The market for Chinese made clothing in the United States is huge. What used to be a significant industry in the U.S., that of clothing manufacturing, has now largely been outsourced to other countries, most notably China. China has created a vast network linking labor, raw materials’ producers, manufacturers, and distributors that has blossomed into a multi-billion dollar a year industry.
The main factor that has allowed China to dominate the clothing manufacturing industry is its seemingly unlimited supply of cheap and available labor. Chinese men and women will work long hours for a fraction of the cost of their American counterparts. Despite the surge in demand for these laborers, wages have remained low because of the large supply and relatively low cost of living in China. Clothing was among the first industries that the Chinese economy focused on when it began to develop its export sector in the latter half of the 20th century.
Today an enormous percentage of the clothes sold in America have the infamous “Made in China” label attached. Yet despite any criticisms that may arise, China’s ability to supply American importers with a less costly alternative that manufacturing in the U.S has benefited all parties involved. Because of this trade American importers and retailers are able to increase their profits and American consumers are able to save money because their clothes end up being less inexpensive.
As a American wholesaler buying from exporters in China, you can benefit from this trade relationship as well. Before you begin your business however, there are a number of steps you should take to research and familiarize yourself with the business you are industry you are going to enter.
THE LOGITICS OF BUYING CLOTHING FROM WHOLESALERS IN CHINA
When planning your business of importing clothing from China you will have to consider the different stages involved. First you must find a professional and reliable wholesaler in China that can provide you consistently with the quality of merchandise you are looking for at a price you are willing to pay. Luckily for you this industry is very well developed and there are literally hundreds of wholesalers that specialize in exporting clothing to America.
There are obviously many styles of clothing available and you will first have to decide which one or combination of styles you are looking to trade in. Once you decide this point, you can do some industry research to find out who the top exporting companies in this style are. Take the top five or so and compare customer reviews, prices, and quality of merchandise. After gathering this information you should be well enough informed to enable you to make a smart choice. You will have to negotiate the terms of an agreement with this supplier.
While contracts can be customized to fit a client’s particular needs in certain situation, the terms are generally standard. These include method of payment, timing of delivery, etc. The best know Chinese companies do large volumes of business and are not looking to rip customers off, but you should still read everything and make sure there is a clear understanding between all the parties involved.
Low prices are of course the driving force behind China’ s exporting prowess. Clothing manufacturing is a very labor intensive process and that allows Chinese manufacturers to take advantage of China’s large pool of low cost workers. Economic policies relating to the dollar-yuan exchange rate have further decreased the cost for American importers purchasing Chinese clothing wholesale.
RETAILING THE ITEMS BOUGHT WHOLESALE
Before you begin purchasing your clothing wholesale from China, you should have an established network of retailers in the U.S. ready to purchase your goods. You want to cover your expenses as quickly as possible and avoid storage fees.
After you have finished moving your first order of goods, do some profit and loss analysis and see how much money you are actually making. Stay in contact with you retail distributors and wholesale suppliers and always ask about any unusual deals or shipments of products they may have. Once everything is running smoothly and you think you are in control of your business, you may want to consider expanding horizontally or vertically.