To everyone asking about the “beware of trading companies”: a trading company acts as a middle person between the factory and you. You would not be communicating with the factory directly which means you will typically not be getting the best price.
This is not always true. A good middle man can sometimes be like an outsourced sales person for the factory. They will receive commission from the factory as a sales bonus similarly to what they would otherwise offer their internal sales team as well but not be in payroll which saves the factory money.
This is a completely wild video. Instead of "guessing" MOQ and prices based on articles you're simply there and chat with them lmao. Way better than all the armchair analysts.
That was cool ... wish we could crowd source 300 people who want a specific piece and then direct order from the factory with no 500% brand name logo markup.
Sounds like a group buy! The mechanical keyboard community does this frequently, someone will make a design for a set of keycaps or a keyboard and contact a factory/company that does group buys (see GMK) and then will share the design with the community. Once enough people sign up for it, they all pay the factory together to produce the product. The downside to this is that depending on what's ordered, shipping times can sometimes take years but I'm not sure if that would apply to clothing. AFAIK group buys are done in other hobbies/communities and for other products but I don't know of any examples off the dome :)
would 100% be interested in a group buy like this, there's probably already a subreddit or other forums dedicated to this out there hopefully someone can plug
I've been working as an interpreter and salesperson in this sector for more than a decade, and yes, this is how it works, more or less. The markup added after producing the garment goes from a minimum or 3x, to... well, the sky is the limit. If you buy famous brands, you don't pay for the quality of the actual item... You pay for the brand.
I worked for a company that worked together with Scotch & Soda. They had a friends & family sale where you would get 80% discount off everything.... And they still made a ton of profit off that.
This is what gets me every time. I don't pay for the brand unless the brand provides good quality at a reasonable price. For example Billingham. Their bags are truly good quality and do not cost a fortune. A Hadley Pro will last a lifetime, barring accident or theft. That is why Billingham is respected. Why would I respect shysters?
This is why poor people purchase "designer" logos and brands. Wealthy people purchase well made garments without nonsense logos. Why pay to advertise for a designer?
"You pay for the brand" unless the company is a two man shop you also pay for the rnd, sales, marketing, software, offices, shipping, taxes, storage, packaging, supply chai, online shop etc etc
What's really amazing is the price of a T-shirt. You wouldn't believe it. Restaurants have the biggest margin on drinks. Clothing shops have the biggest margin on T-shirts.
It's made of foam, latex, rubber in a factory. You know the prices. A shoe is only worth paying big $$$ if it's leather and hand made. You're paying to flex it's like jewellry.
fun fact: these guys are sellers and fashion brands source directly from the factories which is even cheaper. Designers rip people off and make at least 1000% profit with every piece of garment
Incredible video. So theoretically you could bring any items from western markets in any style and these guys will make a similar garment from the same materials but with your custom designs and branding added. They will do this with (relatively) low MOQs. That's extremely interesting. I guess everybody knows it but few know the details and logistics
first time I've seen someone actually is sharing the information of the supplier on UA-cam instead of hiding the details. Thank you for being a decent human being amongst the trash UA-camrs! Subscribed instantly ofc :)
Woaaah! This is actually crazy to me. We should try and meet up and do some sort of video together. Didn't realize there were fairs like this. Think it'd be an awesome time
William, a big thank you! i watch a lot of start up "entrepreneurs" who really are just massive drop shippers. but you hook us up with the factories so we can make stuff from scratch, now that's a game changer.
Naaah, this is wild nice. This man is literally out here helping anybody who wants to start a clothing brand. Good looking my man! Happy new year and God bless you!
i think you ignore... cost of shipping... Clearence agent, import taxes.. Regional wholesaler profit, taxes, sellers profit, VAT tax in Europe can add easily 20% or more on top of all that. And on top of all the the risk of unsold items. If you add all these costs and compare for example with the price of zara you might Actually find their prices high. And all the clothes shown, seem to me pretty basic in terms of design
@@giannispets : Yep ! That is why... we should go there, as an actual tourists, and we would get SO much more out of it ! .... We have been robbed here in the West !.... Because there are so much to be paid in between... this man is and has lost it. He is still talking about "building a brand". Just ship the good items, back... and they would have an actual market? Don't skim. What I see today, are junks after junks after junks.... This is insane... At best, we are doing layering.. but people are literally on the streets just buying clothing alone. Do they think about it like that ? What is "building a brand" ? You have no time to build a brand. You'd be on the streets cos it's so cold. Such irresponsible buying.... I wish I didn't sell or give away my bomber jacket or my wool coats. Am sure that they've been stolen or something like that.. Cos I cannot see it any more.... I mean... This is one of those things as well. Just... Am peeved.
Damn I used to work at Los Angeles Apparel and its insane how many different companies are able to produce such a wide range of different complicated pieces. The trade show I went to looked nothing like this.
So what? That doesn’t make it less quality. It’s mind boggling how unaware people are. Different composition, materials and designs. One factory can produce 500 different qualities. The same way a shoe can be made in PVC or leather.
The Intrecciato Weave puffer vest jacket only being $70 at most to produce is blowing my mind, I could easily imagine it being sold for $1000 on some luxury designer or independent high-end boutique clothing store in New York
i dont think anyone within the industry or at least some level of manufacturing knowledge would pay 1000 for 'made in china' tag- no matter what store or location lol, and now more people have this awareness so prices are going to go down if anything. people who do drop shipping ecommerce are the ones going to suffer once more people see this video as well. Ichina's textile manufacturing has become more modern but there treatment of people and the work environment hasn't gotten any better. Also its becoming more common for these manufactures to sell straight to consumers too.
@@e.a5612 wrong. Yohji Yamamoto has very mild margins and he wants it that way. Every piece of Yohjis main line is handcrafted and made in Paris or Japan. It’s resellers who make large margins on dead stock or limited releases. Which is basically anything worth its weight in gold.
That's probably why the Ralph Lauren boxers I ordered recently felt more like swim pants and had a shitty fit, at €60 for a 3-pack. Glad I sent them back, they should really be producing at higher quality with this kind of markup...
@@user96RR I think most companies would still not accept them back, they state that any opened underwear will not be accepted back. How do they know how you wore them?
i dont own a brand or possibly have aspirations of making a brand but man watching this makes me wanna just spend the same money or likely less making 1 of 1 samples for the closet
@@leanlifer : A reseller... basically. Well... I don't know if you can do that, but..... If you have a super small store. Nothing to say that you cannot resell.. in a way... to be honest. I remember in the 1980s... we used to get these kind of products as well.. but the labels are cut... and then, they are sold as "factories' knocked offs"... lol.... I still remember those days. Maybe they did exactly that as well ? i.e. To buy directly from retail... and then understanding the legal aspect, and tried to find a loophole... and then literally sold them... as seconds.. That still worked. Legally. :) That was until the "brand names" became famous... and then the whole mall thing happened after that... So yeh... this guy's so called "build up a brand" is stupid. Too long and winded method to go about the same way that gazillion of people have done before him. lol... Maybe this also was how things happened in the 80s.. and why "UK was good for china".. cos we bought the factories' surpluses.. I had always thought that they were UK factories.. maybe I am wrong. They could've been chinese factories' surpluses.. and that bumped them into creating even larger factories... etc etc.. So.... But that was a long time ago now, isn't it ?
Great video! Shipping costs also plays a big part of the process. Sometimes the shipping on a sample order can be almost as much as the sample order itself. Big brands are able to reduce shipping costs because of the volume that is ordered. They purchase containers of goods while a smaller brand may only start with 200 or 300 pieces so then a $15 shirt landed can be closer to $30. If anyone is looking to buy a sample order something that you can do is piggyback your shipping off another company's container order. At times that does take some additional work because you'll have to connect with the other company. The suppliers I have worked with in the past piggybacked my order on a bigger order with approval from the other company since both orders were going to the same location. Very informative video. This will be helpful for a lot of people looking to start a brand.
There is a trick for that. You remember that guy that said "it's free if you have your own account with UPS, FDX etc?" It's simple. Open an account with a fright company and save your money. Most of the Chinese will reap you off with the delivery. If they can't get enough from the actual sales, they inflate the shipping. Sort your things up before you adventure in such a business. Keep in mind, there are port release taxes, import taxes and more, depending on where you based.
@@SpiderF27 yes, you're correct. Port taxes, import taxes also play a part. Thank you for calling that out. My original post was just to provide some more light on things because those who are watching might glaze over on the cheap prices and invest their hard earned money thinking it's cheap and easy when in reality the prices that are mentioned in the video doesn't represent the true and final cost after shipping, port taxes, import taxes etc. Thank you and for adding to this more people who may come across this might be able to benefit from this. I appreciate you commenting!
@@MarkT923 I know few things about because i started long time ago and i did fallen in this kind of trap too. In time, after you learn all the ups and downs, it can be profitable but people should know the procedures in advance and can make better decisions for themselves. All the best m8 !
@@SpiderF27 I'm right there with you! Made the mistakes that costs a lot of money and time! Thank you again my friend. Hopefully others come across our comments before they go all in! I wish you and your family all the best!
I have absolutely zero interest in clothing production. That being said, I was hooked from the first ten seconds and very entertained throughout the video. Really interesting to see the inner workings of an industry like this.
Sounds about right while looking the other way. It's not my problem as long as I can get richer. Humanity clock is ticking down again and it's time for a reset.
This is a really great video man. Not that many out there showing this stuff and its honestly kinda important to anyone starting a clothing business a lot of good info in here.
I started out here in States manufacturing our own clothing … profit margin was making difficult to sustain in long run … We source clothes from particular manufacturers in China … We are able pump out and sell clothing at much higher pm , maintain inventory, and clothing are equal or higher in quality
I worked as Apparel graphic artist for 30 years in LA, Never been to Canton fair, 60,000 vendors, that is insane. My uncle in Taiwan has a big factory in China, supply for Neiman Marcus, Macy, etc. He told me a $30 high end sweater made in China, on the floor will sale for $300-$400. No wonder our company never take us to China trade show.
What many people don't appreciate is the addtional cost of selling these goods (or anything else) in a shop or through ecommerce is very high (shipping, insurance, taxes, warehousing, marketing, payment fees, returns etc etc). TBH some of the prices quoted sound high (probably cause of the low volumes mentioned) and would be tough to make a profit from. You'd have a lot of capital tied up in goods that will or won't sell. The longer they take to sell the more they cost and the higher the opportunity costs.
Not really “tough to make a profit”, for fast fashion brands with cheaper pricing, the profit margins are around 15% to 40% which is low but they rely on high volume sales. For luxury brands with super high pricing, the profit margins can go above 100%, they usually charge sky high prices for “brand value” and “exclusivity” which are pretty much stories and sales strategies.
Maybe for the large cheaper fast fashion company, but smaller brands will sell those $25 puffer jackets for hundreds. The margins for luxury and like online street or skate brands can be huge.
This is the best video I've seen in a long time. you give the ropes to the beginner to start their business maybe in the futur you will able to do this videos with traditional manufacturers for the people how are more into their fashion business, anyway i wanna support you through hell, keep doing your thing, you're crushing it since the beginning
Love this. I've recently found interest in footwear and production as a whole. Within my first two months, I have made a connection with the owner of probably THEE biggest footwear design and licence holders in the UK (everything is produced in China). These types of videos are giving me that extra kick to do more 💪
Lovely you discovered the Canton fair 😂, you can talk till tomorrow with moq and prices with those representatives, the connection to reality when coming to order is loose to say the list. That won't be the price - that won't be the quality. I been in the business 20 years
This is correct Phil Knight that started Nike had this problem. The sample looked good but when he got the rest of the shipment it was all garbage he said and it almost wiped him out.
Do you have any advice on how to deal with this? For someone starting a clothing brand, how can we ensure the full shipment matches the original price and sample quality?
@@WelcomeTo : Buy retail. And take it with you. This is a fair.. but they are not guaranteeing the exact qualities, and maybe they are here to sell a contract... and even when they go back to the factories.. those factory owners still need to make a cut? So sometimes, they would add whatever extras they have left, in them etc. So.... This is a site for "sales agents" (and shipping agents).... and they are not the factory owners.. or outsourcers... So... This is why it is a very convulted way. What you want is finished goods and not work in progress items. Cos they can change the finished goods state. Based on price. What they should've done is..." to produce as many as close to the estimates, even if it is 3 items less or whatever.. and give the rest of the change back instead. THAT is the most ethical and standard way to go about things.
These videos just makes me realize how much we as retail consumers get upcharged for garments but I understand the true cost of marketing & branding etc. But amazing to see true costs of flat production and their flexibility. Your videos are so illuminating man, I'm intrigued and I'm not even in clothing industry. 👍
I want to clarify something that the gentleman said around 4:30. He said that he will send them free of charge, but first you have to already establish a relationship with them to even be able to do this. Don't think you can just get free clothing like this please...
this is why the chinese are winning. that lady gave you like 20 quotes for buying items with a simple calculator. in usa it would take weeks and they would give you the run around
damn, i found this video by accident. i was kinda shocked when i realized that you guys only have 17.5k subs. i dont do retailing or anything, but this is hella interesting! thank you for sharing and you got my sub
To be honest for the final price you should adds freight, custom, sales and administrative costs (company that has to import and sale product), distribution costs (if the garment is sold through shops) etc.
Oh my gosh! The willingness of the lady to keep working out prices and factor quantity and discounts. I’m So used to it taking 2 days for a ‘sales person’ here to get back to me - and costing 3 times more
Exposing this side of the market and getting it trending would change the entire way we see and buy clothes! Fuck dude thank you for posting and showing this to us! Beautiful dude
This is so cool. I've got this strange fantasy of living in China getting to know the factories and making some kinda deals. I don't even know what, maybe some kinda small consumer electronics, clothing, who knows
I started my clothing brand a year ago,, I had my shares of manufactures in China,, some did outstanding work and some did in between,, I kept the manufacturers that produced better material design and sizing,,, along with a relationship and understanding of bringing my vision to life
I brought a NorthFace reversible fleece direct from factory £15. 20% of garments from highend to fast fashion are unsold and just incinerated. So think 1 in 5 when you go shopping just take your the car park an set it on fire. This is what actually happens. The money all goes on marketing, celebrity endorsement and store rents. This is what you pay. A 100ml Dior Savvage cost 14p to make. They sell it for around £80. Fragrance just sits on the shelf the majority of the year Xmas and Bdays is when people buy it. So they sit on the shelf and don't move most of the year. Black Friday is referred to a retail stores due to the first time in the year they turn a profit.
Well they clarified that they can also produce 100% wool products but you need to pay a higher moq. Thats exactly why they dont prefer to have 100% wool and i stead they lower it at 70-80%
Not sure why this was recommended, but very interesting. Well made video. I would have thought the mark up would have been higher on some of these. When you figure in shipping, brick and mortar and employees plus the brain damage to get everything to that point. I am curious what the profit per garment is when it finally leaves the store. And then when it leaves a place like Ross dress for less… interesting stuff. I always like to learn something new. Have a great day my man. Be safe in your travels
Do they based on what country is the brand from? If it’s from a first world country, then they price it 3x more than the real factory price they’ll give for local chinese brands or 3rd world country like southeast asia, central asia (india etc). Am i right? I was also questioning some of the pricing here coz i was thinking it should be a lot lower for a factory price, i mean i see shops in taobao thay sells sweaters at 8-10USD, the markup for those must be 70-100%. Deriving the estimated factory price being sold to those local stores in taobao, it seems to be 30-35% than the guy in this channel is being priced at. Am i right on this? Haha i’m from Philippines and i guess being a developing country, you get a sense of the real pricing.
The expensive Fruit Of The Loom undershirts i got at Mens Wearhouse fit completely different than the same ones at Walmart. They look identical but i can immediately tell when when I put the 'good' one on, even in the dark.
hi we are kelin clothing factory which have been producing tshirt shirt polo pants etc for 17 years . 80 workers .120 sewing machines .export to usa italy spain more than 10 years . we work with usa golf club and beverly hill polo ovs for 7 years . we just make videocall so that you can see our factory and showroom to confirm what i said . low moq is ok for us thanks
Fascinating! However, I now have a host of other questions. Who exactly is making these garments? Slaves/indentured servants? Eight year olds? Is there any mechanism in place to address concerns along the supply chain? Are there ever any discussions regarding sourcing of materials by these trading companies? I can't imagine so but still, I'm curious.
It’s minimal Labor cost but even more the zero environmental cost for draining all the chemicals from colouring and bleaching into the next river. That’s what makes it inexpensive.
Lol. Slave labour - that little chestnut again. This is not the 1990s or the early 2000s China. Chinese labour is no longer THAT cheap. The reason Chinese manufacturing is this competitive is simple - 99 percent manufactured components that is needed to build a widget is itself located in China. What China imports are ultra high end products (high end chips) and raw materials. That is why when people say "decoupling" or "friend shoring" to India for instance they make it like it is so easy like labour is just one factor. It is the entire supply chain that countries need to replicate and getting the trained labour in the numbers needed is not something you can snap a finger and it materializes. Slave labour. Lol. Keep up with the times.
Saved this is my watch later whilst watching it, I have the feeling like this either gonna be useful for me in the future or this channel will blow up and it would be cool to be part of this little history
*New Subscriber* : That was great : packed with interesting information. Joan was my favourite ! Read the labels of any expensive clothes you might be tempted to buy. And then think about the mark up. And think about the shops that high end brands have : expensive rent, expensive interior design and fit out. That's what you're paying for. The clothes are in a lot of cases, very inexpensive at the factory gate.
Wow it feels like this is providing some really valuable information for free! And the patreon seems like a good deal for someone who is actually getting into this industry!
Awesome content. Curious to know if there’s any inherent quality difference between the pieces showcased and those produced. Also curious to know if other than labour cost and sourcing local materials, what makes Japanese factories so much more expensive. Is there an inherent quality difference in the raw materials?
Not only the JP factories are expensive, the factories featured here are popular, but there are slightly more expensive ones like Wenzhou Aile, or JYY who works with exclusive real Italian fabrics as well. It depends on what brand you are talking about. Fast fashion like Uniqlo generally doesn't have a difference. But when you go to their high-end fashion like Visvim, the raw materials alone are through the roof, we're talking about Giza 45 Egyptian cotton and the likes, not generic non-branded cotton. Same for their denims, some of them are still hand-washed, as opposed to throwing them in a washer with pumice stones, they take more pride in their work (not talking about fast fashion). And you can tell - some fast fashion denim would still have remnants of the pumice stones in their pockets, while more expensive denim like Neighborhood or Kapital generally won't. Manufacturing in Japan is still time-consuming and some of them are very specialized. This is only scratching the surface and I'm sure he will have a video about it someday, but to summarize and to answer you simply whether a "Made in Japan" tag carries a premium, Usually Yes.
Due diligence is required ... A sample and what they send out can be very different in quality . You need a Quality control check done in China before they ship
Yup. Send the shitty quality bulk items after the good quality sample has been approved. Not like they have a BBB or Yelp/Reviews for manufacturers in China. Pretty much they can tell you to go eff yourself and keep your money if they know you’re “starting up” or a “small fish”. You gotta be stationed out there to vet the quality before it leaves the country. Gotta be extra shrewd with these Chinese business folk because they’re 10x vicious
Great video, great detail. Love the way you present the info. Straight and to the point. Even after you account for shipping, you can see the retailers are making a killing.
Retails space, employees, online returns, storage, shipping, sales, ... it is alot between difrence of price and actul earning. It is like any buisness, some are doing well, some go bankrupt..
Trading companies = middelmen between you and clothing factories / suppliers They sell you clothes for a higher price than if you were to buy it directly from a supplier (;
Wait, so how does this all work? It looks like these exhibitors are showing off the work they're capable of, and are attendees looking to get these companies to make dupes so that they can sell them back in their home countries? Or is it strictly a "this is what we're capable of, hire us" sort of situation? Either way, thank you for showing us viewers how much these items actually cost!
I really love *amzclothes* clothes. The fabric is very good. The golden embellishments add a touch of beauty. When I went to the church, I received some praise.
To everyone asking about the “beware of trading companies”: a trading company acts as a middle person between the factory and you. You would not be communicating with the factory directly which means you will typically not be getting the best price.
middle man not middle person china doesnt use pronouns bro, they are not weak like the west
@@Tonystarkes888 ‘person’ isn’t a pronoun you dunce.
man is a noun :^D
@@Tonystarkes888choosing to point out and “correct” his choice to be inclusive is pretty weak to be honest.
This is not always true. A good middle man can sometimes be like an outsourced sales person for the factory. They will receive commission from the factory as a sales bonus similarly to what they would otherwise offer their internal sales team as well but not be in payroll which saves the factory money.
This is a completely wild video. Instead of "guessing" MOQ and prices based on articles you're simply there and chat with them lmao. Way better than all the armchair analysts.
you could just ask the manufacture online...
I mean, those prices are public anyways. Most of these manufacturers are on Alibaba, what's so wild about this
Life man, life is wild..
Its fake clothes.......
@@user-nifinei34jd9is it technically fake though if some of them say they produce for those companies?
That was cool ... wish we could crowd source 300 people who want a specific piece and then direct order from the factory with no 500% brand name logo markup.
Sounds like a group buy! The mechanical keyboard community does this frequently, someone will make a design for a set of keycaps or a keyboard and contact a factory/company that does group buys (see GMK) and then will share the design with the community. Once enough people sign up for it, they all pay the factory together to produce the product. The downside to this is that depending on what's ordered, shipping times can sometimes take years but I'm not sure if that would apply to clothing. AFAIK group buys are done in other hobbies/communities and for other products but I don't know of any examples off the dome :)
Groupon 2.0 lol
I've had this idea for awhile and I could make it but not sure how popular it would be. I would in fact love to see it made.
would 100% be interested in a group buy like this, there's probably already a subreddit or other forums dedicated to this out there hopefully someone can plug
Where to find them@@beybey384
No more gatekeeping, this channel is going to be huge.
Would love to see you drop more pieces too!
ppfpfffffffffff LMAO... what was gatekeeping you from this knowledge bro? LMAO
ignorance is the greatest gatekeeper haha@@SonOfOdin777
You can’t gatekeep knowledge that’s already readily available lol
@@MrGatin777 exactly! LMAO... dude is LITERALLY in a manufacturing fair FFS
Gatekeeping? Go to sourcing at Magic or if you’re willing take a trip go to Canton Fair.
I've been working as an interpreter and salesperson in this sector for more than a decade, and yes, this is how it works, more or less. The markup added after producing the garment goes from a minimum or 3x, to... well, the sky is the limit. If you buy famous brands, you don't pay for the quality of the actual item... You pay for the brand.
I worked for a company that worked together with Scotch & Soda. They had a friends & family sale where you would get 80% discount off everything.... And they still made a ton of profit off that.
This is what gets me every time. I don't pay for the brand unless the brand provides good quality at a reasonable price. For example Billingham. Their bags are truly good quality and do not cost a fortune. A Hadley Pro will last a lifetime, barring accident or theft.
That is why Billingham is respected.
Why would I respect shysters?
This is why poor people purchase "designer" logos and brands. Wealthy people purchase well made garments without nonsense logos. Why pay to advertise for a designer?
"You pay for the brand" unless the company is a two man shop you also pay for the rnd, sales, marketing, software, offices, shipping, taxes, storage, packaging, supply chai, online shop etc etc
this video felt like a forbidden knowledge that every fashion designer don't want you to know.
Zara is not designer or high fashion
The real forbidden knowledge is that you shouldn't be wearing polyester clothing Made in China
maybe don't buy well marketed shit made in china with a 500% markup ? it aint rocket science fellas
Tell that to my mom… her response “it’s European brand” lol
If you don't know about this then you're a dummy
It would be cool and interesting asking famous shoe factories their prices.
Under 15$ for sneakers 😂
@@Dfjuzvh1453bingo, it’s embarrassingly low to the point as a huge Jordan shoe guy I’m prolly Neva gon buy real Jordan’s EVER again lol
Its not even 50
What's really amazing is the price of a T-shirt. You wouldn't believe it. Restaurants have the biggest margin on drinks. Clothing shops have the biggest margin on T-shirts.
It's made of foam, latex, rubber in a factory. You know the prices. A shoe is only worth paying big $$$ if it's leather and hand made. You're paying to flex it's like jewellry.
fun fact: these guys are sellers and fashion brands source directly from the factories which is even cheaper. Designers rip people off and make at least 1000% profit with every piece of garment
We’ve been in the clothing industry for 47 years and I still love dealing with China due to their prices and professionalism
Kapde dila do sirji
@PursuingValhalla and that’s fine.
In america people sing when go to job 😂
No Unions = Modern day slavery for factory workers in China!
How about the working conditions of the workers producing your stuff?
Incredible video. So theoretically you could bring any items from western markets in any style and these guys will make a similar garment from the same materials but with your custom designs and branding added. They will do this with (relatively) low MOQs. That's extremely interesting. I guess everybody knows it but few know the details and logistics
Yes, this is what Chinese manufacturing is about. They will make whatever you want but you need to be 100% clear on the material and every detail.
@@raycomeau6866 i dont think this is specific for Chinese manufacturing.. 😀
first time I've seen someone actually is sharing the information of the supplier on UA-cam instead of hiding the details. Thank you for being a decent human being amongst the trash UA-camrs! Subscribed instantly ofc :)
Woaaah! This is actually crazy to me. We should try and meet up and do some sort of video together. Didn't realize there were fairs like this. Think it'd be an awesome time
Yo let's tap in! Shoot me a message on IG please!
collin i love u ❤
This would be a great cameo!
haha! just recomended William under one of your videos!
your videos usually are: "why so much?"
here it is "why so low?" 🙃
did not expect to see a collin in the comments! this would be a great video!
William, a big thank you! i watch a lot of start up "entrepreneurs" who really are just massive drop shippers. but you hook us up with the factories so we can make stuff from scratch, now that's a game changer.
If you need it, we specialize in garment processing
Do you have your 1688 links but needs an agent help make order?
Naaah, this is wild nice. This man is literally out here helping anybody who wants to start a clothing brand. Good looking my man! Happy new year and God bless you!
I love seeing the factory side of things it’s crazy how much the mark up is for the end product
Yeah brands have a lot of costs, have to factor in markdown strategy and obviously have a profit incentive so it’s not really surprising.
the crazy part is that people buy it for that price
i think you ignore... cost of shipping... Clearence agent, import taxes.. Regional wholesaler profit, taxes, sellers profit, VAT tax in Europe can add easily 20% or more on top of all that. And on top of all the the risk of unsold items. If you add all these costs and compare for example with the price of zara you might Actually find their prices high. And all the clothes shown, seem to me pretty basic in terms of design
@@ISituationHD not really an option for most people...
@@giannispets : Yep ! That is why... we should go there, as an actual tourists, and we would get SO much more out of it ! .... We have been robbed here in the West !.... Because there are so much to be paid in between... this man is and has lost it. He is still talking about "building a brand". Just ship the good items, back... and they would have an actual market? Don't skim. What I see today, are junks after junks after junks.... This is insane... At best, we are doing layering.. but people are literally on the streets just buying clothing alone. Do they think about it like that ? What is "building a brand" ? You have no time to build a brand. You'd be on the streets cos it's so cold. Such irresponsible buying.... I wish I didn't sell or give away my bomber jacket or my wool coats. Am sure that they've been stolen or something like that.. Cos I cannot see it any more.... I mean... This is one of those things as well. Just... Am peeved.
Damn I used to work at Los Angeles Apparel and its insane how many different companies are able to produce such a wide range of different complicated pieces. The trade show I went to looked nothing like this.
Ralph Lauren made in same factory as Uniqlo !
And Joe Boxer! Ralph Lauren exposed ‼️
Source please
Ralph Lauren's basic boxers are not expensive though...
@@CrossmoorMafia Yeah 100 aud. 1.8 usd is 2.7 aud. 35x price is normal lol
So what? That doesn’t make it less quality. It’s mind boggling how unaware people are. Different composition, materials and designs. One factory can produce 500 different qualities. The same way a shoe can be made in PVC or leather.
The Intrecciato Weave puffer vest jacket only being $70 at most to produce is blowing my mind, I could easily imagine it being sold for $1000 on some luxury designer or independent high-end boutique clothing store in New York
i dont think anyone within the industry or at least some level of manufacturing knowledge would pay 1000 for 'made in china' tag- no matter what store or location lol, and now more people have this awareness so prices are going to go down if anything. people who do drop shipping ecommerce are the ones going to suffer once more people see this video as well. Ichina's textile manufacturing has become more modern but there treatment of people and the work environment hasn't gotten any better. Also its becoming more common for these manufactures to sell straight to consumers too.
Learning that material price is the cheapest part of almost anything manufactured was crazy to learn
Actually it looks/is Bottega Veneta retail 3,5grand ....
high end clothing brands dont have crazy high profit margins for nothing
@@e.a5612 wrong. Yohji Yamamoto has very mild margins and he wants it that way. Every piece of Yohjis main line is handcrafted and made in Paris or Japan. It’s resellers who make large margins on dead stock or limited releases. Which is basically anything worth its weight in gold.
Diamond in the rough
That's probably why the Ralph Lauren boxers I ordered recently felt more like swim pants and had a shitty fit, at €60 for a 3-pack. Glad I sent them back, they should really be producing at higher quality with this kind of markup...
i feel like ralph lauren has always kinda sucked. All my polo stuff is lowkey just uncomfortable and wears fast.
@@SkullSkillsParkourpolo is lowkey entry level designer. Low quality high price sells off the name. For around the same price a pack try nautica👍🏾
They took your used boxers back?
@@ronniep9272 no, I tried on 1 pair with normal underpants underneath, I’m not an animal.
@@user96RR I think most companies would still not accept them back, they state that any opened underwear will not be accepted back. How do they know how you wore them?
Bro your channel is way undervalued for what you offer. Keep up the great work
Best no BS clothing / business chanel. I swear anyone watching this will learn more about business than listening to some rich people on a podcast
i dont own a brand or possibly have aspirations of making a brand but man watching this makes me wanna just spend the same money or likely less making 1 of 1 samples for the closet
I bet you could order samples online and have them shipped to you. They do that with carpet, tile, and other building products. Why not clothes?
Just buy retail from China. It's not gonna be much more expensive and you don't have to deal with factories.
Careful with shipping. Shipping is a bitch. Crack that nut and you're golden.
pretty sure most reps from china are exactly what you can see here.
@@leanlifer : A reseller... basically. Well... I don't know if you can do that, but..... If you have a super small store. Nothing to say that you cannot resell.. in a way... to be honest. I remember in the 1980s... we used to get these kind of products as well.. but the labels are cut... and then, they are sold as "factories' knocked offs"... lol.... I still remember those days. Maybe they did exactly that as well ? i.e. To buy directly from retail... and then understanding the legal aspect, and tried to find a loophole... and then literally sold them... as seconds.. That still worked. Legally. :) That was until the "brand names" became famous... and then the whole mall thing happened after that... So yeh... this guy's so called "build up a brand" is stupid. Too long and winded method to go about the same way that gazillion of people have done before him. lol...
Maybe this also was how things happened in the 80s.. and why "UK was good for china".. cos we bought the factories' surpluses.. I had always thought that they were UK factories.. maybe I am wrong. They could've been chinese factories' surpluses.. and that bumped them into creating even larger factories... etc etc.. So.... But that was a long time ago now, isn't it ?
Great video! Shipping costs also plays a big part of the process. Sometimes the shipping on a sample order can be almost as much as the sample order itself. Big brands are able to reduce shipping costs because of the volume that is ordered. They purchase containers of goods while a smaller brand may only start with 200 or 300 pieces so then a $15 shirt landed can be closer to $30. If anyone is looking to buy a sample order something that you can do is piggyback your shipping off another company's container order. At times that does take some additional work because you'll have to connect with the other company. The suppliers I have worked with in the past piggybacked my order on a bigger order with approval from the other company since both orders were going to the same location. Very informative video. This will be helpful for a lot of people looking to start a brand.
There is a trick for that. You remember that guy that said "it's free if you have your own account with UPS, FDX etc?" It's simple. Open an account with a fright company and save your money. Most of the Chinese will reap you off with the delivery. If they can't get enough from the actual sales, they inflate the shipping. Sort your things up before you adventure in such a business. Keep in mind, there are port release taxes, import taxes and more, depending on where you based.
@@SpiderF27 yes, you're correct. Port taxes, import taxes also play a part. Thank you for calling that out. My original post was just to provide some more light on things because those who are watching might glaze over on the cheap prices and invest their hard earned money thinking it's cheap and easy when in reality the prices that are mentioned in the video doesn't represent the true and final cost after shipping, port taxes, import taxes etc. Thank you and for adding to this more people who may come across this might be able to benefit from this. I appreciate you commenting!
@@MarkT923 I know few things about because i started long time ago and i did fallen in this kind of trap too. In time, after you learn all the ups and downs, it can be profitable but people should know the procedures in advance and can make better decisions for themselves. All the best m8 !
@@SpiderF27 I'm right there with you! Made the mistakes that costs a lot of money and time! Thank you again my friend. Hopefully others come across our comments before they go all in! I wish you and your family all the best!
You think sending 300shirts from China to anywhere in the world costs 4500$?😂 whole container probably doesnt cost that much.
I have absolutely zero interest in clothing production. That being said, I was hooked from the first ten seconds and very entertained throughout the video. Really interesting to see the inner workings of an industry like this.
Bro you are a breath of fresh air. Please continue making videos like this!
This is Gold. Keep up the good work brother!
Stumbled upon this channel and have loving it but also appalled at big fashion.
Well retail markups are the majority of the garment's cost...
Production is just a small percentage of the price...
Sounds about right while looking the other way. It's not my problem as long as I can get richer. Humanity clock is ticking down again and it's time for a reset.
big fashion....?
I swear yall just put big noun and you get scared of it like its an eldritch fucking god or something
@@g76agilol
If you think its a goldmine then why dont you start a clothing store and start selling clothes cheaper than everybody else?
This is a really great video man. Not that many out there showing this stuff and its honestly kinda important to anyone starting a clothing business a lot of good info in here.
Bro this is fucking fire thanks for this and looking forward to what you do in the future
I started out here in States manufacturing our own clothing … profit margin was making difficult to sustain in long run … We source clothes from particular manufacturers in China … We are able pump out and sell clothing at much higher pm , maintain inventory, and clothing are equal or higher in quality
Dear Nabi, May I have your email id or any other contract number please?
I worked as Apparel graphic artist for 30 years in LA, Never been to Canton fair, 60,000 vendors, that is insane. My uncle in Taiwan has a big factory in China, supply for Neiman Marcus, Macy, etc. He told me a $30 high end sweater made in China, on the floor will sale for $300-$400. No wonder our company never take us to China trade show.
What many people don't appreciate is the addtional cost of selling these goods (or anything else) in a shop or through ecommerce is very high (shipping, insurance, taxes, warehousing, marketing, payment fees, returns etc etc). TBH some of the prices quoted sound high (probably cause of the low volumes mentioned) and would be tough to make a profit from. You'd have a lot of capital tied up in goods that will or won't sell. The longer they take to sell the more they cost and the higher the opportunity costs.
Agreed. The price of product is miniscule compared to the tax, shipping cost, storage and marketing
Not really “tough to make a profit”, for fast fashion brands with cheaper pricing, the profit margins are around 15% to 40% which is low but they rely on high volume sales. For luxury brands with super high pricing, the profit margins can go above 100%, they usually charge sky high prices for “brand value” and “exclusivity” which are pretty much stories and sales strategies.
100% mark up is fine. 1000% is a joke. If you need that much extra spend in marketing to sell then your product is garbage.
Maybe for the large cheaper fast fashion company, but smaller brands will sell those $25 puffer jackets for hundreds. The margins for luxury and like online street or skate brands can be huge.
This is the best video I've seen in a long time. you give the ropes to the beginner to start their business maybe in the futur you will able to do this videos with traditional manufacturers for the people how are more into their fashion business, anyway i wanna support you through hell, keep doing your thing, you're crushing it since the beginning
First video I’ve stumbled upon and what a wealth of information. The captions when they mention things views might not understand is such a nice touch
That white fleece @ 4:50 was very chill.
Mate 100 pieces at 20 is fucking good too.
Love this. I've recently found interest in footwear and production as a whole. Within my first two months, I have made a connection with the owner of probably THEE biggest footwear design and licence holders in the UK (everything is produced in China). These types of videos are giving me that extra kick to do more 💪
Lovely you discovered the Canton fair 😂, you can talk till tomorrow with moq and prices with those representatives, the connection to reality when coming to order is loose to say the list. That won't be the price - that won't be the quality. I been in the business 20 years
This is correct Phil Knight that started Nike had this problem. The sample looked good but when he got the rest of the shipment it was all garbage he said and it almost wiped him out.
Do you have any advice on how to deal with this? For someone starting a clothing brand, how can we ensure the full shipment matches the original price and sample quality?
@@WelcomeTogo to china and supervise the production yourself.
@@WelcomeTo : Buy retail. And take it with you. This is a fair.. but they are not guaranteeing the exact qualities, and maybe they are here to sell a contract... and even when they go back to the factories.. those factory owners still need to make a cut? So sometimes, they would add whatever extras they have left, in them etc. So.... This is a site for "sales agents" (and shipping agents).... and they are not the factory owners.. or outsourcers... So... This is why it is a very convulted way. What you want is finished goods and not work in progress items. Cos they can change the finished goods state. Based on price. What they should've done is..." to produce as many as close to the estimates, even if it is 3 items less or whatever.. and give the rest of the change back instead. THAT is the most ethical and standard way to go about things.
Big come up, looking forward to future videos bro
These videos just makes me realize how much we as retail consumers get upcharged for garments but I understand the true cost of marketing & branding etc. But amazing to see true costs of flat production and their flexibility. Your videos are so illuminating man, I'm intrigued and I'm not even in clothing industry. 👍
I want to clarify something that the gentleman said around 4:30. He said that he will send them free of charge, but first you have to already establish a relationship with them to even be able to do this. Don't think you can just get free clothing like this please...
this is why the chinese are winning. that lady gave you like 20 quotes for buying items with a simple calculator. in usa it would take weeks and they would give you the run around
500k views. I'm sure that lady have gained some deals from this video alone.
damn, i found this video by accident. i was kinda shocked when i realized that you guys only have 17.5k subs. i dont do retailing or anything, but this is hella interesting! thank you for sharing and you got my sub
Great video man! Love ur content, keep it up. I'll be following all the way.
To be honest for the final price you should adds freight, custom, sales and administrative costs (company that has to import and sale product), distribution costs (if the garment is sold through shops) etc.
by far the biggest service expense is marketing.
@@PinPinKula absolutely moreover R&D and Design. Copy Is very cheap.
R&D for fast fashion? Bitch please
Oh my gosh! The willingness of the lady to keep working out prices and factor quantity and discounts.
I’m So used to it taking 2 days for a ‘sales person’ here to get back to me - and costing 3 times more
Exposing this side of the market and getting it trending would change the entire way we see and buy clothes! Fuck dude thank you for posting and showing this to us! Beautiful dude
This channel is TOP. Keep making content like this man, we’re all here for it
Such GREAT comparisons! Allllll soooo lovely! Especially the *amzclothes* clothes. Their styles are so chic, sleek, elegant and understated!
Dumb question, MOQ is for a single size? How do you manage size variety?
Love trade shows, you really meet the plug. They all willing to work a deal.
This is so cool. I've got this strange fantasy of living in China getting to know the factories and making some kinda deals. I don't even know what, maybe some kinda small consumer electronics, clothing, who knows
WE NEED MORE LONG FORMAT VIDEOS LIKE THIS !!!
You crush it man. Thank you for providing this info for free
Not even in the industry, just really good to understand.
Important lesson for the consumers.
The variety of textures in *amzclothes* products is impressive. From smooth leather to textured suede, there's something for everyone.
The sweater from Joyful Knitwear looks kinda cool
you don’t miss keep going🤝🏿underrated GOAT
I started my clothing brand a year ago,, I had my shares of manufactures in China,, some did outstanding work and some did in between,, I kept the manufacturers that produced better material design and sizing,,, along with a relationship and understanding of bringing my vision to life
I brought a NorthFace reversible fleece direct from factory £15.
20% of garments from highend to fast fashion are unsold and just incinerated. So think 1 in 5 when you go shopping just take your the car park an set it on fire. This is what actually happens. The money all goes on marketing, celebrity endorsement and store rents. This is what you pay. A 100ml Dior Savvage cost 14p to make. They sell it for around £80. Fragrance just sits on the shelf the majority of the year Xmas and Bdays is when people buy it. So they sit on the shelf and don't move most of the year.
Black Friday is referred to a retail stores due to the first time in the year they turn a profit.
How do you get to buy from a factory?
Best UA-cam channel out keep this great content up
I was aware of manufacturing costs but seeing this has me salivating and contemplating a trip! Great insight, now my head is spinning! ✌🏾
When they say 100% you should check the label. It's SO hard finding 100% wool or cotton these days.
Well they clarified that they can also produce 100% wool products but you need to pay a higher moq. Thats exactly why they dont prefer to have 100% wool and i stead they lower it at 70-80%
A whole new world opens for me. And as a thanks for sharing this inside info, I subscribed
Not sure why this was recommended, but very interesting. Well made video. I would have thought the mark up would have been higher on some of these. When you figure in shipping, brick and mortar and employees plus the brain damage to get everything to that point. I am curious what the profit per garment is when it finally leaves the store. And then when it leaves a place like Ross dress for less… interesting stuff. I always like to learn something new. Have a great day my man. Be safe in your travels
This is not a content creation this is a business development series.
The prices you receive are first price. If you are serious and ready to place an order than you can get 30% of the price they tell you.
Do they based on what country is the brand from? If it’s from a first world country, then they price it 3x more than the real factory price they’ll give for local chinese brands or 3rd world country like southeast asia, central asia (india etc). Am i right? I was also questioning some of the pricing here coz i was thinking it should be a lot lower for a factory price, i mean i see shops in taobao thay sells sweaters at 8-10USD, the markup for those must be 70-100%. Deriving the estimated factory price being sold to those local stores in taobao, it seems to be 30-35% than the guy in this channel is being priced at.
Am i right on this? Haha i’m from Philippines and i guess being a developing country, you get a sense of the real pricing.
very insightful - your niche finna blow 🌊
One of the greatest channels ive seen in a while is love the direction your going with this bro bro keep it up
This is crazy man thank you so much for opening this up
The expensive Fruit Of The Loom undershirts i got at Mens Wearhouse fit completely different than the same ones at Walmart. They look identical but i can immediately tell when when I put the 'good' one on, even in the dark.
This is because certain batches could be made at different locations by same factory for example 1000 made in China the other 1000 made in Vietnam.
hi we are kelin clothing factory which have been producing tshirt shirt polo pants etc for 17 years . 80 workers .120 sewing machines .export to usa italy spain more than 10 years . we work with usa golf club and beverly hill polo ovs for 7 years . we just make videocall so that you can see our factory and showroom to confirm what i said . low moq is ok for us thanks
Please share your website or email. Thank you.
This is great sourcing! Glad I stumbled on this channel. Many thanks! 🎉 great job.
Fascinating! However, I now have a host of other questions. Who exactly is making these garments? Slaves/indentured servants? Eight year olds? Is there any mechanism in place to address concerns along the supply chain? Are there ever any discussions regarding sourcing of materials by these trading companies? I can't imagine so but still, I'm curious.
slave labour. The west has turned a blind eye to it for years
It’s minimal Labor cost but even more the zero environmental cost for draining all the chemicals from colouring and bleaching into the next river. That’s what makes it inexpensive.
China doesn't have child labour! You'd be surprised they have a lot of highly automated factories making garments.
Lol. Slave labour - that little chestnut again. This is not the 1990s or the early 2000s China. Chinese labour is no longer THAT cheap. The reason Chinese manufacturing is this competitive is simple - 99 percent manufactured components that is needed to build a widget is itself located in China. What China imports are ultra high end products (high end chips) and raw materials. That is why when people say "decoupling" or "friend shoring" to India for instance they make it like it is so easy like labour is just one factor. It is the entire supply chain that countries need to replicate and getting the trained labour in the numbers needed is not something you can snap a finger and it materializes. Slave labour. Lol. Keep up with the times.
These Chinese business people look so humble and easy to talk to.
This goes on in very single industry. Not just textiles and clothing.
Yes it’s called wholesale but clothing like other things is unique because there are so many different styles, patterns, materials, and custom ability
Saved this is my watch later whilst watching it, I have the feeling like this either gonna be useful for me in the future or this channel will blow up and it would be cool to be part of this little history
any reason why some of the companies are trading companies? Confused by what that means
They don't own the factory, they outsource the manufacturing.
*New Subscriber* : That was great : packed with interesting information. Joan was my favourite ! Read the labels of any expensive clothes you might be tempted to buy. And then think about the mark up. And think about the shops that high end brands have : expensive rent, expensive interior design and fit out. That's what you're paying for. The clothes are in a lot of cases, very inexpensive at the factory gate.
Wow it feels like this is providing some really valuable information for free! And the patreon seems like a good deal for someone who is actually getting into this industry!
as Bernard Arnault said - “Luxury goods are the only area in which it is possible to make luxury margins.”
the running track sweater company is so cool for its price.
Awesome content. Curious to know if there’s any inherent quality difference between the pieces showcased and those produced. Also curious to know if other than labour cost and sourcing local materials, what makes Japanese factories so much more expensive. Is there an inherent quality difference in the raw materials?
Not only the JP factories are expensive, the factories featured here are popular, but there are slightly more expensive ones like Wenzhou Aile, or JYY who works with exclusive real Italian fabrics as well. It depends on what brand you are talking about. Fast fashion like Uniqlo generally doesn't have a difference. But when you go to their high-end fashion like Visvim, the raw materials alone are through the roof, we're talking about Giza 45 Egyptian cotton and the likes, not generic non-branded cotton. Same for their denims, some of them are still hand-washed, as opposed to throwing them in a washer with pumice stones, they take more pride in their work (not talking about fast fashion). And you can tell - some fast fashion denim would still have remnants of the pumice stones in their pockets, while more expensive denim like Neighborhood or Kapital generally won't. Manufacturing in Japan is still time-consuming and some of them are very specialized. This is only scratching the surface and I'm sure he will have a video about it someday, but to summarize and to answer you simply whether a "Made in Japan" tag carries a premium, Usually Yes.
Labour costs are 10x or more in Japan compared to China.
@@viswanathrao4364 at most 3 times more, I think probably 2 times.
you are the goat for this and i haven't even watched the rest yet. Had to pause it to tell you thank already🙏🏿🙏🏿🔥🔥
Top tier content
Omg, you’re totally changing the game for these big name brands 🎉
Due diligence is required ... A sample and what they send out can be very different in quality . You need a Quality control check done in China before they ship
Yup. Send the shitty quality bulk items after the good quality sample has been approved. Not like they have a BBB or Yelp/Reviews for manufacturers in China. Pretty much they can tell you to go eff yourself and keep your money if they know you’re “starting up” or a “small fish”. You gotta be stationed out there to vet the quality before it leaves the country. Gotta be extra shrewd with these Chinese business folk because they’re 10x vicious
This is one of the best videos uploaded to UA-cam!
Great videos, but can u make videos like this but Japanese factories 🙏🏼
Very informative video. Thank you for making this.
When she says $25 for 200, am I correct that she means $25 per shirt with a minimum order quantity of 200?
Yes I’m fairly sure that’s average pricing for bulk order clothes of that type.
Yes, that’s price per unit and MOQ is usually the total for all sizes.
I was also wondering if it was per piece 😅
@@LoveKonkon Per piece
Great video, great detail. Love the way you present the info. Straight and to the point. Even after you account for shipping, you can see the retailers are making a killing.
Retails space, employees, online returns, storage, shipping, sales, ... it is alot between difrence of price and actul earning. It is like any buisness, some are doing well, some go bankrupt..
Why do you say people should beware of trading companies?
Trading companies = middelmen between you and clothing factories / suppliers
They sell you clothes for a higher price than if you were to buy it directly from a supplier (;
Wait, so how does this all work? It looks like these exhibitors are showing off the work they're capable of, and are attendees looking to get these companies to make dupes so that they can sell them back in their home countries? Or is it strictly a "this is what we're capable of, hire us" sort of situation? Either way, thank you for showing us viewers how much these items actually cost!
the latter
Hey look we can do this hire us to do whatever u want type deal
And flex that they made this for Prada for example lmao
It's called a trade show, not open to the public.
@@zackdoomjust to be clear, so you cant order 1000 pieces of ralph lauren boxers? why not?
I really love *amzclothes* clothes. The fabric is very good. The golden embellishments add a touch of beauty. When I went to the church, I received some praise.
Amazing work reporting in the field 😌
Dude this is quality. Such a cool inside look at the industry for those of us on the outside.
You should come to India and visit the factories that produce for brands like Calvin Klein, Adidas, Puma and many more. Especially in South India
Made in India …I have a,ways found the cotton t shirts wash well .
Made in India …I have a,ways found the cotton t shirts wash well .
why its exactly same, just different location.
@@serz1885Labour is way more cheaper in India
"You said $36 or $32?" *Said $32 20s ago* "Yeah, $36" 💀
Haha, I caught that too! Joan was pressin his ass right out the gate 🤣