Terms in Fashion Industry

By Pulau Intan Lestari

May 10, 2022

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 When we start as a new player in the fashion industry, sometimes we struggle with manufacturing terminology. May we not fully understand terms like CMT, FOB, MOQ, etc. But don’t give up, because today we will share some terms in the fashion industry. These terms are commonly used in the textile to garment industry. So let’s get started!

1. Bulk Fabric
 Bulk Fabric is the actual fabric production with all final yarns, final colors, and final finishing. In another term you also will find ‘go to bulk’ or ‘approved bulk’ that means you give the factory your approval, and you are ready to commit to that final order.

2. CMT
 CMT is short of cut, make, and trim. It means the factory has the ability to cut out the fabric, sew it together, and add any trims that are required. CMT term also means that they do not provide you with any fabric or accessories, so you should source by yourself.

3. FOB
 FOB is short of free on board. It means these services will be included with the costs of delivering the goods to the nearest port. FOB term also means that they will provide you with fabric and accessories, until the products are ready to sell.

4. MOQ
 MOQ is short of minimum order quantity, it means minimum amount of the fabric you can buy, its terms also applies in another manufactured product. Sometimes manufacturers will turn away some customers if they are not willing or able to meet the minimum order quantity. So MOQ is also about who can actually do business with you.

 Those are some common terms in the fashion industry, basic knowledge that you should know about the production, more about it you will find and learn while doing business. Doing business with manufacturers will give you some advantages like being important sources of information, helping you evaluate the potential of new products, track competitors actions and identify promising opportunities.

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