Clothing manufacturing is a complex process that includes numerous operations necessary to make a garment. It includes processes like cutting, sewing, and finishing. The whole manufacturing process breaks down into a number of sub-operations needed for constructing a particular garment. Some of these operations vary depending on the type of equipment available, work methods used, and workers’ skills.
The most valuable activities in the apparel business are not related to manufacturing by itself but are found in product design, branding, and marketing. These activities are performed by lead large global retailers and brand owners in the apparel industry, which in most cases, outsource the manufacturing process to a global network of suppliers.
CM (Cut and Make)
CM manufacturers normally cut the garment from patterns supplied by buyers and provide sewing operators, machines to make garments. The apparel buyer that hires CM contractors provides fabrics and findings and does product development. CM contractors do not own the products on which they work.
CMT (Cut Make and Trim)
CMT manufacturers normally cut the garment from patterns supplied by buyers and provide sewing operators, machines, and trims to make garments. The apparel buyers that hire CMT contractor provides fabrics and findings and does product development. CMT contractors do not own the products on which they work.
HPP (Half Package Program)
HPP manufacturers do all the pattern development to production like FPP except fabric sourcing which is supplied by the buyer.
FPP (Full Package Program)
FPP manufacturers usually source materials and develop patterns, make and ship samples for approval, and provide operators, machines, and trims for assembly. FPP manufacturers bear greater financial responsibilities than other contractors and they own the products.
The above manufacturers are also called Original Equipment Manufacturers (OEM). OEM is an apparel business model that focuses on the manufacturing process. The OEM factory is capable of sourcing and financing piece goods and trim, and providing all production services, finishing, and packaging for delivery to the retailer or wholesaler. In the clothing industry, OEMs typically manufacture according to customer specifications and design, in many cases using raw materials specified by the customer.
The term Original Design Manufacturer is also referred to as private labeling. The Importer will select the already-existed product design from a factory, this factory usually not involves any ODM business. After the ODM selected the products, they use their brand name to sell the products by labeling the products or using specific packages to make the products could be recognized as their brand products. Manufacturers keep a template on file that buyers (usually referred to as ODM) can customize to fit their specific needs and sell as its brand products.
OBM (Original Brand Manufacturing)
The term OBM stands for Original Brand Manufacturer. It takes care of the entire production procedures, from design, engineering, manufacturing, and supply chain to marketing. OBM fully owns the brand and products. OBM is the option for the manufacturer who wants to produce sophisticated products. Compared with ODM and OEM, OBM usually involves higher costs (including money and time) to produce the products.
I completely agree that while manufacturing is crucial, the most valuable activities in the apparel business lie in product design, branding, and marketing. It's interesting to note that many global retailers and brand owners outsource the manufacturing process to a network of suppliers.
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"This is a great breakdown of the different manufacturing models in the apparel industry. It’s helpful to understand the differences between CM, CMT, and FPP."
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"I love how you explained the differences between OEM, ODM, and OBM. This really helps clarify the complexity of the clothing manufacturing process."
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