Business Models: CMT, FOB, ODM and Private Label
You cost one chino four ways in the same factory. Moving from CMT to FOB multiplies the revenue by five and halves the margin percentage, and what that trade is really worth turns out to be 1.13% of the fabric bill. You look at a factory that did everything right, moved up, and lost money for two seasons. The arithmetic said so in advance.
Published by Merchandising Academy · First lesson free to read
Course value
What will you be able to do?
Work outcome
You can place your own factory in the global picture, explain what changes commercially between CMT, FOB, and ODM, and argue which buyers and which products you are genuinely positioned to win.
Who it is for
Factory, supplier, brand and buying-office teams.
What you will produce
You build a model file for one garment. You list the five obligations each model moves. You cost the same order four ways, down to a margin per line-day after the cost of the money. You work out the FOB premium as a percentage of your own material bill. You find the design hit rate ODM needs to break even, and the call-off rate a private-label programme needs to break even.
Learning format
6 lessons · 0 templates · workplace calculations and decisions.
Lessons
- 01Five questions, not four labels🔒18 min
- 02The same order, costed four ways🔒20 min
- 03What FOB actually buys, and what it costs to own🔒20 min
- 04Correct at every step, and wrong for two seasons🔒20 min
- 05ODM: the price of the right to be wrong🔒18 min
- 06Private label is a different business, not a further rung🔒14 min