The Wholesale Forums

[Globalplaya]

Hi,

I'm setting up as an import agent helping source clothes from Asia. I already have contacts with a number of factories. I just wanted to get some opinions on whether I'm on the right track with my business model:

Marketing:

I intend to obtain samples from factories and then approach clothing brands in the UK with prices, lead times etc. (is this the best approach?)

Pricing:

I intend to add my commission as well as any costs to the per unit price quoted by the factory (is this the best pricing structure?).

Costs:

I intend to initially operate from home so no office costs. I will initially sub contract a buying house in the country of origin to do the quality control. So I will have to pay them a percentage of the commission (or is it possible to pay them some kind of fixed fee?).

All replies appreciated.

[Andy777]

Hey & welcome to TWF!

Why would clothing brands deal with you if they can get those deals directly from factories for better prices and on better terms?

But you could deal directly with retailers and sell them wholesale (even without having any stock in hand). Big retail clothing chains (like Primark) won't be interested in dealing with you as they have their own warehouses, buying agents, logistics in place etc., but I believe smaller shops could be interested.

[Globalplaya]

Hi Andy,

Clothing brands even large ones often source through sourcing agents as it's not possible for them to have a presence in every country. Buying agents provide the quality control at factories as well as negotiating prices and dealing with customs. In fact most of the factories I have been in contact with get the majority of their orders through independent buying agents. Most of these buying agents are small to medium sized companies but have dealt with major retail chains and clothing brands.

I don't intend to approach really large chains until I build up a track record.

[Andy777]

Ahh, didn't know that - worked for Penneys/Primark and they had their own stuff dealing with all this.

Well, if you have an experience in this field and have action plan in place - why not? Good luck :-)

[Globalplaya]

Any other replies on my original question?

[consultant]

Globalplaya,

you want to become a sourcing/buying agent, not an import agent - there are differences!

[Globalplaya]

Excuse my ignorance! I didn't think there was much of a difference, and the terms were interchangeable. What are the differences? Just tried to look it up on Google with no luck.

In any case does my business model work?

[consultant]

an import agent is someone who manages importation and logistics, such as a freight forwarder.

As for your plan, it could work. For larger (retail) companies, you will find it difficult unless you have a USP. They already have their own network and people on the ground (as well as local offices) and you would need to offer something very different, be it prices, ranges, designs etc, to get a foot in the door.

Your biggest opportunity would probably be in mid-size companies, who have little or no experience in direct sourcing.

As for approaching brands, the same applies, however, as their core business is developing products, there maybe less chance!

Good luck in your venture!

[hardwareheroes]

Welcome to the friendly forums nonetheless !

Good luck

[xcat]

There is definately a market for this, as people are doing it. You need to be on the ground to negotiate the best rates and check the quality. It would also make life easier if you had a rep in the country you are selling to.