[vc_row][vc_column][vc_column_text]One of the most common questions we get here at Apparel Entrepreneurship is: How do I find a factory?
Finding the right manufacturer meeting all your criteria about quality, ethics, and communication is a crucial part of having a successful sportswear business. Can they make the products you have designed, on time, at the right price, and in the right way?
Including a factory early on in the process is an advantage. It is not until your specific factory has made a product sample that you can make a correct price calculation. This price calculation is essential for your entire business to make sure you make a profit in the end and can continue your venture. Secondly, you need the factory to make a salesman sample. It is with this sample that you can proceed with your marketing and sales activities. Such as photo shoots, and showing to potential buyers.
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Determine your needs
Before you even start looking for a manufacturer you need to determine your needs.
1. Start off by defining your collection, read more about it here. Different styles may require different manufacturers. You need to know what type of garment you are making, the materials you are using, and if there are specific techniques required to make your garments.
2. Determine your price point. When you made your business plan, you made a decision about the price level for your collection. If you need help with your business plan, take a look at this article. With this decision you can go back and see if you will get your wanted margin when manufacturing at that exact factory.
3. Decide how many garments per style you want and can afford to make, because manufacturers have minimum quantities or MOQ. The MOQ is for one style and is the minimum quantity a factory will produce in one batch.
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Factory MOQ/ style is 1 000 pieces.
You want to make 10 styles at that factory.
This means you have to produce 10 000 garments, to meet their MOQ.
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Finding the factories
Ok, so you know what styles you want to make, how many, and so on. How do you actually go about finding a factory?
1. One of the best ways is through recommendations. As with all recommendations you will get a receipt from someone you trust that the factory is OK. Ask around if you have contacts in the industry. Let your fabric suppliers recommend factories for your products.
2. Go to an industry trade show. This is a great way to meet many suppliers in one place. You can see reference products and get quick answers if they meet your criteria. Even if you don’t attend the trade show, it is a good idea to check out their website. Look up the exhibitor and brand directories. From there you can google or pick up the phone and talk to them. Don’t rely solely on a website for information. Here are a few trade shows that we recommend for you:
- Performance Days – Functional Fabric Fair
- ISPO – The World’s Largest Exhibition For The Sports Industry
- OutDoor – Outdoor Sports Summer Fair
- Première Vision – Fabric & Manufacturing Fair
- Texworld Paris – Fabric & Trim Fair
- Texworld USA – Fabric & Trim Fair
3. Competitors websites, magazines, and online searching can also be an option. Maybe this is a bit time consuming and with uncertain results. No matter how you find the manufacturer, you need to talk to them about your project and see what they are capable and willing to do. Ask them for references and speak directly with the referred brands to hear how it is to work with that specific manufacturer.
4. It can sound a bit old school, but it can be a valuable source to finding a manufacturer. Visit your library. They can give you access to great directories that otherwise would be to expensive for you.
Location
Where you want to make your products depends on your strategy. Do you want the garments locally made for sustainability and patriotic reasons? Do you want to make them in a low-cost country to reach a certain price point? Whatever you decide, consider that you need to visit the factory, the transportation costs, work culture, and potential tolls and administration. Here we list the advantages and disadvantages of producing locally vs overseas.
Local clothing manufacturing
Advantages
- Easier, cheaper, and less time-consuming to visit
- Labor standards
- Easier communication
- Similar time zones
- Market it as locally made goods
- Faster & cheaper shipping
- No or lower import duties or tariffs
Disadvantages
- Higher manufacturing costs
- Smaller choice of potential factories
Overseas manufacturing
Advantages
- Lower manufacturing costs
- Greater number of manufacturers to choose from
Disadvantages
- Labor standards
- Language and communication barrier
- Timezone difference
- Cultural differences in negotiating and schedules
- More costly and time-consuming to visit
- Longer and more expensive shipping
- Duties, tariffs, and administration
Reaching out
Once you have a list of factories, it is time to start interviewing them. Read our article 12 Questions To Ask A Clothing Manufacturer to know what to discuss when emailing, speaking over the phone or meeting in person.
What matters most are the relationships you build with them. From the start your mentality should be that you are in this together, and that both parties are equally happy with your collaboration. Keep this in mind if it comes down to pressing the prices later on in the process.
To meet in person, and to see the facilities before starting a collaboration would be wise. You will see how they operate, you will get a sense of how they do business and you will have time to sit down and plan together for the future. If the factory knows your story, your concept and where you want to take your brand they will be more emotionally involved and maybe do that little extra thing required for your products to turn out amazingly.
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