full control over the entire process. This option is best suited for designers that already have a pretty good understanding of the entire process. When you select a CMT manufacturer, you will have to supply them with fabric, all of the specifications for production, tech packs, patterns, grading, and stitching requirements. All of the design and decisions, sourcing, and necessary information for production becomes your responsibility. They will create products following your specifications to the letter so it is crucial to make sure that everything you send to this type of factory is comprehensive and correct. Other benefits of going this route could include lower costs and better lead times. The downside to working with this type of manufacturer is that you will need more extensive knowledge about apparel production and more of your resources will need to be dedicated to evening out the key technical elements for your items.FPP Clothing Production
FPP stands for Full Package Production. FPP manufacturing, as the name suggests, is the more robust option. This type of manufacturer offers services through every step of the way and is typically better for those who are new to the fashion industry. They still handle the CMT phases described above but offer full package solutions for their clients. The benefit of working with this kind of manufacturer is that you don’t have to have all of the information right out of the gate. FPP manufacturers offer help through the design phase all the way through to the complete product. Many of them can take just simple idea sketches and turn them into fully-formed designs, create prototypes, and even help you stay informed in regards to current trends to make sure that you can hit the ground running when your products hit the shelves. They also give you access to resources like fabric sourcing, and guidance on creating tech packs, patterns, and more. FPP manufacturers can walk you through creating technical specifications, colorways, grading, and more. You will be able to work with this type of manufacturer to find the best fabric types and sources, decide where hardware should be placed on your garments, and provide you with expert guidance every step of the way. They can even help you with labeling, packaging, and other finer details that you would have to determine on your own if you chose to work with a CMT manufacturer instead. Other benefits include allowing you to fully focus on branding and marketing since your resources don’t have to be dedicated to sourcing, labeling, and other technical elements of clothing production. The downside to choosing FPP over CMT is that FPP manufacturers are going to cost you more, and you may find that you have more limited selections when it comes to fabrics or hardware.Domestic VS. Overseas Apparel Manufacturing
After you decide what type of manufacturer is going to fit your needs, it is time to start considering where you would like the factory you work with to be located. Domestic manufacturers are going to be ones that are located in the country that you live in and that your business is based in; and overseas manufacturers will refer to factories located everywhere else. In this section, we’ll be focusing on North America for domestic options. (Tip: Even if you’re not based in North America, the same information will generally apply when it comes to the specific advantages and disadvantages.) There are pros and cons to both options. It is important for you to consider them, weigh out the benefits and the risks, and select the option that is going to work best for your business. Just as with what type of manufacturer you choose, the right answer is the one that is right for your needs as a business.Domestic Manufacturing
Right out of the gate, it is important to acknowledge that there are some disadvantages to selecting a domestic manufacturer. Since we’re focusing on North America, the biggest disadvantage is that you will have significantly fewer options. There are just not as many factories located in the US as there are overseas. In addition, you may find that you have a slimmer selection of product choices. Because the majority of apparel manufacturing takes place outside of America, some products are going to be exclusive to other countries and not available from the factories here. The final downside is cost. Domestic manufacturing, particularly in America, will cost higher than choosing a factory in another country. Even though there are disadvantages, there are still plenty of positives to consider. You may find that it is worth the higher price point. The United States typically has higher labor standards and production standards. Many people take the stance that higher quality products can be manufactured in the US. You will also be able to market your products based on the fact that they are made in America, which is attractive to a lot of potential customers. Working with a domestic manufacturer is also typically easier. You will have the benefit of similar time zones, holiday schedules, and you will not experience any communication barriers that you might if you choose to manufacture overseas. You will not have to worry about any additional costs in terms of tariffs or import duties. Domestic manufacturing also lowers your shipping costs and the time that it takes for you to receive complete products. Finally, choosing a manufacturer in America will ensure that your intellectual property is significantly more protected.Overseas Manufacturing
For this section, we’re going to focus on manufacturers in countries like China, India, Bangladesh, and more. Any country outside of the United States is what we’re covering in this section. One of the biggest benefits of manufacturing overseas is that it is cheaper. Manufacturing is significantly cheaper when you take it overseas. You will also have a broader selection of factories to choose from since you’re not confined to one country, and there are plenty of thorough resources and directories to help you find potential factories to work with. Also, like we touched on before, some products are manufactured exclusively overseas so you may not experience the same limitations as you might when choosing a domestic option. Most apparel companies have taken their manufacturing overseas. This may be the norm now but, there are some disadvantages or risks that come with working with a factory outside of your home country. Firstly, many consumers tend to perceive clothing that has been manufactured overseas as being lower quality. This isn’t necessarily true but the perception of your customers is going to affect their buying habits. You may also find that a manufacturer you’re interested in doesn’t have the same production standards that you would see in America which would mean that your clothing would be lower quality. In many countries around the world, the labor standards are not as strict as the ones in America. This can lead to problems with compliance with current regulations. In the event that the factory you select is violating important labor laws, you could be subject to penalties and it can seriously harm your brand image. There are going to be timezone differences that could impede communication with your supplier and you may experience other communication barriers during the negotiation process because of things like not sharing a common language or cultural differences. This is generally a minor problem but there is still a risk to consider. Finally, there are some things that are just difficult and more costly when it comes to manufacturing overseas. You will have to pay tariffs, you will experience higher shipping costs with longer wait times, and you will have to deal with customs when importing your products to the United States. Lastly, it won’t be as easy to visit a factory that is outside of your country if that is something you would like to do.What To Look For In A Clothing Manufacturer
Selecting a type of manufacturer and a general location are two very broad choices. In this section, we’re going to go over exactly what to look for in a manufacturer. Making the right choice is important because a manufacturer can make or break your business. Exploring your options and asking the right questions are important parts of the selection process. The first thing you should consider is price. You need to find a manufacturer that fits your budget. There are a lot of factors that come into play with price, specifically. A key factor is how much you would like your individual clothing items to sell for because that will dictate how much you will need to sell them to retailers for to remain profitable. Even if you’re selling your items directly, think about what you want the end consumer to pay for those items and the type of margins you’re looking for. The average profit margin for clothing ranges from 4% on the low end up to 13%. (Tip: When you’re first starting out, it is normal to be stuck with lower margins.) The price you want to sell for and the money you’re going to make will help you decide exactly what you want to pay a manufacturer. Another aspect of exploring prices is going to be MOQs. How much do you have to buy from a certain manufacturer in order for them to accept your business? Some will require you to buy in extreme bulk while some will be okay with more limited runs. How much can you invest upfront? Think about these things and try to find factories that fit your budget. The next thing that it is important to look at is shipping times. Are you on tight deadlines with retailers? Have you made guarantees to any customers at the moment? What kind of lead time are you comfortable with? Some manufacturers work for an astounding number of brands and may take longer to get your products to you. If you need faster lead times, you may need to pay a little extra or shift your focus to a different factory. Thinking about shipping time is something that will be ongoing in your clothing business. You may end up needing things produced faster later on, too. The level of experience also matters when you’re seeking out a new manufacturer. You may want to find specific factories that have made the type of clothing you’re going to sell in the past. You want your products to be the best possible manifestation of your designs and looking at what a manufacturer specializes in can help you narrow down your options. Factories that have a lot of experience in your niche or style are generally going to do a better job than those that are just starting out with the type of products or particular style you’re going for. Last but certainly not least, you need to think about quality. You want your brand to be successful and you want your customers to be happy. Order samples from manufacturers you’re considering, ask them about where they source their materials, and what their production standards are. Look at other brands that the manufacturer has worked with if you can. The key here is to explore what that manufacturer is capable of in terms of the quality of the clothing once it is done. Some factories may have different levels of quality at different price points. Make sure that you like the work of a manufacturer before you jump into working with them.Key Questions To Ask When Selecting A Manufacturer
Interviewing manufacturers is a common part of the selection process. It’s important to get all of the information that you can in order to make an informed decision that is going to propel you forward. Here are some great questions to ask apparel manufacturers that you might want to work with.- Are they currently accepting new customers?
- What services do they provide?
- What clothing items do they typically produce?
- Are they capable of manufacturing your products?
- What brands do they currently manufacture for?
- Do they work with any third parties?
- Where do they source their materials?
- What are their minimum order quantities?
- What is their capacity and can they scale?
- What do they charge for samples?
- How long will it take them to get you your products?
- What are their prices?
- Do they have any terms and conditions?
- Are they members of any regulatory organizations?
- What are their expectations for you?
How To Find An Apparel Manufacturer
There are a lot of different methods for finding a clothing manufacturer. In this section, we’re going to go over what you will need and where to look so that even if you’re starting from zero, you should be able to find a manufacturer that works for you. There are a few things that you should already have at your disposal when you begin your search to make things easier on you throughout the process. Here are some tips to keep in mind.- Know your budget
- Know what capabilities you need in a manufacturer.
- Know the timeframe you’re working with.
- Know the quantities you would like to order in.
- Have a working prototype prepared.
- Have a techpack prepared.
Check Directories And B2B Marketplaces
Directories are one of the first places that people tend to look when seeking out a clothing manufacturer. There are plenty of well-known directories all over the web that will give you hundreds of options. When looking at directories, you should make sure that you stick to more well-known and reputable sources. You will be able to find lists based on location, specialty, and more. Most of these directories will include a lot of basic information about the manufacturer and will also include contact details. B2B marketplaces are another great online resource where you can find businesses that sell services to other businesses. These will also include key information and contact details for the manufacturers that are listed. The benefit of a B2B marketplace is that you can typically contact businesses directly through the platform.Head To Some Trade Shows
Trade Shows may seem a little bit outdated in this digital age but they are a great place to look. They take place all over the world and in all different seasons, so you shouldn’t have a lot of trouble finding one to go to, especially those that focus on apparel and fashion. When you go to a trade show, you will have the opportunity to meet with manufacturers and their representatives face to face. You can ask the important questions that you need to ask right upfront and get the ball rolling on working with them if that’s what you would like to do. You will have the opportunity to see multiple options all in one place and you will be able to get to know them a little bit better right away. Trade shows are also great resources for a lot of other aspects of running your clothing business and provide great networking opportunities.Look Online
There are other places to look online apart from the directories we mentioned earlier. Just doing a few Google searches may turn up the perfect results. You can be very broad or very specific with what you’re looking for; you can specify a country or particular product you want to be manufactured, too. (Tip: Some websites are not updated very regularly, so double-check all of your results and reach out to manufacturers if anything looks unclear.) Searching for one isn’t the main point of this tip, though. Instead, we want to highlight social media. Especially on Facebook, there are groups dedicated to entrepreneurs supporting one another and there are hundreds of groups that are dedicated to fashion, the clothing industry, and running an apparel business. You can join some of these groups and see what resources they have to offer, or ask questions related to your search to help you narrow it down even before you reach out to anyone.Check Your Local Library
This may seem like an outdated option in the same way that trade shows do but, libraries are still amazing resources when you’re looking for knowledge on a specific topic. There are some published directories that exist offline that can cost quite a bit of money and you may be able to access those directories right from your local library. They will have exclusive access to resources that you may not be able to get on your own, or they may have purchased these directories to keep in their archives. This means that you could be able to access them completely free as long as you’re a member. The staff there is also specifically trained to help their patrons find what they are looking for, so it is absolutely worth looking into. The only caveat to checking with your local library is to make sure that the information that they give you is the most up-to-date available. Sometimes you may end up finding something that has been archived for a couple of years. Also, because of the way that libraries are adapting to the needs of the public, you may be able to find all of this through their online portal if they have one.Consider Fashion Schools
Fashion schools, and even incubators, are going to have a wealth of resources when it comes to manufacturing apparel. They tend to have strong relationships with multiple factories, so you don’t have to worry if they have been vetted or not. You can call, email, or visit a fashion school in your area (probably your best option), or call or email a fashion school you know of in another city and just ask them if they have any resources available. The worst that they can say is that that information is only offered to students but most of them will be more than willing to at least point you in the right direction if they’re not willing to disclose all of the resources at their disposal. This can be a very great way to get some information. A lot of schools have online libraries that you can access for free even if you’re not a student, as well.Ask For Referrals
This one is only relevant if you already have some connections or friends who are in similar industries but, asking around your own network could provide you with valuable insight. If you trust the person that you’re asking, then you can typically trust the manufacturers that they point out to you. They can also help you know who to steer clear of if they have had any negative experiences in the past.Purchase A List
This is usually not the most preferable option for those who are getting started but this is still something that you can do. On platforms like Fiverr, Instagram, and plenty of other more professionally-oriented platforms, you will find that there are people who sell lists like this. These lists could include where they source their fabrics, who manufactures for them, and other resources related to running an apparel business. Sometimes they can be expensive and others will let them go for cheaper. Make sure that you find someone who is trustworthy to buy a list from, consider the investment of buying someone’s list versus doing your own research, and try to find someone who is in a similar category to you. This is most common among boutique owners rather than designers but this is still an option.Talk To Your Current Suppliers
If you have already sourced some fabrics, you can consider contacting your suppliers to see if they have any recommendations. They may be able to tell you what manufacturers they are currently supplying or tell you about some that they have worked with in the past. The benefit to this is that if it is someone that they already have a relationship with, you will not have to worry about any sourcing issues down the line.Top Countries For Clothing Manufacturing
Clothing manufacturing is a seriously booming business all around the world. Opening up apparel factories is attractive for a lot of reasons including bringing jobs to an underserved area, boosting the local and national economy, and more. Fast fashion companies, boutiques, independent designers, and even the rise in online influencers producing merchandise have all come together to create a rise in demand for apparel production. Outsourcing clothing manufacturing is also viewed as one of the most advantageous options for clothing companies in terms of cost and volume. These factors have contributed to a robust industry of apparel manufacturing in several countries around the world. In this section, we’re going to take a look at some of the top countries all over the globe for apparel manufacturing.China
The textile industry in China is the most profitable in the world by a longshot. Manufacturers and exporters bring close to $300 billion back to China annually. The amount of products, particularly clothing, that is produced in China is staggering. Their output makes up greater than 50% of the entire global market. Even though consumers tend to associate China with poor quality, this isn’t exactly true. The quality of their raw materials and cutting edge production equipment are huge contributing factors to the success of their apparel manufacturing industry. It is also one of the cheapest places for companies to have their clothing produced.Germany
It may surprise you that Germany is the runner up in terms of export value in the apparel industry. This country has a total export value that comes up to almost $40 billion annually. This also serves as a great indication of just how large China’s stake in the market truly is. Germany is one of the largest exporters of knitted apparel, as well as man-made fibers and synthetic yarn. They are also known for their innovative machinery. Germany is emerging as one of the bigger players because they’ve gone through some significant shifts in the past ten years. The focus of their manufacturers used to be keeping costs as low as possible and producing high volumes but that mindset has changed. Germany has put more of a focus on producing high-quality products rather than try to compete with the low prices that China can offer and that has set them apart as the second-largest textile exporter in the world.Bangladesh
Bangladesh has only recently emerged as a standout country when it comes to apparel manufacturing. According to the most recent reports, there are close to 6,000 different clothing factories there. In 2018, they were ranked second in terms of export value. Now, the export value sits at $38.73 billion per year, which is still very close to Germany. What sets this country apart as a leading textile exporter is the vastness of their workforce. Recent data suggests that as many as four million people work in apparel manufacturing in Bangladesh! On top of that, the labor cost is extremely low, which makes it an attractive option when seeking out manufacturers that can produce in high volumes and strive to maintain transparency throughout their supply chain.Vietnam
Valued at $37.93 billion annually, the textiles industry in Vietnam is massive. The manufacturers in this country have been focused on more specialized production and modernizing their operations. This helps them stay competitive and also gives them a unique opportunity to corner certain areas of the global market. As with many other countries, labor costs are attractively low. Even with a workforce that is roughly half the size of that in Bangladesh, they are able to match the other country’s output with ease. What makes Vietnam shine is that the manufacturers there focus on being highly competitive in a few key areas, which means that the products are impressive in terms of quality, and clothing companies can make use of any one of over 6,000 factories there to help diversify their supply chain.India
India is another country that comes in on top when it comes to apparel manufacturing. Textile exports bring in $37.11 billion to the nation each year. Part of why India is such a large player is because of the handmade products that are still being produced there; however, they still offer more modern manufacturing opportunities as well. Production cost is a little bit higher in India compared to the other countries in the top five, which can make it less attractive as an outsourcing option. Even though that’s the case, clothing manufacturers in India have the advantage of impressive and innovative technology to give them their edge. Large production volume is the main thing that keeps India ranked as a top player in the global clothing industry.Beyond The Top Five
Italy and Turkey fill the next two spots on the global list. Italy stands out as a big player in the fashion world as well as the advent of e-textiles, which include new technologies that provide benefits to their wearers. These innovations in technical performance make Italy an attractive outsourcing option, especially for athletic wear. These factors are what keep Italy among the top. Turkey, on the other hand, shines because of their incredible design capacity along with their focus on health, safety, and quality. Turkey’s factories also stand out as being more dynamic and overall more flexible in terms of capacity. Turkey is unique because it provides the same benefits in terms of cost with less risk because of the standards that have been adopted in their textiles industry. Almost surprisingly, the United States comes in 8th. You don’t think about America when you think about clothing production; however, the trend towards favoring domestic products has helped boost the textiles industry throughout the country. As the 8th largest textile exporter in the world, the US is able to stand out in areas like specialty fabrics as well as protective apparel. Finishing off the list, Hong Kong is in the ninth spot. They are mostly known for their dyed and printed fabrics, as well as other unique export capabilities like denim weaving. Their export value comes in just over $20 billion per year. Finally, Spain ranks tenth in terms of clothing manufacturing around the world. They are particularly geared towards textile machine exports but the country is becoming a prime area for fashion, a factor that has boosted their industry over the past several years.Conclusion
Apparel manufacturing can seem like a complex industry to navigate and the process of selecting a manufacturer can seem difficult when you are first approaching this threshold in the development of your business. Securing a manufacturer is a big step but it offers a lot of benefits for designers and entrepreneurs that are looking to break into this space. Instead of bogging down your resources with in-house manufacturing, you can bring in a manufacturer to allow you to focus on the bigger picture in your business like developing a brand and pushing marketing. Having a manufacturer handle your production opens you up to more capabilities and greater creative freedom. Of course, there are risks but the benefits of taking this next step can pay great dividends down the line. Throughout this guide, you learned about the laws that govern this industry along with critical information that will help guide you through the process of selecting a manufacturer. You have the foundation and the tools to move your business forward!Key Takeaways
- Be mindful of regulations and laws that apply to your products where they are made and where they are sold.
- Understand your options throughout the selection process, consider different angles in order to make the best decisions for your business.
- Know what you expect in a manufacturer and what they expect of you.
- Don’t be afraid to ask questions, visit factories, and dig deep with your research.