In September 2021 we gathered price data and other relevant information from suppliers in China and various EU countries. The purpose was to determine how suppliers in China and Europe differ in terms of the following:
- Unit price
- Minimum order quantity (MOQ)
- Product sample costs
- Response rate
Product information
We created two separate children’s product specifications. Both were custom-designed products made using a printed fabric.
- Product: Children’s clothing (2 SKUs)
- Material: Organic cotton
Supplier Overview
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- 1. US & Mexico
- 2. European Union
- 3. Turkey
Supplier selection criteria
We only sourced GOTS-certified children’s clothing manufacturers. This way we can be somewhat certain that both suppliers in the EU and China are sophisticated manufacturers.
- Product scope: Children’s clothing
- Type: Manufacturer
- Certification: GOTS
Selected suppliers
| Countries | # Suppliers |
| China (Mainland) | 9 |
| EU: Portugal, Greece, Croatia, Hungary, Poland | 12 |
Requested information
We requested this information from the suppliers for the 2 SKUs:
- Unit price*
- MOQ
- Sample cost
*Based on their MOQ per order/size
Table A: China Suppliers
| SKU A | SKU B | |
| Supplier A | Unit Price: $4.5 Sample cost: $250 MOQ: 3000 pcs | Unit Price: $3.5 Sample cost: $250 MOQ: 3000 pcs |
| Supplier B | Unit Price: $4 Sample cost: $500 MOQ: 5000 pcs | Unit Price: $1.5 Sample cost: $500 MOQ: 5000 pcs |
| Supplier C | Unit Price: $7 Sample cost: $140 MOQ: 1000 pcs | Unit Price: $4.5 Sample cost: $140 MOQ: 1000 pcs |
| Supplier D | Unit Price $6.5 Sample cost: $260 MOQ: 1000 pcs | Unit Price: $3 Sample cost: $260 MOQ: 1000 pcs |
Notes
1. 4 out of 9 suppliers responded to the RFQ
2. The prices have been rounded
3. Prices quoted in US dollars
Table B: EU Suppliers
| SKU A | SKU B | |
| Supplier A | Unit Price: €9.5 ($10.72) Sample cost: €200 ($225.73) MOQ: 300 pcs | Unit Price: €7 ($7.9) Sample cost: €200 ($225.73) MOQ: 300 pcs |
| Supplier B | Unit Price: €12 ($13.55) Sample cost: €230 ($259.59) MOQ: 1000 pcs | Unit Price: €12.5 ($14.11) Sample cost: €250 ($259.59) MOQ: 1000 pcs |
| Supplier C | Unit Price: €14.5 ($16.37) Sample cost: €200 ($225.73) MOQ: 400 pcs | Unit Price: €9 ($10.16) Sample cost: €200 ($225.73) MOQ: 400 pcs |
| Supplier D | Unit Price: €9 ($10.16) Sample cost: €50 ($56.44) MOQ: 2000 pcs | Unit Price: €6 ($6.77) Sample cost: €50 ($56.44) MOQ: 2000 pcs |
Notes
1. 4 out of 12 suppliers responded to the RFQ
2. The prices have been rounded
3. Prices quoted in EUR and converted to USD on 2021-12-10
Comparison
| China | EU | |
| Unit price (SKU A) Average | $5.5 | $12.7 |
| Unit price (SKU B) Average | $3.125 | $9.735 |
| MOQ Average per SKU | 2500 pcs | 925 pcs |
| Sample cost Average | $287.5 | $191.8 |
| Response rate | 44% | 33% |
| Shipping cost Assumed quantity: 500 pcs 60 x 60 x 100 (cm) 70 kgs UPS air freight | Total: $1,894.34 Per unit: $3.78 Origin: Shanghai, China | Total: $613.31 Per unit: $1.22 Origin: Lisabon, Portugal |
Notes
1. The product cost is significantly higher in the EU compared to China
2. The freight costs are significantly higher when ordered from suppliers in Asia. This narrows the total cost between manufacturing in the EU and China.
3. The supplier response rate is notably higher in China
4. The MOQ is higher in China, at least for this product category and materials
5. The sample cost difference is too small to draw a conclusion
6. There is no clear “winner” in this case study
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