Apparel Costing – Reference to context
In fashion, costing isn’t just math—it decides:
Pricing & margins
Vendor negotiations
Sourcing choices
General Formula
Selling Price = Total Cost/Unit + Profit.
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Example: Men’s Shirt (India)
Fabric: ₹320 (~$3.9)
Trims: ₹45 (~$0.54)
Packaging: ₹30 (~$0.37)
CMT (Cut, Make, Trim): ₹120 (~$1.46)
Other Costs: ₹167 (~$2.03)
Total Cost: ₹682 (~$8.3)
Retail Price (60% markup): ₹1091 (~$13.3).
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Why It Matters
Profitability check
Negotiation clarity
Margin buffer for returns/markdowns
Bangladesh Case Study
Strengths: Low labor cost, skilled workforce, export-friendly policies.
Challenges: Rising input costs, compliance demands.
Still a top sourcing hub for basics & mid-range apparel.
Tips for Merchandisers
Add 2–4% fabric wastage
Separate trims & packaging in sheets
Break down CMT (cutting, sewing, finishing)
Benchmark vendor CM rates
Track currency fluctuations.
Costing = foresight + accuracy + profit protection!
CREDITS: This piece of info has been directly taken from TextileTalks (Textile Updates channel) and has not been edited and reviewed by us.
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