Buying direct from the source

Buying direct from the source sounds like a good way to lower your costs but is it really?

You have a small fashion label; currently you outsource your production to a local company who then sends your designs off to an overseas sewing factory – probably in China. By cutting out the middle man you can save around 20%. The question is then, is 20% enough to warrant you flying to China to setup and arrange a contract. There are many barriers to doing business in China; of course with the right amount of financial backing you can achieve almost anything. Language and cultural differences aside, one can certainly get things done if you have the right attitude.

In this author’s humble opinion, it is entirely worth taking the trip and engaging an overseas sewing factory to cut and sew your designs. The cost saving is one part, the experience gained is of immeasurable value. If you see yourself in the clothing & fashion business long term you better get used to the idea that all most all clothing is produced in China.