Made in America is Never the Smartest Choice for Clothing SMEs

Small time garment manufacturers have never been this optimistic. Statistics show percentage of white label clothing expecting company profits to increase over the year rose from 45% to 55%.

This optimism has something to do with the following trends that are explaining why small businesses are thriving now more than ever. Also, this optimism got to be connected to the fact most small business owners are now more open to market products which are from outside of America.

Current Trends Showing Why Starting New Clothing Brands is so Popular for American SMEs

1. Dissatisfaction with corporate America.

Don’t get it wrong, corporate America never got bad, or perhaps will never be. More and more people start their own garment and apparel business not because of money making but mainly because they are now braver to pursue their passion instead of being a corporate slave.

As a result, people start clothing manufacturing business which is relevant to their passion and interests and most of the time, these startup products can be found outside of America. It is not because America don’t have them.

It is because something not “Made in America” offers a new choice or a different option which could spark interest from consumers compared to other homegrown products.

2. Entrepreneurs are getting younger and younger.

Age demographic for garment business owners used to be at 50-59 years old a decade ago. Today, average age of startup garment entrepreneurs is at 30-39 years old which is a 20 year difference of the former. This statistic is a big deal because young entrepreneurs are the courageous ones who are willing to take risks for their businesses.

Old entrepreneurs will most likely stick to what is traditional and play it safe with what is perceived to be the best: Made in America products and services. This notion has forever changed. Most SMEs of today who are bulk clothing suppliers do not buy their stocks from American companies but instead seek for Asian or South American countries which can provide wholesale clothing supplies at a cheaper rate with the same quality.

3. The right type of clothing businesses are being launched.

Countries have become diverse in terms of population more than ever. Immigrants of different race and culture can now be found in different corners of the world. As a result, demand for garment and apparel have become varied in terms of taste and styles.

This is when the right type of clothing line step in and the best of these products are most of the time not made in America. They may not tend to dominate the market, but they surely have a target audience which they can cater to.

4. Crowdfunding is getting widespread.

Garment manufacturing, wholesale clothing supply or white label clothing companies require a big capital to start up. Traditional funding options, like business loans, credit lines, or investors used to be the only options for business financing. Crowdfunding has made it possible to validate business ideas in advance.

Most crowdfunding business ideas are new, unique and most especially foreign for people to be interested and help fund for the business. A big percentage of crowdfunded projects which are wholesaler clothing supply businesses are actually outsourced and imported from foreign countries.

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