Strategic Sourcing: Exploring the Advantages of Korean Production
What are the benefits and reasons a fashion retailer might have to have their own clothing line made in South Korea, rather than China?
Fashion retailers might consider manufacturing their clothing line in South Korea over China for several reasons, each with its own benefits:
- Craftsmanship: The workforce in South Korea is highly skilled, particularly in the fashion and textiles industry. This can lead to better execution of complex designs and high-end fashion items. And South Korea is known for its high-quality manufacturing standards and attention to detail. Retailers looking for superior quality and craftsmanship might prefer South Korean manufacturers.
- Brand Image: “Made in Korea” has a strong brand image associated with quality and style, which can enhance the perceived value of the clothing line. Fashion retailers can leverage the ‘Made in Korea’ aspect of their brand in their marketing.
- Trade Agreements: South Korea has multiple free trade agreements that can offer favorable conditions and lower tariffs for certain markets, significantly reducing overall costs. Fashion retailers in certain countries (like the EU, UK, US, Canada, and Australia) can benefit from these reduced tariffs when working with Korean suppliers and will potentially come out cheaper than when importing from China.
- Cost Considerations: While manufacturing in South Korea might be more expensive than in China, the overall value derived from higher quality, faster turnaround, and brand image can justify the cost for some retailers.
- More Fashionable: Korean fashion is often viewed favorably for its quality and style. Clothes made and designed in South Korea are reputed for good styling. K-fashion has gained ground thanks to the country’s current popularity, influenced by the “Korean Wave” of culture and entertainment. Fashion retailers might prefer to work with Korean designers for their fashion sense and work with Korean factories for their reputation.
- Working Conditions: Working conditions in South Korean clothing factories are generally considered to be better than those in many other Asian countries, including China. South Korea has developed a robust legal framework to protect workers’ rights, and it is a developed country with a high standard of living. The government has implemented regulations to safeguard the safety and well-being of workers, and there are no sweatshops or child labor in South Korea. In comparison, China has faced international scrutiny over working conditions in its factories. Issues such as long working hours, low wages, lack of regular contracts, and hazardous conditions have been reported. It’s important to note that there are certainly factories in China that maintain high standards. However, on a general level, South Korea’s stronger regulatory environment and higher economic development status contribute to better working conditions compared to those in China. Fashion retailers valuing the ethics of their brand might prefer ‘Made in Korea’ for that reason.
Each retailer must weigh these factors against their specific business needs, target market, and brand strategy to determine the best manufacturing location for their clothing line.
Sourcing through KKAMI
When you make your own designs through KKAMI you will benefit from the above-mentioned benefits. For private label, KKAMI works only with Korean designers and Korean factories. The private label products we help make for your brand will all be Made in Korea.
KKAMI has over 10 years of experience shipping products around the globe. We know the ins and outs of all relevant Free Trade Agreements. We made a convenient overview of what to expect when importing from South Korea.
KKAMI has supplied thousands of shops with Korean fashion. They generally return for more because they are very satisfied with the superb quality and fashionable designs. This is one of the main reasons we received almost exclusively 5-star reviews.
Are you thinking of launching your own brand? Then we urge you to consider doing so in Korea. KKAMI is ready to assist you if you decide to do so.
