MOQ isn’t something we made up at Banana! It’s an industry-wide term relating to the smallest number of products you have to order from a supplier or manufacturer.
For Banana, an MOQ relates to how many garments a creator must sell in a preorder campaign before their garment can be produced. If a creator doesn’t reach their MOQ goal then the product doesn’t get made.
Why do factories need MOQs?
Manufacturers and companies tend to use MOQ as part of their sales strategy. It’s generally better for them financially to maximize their production volume and so, for many global manufacturers, the larger the orders they get the better.
A manufacturer’s preferred MOQ is usually calculated by considering a number of factors. Let’s take fabric sourcing for a large-scale fashion brand as an example.
In this situation, the manufacturer would require an MOQ in yards or meters of fabric per colour or print needed. They would then work out what the minimum spend, minimum quantities and minimum measurements would be to make the sale viable. They then set their price and, as the buyer/creator, you’d need to agree to their conditions to place an order.
Needing to place a large MOQ is one of the reasons why, for first-time designers, the upfront costs of launching a fashion brand can be prohibitively expensive.
Ethical benefits of low MOQs
Looking for a manufacturer willing to work with low MOQs is not only the most financially sustainable way to launch a small collection, it’s also better for the planet.
The rise in fast fashion has changed the way the manufacturing industry works. Over the last 20 years, the traditional fashion year has gone from one collection a season (autumn/winter and spring/summer) to 52 micro-seasons a year.
With new products hitting shops all across the world every week, more stock has to be ordered and manufacturers are working overtime to ensure the store’s racks stay full.
Inevitably, this increase in overproduction leads to unsold stock that can often end up in landfills or being destroyed.
Finding a low MOQ fashion factory
Luckily, there are a number of global manufacturers who are more than happy to deliver low MOQ orders, and those are the producers we choose to partner with.
The way we plan for and ensure our producers can be successful, and profitable, with low MOQs is through our preorder model.
When a creator partners with Banana we introduce them to the right producer for their products. Together we work through a step-by-step approach to bringing their designs to life.
Once the product development phase, where garments are designed with Banana’s online design tools and easy-to-follow guides, is finished a creator works alongside their chosen producer on samples.
Samples are sent directly to the creator and once happy with them, they can start to raise awareness of their fashion line with their community and open up for preorder.
Once the creator has sold enough preorders to hit the MOQ, the garments officially go into production. All shipping is handled by Banana and the factory, and products will be delivered straight to the customer within 2 to 3 weeks.
If the MOQ isn’t reached, the products don’t go into production.
We are passionate about working with sustainably minded, professional and high-quality producers and always looking for others to partner with. Choosing to work this way leads to no waste fabric for the producers, no piles of unsold inventory for the creator and unique designs for the consumer.
Everyone wins, including the planet.
Learn more about creating on Banana or contact us to partner with us as a manufacturer.
