DECIDING BETWEEN DOMESTIC AND INTERNATIONAL PRODUCTION IN THE FASHION INDUSTRY
Launching a fashion brand? You’re going to have to decide whether you want to produce locally or internationally. The lower price per unit of overseas factories may be appealing, but there are several factors you need to consider before you decide whether domestic or international production is best for you
Here’s are some things to think about:
The cost is by far the most crucial component of setting up a fashion business and choosing between domestic and international manufacturers. High costs can make a business incredibly difficult to sustain.
Although the cost of production can seem cheaper overseas than it is in the US, it’s important to consider the cost of other aspects of production and delivery too. Think about how much you will be spending on product development; sending approvals and shipping samples back and forth can get expensive very quickly.
Also, you’ll have to take into account the cost of insurance during transportation, freight shopping, and customs duties as well as tariffs. How are they going to impact your costs? Is producing overseas worth these extra expenses?
MOQ (MINIMUM ORDER QUANTITY)
Fashion brands have been called out for producing too much inventory and then destroying it when they are unable to sell.
When launching a new fashion business, it’s smarter to begin by testing a market with fewer units. This minimizes risks and reduces upfront investment.
The majority of factories overseas have MOQs of thousands of units per style. In addition to MOQs, these factors also have set minimums for the amount of fabrics used for each style.
Local garment manufacturers Los Angeles like Lefty Production Co. don’t have such high MOQs so you can produce responsibly. Producing smaller quantities gives you the flexibility to test the market and see how customers respond—making production in the US perfect for new businesses.
The lead time for overseas production can be months after order confirmation. This includes the purchasing of necessary materials, producing and shipping batches to the US.
Lefty Production Co. is a garment manufacturing company Los Angeles that offers shorter lead times and unmatched quality. This allows brands to ramp up their popular styles quickly and expand their collections in response to the market.
For more information, get in touch with our team in Los Angeles.