How Garment Factories Produce Surplus?

In a true sense, garment factories do not produce surplus garment intentionally. They make garments for their buyers (international). When they can't sell some garments from whatever quantity they made, those stock lots become surplus garments for the garment factory. The question is incorrect in that sense. You may be asking for how surplus garments are generated at the garment factories.

Surplus garments are known as export surplus. Retailers sell surplus garments as export surplus products. As the product design, fabric and trims quality are very good, available at a lower price, consumer love for buying an export surplus garment.

Garment factories sell that surplus garment to the surplus market (wholesalers).

stock-lot-surplus-garments

To answer this question, here I have listed some of the reasons how a huge volume of the surplus garments generated in garment factories.
  • Normally, garment factories produce more garments than the order quantity they get from their buyers. So garment factories get surplus garments.
  • Garments having minor defects, stitching quality issues those are not accepted by buyers
  • Garments damaged during processing are sold as surplus after repairing
  • Sometimes fabric quality does not match with the buyer's fabric standards but factories make garments with unapproved fabric.
  • Sometimes printing and embroidery design do not match with the desired pattern. Garment made from that fabric get rejected and counted as surplus.
  • Buyer cancelled the shipment due to shipment get delay, major quality issue or testing approvals failure.
You should be knowing that there are many fake surplus garments those made with low-quality fabrics and trims and a brand's labels are attached to the garment. As the surplus apparels are in demand, many businesses started making fake branded products and selling as surplus.

Related post: Checklist to Buy Surplus Garments (Avoid Purchasing Defective One)

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  1. is there any legal issue selling these surplus as a retailer? what if the brand find out that we are selling their products at cheaper price?

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