Starting your own fashion label can be a dream come true, albeit a complex one. The concept of “Low MOQ” has been coined in the fashion industry.
Low MOQ or minimum order quantity means the legal quantity of a specific product that a seller can sell out of. Sometimes this defaults to the minimum order value (or MOV), which means the lowest monetary value of a sale or a product.
Although the concept is simple, most fashion-incipient startups do not understand the economic complexities behind each order. This guide will mitigate these complexities.
You will now know how to plan your next fashion collection more strategically while having a reasonable expectation of what a factory can produce with a low MOQ. Understanding the concept of “low meq” is pivotal, especially with the right partners, like Hula Global, which allows new fashion labels to take a strong first step, having the right amount of commitment.
Definition of MOQ & MOV
Two aspects of every production conversation in fashion manufacturing can be encapsulated with the phrases MOQ and MOV. As with most commercial dialogues, clarity is essential, and the terms are commonly confused.
Having clarity to define the terms will assist in conversations around commercial dialogues. For example, MOQ is the minimum number of units within a single design/color/style per production run that a factory is willing to manufacture.
There are scenarios where this number is 100 pieces; this is also true of knitwear, but in the case of producing denim, this can be 300 to 500 pieces per style. This is made this way to assess the setup and operational costs, fabric, machine, calibration, and the workforce. Costing lower than this will affect the ROI negatively.
MOV, on the other hand, stands for Minimum Order Value, which specifies the lowest total monetary value a manufacturer will accept per order. MOV can be illustrated in a simple way: while a factory might accept small quantities, as long as the total order value exceeds, say, $5,000, they will accept the order.
In summary, value is monetarily assessed in MOV and in MOQ; it is assessed in numbers. Knowing this will mean the founder is less likely to incur penalties, which will allow for clear and rational negotiation around production.
How MOQ affects startup founders
For startup founders, MOQ (minimum order quantity) is a potential entry point to production, but it can be a barrier to it as well. When starting a fashion brand, a founder has to balance creativity and capital constraints, as MOQs usually define whether a collection can go from the design phase to the production phase.
Startups usually see high MOQs as a budget and cash flow constraint. Because factories need to produce hundreds of units per style to break even on production, a new founder trying to validate a concept can be asked to produce 1000 units and spend thousands of dollars with no immediate hope of a return on their investment. Lastly, it contributes to inventory risk where the capital intended for marketing and operations is trapped in unsold stock, stunting growth and new product development.
Less risk is associated with low moqs, and for this reason, founders see them as flexibility and agility. They can test a variety of designs, launch tiny collections, and gather feedback all at low financial exposure.
Logically, smaller order sizes will result in increased costs as well as loss of bargaining power with the supplier. To circumvent this, a startup can work with low MOQ-friendly suppliers. One example is Hula Global.
Myths about small batch production
1. Low MOQ means cheaper production
Many founders believe that producing in small batches leads to lower overall costs. They forget that low-MOQ production usually means the cost per piece goes up. This is mainly because the setup and material costs are allocated over fewer pieces.
2. Every factory offers a low MOQ
Not every producer is able to do small runs, as they are usually dependent on the capacities of their production lines. Only factories with modular setups and flexible workflows specialize in low-MOQ production for startups.
3. Small batch equals lower quality
Quantity does not define quality; the process does. Small-batch production can achieve premium quality if proper standards and quality checks are followed.
4. MOQ is Non-Negotiable
MOQ is not a fixed number. Founders can often negotiate lower quantities by sharing that they can remove late delivery as a parameter, simplifying designs, or adjusting delivery schedules.
5. Low MOQ guarantees faster delivery
Having fewer pieces does not guarantee quicker production. Fabric sourcing, sampling, or even line scheduling can usually cause delays.
6. Smaller Amounts Produced Are Still Sustainable
While making less definitely reduces waste, sustainability still boils down to the ethics of material sourcing and use. It is also not simply about the amount.
7. Factories Dislike Smaller Orders
Factories love consistency. Reliable small orders usually result in the formation of longer partnerships, and trust is built.
8. Low MOQ Means Fewer Designs
With the right supplier, founders can still offer a range of styles even with small runs by sharing materials across SKUs.
9. Small Batch Means No Scalability
Starting small doesn’t restrict growth in any way. Low-MOQ models are built to expand when demand requires it.
10. Low MOQ Is Only for Startups
Even big players pull small batches for testing the market and capsule collections, demonstrating that it is an effective approach across all business sizes.
Realistic MOQ examples by category
The term “low MOQ” can mean different things depending on the product category, fabric type, production complexity, and factory capabilities. Knowing what to expect helps fashion founders plan better and avoid costly surprises.
For basic T-shirts and knitwear, MOQs are 300-1000 per style, but startup-friendly factories can do 50-150 pieces, as cotton and jersey fabrics are easier to source in smaller quantities. Denim and jeans production is 500-1200 pieces, as it requires a special washing and finishing process, but some manufacturers can do 100-200 pieces per style.
Woven dresses, tops, and shirts are 300-800 pieces, but flexible suppliers can do 80-150 pieces if the design is simple. Activewear has higher MOQs, 400-1000 pieces, as Lycra and performance fabrics have dye lot restrictions.
For outerwear and jackets, low MOQs are 50-100 pieces, as linings and trims are expensive. Accessories and bags can do smaller runs of 50-100 pieces, especially if using pre-sourced materials.
Knowing these category benchmarks helps startups set expectations, negotiate better, and choose manufacturing partners like Hula Global that offer flexible and scalable MOQ models.
Apply for Bootcamp.
Starting a fashion brand can be exhilarating, but for new founders, the uncertainty of managing sourcing, manufacturing, and quality control can be daunting. This is why Hula Global offers the Bootcamp Program, a tailored learning partnership aimed at helping aspiring fashion entrepreneurs transition from the idea stage to professionally produced and sold collections with ease and professionalism.
With the bootcamp, you get a community of early-stage fashion entrepreneurs who are being mentored by Hula Global. You will learn how to find suppliers, how to evaluate them, vet them, and how to set up the right set of quality control parameters and keep the landing price under control.
You will have a specific group of industry experts focused on your brand’s unique production challenges, ensuring that your line is cost-effective, of international standard, and quality-controlled.
You can decide to DIY with your choice of suppliers, start small and scale fast with our frameworks and apparel supply chain pathways and quality control systems.
If you wish to start and scale your fashion business the right way, join the bootcamp today.
Programs
- If you are exploring the idea of starting a fashion brand – Join the Masterclass
- If you are 100% sure of launching a clothing brand or are in the process of launching a clothing brand – Join the Bootcamp
- If you are looking for low MOQ supplier, inquire about the Co-pilot program.
- If you have a private label brand and you are looking to scale up – Join our Private Label Program.
- If you are looking for surplus & Liquidation deals – join our liquidation program.
- If you are not sure about joining the bootcamp, – Join the Masterclass to get a feel of what Bootcamp has to offer and if you still have questions, you can email us at hello@hulaglobal.com