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Why does Hula Global work with smaller factories that don't have third party certifications?

Shwetangi avatar
Written by Shwetangi
Updated over 3 months ago

Before we jump the gun and tag all un-certified units as "bad factories" : It is important to consider the cost of certification in evaluating factories. If the total purchase order value (PO) Value is $10k USD and the cost of certification alone is $4k to $5k, then the certification part becomes unviable.

However, if the order value is $200k USD and the cost of certification is same ($4k to $5k) : then the certifications make financial sense.

Hula Global has a healthy mix of brands - some are startup brands who require small MOQs, especially under the Co-pilot program while others are fairly sizeable brands with large quantities.

The larger brands get to work with larger factories and can even work with a specific factory with their preferred certification requirement. However, for the smaller brand with low MOQs, we work with small factories who usually don't have any third party certifications.

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