What’s the minimum order requirement?

For Hula Global's Private Label Program, the minimum order quantity is meant to target large, full-scale, commercially viable production and not small, test, or experimental production. Normally, the minimum order quantity (MOQ) is set between 10,000 and 20,000 units per style.

This indicates that for every unique design, colorway, or variant of the product, brands are expected to order between the defined MOQ. This type of MOQ facilitates cost-effective, production-friendly, and efficient logistics while maintaining high-quality and reasonably priced products for growing brands.

Hula Global's Private Label Program is meant for grown brands and funded startups. These are the businesses that are looking to grow and have already tested the market; therefore are not looking to make a small batch to test production.

They are instead looking to stabilize their production, supply chain, and inventory. This 10,000 – 20,000 units style MOQ allows the factory to set their production lines and change to a bulk material supply without stopping their production cycle.

That said, Hula Global appreciates that certain brands may wish to do some smaller test runs before going ahead with larger-scale production. In these instances, potential exceptions for smaller orders may be reviewed on an individual basis.

Order history, potential of the brand, type of fabric, complexity of the design, and capacity of the factory are some of the reasons exceptions may be made. These type approvals are not guaranteed, and exceptions are reviewed per case. These are not standard options that are offered.

Even when considering lower quantities per style, the Private Label Program is designed to be container-based. Therefore, Hula Global cannot consider orders that are less than one 20-foot container.

Practical logistics and cost efficiency are the reasons behind this rule. Shipping, customs clearance, and factory allocation are designed for container-level orders, so anything smaller is economically irrational within this program.

A 20-foot container's capacity mainly depends on product type, weight, fabric, and packaging, and can contain a lot of clothing. If lighter and less bulky items are being shipped, such as dresses or t-shirts, then a larger container can be used.

On the other hand, more space will be used for shipping bulky and heavier items, such as jackets or sweaters. However, regardless of the clothing types, the shipping cost will be offset by the container's capacity.

Also, from the perspective of manufacturing, larger MOQs mean better pricing for brands. When factories operate at maximum capacity, they incur setup, labor, and material costs, which are allocated to a large number of units. Orders of smaller quantities incur the exact reverse. Units become more expensive to produce, lead times increase, and factories prioritize those orders less.

Brands have the additional benefit of a system to ensure consistency and better quality control. Upping the standard of remaining units in a production run streamlines the finishing.

This ensures that fabric dye lots, the quality of the stitching, and the overall finish are similar. This ensures that production batches of clothing are in line with the brand's expectations and that they meet the standard of approved samples.

For brands that are moving from smaller programs like Co-Pilot or the Accelerator Bootcamp, the MOQ for a Private Label Program might seem high.

But it is also important to note that for this program, the MOQ will already be high because it is geared towards companies that have already validated themselves and are now in a phase where they want to scale.

This business model would greatly benefit retailers and multi-channel brands because these types of organizations often require large inventories to serve multiple doors and platforms. The range of 10,000-20,000 pieces fits within their typical buying and merchandising strategy.

The financial implication is that brands should be ready to put in more when working with the Private Label Program. Higher MOQs mean higher costs of production, but similarly, higher MOQs mean higher profits, lower pricing, and higher reliability.

Another benefit of the container-based model is that there is smooth logistics management. Consolidating shipments into containers minimizes any chances of delays and makes shipping and tracking practically simpler.

However, for other brands that need flexibility as well as for lower MOQs, Hula Global suggests considering other programs such as Co-Pilot, which would be more appropriate for these startups and low MOQs. The Private Label Program is not geared toward serving very small startups or independent designers who have low budgets.

Ultimately, the minimum order requirement under the Private Label Program is indicative of Hula Global’s dedication to working with serious and scalable brands looking to do large-scale manufacturing.

The idea of working in the range of 10,000 to 20,000 pieces per style, in addition to the container load requirement, makes for efficiency.

In summary, though smaller test orders may be considered on occasion, under the general auspices of the Private Label Program, it is expected that orders will be for at least 10,000 to 20,000 units per style, with at least one 20-foot container per order. In short, it is best suited to brands that are ready to operate at that level.

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