Wintage tailors, on an average, make 50% more money than their tailors and their expenditure is half of other tailors making them significantly richer than other tailors!
The scenario in big factories
Most of the apparel manufacturing takes place in big factories. Almost all of these big factories supply to wholesellers, and are quite far from the direct customer. The wholeseller supplies to retailers ( sometimes directly, and sometimes through a middleman ) who finally targets the final customer. The tailors in such factories are paid the minimum piece rate, because higher-than-market piece rate would make them non competitive. Also, these organizations work on a very thin margin and high volume. Any change in the worker's wage affects the bottom line ( net profits ) badly.
The scenario in small boutiques
The boutiques have an incredibly high margin, but most of the value is captured by the proprietor, and the leasing company.
The tailors, despite getting a much higher wage are not necessarily better-off because the quantity of work is less. Most high-end boutiques sell less than one garment a day.
How Wintage operates
We make the products in our factory, and directly sell to the customers through our website, and amazon. Since we are directly connected to the customer, we are not affected by wage changes the same way a factory supplying to wholesellers is affected.
Unlike factories supplying to wholesellers, labor wages do not constitute a big portion of our expenses. Therefore, our wages are almost 2 times of what the average tailor earns. In peak season, our tailors earn as much as Rs. 45,000 a month and their year-round average is more than Rs.30,000 a month. The typical wage in factories based in Indian urban centers is less than Rs.15,000 a month
Zero Inventory Costs
A significant cost for most businesses is the inventory cost. Usually 10-15% of the inventory has to be sold for a discount, and to maintain a constant margin, the products have to be sold for a higher price.
At Wintage, we usually make products AFTER we receive the order. Only when we see a proven demand for a particular style, we make the products in bulk.
Our manufacturing efficiency is high. We have all the necessary machines and workforce to make the garment in our factory, and therefore we can get the clothes ready in 36 hours.
Reduced living costs for our tailors!
We have a TAT of 48 hours for our website and marketplace orders. Thus, we have to ensure there is no delay in any step of the manufacturing. To minimize delays, we house our tailors inside the factory at zero cost to them. This leads to lesser production delays, and reduced living cost for tailors. Tailors do not have to pay a monthly rent, and don't need to pay a power bill.