OK, if you have read the article below, we had a question. Read it once more before you start reading this post.
Think about the garment you are wearing. What it has. It has fiber (or the leather as the case may be), and some sewing thread, buttons, a design and some motifs, few labels may be very few other items. Calculate the rough value of these items on the garment individually and add together and calculate the value of this. I am sure you will be shocked. It might be less than 10% of the amount you paid to buy your garment. Then why these big retailers are pricing them so high. They might be able to get a good market cover by selling these at lower price.
It is not that your retailers are making very high profits(although they earn very good money on the business). This is an inbuilt problem in garment making process. OK think now,
Do you really want to make a small strand of yarn from the cotton bale and again a even smaller yarn. These processed do not add value to your final product. Even do they need to produce yarn and then make them in to fabrics and then in to garments. I do to see a point in this if not for fashion reasons. The process has a inherent chain of wastes, which will take up most of the resources available in the process.
After going through all these wastes and making the fabric, somewhere around 20% of the fabric will be wasted as the cutting wastes in the apparel manufacturing. It is a waste on waste. This is how your garment price goes high.
I really want some of you to have a closer look in to this process so you will understand all the problems inherent to the system. All though I have done a good study I do not want to tell you all the information about this, since then you will loose the direction and surely will get confuse.
So think lean, and think about the process of apparel manufacturing. You will simply see the importance of lean manufacturing as a philosophy and as a system.