When working with sportswear OEM/ODM manufacturers, brand profits are often closely related to the choice of partners. A wrong choice can leave a brand facing a loss of profit or even a loss.
Want to learn more about sportswear OEM? Click on the homepage to check out the details! Welcome to inquire, we will serve you wholeheartedly.
First of all, the hidden cost is too high is a problem that many brands tend to overlook when choosing OEM/ODM manufacturers. Some manufacturers may propose additional costs after the contract is signed, such as design modification fees, sample fees, raw material price increases, etc. The brand did not fully consider these potential costs in the initial stage, and eventually the production cost rose sharply, and the profit margin was greatly compressed.
Secondly, low production efficiency is also one of the main reasons for the loss of profits. Some OEM/ODM manufacturers due to poor management or backward technology, low production efficiency, resulting in prolonged delivery cycle. This delay not only increases the cost of inventory, but also may miss the golden opportunity to market sales, which in turn affects the profitability of the brand.
In addition, product quality issues directly affect brand sales and profits. Poor quality products can lead to high return rates and a large number of customer complaints, and brands need to spend more resources to deal with after-sales issues, further shrinking profit margins.
To avoid losing profits, when selecting an OEM/ODM vendor, it is important for brands to conduct detailed research on the partner's production capacity, cost transparency and quality control processes. By choosing reliable partners, the brand can ensure smooth production and stable profit growth.