If you’ve ever explored cut and sew manufacturing outside of China, you’ve probably run into one major hurdle: higher minimum order quantities (MOQs). Whether you're working with apparel factories in Central and South America, Southeast Asia, or Eastern Europe, their MOQs often start much higher than China's. But why?
Let’s break it down—starting with what actually determines an MOQ—and then explain why China is the exception, not the rule.
What determines a factory’s MOQ?
MOQs aren't arbitrary. They’re based on a combination of factors that impact how factories operate and stay profitable. Here are the main ones:
1. Fabric & trims sourcing
- Bulk fabric production: Mills often require large minimums to weave or dye fabrics in your custom color or composition. If a factory has to purchase 1,000 meters to meet a mill’s minimum, they need enough orders to justify it.
- Trims & accessories: Zippers, buttons, labels, and packaging often have their own MOQs. If your product needs custom trims, expect higher minimums.
2. Production line efficiency
- Setup costs: Each new style requires setup—pattern making, cutting, sewing machine adjustments. It’s more efficient (and profitable) to keep a line running on one product for longer.
- Labor allocation: Training workers and setting up a dedicated line isn’t worthwhile for a few dozen pieces.
3. Pricing power & margins
- Profit per unit: Factories need to make enough profit to stay afloat. Small orders usually mean higher prices, but there’s a limit to what brands will pay. Higher MOQs balance factory overhead and profit margins.
4. Factory size & focus
- Mass production vs. small batch: Large-scale factories are built for efficiency at scale. Smaller boutique factories are better equipped for small runs—but these are harder to find and often charge a premium.
Why are MOQs higher outside of China?
Now that you know what factors drive MOQs, here’s why China often outpaces the rest of the world in offering lower minimums.
1. China has a vast, highly integrated supply chain
In China, factories, mills, and suppliers are tightly clustered. This makes sourcing fabric, trims, and components faster and more flexible. Factories can pool orders from multiple brands to meet material minimums, keeping MOQs lower.
In other countries such as Vietnam, South Korea, and Peru, supply chains are often less integrated or more spread out, which increases sourcing costs and raises minimums.
2. Economies of scale are bigger in China
China’s apparel manufacturing sector has been built on volume. Massive production volumes drive down costs on everything from fabric to freight. Because factories are used to filling huge orders, they’ve developed the capability to handle smaller runs efficiently as a way to fill capacity gaps.
In smaller manufacturing hubs, factories often rely on fewer orders from fewer brands, making them less willing to commit resources to small runs. They need to maximize each production slot with bigger orders.
3. Access to small-order resources is easier in China
China has fabric markets like Guangzhou’s Zhongda Fabric Market and Humen Fabric Market, where factories and brands can buy small quantities of ready-made fabric and trims. This bypasses mill minimums, making lower MOQs feasible.
In contrast, countries like Vietnam, Colombia, or Turkey don’t have the same dense, flexible sourcing options. If you need custom materials, they likely have to be made-to-order, pushing up your MOQ.
4. Labor and overhead costs are different
Labor costs are rising everywhere, including China. But Chinese factories have optimized their labor force and production processes to stay competitive on smaller runs.
In other regions, higher labor costs and smaller factory networks mean manufacturers need to prioritize higher-paying, larger orders. Taking on a small MOQ project often isn’t worth their time unless they charge a premium.
Is it impossible to find low MOQs outside China?
Not ncessarily. But it’s harder. If you’re sourcing in Central and South America or Southeast Asia:
- Be flexible: Work with available stock fabrics and trims to reduce MOQs.
- Build relationships: Some factories are open to lower MOQs with consistent business.
- Consider seasonal production windows: Factories may offer smaller runs during slow seasons to fill capacity.
Final thoughts
China’s supply chain and manufacturing ecosystem are uniquely optimized for flexibility, making it easier for small and medium-sized brands to place lower-MOQ orders. Other countries are catching up, but for now, higher MOQs are often the tradeoff if you’re looking for cut and sew manufacturers outside China—whether for proximity, sustainability goals, or diversification.
Still not sure where to start? Our team works directly with apparel factories across China, Central America, South America, and Southeast Asia to negotiate realistic MOQs and secure high-quality production, no matter your brand size.
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