If you're starting a clothing brand, the word apparel is probably one of the first industry terms you'll encounter.

But the dictionary definition is the easy part.

In clothing manufacturing, the more important questions are:

• Who creates the design?
• Does the factory develop the pattern?
• Can you customize the fabric?
• Is the product exclusive to your brand?
• What does the factory quote actually include?
• Are you comparing FOB, DDP or landed cost?

This is where terms like OEM, ODM, private label and white label become much more useful than simply defining apparel as "clothing."

This guide explains what these terms mean, how they differ, and what they mean for your cost, MOQ and level of product control.

What Does "Apparel" Mean in Business?

In a commercial context, apparel refers to clothing manufactured and sold as a product.

This can include:

• T-shirts
• Hoodies
• Sweatshirts
• Jackets
• Pants
• Shorts
• Sweat sets
• Polo shirts
• Uniforms

But for a clothing brand, the more useful question is not simply:

"What is apparel?"

It is:

"How is my apparel going to be developed and manufactured?"

That is where OEM, ODM and private label manufacturing come in.

OEM vs. ODM vs. Private Label vs. White Label

These four terms are often mixed together, but they describe two different parts of the manufacturing relationship.

OEM and ODM describe how the garment is developed.

Private label and white label describe how the finished product is branded and sold.

Quick Comparison

The easiest way to remember the difference is:

OEM / ODM = How was the garment developed?

Private Label / White Label = Whose brand is on the garment?

What Is OEM Apparel Manufacturing?

OEM stands for:

Original Equipment Manufacturer

In apparel manufacturing, OEM usually means the brand provides the product concept and specifications, while the factory manufactures the garment according to those requirements.

The brand may provide:

• Tech pack
• Measurements
• Pattern references
• Fabric requirements
• Colours
• Printing artwork
• Embroidery artwork
• Labels
• Packaging specifications

The factory then develops and produces the garment based on those specifications.

OEM Gives You More Control

OEM is suitable when you want control over:

• Fit
• Pattern
• Fabric
• GSM
• Construction
• Trims
• Decoration
• Labels
• Packaging

For example, you may request:

420 GSM fleece hoodie
80% cotton / 20% polyester
Oversized dropped-shoulder fit
Custom embroidery
Custom woven label
Custom zipper

This is very different from choosing an existing factory garment and simply adding your logo.

Who Is OEM Best For?

OEM is generally better suited to brands that:

• Already have a clear product concept
• Need a unique fit
• Want custom fabrics
• Need specific construction details
• Want greater control over the finished product

The trade-off is that fully custom development usually requires more setup.

This can mean:

• More sampling
• Pattern development
• More technical communication
• Higher MOQ than a standard existing product

What Is ODM Apparel Manufacturing?

ODM stands for:

Original Design Manufacturer

With ODM, the factory already has an existing product or base design.

You then customize selected parts of that product.

For example, a manufacturer may already have an oversized hoodie block.

You could customize:

• Fabric
• GSM
• Colour
• Printing
• Embroidery
• Labels
• Drawcord
• Packaging

without developing the entire garment from zero.

Why Brands Choose ODM

ODM can reduce development work because the basic product already exists.

That can make it useful for:

• Startup brands
• Testing a new category
• Faster launches
• Smaller initial production
• Brands without a complete tech pack

ODM does not necessarily mean the product cannot be customized.

It simply means the starting point comes from an existing manufacturer-developed base.

OEM vs. ODM

The main difference is where product development begins.

OEM

You start with:

Your design

The factory develops the product around it.

ODM

You start with:

The manufacturer's existing base product

Then customize it for your brand.

OEM vs. ODM Comparison

Neither model is automatically better.

The right option depends on how much customization your brand actually needs.

What Is Private Label Apparel?

Private label means the garment is sold under your brand name.

The product may be manufactured through either:

• OEM
• ODM

Private label is therefore not necessarily a separate manufacturing system.

It describes the branding relationship.

For example:

You could develop a completely custom OEM hoodie and sell it under your brand.

That is:

OEM + Private Label

Or you could customize an existing factory ODM hoodie and sell it exclusively under your own brand.

That can be:

ODM + Private Label

What Is White Label Apparel?

White label usually involves a more standardized product.

The manufacturer already has a garment that may also be available to other buyers.

You mainly customize branding elements such as:

• Logo
• Neck label
• Hang tag
• Packaging

The base garment itself may remain largely unchanged.

White Label Is Usually Best When Speed Matters Most

White label can be useful when the priority is:

• Faster launch
• Minimal product development
• Lower setup requirements
• Simpler customization

But it usually provides less product differentiation.

Another brand may be selling a very similar base garment.

Private Label vs. White Label

The most important difference is exclusivity and customization.

Private Label

The product is developed and sold for your brand.

White Label

A generic base product may also be supplied to other brands.

This is why simply asking:

"Do you offer private label?"

does not fully explain what you need.

You should also tell the manufacturer how customized you want the actual garment to be.

How Apparel Pricing Actually Works

When a factory gives you a clothing quote, the number is built from several different costs.

For many basic garments, one of the largest components is the fabric.

Fabric

For basic garments, fabric may account for roughly:

35–50% of the FOB price

The percentage can become higher when using:

• Heavyweight fabric
• Premium cotton
• Specialty blends
• Custom dyeing
• Technical fabrics

This is why fabric specifications can change a garment quote significantly.

Labor

Labor can include:

• Cutting
• Sewing
• Finishing
• Quality control
• Ironing
• Packing

For many garments produced in Asian manufacturing regions, the source guide estimates labor at approximately:

15–25% of FOB

The actual percentage depends heavily on garment complexity.

Trims and Hardware

Individual components may look inexpensive, but they add up.

Possible trims include:

• Zippers
• Buttons
• Drawcords
• Eyelets
• Woven labels
• Main labels
• Size labels
• Hang tags
• Elastic
• Custom hardware

A garment with many customized components will naturally cost more than a simple basic T-shirt.

Factory Overhead and Margin

The remaining portion of the price also needs to cover areas such as:

• Production overhead
• Factory operating costs
• Quality management
• Factory margin

That is why comparing garments only by fabric price does not give you the full production cost.

What Does FOB Mean?

FOB stands for:

Free on Board

A factory FOB price is not necessarily the final cost of getting the product into your warehouse.

Your actual cost may still include:

• International freight
• Import duty
• Customs charges
• Local transportation
• Inbound handling

FOB Price vs. Landed Cost

This distinction is extremely important when comparing supplier quotations.

For example:

Supplier A

Quotes:

FOB price

Supplier B

Quotes:

DDP or landed price

Supplier B may appear more expensive.

But the quotation may already include logistics or import-related costs that Supplier A has not included.

Comparing the two numbers directly would therefore be misleading.

Typical Landed-Cost Additions

The source guide estimates that freight, import duty and inbound handling can add approximately:

15–30% above FOB

depending on destination and shipment conditions.

Your real product cost should therefore be evaluated beyond the factory unit price.

Why This Matters Before Requesting a Quote

Before contacting a manufacturer, determine where your project sits on the customization spectrum.

If You Have a Fully Custom Design

You are closer to an OEM project.

Prepare:

• Design references
• Tech pack if available
• Measurements
• Fabric requirements
• GSM
• Artwork
• Target quantity

Expect more product development and sampling.

If You Want to Launch Faster

An ODM starting point may be more practical.

You can ask the factory:

• What existing fits are available?
• Which fabrics can be changed?
• Can colours be customized?
• Can labels be replaced?
• Can printing or embroidery be added?
• What is the MOQ?

This lets you develop a branded product without creating every element from scratch.

Always Start With the Fabric Specification

Whether you choose OEM or ODM, ask about fabric early.

Confirm:

• Composition
• Fabric type
• GSM
• Colour
• Finish
• Shrinkage

Fabric is one of the largest cost components in apparel manufacturing.

It also affects:

• Feel
• Structure
• Durability
• Decoration compatibility
• Final retail positioning

A clear fabric specification makes the quotation more meaningful.

A Better Way to Request an Apparel Quote

Instead of writing:

"How much for 100 hoodies?"

provide a clearer request.

For example:

Product: Oversized hoodie
Quantity: 100 pcs
Fabric: Cotton/poly fleece
Weight: 420 GSM
Colour: Black
Decoration: Front embroidery
Fit: Dropped shoulder oversized
Labels: Custom woven main label
Packaging: Individual polybag

This gives the manufacturer enough information to provide a more useful quotation.

How Brad Apparel Supports OEM and ODM Development

At Brad Apparel, we support both fully customized and adaptable-base apparel development.

Our custom manufacturing services include:

• Custom Hoodies
• Custom T-Shirts
• Custom Bottoms
• Custom Sweat Sets

Fabric Sourcing

Our Fabric & Accessory Sourcing service can support:

• Fabric composition
• GSM selection
• Custom colours
• Ribbing
• Trims
• Hardware
• Labels
• Packaging

Pattern Development

For fully customized garments, Pattern Development can be used to turn a design or reference into a production-ready garment pattern.

This is particularly important for:

• Oversized fits
• Custom proportions
• Cropped fits
• Specialty bottoms
• Unique garment construction

FAQ

Is Private Label the Same as ODM?

No.

ODM describes how the product is developed.

Private label describes whose brand the product is sold under.

An ODM garment can also be a private-label garment.

Which Usually Has a Lower MOQ: OEM or ODM?

ODM typically requires less setup because an existing pattern or base garment is already available.

This can allow lower MOQs than a fully custom OEM product.

OEM projects may require:

• New pattern development
• More sampling
• Additional production setup

What Percentage of a Clothing Quote Is Fabric?

For a basic garment, the source guide estimates fabric at approximately 35–50% of the FOB price.

The percentage may be higher for premium or heavyweight fabrics.

Is FOB My Final Cost?

No.

FOB does not necessarily include:

• International freight
• Import duty
• Customs
• Local delivery
• Warehouse handling

Your landed cost gives a better picture of what the product actually costs once it reaches you.

What Is the Difference Between Private Label and White Label?

Private label products are sold under your brand and can be developed through OEM or ODM.

White-label products are usually standardized products that may also be supplied to other brands.

What MOQ Does Brad Apparel Work With?

Brad Apparel works with a 50-piece MOQ per style/color for most custom orders.

Sample turnaround is typically 4–7 days for many custom projects.

The exact MOQ and sampling time depend on the garment, fabric and customization requirements.

Final Thoughts

Understanding apparel manufacturing terminology makes supplier communication much easier.

The simplest way to remember it is:

OEM = Your design, manufactured by the factory

ODM = Factory base design, customized for your brand

Private Label = Your brand on the product

White Label = Standardized product that may be used by multiple brands

And when comparing prices, remember:

FOB price is not always your final landed cost.

Before requesting a quote, define:

• Product type
• Development model
• Fabric
• GSM
• Quantity
• Decoration
• Labels
• Packaging
• Shipping terms

The clearer your specifications are, the easier it becomes for a manufacturer to give you an accurate production plan and quotation.