Why Apparel Manufacturers Avoid Working With Startups

Summary:

Many apparel manufacturers avoid working with startups due to small orders, payment risks, and frequent changes that disrupt production. Startups struggle with high MOQs and unpredictable cash flow, making partnerships tough. But brands like NoName, a leading clothing manufacturer in India, offer flexible MOQs, sustainable practices, and expert support to help startups succeed. Here’s how we do it!

Introduction:

Starting a fashion brand is exciting—but also tough. You have designs, passion, and a dream to see your clothes in stores and wardrobes. But here’s a hard truth: many apparel manufacturers avoid working with startups. Why? Because the fashion manufacturing world is full of challenges for new brands trying to break in.

If you’re a startup fashion brand wondering why so many manufacturers hesitate to take your orders, you’re not alone. In this blog, we’ll explore the main reasons why apparel manufacturers avoid working with startups, backed by facts and stats. Plus, we’ll introduce you to NoName—one of the best apparel manufacturers in India that welcomes startups with open arms.

1. Small Order Sizes and Minimum Order Quantities (MOQs)

One of the biggest reasons manufacturers avoid startups is small order sizes. Most apparel manufacturers have a minimum order quantity (MOQ) that’s quite large—sometimes hundreds or thousands of pieces per style or color. This is because:

• Producing small batches is less efficient and increases the cost per piece.

• Manufacturers have to allocate machine time, labor, and resources, which only makes sense if the order is big enough.

• Large orders help manufacturers maintain steady cash flow and profit margins.

Fact: According to industry research, up to 90% of manufacturers set MOQs that startups find hard to meet.

This leaves startups stuck - unable to order small quantities to test their market or budget, yet unable to meet high MOQs.

2. Unpredictable Cash Flow and Payment Risks

Startups often face cash flow challenges, especially in their early days. Many manufacturers prefer to work with brands that have a stable financial background and a track record of on-time payments.

• Delayed payments or payment defaults risk the manufacturer’s business.

• Manufacturers may ask for upfront deposits or full payment before production, which startups may find difficult.

Stat: Nearly 70% of manufacturers report cash flow uncertainty as a key reason to avoid new or small clients.

3. Lack of Clear Specifications and Experience

Startups are usually new to apparel manufacturing and may lack:

• Detailed technical packs or design files.

• Understanding of fabric properties and production processes.

• Clarity on production timelines and quality standards.

This can lead to:

• Miscommunication and errors in production.

• Frequent revisions and sample rejections.

• Increased production costs and delays.

Manufacturers prefer working with brands who are prepared and clear, reducing headaches and costs.

4. Frequent Changes and Order Cancellations

Startups often pivot quickly as they try to find the right product-market fit. This can mean:

• Changing designs after production has started.

• Requesting last-minute changes in fabrics or trims.

• Cancelling or reducing orders unexpectedly.

These disruptions impact manufacturers’ schedules and profits, making startups a riskier choice.

5. Demands for Customization and Speed

Many startups want to create unique collections with custom fabrics, labels, and finishes. They also often need fast turnaround times to launch quickly.

Manufacturers who specialize in mass production may find this difficult because:

• Customization requires extra setup and sourcing.

• Fast production means squeezing timelines and possibly increasing costs.

• It interrupts the flow of their standard large-batch orders.

6. Lower Profit Margins and Price Sensitivity

Startups usually operate on tight budgets and want to keep production costs low. They negotiate hard and look for affordable manufacturing solutions.

Manufacturers may find that:

• Startup orders yield lower profit margins.

• The cost of accommodating smaller, customized orders is higher.

• Price sensitivity creates tension on quality and timelines.

7. Limited Brand Recognition and Market Proof

Established brands come with a proven track record, reliable sales, and stronger financial backing. Manufacturers see this as a safer bet.

Startups, on the other hand, lack:

• Market presence.

• Sales history.

• Predictable demand.

This makes manufacturers cautious about investing time and resources.

Tips for Startups to Find the Right Apparel Manufacturer

If you’re a startup looking for manufacturing partners, here are some tips:

1. Look for flexible MOQs: Avoid manufacturers that insist on huge minimum orders.

2. Ask about payment terms: Find partners who can work with deposits or milestone payments.

3. Prepare detailed tech packs: Clear specifications reduce errors and rework.

4. Communicate openly: Share your timelines, budget, and challenges honestly.

5. Check manufacturer experience: Choose those who have worked with startups or small brands.

6. Prioritize sustainable and ethical partners: This adds value to your brand and appeals to conscious customers.

The Best Apparel Manufacturer in India for Working with Startups

While many manufacturers hesitate, some embrace startups and help them grow. Among such partners, NoName stands out as the top clothing manufacturer in India that specializes in working with startups and small fashion brands. Here’s why NoName is the ideal choice:

• Flexible MOQs: NoName offers small order quantities so startups can test products without large upfront costs.

• Sustainable Practices: As a sustainable clothing manufacturer in India, NoName uses eco-friendly materials and ethical processes.

• Expertise and Support: NoName helps new brands navigate production challenges, from fabric selection to final quality checks.

• Private Label & Customization: Startups get the freedom to create unique designs with custom labels and finishes.

• Transparent Pricing: Clear costing and flexible payment options reduce financial risks for startups.

• Quick Turnaround: NoName understands the urgency of market timing and works efficiently to meet deadlines.

With NoName, startups get more than just a manufacturer—they get a trusted partner who understands their needs and helps bring their fashion dreams to life.

Conclusion: Startups Deserve Better Manufacturing Partners

Apparel manufacturing is complex, and it’s understandable why many manufacturers hesitate to work with startups. Small orders, payment risks, and frequent changes make startups a challenging client type.

But the good news is that manufacturers like NoName are changing the game. By offering flexible, affordable, and sustainable manufacturing services, NoName empowers startups to grow without the usual roadblocks.

If you’re a startup fashion brand struggling to find the right manufacturer in India, NoName is your best bet. They specialize in supporting new brands with custom solutions and a partnership approach.

Ready to take your startup fashion brand to the next level? Partner with NoName, the best clothing manufacturer in India for startups. Get flexible MOQs, sustainable fabrics, expert guidance, and quick turnaround times—all under one roof.

Contact NoName today to discuss your unique needs and start manufacturing your dream collection with confidence!

WhatsApp: +91-9717 508 508

Email: hello@nonameglobal.com

Website: www.nonameglobal.com  

Online meeting: https://calendly.com/nonameglobal/meet