What does MOQ mean and what is Gold Garment's MOQ?

MOQ stands for minimum order quantity. For example, our MOQ is 200 pieces per style. What does this mean? It means that if you plan to order...

MOQ stands for minimum order quantity. For example, our MOQ is 200 pieces per style. What does this mean? It means that if you plan to order less than 200 pieces per style then we are not the right factory for you. The reason we have a MOQ is because we have 15 sewing lines and we need to find enough orders to keep them busy 365 days a year. If we don’t, our workers will think we are a dying factory and go work for someone else. The Vietnam garment industry capacity is small compared to China and new factories are opening everyday which means the workers have many options where to work. The main goal of a factory owner is to keep the lines full and the factory floor buzzing.

We produce over 200,000 garments per month. IF we entertain small quantity orders our merchandising team will not be able to manage all the orders successfully. The same amount of merchandising work goes into a 50 piece order as a 50,000 piece order yet a 50 piece order is done in one day whereas a 50,000 piece order can keep two lines busy for a month.

Size breakdown does not matter. Within the 2,000 you can have any quantity of any size you want.

Fabric matters. The fabric dyeing factories impose their minimums on us per colour, so if we order less fabric than their minimum they charge us extra which we have to pass on to our customers. Our customers are always price senstive so we are too - another reason why we have the 200 MOQ.

Artwork matter. The appliqué, screen print or embroidery also needs to meet the MOQ. We can be flexible here. For example, most screen printing factories have MOQ of 1,000.

In fact, 2,000 pieces MOQ is small for the Vietnam garment industry capacity. Any factory that does less is a mom and pop operation and you need to proceed with caution. I recommend you be in Vietnam during production and monitor production closely. Most reputable factories in Vietnam have MOQ greater than 200 pieces per style.
Vietnam has 90 million people whereas China has 1.3 billion. The Vietnam garment industry capacity is limited because the availability of workers compared to China is limited. Consequently, medium and large sized factories need to impose MOQ’s to survive.

Here is a statistic to show how small Vietnam garment industry capacity is compared to China:

“The most recent data of the US Office of Textiles and Apparel (OTEXA) records textile imports from Vietnam as having 8.38% share of the whole US market, still a far cry but continuously catching up with China’s 47.97%.” Source: Quality Inspection Org.

Here is an interesting article that will help you to understand more about Vietnam garment industry capacity.

COMMENTS

GOLD GARMENT JOINT STOCK COMPANY
Taxcode: 0316105841
Address: 419/47 Nguyen Thi Thu Street, Xuan Thoi Son Ward, Hoc Mon Dist, Ho Chi Minh, VietNam, 731607

Điện Thoại / Zalo: 0968 911 888
Phone/WhatsApp: +84 901 851 801
Tel: +84 28 777 88 666
Email: contact@goldgarment.com
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Gold Garment Vietnam: What does MOQ mean and what is Gold Garment's MOQ?
What does MOQ mean and what is Gold Garment's MOQ?
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