New Industry Study: Fashion and Apparel Startups Lose Upwards of Twenty Thousand Dollars Due to Manufacturing Split Strategy
Research from one thousand brand launches reveals nearly 100% restart rate from overseas development to USA clothing manufacturing
LOS ANGELES, Oct. 07, 2025 (GLOBE NEWSWIRE) -- A comprehensive analysis of over one thousand fashion startup launches reveals a costly industry misconception that's draining emerging brands of significant capital and months of critical development time.
The study, conducted by ARGYLE Haus of Apparel, found that nearly 100% of fashion startups that separate development from production are forced to completely restart their manufacturing process, resulting in additional costs of upwards of $20,000 per brand.
"We've seen this pattern repeatedly – brands think they're saving money by doing development overseas for around one thousand dollars, then bringing apparel development IP (patterns and tech packs) to domestic production," said Houman Salem, founder and CEO of ARGYLE Haus. "In reality, they can end up spending upwards of twenty-six thousand dollars instead of approximately five thousand, plus missing entire selling seasons."
The research identified several critical failure points, including pattern file corruption during international transfers, machine calibration incompatibilities, and what researchers term "the middleman shield effect," where overseas factories abandon small orders without notification.
Key findings include:
- Technical pattern files fail during overseas-to-domestic transfers one hundred percent of the time
- Shipping and customs delays add two to six weeks to development timelines
- Complex garments like outerwear can require up to three months of troubleshooting
- Missed seasonal launches can cost startups upwards of twelve thousand dollars in lost revenue
The study also revealed that virtually zero percent of overseas factories release intellectual property rights to startups, effectively preventing brand ownership of their own patterns.
"Pattern files are the intellectual property that defines your brand," added Salem. "If you don't own your patterns, you don't own your brand."
The complete research findings are available in ARGYLE Haus's comprehensive manufacturing guide at: A Guide to Clothing Manufacturing for Startups
ARGYLE Haus of Apparel has launched over one thousand fashion startups in eleven years and recently opened its Fashion Incubator program for emerging designers.
Media Contact: ARGYLE Haus [Media Relations] info@argylehaus.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0013ef21-cfd3-4f07-9d42-a39e927264d8
ARGYLE Haus - Case Study
New Industry Study: Fashion and Apparel Startups Lose Upwards of Twenty Thousand Dollars Due to Manufacturing Split Strategy
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