Garment Value Chain Analysis
Garment Value Chain Analysis
Whenever I go for shopping clothes from retail showroom and stores, the retail price of the clothes stops me to go for purchasing. It may be true to some of you. The final retail prices are really crazy. How they can charge that much money for the basic products? As garment manufacturing expert I know how much money has been spent in fabric and manufacturing. To get the answer of my question I started researching for value chain of apparel products from fabric to retail. Finally I got two examples that helped me to understand who are taking share of total price. It may not be match with all types of apparel products but you will get a broad idea on the garment value chain.
Example 1: Value chain analysis of a Casual Frock
|
Cost Parameters
|
Value Addition Percentage
|
Rate (INR)
|
Share of Total Retail Price
|
|
Raw Material (Fabric, Zipper, thread)
|
70
|
70
|
28.7
|
|
Drafting, designing and Cutting
|
30%
|
21
|
8.6
|
|
Embroidery
|
33%
|
30
|
12.3
|
|
Stitching
|
20.70%
|
25
|
10.3
|
|
Hand work
|
27.40%
|
40
|
16.4
|
|
Ironing & Packaging
|
13.40%
|
25
|
10.2
|
|
Whole seller margin
|
15.60%
|
33
|
13.5
|
|
Total
|
244
|
100
|
Share of Total retail Prices has been shown in the following pie chart#1
Example 2: Value chain analysis of a Party Wear Frock
|
Cost Parameters
|
Value Addition Percentage
|
Rate (INR)
|
Share of Total Retail Price
|
|
Raw Material (Fabric, Zipper, thread)
|
300
|
300
|
28.1
|
|
Drafting, designing and Cutting
|
30%
|
90
|
8.4
|
|
Embroidery
|
35%
|
137
|
12.8
|
|
Stitching
|
25%
|
132
|
12.3
|
|
Hand work
|
30%
|
197
|
18.5
|
|
Ironing & Packaging
|
4%
|
34
|
3.2
|
|
Whole seller margin
|
20%
|
178
|
16.7
|
|
Total
|
1068
|
100
|
Share of Total retail Prices has been shown in the following pie chart#2
