Why do retailers prefer to source shapewear directly from source factories? A comparison of the 5 key advantages​

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For overseas retailers, the procurement channels for shapewear directly impact profit margins and market competitiveness. Between “source factories” and “middlemen,” an increasing number of overseas retailers are opting for the former, driven by 5 core advantages.​

1. Price Advantage: Bypassing Multiple Markups Leads to Larger Profit Margins

Intermediaries, as intermediate links in the supply chain, add operational costs and profits to the source factory’s quoted prices, ultimately passing these costs on to retailers. Source factories, however, deal directly with retailers, eliminating the need for intermediate markups. Take a batch of 1,000 basic-style shapewear items as an example. The wholesale price from the source factory may be 15%-20% lower than that of the intermediary. For retailers operating on thin margins, this translates to more substantial profit margins.

2.Supply Stability: Controlling from the production end to reduce stockout risks

Intermediaries rely on upstream factories for their supply. If factories face issues like insufficient production capacity or raw material shortages, intermediaries may not be able to deliver on time, leaving retailers at risk of stockouts. Source factories have their own production lines and raw material reserves, allowing them to adjust production plans directly based on retailer orders. Even during peak seasons with surging demand, they can ensure supply by optimizing schedules or increasing shifts, avoiding stockouts that could disrupt store operations.

3. Customization flexibility: Support for small-batch adjustments to align with market demand

Consumer preferences are diverse, and retailers often need to adjust product details based on local trends, such as adding specific colors or modifying size ranges. Middlemen lack production capacity and struggle to meet such customization demands. However, source factories can directly coordinate with design and production departments, enabling swift responses even for small-batch adjustments (e.g., color customization with a minimum order of 500 pieces), helping retailers adapt more flexibly to market changes.

4. Quality Control: Full-process supervision to reduce post-sales issues

The elasticity of shapewear fabrics and sewing techniques directly impact wearing comfort, and quality issues can lead to returns and negative reviews. Source factories have a comprehensive quality control system, strictly monitoring every stage from fabric procurement, cutting, sewing, to quality inspection. Retailers can also conduct on-site inspections of the production process at any time and even participate in the formulation of quality standards. However, when purchasing through intermediaries, quality relies solely on their descriptions, and once issues arise, accountability and rework become more complicated.

5. Transparency in Collaboration: Direct Information Exchange for Higher Communication Efficiency

When communicating with intermediaries, critical information (such as production progress and cost breakdowns) may be vague. Source factories, however, offer transparent collaboration processes, including real-time production progress updates, clear quotation details (including raw materials, labor costs, packaging, etc.), and transparent after-sales warranty terms. Retailers can directly contact the factory’s business or production managers with any questions, avoiding misunderstandings and disputes caused by information gaps.

6. Welcome to cooperate with us.

For retailers, sourcing shapewear directly from source factories is not only a cost-saving choice but also a key to enhancing supply chain efficiency and market responsiveness. If you are struggling with shapewear procurement channels, consider directly contacting source factories to experience an efficient collaboration model from production to retail. As a source factory with 12 years of production experience, we have completed production line upgrades and established a flexible supply chain with 72-hour rapid prototyping and 15-day bulk delivery. Whether it’s customizing sustainable products or providing cost-effective solutions, we can meet diverse needs through our modular production system. For customized solutions, please feel free to contact our account manager at any time.