Startup children's clothing brand - Importing goods from Europe

[StephF]

Hi,

I would be really grateful for some advice on importing children's clothing from Europe to the UK. (I am currently looking at production in Portugal.)

I'm in the process of starting up a children's clothing brand. I have registered the company, trademarked the name and registered the web domain to begin with. I have now finalised the branding, created the patterns and tech packs and I am now in the process of sourcing fabrics and a factory/factories to produce the clothing.

So my main question is, does anyone have experience with importing children's clothing from Europe to the UK as I am very lost from this point?

The delivery methods being quoted by the textiles mills tend to be Ex Works or FOB, which I am trying to get my head around.

So initially, does anyone have any advice for delivery of the fabric from the mill to the factory (both of which should hopefully be in Portugal)? And secondly, do you have advice or recommendations on how to deliver the clothing from the factory to our UK address?

Are there any recommendations for freight companies or similar? Do these tend to include insurance or should I be looking at independent insurance to cover the cost of the goods being transported?

I would also appreciate any advice on import tax/duties relating to children's clothing. My initial research tells me that children's clothing is VAT exempt, however, there is a high chance that the freight/courier company may charge me VAT which I will then need to claim back (it seems to be that this could be a Brexit related issue).

Many thanks in advance,
Steph

 

[Mark T Jones]

Hi,

I would be really grateful for some advice on importing children's clothing from Europe to the UK. (I am currently looking at production in Portugal.)

I'm in the process of starting up a children's clothing brand. I have registered the company, trademarked the name and registered the web domain to begin with. I have now finalised the branding, created the patterns and tech packs and I am now in the process of sourcing fabrics and a factory/factories to produce the clothing.

So my main question is, does anyone have experience with importing children's clothing from Europe to the UK as I am very lost from this point?

The delivery methods being quoted by the textiles mills tend to be Ex Works or FOB, which I am trying to get my head around.

So initially, does anyone have any advice for delivery of the fabric from the mill to the factory (both of which should hopefully be in Portugal)? And secondly, do you have advice or recommendations on how to deliver the clothing from the factory to our UK address?

Are there any recommendations for freight companies or similar? Do these tend to include insurance or should I be looking at independent insurance to cover the cost of the goods being transported?

I would also appreciate any advice on import tax/duties relating to children's clothing. My initial research tells me that children's clothing is VAT exempt, however, there is a high chance that the freight/courier company may charge me VAT which I will then need to claim back (it seems to be that this could be a Brexit related issue).

Many thanks in advance,
Steph

There are a number of people on here, such as @MOIC who can advise on issues around shipping/import etc

However, if you haven't done so, at this point I'd be investing pretty much all of my time & budget on market research (if you haven't already done so), as this is a very mature - some might say flooded - market,

 

[MOIC]

So initially, does anyone have any advice for delivery of the fabric from the mill to the factory (both of which should hopefully be in Portugal)?

My advice is let the factory you decide to work with to order the fabric directly, just tell them the fabric you want. The hurdle you'll need to overcome is the factory's minimum order requirements, as well as fabric MOQ's.

Be prepared for several amendments before the final samples are approved. This can be costly, so factor this in to your costs as well as sample/production times.

And secondly, do you have advice or recommendations on how to deliver the clothing from the factory to our UK address?

Use the following company: www.europa-worldwide.com
They cover all of Europe, are very efficient and very competitive. They'll handle everything for you, door 2 door.

I would also appreciate any advice on import tax/duties relating to children's clothing. My initial research tells me that children's clothing is VAT exempt, however, there is a high chance that the freight/courier company may charge me VAT which I will then need to claim back (it seems to be that this could be a Brexit related issue).

Europa will advise you, as will the factory you're purchasing from if they already have UK customers.

Good luck.

 

[StephF]

There are a number of people on here, such as @MOIC who can advise on issues around shipping/import etc

However, if you haven't done so, at this point I'd be investing pretty much all of my time & budget on market research (if you haven't already done so), as this is a very mature - some might say flooded - market,

Thank you Mark - I really appreciate your advice!

 

[StephF]

My advice is let the factory you decide to work with to order the fabric directly, just tell them the fabric you want. The hurdle you'll need to overcome is the factory's minimum order requirements, as well as fabric MOQ's.

Be prepared for several amendments before the final samples are approved. This can be costly, so factor this in to your costs as well as sample/production times.

Thank you @MOIC for your advice!

This seems like an intelligent solution. I have finally found a fabric supplier with manageable MOQs, but the factory MOQs are certainly the next hurdle.

I am sampling in-house initially and will be sending factory reference samples and extensive tech packs to the factory, so I am hoping to reduce the sampling requirement.

Use the following company: www.europa-worldwide.com
They cover all of Europe, are very efficient and very competitive. They'll handle everything for you, door 2 door.



Europa will advise you, as will the factory you're purchasing from if they already have UK customers.

Good luck.

Thank you so much for the recommendation - I will contact Europa for the delivery logistics.

Thanks,
Steph

 

[Chris Ashdown]

My question is why you are not looking for small factories in the UK who will make much smaller quantities, many towns have factories who do small runs as well as vast numbers in the midlands

You can also have freelance machinist making small numbers (cut and sew) to start with to get very low numbers made and online to see if they are a runner

 

[Drax35]

I would also appreciate any advice on import tax/duties relating to children's clothing. My initial research tells me that children's clothing is VAT exempt, however, there is a high chance that the freight/courier company may charge me VAT which I will then need to claim back (it seems to be that this could be a Brexit related issue)

My business imports children’s clothing and this is exactly what happens. Some couriers are better than others, DHL & FedEx are ok in my experience and now get it right most of the time. UPS are the absolute pits.

Every single shipment we receive via UPS has incorrect VAT and they will insist it is correct. They’re absolutely impossible to deal with.

So yeah, be prepared for your cash flow to take a little unnecessary hit when it comes to handing over the VAT and waiting to claim back.-

 

[StephF]

My question is why you are not looking for small factories in the UK who will make much smaller quantities, many towns have factories who do small runs as well as vast numbers in the midlands

You can also have freelance machinist making small numbers (cut and sew) to start with to get very low numbers made and online to see if they are a runner

Hi Chris,

I appreciate your question and 100% agree. Our initial aim was for UK manufacturing. I have experience working with UK factories and have been liaising with them, but the quotes that I have received so far will price us out of the market compared to our competitors. The factories who I have worked with previously are mainly London/South England based so I imagine that this is factored into the pricing, so I would be very open and appreciative of any Midlands factories that you could recommend?

Thanks,
Steph

 

[StephF]

My business imports children’s clothing and this is exactly what happens. Some couriers are better than others, DHL & FedEx are ok in my experience and now get it right most of the time. UPS are the absolute pits.

Every single shipment we receive via UPS has incorrect VAT and they will insist it is correct. They’re absolutely impossible to deal with.

So yeah, be prepared for your cash flow to take a little unnecessary hit when it comes to handing over the VAT and waiting to claim back.-

Hi Drax,

That's super helpful - thank you! I will do my best to avoid UPS at all costs! It will kill the year one cash flow to be paying unnecessary tax bills.

Steph

 

[GlennMiddleton]

Interested how you will fulfil orders, will you use 3rd party fulfilment or decided warehouse?

 

[Chris Ashdown]

Regarding MOQ's you are aware that three to six months from order to delivery is the normal for most overseas makers, also if you have a great selling item be it colour or size, then once sold out you need t o consider how to get replacements in just the sizes or colour etc you need