How the Clothing Wholesale & Retail Markets Work

How the Clothing Wholesale & Retail Markets Work

Garment industry worldwide is very saturated and heavily occupied. No matter you want to introduce your own clothing brand or want to open a physical or an online retail store, you would need the services of a wholesaler. At every step from manufacturing to retailing, need of a wholesaler is necessary. You can also buy directly from the manufacturer at a much lower cost but again that would be possible if you have a sales volume and you need to buy high amount of goods.

Textile Mills:

The textile mill is the place the clothing products generate from. Textile mills usually sell their products to an external manufacturer or sell through an agent to local stores and clothing shops. Many renowned brands contracts with textile mills to sell their clothes under their trademark by paying them commission fee directly. Bigger designer brands have many contracts in place with a textile mill and the mill manufactures products for them on order. If you want to sell designer brand clothes in your store, you can either by directly from the manufacturer or from the retail clothing wholesaler who keeps such products.

Sewing shops, Jobbers and Manufacturers:

In sewing shops, textiles are cut as per the orders and assembles them. Then comes the jobbers which add a finishing and attractive touch to the garments such as embroidery, designing, and other accessories and prepare them for final selling and shipping. Popular brands then buy huge quantities of these garments at lower prices and sell them at profit under their trademark. Buying in bulk saves higher cost for the manufacturers. Sometimes extra products are produced as a safe side and are called over stock. They are then sold to the general public via factory outlets, public sale events or wholesale clothing retailers.

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Wholesale Distributors:

Wholesale distributors are the agents that take their commission fee for arranging order and executing transactions. A garment price if produced in a foreign country can include commission fee for many distributors. Usually an importer buys from a wholesale distributor who handles the garments in the foreign country and then sells to the local distributor or retail stores. But some importers also directly buy from the manufacturers or jobbers overseas and sell to wholesale clothing distributors or retail stores in their country.

Retail Stores:

Large renowned clothing brand chains buy directly from manufacturers and have contracts in place to sell those garments under their trademark. Sometime the manufacturers also produces garments for famous clothing chains and have their own sewing shops and jobbers in-house. You would find a variety of manufacturers and wholesale clothing distributors in the exhibitions in your locality selling shoes, accessories and apparel for famous brand names. You can buy there for your retail store or online whole sale clothing business.