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Watch out! Cycling apparel OEM cost out of control, brand profits evaporated!

Watch out! Cycling apparel OEM cost out of control, brand profits evaporated!

Kyra Kyra |

Cost control is a crucial task in the cooperation of cycling apparel OEM. If the brand owner does not do a good job of cost management, the production cost of OEM is easy to get out of control, resulting in rapid shrinkage of brand profits. Many brands start partnerships too optimistically, ignoring the existence of hidden costs.
Sportswear selection of low price foundries is often one of the main reasons for the cost to get out of control. Although a low price may appear to save the budget, hidden cost issues such as quality issues, high return rates, and additional modification fees can make the cost far exceed the expectation.
Production delays at sportswear foundries can also bring serious financial losses to brands. If the product is not delivered on time, the brand's marketing plan and product launch rhythm will be disrupted, resulting in the loss of market opportunities. This not only affects sales, but may also require additional marketing expenses to make up for the loss.
In order to avoid runaway costs, brands must carefully evaluate the production capacity, reputation and cost structure of the foundry when selecting an OEM partner. At the same time, maintain transparent communication with foundries to ensure that every production link is under control in order to prevent profit evaporation.

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