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

