An export house is a company or firm that manufactures goods such as yarns, fabrics, clothes and shipped to other countries. Export houses can be for any product industries that manufacture goods in one country and shipped to other counties. The company need to register to get the garment exporting license.
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| Production floor of an export house (Image: Shahi Export) |
Garment export house
In the context of apparel sourcing and apparel manufacturing, all garment manufacturers that ship the goods to other countries are known as garment export house. Many garment factories are Govt. recognized as 100% export-oriented company.
In the global business apparel retailer, brands and whole-sellers source clothes from low-cost countries instead of manufacturing apparel and clothing items in their own countries. By sourcing garments from underdeveloped countries, brands control the manufacturing cost and increase their profit margin. Check the list of some garment export houses based in Delhi, India.
Importance of export houses for country
For a country, garment export houses create a lot of employment in the country. Secondly, a country earns dollars (foreign currency) through shipping finished goods to other countries. Counties like Bangladesh, Sri Lanka, Vietnam, Thailand are known for manufacturing garments. Countries like Bangladesh, the economy mainly depends on the ready-made garment exports.
In India there are many companies that make garments for exporting purpose only. The developing countries develop special economic zone for garment export house to provide all the facilities to set up manufacturing plants.
How export houses get orders?
Garment export house get orders from international apparel brands. Countries like USA, UK, and other European countries sources apparel items from these export-oriented countries. Garment export house can directly work with buyers through their liaison offices. Export house can also get orders through buying houses.
Work procedure of an export house
Export houses work on FOB orders or CMT orders. Depending on the order type, an export house source the raw materials for the production orders. Export houses need to develop samples for some design before then get production orders.
According to the garment specification, export house makes patterns, cut the fabric and stitch garments. Post stitching garments are finished and packed and then shipped to the buyer's destination. A production order involved many processes from sample development to bulk production to quality audit and shipping the order to buyer.
Read more about the working procedure of a garment export house.