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The On-Shore Advantage

Posted by fashionentrepreneurreport On Thursday, September 24, 2009



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Prices in terms of manufacturing are so varied that a designer new to the entire production process could make the wrong choice which in turn could delay delivery or even bankrupt a label before its first run is finished. 
Turn around time is becoming more and more important as retailers are buying closer to delivery dates and asking for more immediates (four week delivery). Unfortunately, many offshore contractors don't mention their minimums or will avoid the topic until one has gone through all of the steps of making prototypes and samples. The strategy is effective. Even if the offshore contractor hasn't charged anything for prototyping and sample making (a designer most likely have to pay shipping though), the designer is less likely to switch courses mid-stream and go with the higher production run even if they are not certain you can sell it.  
This puts a young business at financial risk usually because the label has promised to deliver by a given date and doesn’t have time to start all over again with someone else. Whichever contractor is picked, get firm minimums at the outset. Get it in writing.
C & A Apparel Service in Santa Ana California has noticed a change in the expectations of designer entrepreneurs and this has created unnecessary conflicts. Some designers have priced packages from offshore contractors of which certain services have been rolled into the package pricing, so designers aren't aware that these services aren't free.
With onshore packages, these costs are itemized separately which can be advantageous if you want to use another company for given services; say pattern making. For example, a basic knit top in Asia might cost a $5.50 flat rate. In the US, the costs of services for each step in the process are transparent with patterns, grading, marking, cutting, sewing and finishing (to include packaging) listed clearly. To arrive at package pricing, a bit of addition is required. While C & A Apparel Service does not claim they can beat the prices of Asian contractors overseas, their minimums and shipping charges are much lower and the turn around time is much faster.  
C & A says the companies they have worked with that are most successful aren't the ones with the most money. They feel the best companies are ones with budgets, those who itemize costing for every step in the process. Being that apparel is still a relatively low cost business to get into (much less expensive than other classes of manufacturing), it seems that many people have the money to at least launch a line.
The problem with people who have more money than average is that they want to off load responsibility too, meaning they expect the contractor to do everything for them (from sourcing to production management) with the designer focusing on being a "marketing machine". According to C & A this will never work in the long term. Worse is when a designer expects everything to happen -from sourcing to delivery- inside of two months.  
With respect to product development for new designers, they say their expectations are often too unrealistic considering their position in the market -often zero. Designers will shoot for the best fabrics, the most expensive ones and that they are too particular at the outset. C & A Services and many other manufacturers feel designers spend too much for fabric when the appeal of their line and their opportunities are compared.   
Of course quality is of the utmost importance, should not be used to deter the line because the cost is so great.  It is better to use high quality and less pieces for a first collection, therefore the adjustments to the run will be smaller and the delivery time will be quicker.  Line development is an evolutionary process.
Nobody starts out being the best from the outset. Sure, you have an idea of where you want to be but you grow in that direction. No baby is born as a fully formed independent adult. 
 – Kathleen Fasanella

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