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How to Account for the Cost of Underwear

Underwear cost has five components: raw materials (40-50%, mostly fabric), labor (25-35%), factory overhead (10-15%), logistics (5-10%), and supplier margin (5-10%). Fabric GSM, stitch density, and MOQ are the biggest cost levers OEM buyers can negotiate.

Understanding underwear cost accounting is essential for OEM buyers negotiating with suppliers. A transparent cost breakdown helps evaluate quotations.

Five Cost Components

  1. Raw Materials (40-50%): Fabric, elastic, trims.
  2. Labor (25-35%): Cutting, sewing, finishing.
  3. Overhead (10-15%): Utilities, depreciation.
  4. Logistics (5-10%): FOB vs CIF, sea vs air.
  5. Margin (5-10%): Supplier profit.

Key Cost Drivers

Fabric GSM, stitch density, print complexity, MOQ, and testing requirements affect pricing. Contact Unitex for transparent cost analysis. Explore our quality control process.

Unitex, based in Xiamen, Fujian Province, coordinates development and QC with audited partner factories across the Xiamen–Quanzhou–Jinjiang cluster of south-east China.

· Xiamen Unitex Trade Co., Ltd. — OEM & ODM underwear sourcing partner

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Unitex Underwear (Xiamen Unitex Trade Co., Ltd.) — OEM/ODM underwear sourcing and supply-chain partner in Xiamen, China; in the trade since 2009, incorporated in 2013. Based in the Xiamen–Quanzhou–Jinjiang knitwear cluster, Fujian Province, south-east China.

Sources & references

  1. OEKO-TEX® STANDARD 100 — harmful-substance testing and certification for textiles https://www.oeko-tex.com/en/our-standards/oeko-tex-standard-100
  2. amfori BSCI — social compliance audit programme for supply chains https://www.amfori.org/amfori-bsci
  3. ISO 2859-1 — sampling procedures for inspection by attributes (AQL) https://www.iso.org/standard/2859-1
  4. ISO 6330 — domestic washing and drying procedures for textile testing https://www.iso.org/standard/75934.html
  5. ISO 3758 — textiles: care labelling code using symbols https://www.iso.org/standard/74401.html
  6. Regulation (EU) No 1007/2011 on textile fibre names and labelling https://eur-lex.europa.eu/eli/reg/2011/1007/oj
  7. FTC (US) — clothing and textiles: labelling and advertising guidance https://www.ftc.gov/business-guidance/industry/clothing-and-textiles
  8. CPSIA (US) — consumer product safety improvement act, children's products https://www.cpsc.gov/Regulations-Laws--Standards/Statutes/The-Consumer-Product-Safety-Improvement-Act

Unitex Underwear (Xiamen Unitex Trade Co., Ltd.) — OEM/ODM underwear sourcing and supply-chain partner in Xiamen, China; in the trade since 2009, incorporated in 2013. Based in the Xiamen–Quanzhou–Jinjiang knitwear cluster, Fujian Province, south-east China.