Wednesday, October 16, 2019

{Sewing} I cannot compete with the China bulk sale market

Once upon a time, a boutique was defined as a shop selling unique, speciality items.  In the sewing world, that meant the items were handmade.  Currently, in the Disney inspired clothing world, "boutique" refers to an online store selling clothing purchased from China sites, mainly Aliexpress.  As someone who sews and sells handmade items, the China market has been extremely frustrating because it is driving down the price of handmade goods.

In some cases, customers cannot tell or do not know the difference between a dress made in China and one made in the US by a seamstress in her little sewing room.  They see a new dress selling for $20 and one selling for $45 and they'll go for the $20 dress because why should they pay almost double.  

I do not begrudge those who purchase these items.  Clothing children is expensive and Disney vacations are expensive and the most of us can't afford to buy our kids new wardrobes to be worn once on vacation.  (This is why the resale market used to be hot.)  My real beef is with those reselling those items here in the US and labeling them as "handmade."  Etsy is becoming inundated with Aliexpress items and, sadly, Etsy either can't keep up with monitoring or just doesn't care any longer.

For example, here's a screenshot of a Disney Halloween dress being sold on Aliexpress for approximately $16-$17.



Here's the same dress for sale on Etsy for $26.



Under item details, the store owner states that the item is "handmade."



So, if you want to get technical, I suppose you could claim that someone in China handmade the item.  However, I'm pretty sure that's not the way Etsy is supposed to work.  Regardless, this is 100% misleading.  There are so many consumers out there who do not know about Aliexpress.  They believe that shopping on Etsy guarantees a small shop, handmade item.  I know for a fact that several stores have been reported for the reselling of Aliexpress items labeled as handmade and Etsy has done nothing.

Unfortunately, this practice has a negative impact on legitimate small shop owners as now consumers believe a new handmade dress should cost $26.  I talked a little bit about this last year, but most resell groups do not allow sellers to list these items unless they are used and priced accordingly.  When dresses similar to the ones above first popped up, many thought they were real handmade items on the resale pages, and they were being resold for $35.

Here's a Disney Halloween-themed dress (girls size 5/6) I have for sale for $44.

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And another in size 18 months/2T for $41.

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On the resale market, in excellent used or very good used condition, those dresses could easily sell for $25-$30.

It's important to pay yourself a fair wage, but even at $41-$44 I still "make" less than minimum wage.

Those prices include the cost of shipping, which would be approximately $5, including the packaging.  You also need to deduct the cost of supplies (fabric, trim and thread) from the sales price.  For the size 5/6 dress, that's about $9.  Fabric is expensive and I try to shop sales and use coupons, etc., but it still adds up.

After deducting shipping and supplies, I'm left with a profit of $30.  It takes me at least 3.5 hours to make that dress.  This also includes time to cut the fabric.  At the end of the day, IF the dress sells, I'm paying myself less than $9 an hour.  The minimum wage, which is usually paid to unskilled workers, is $12 an hour.  I have not included the time it takes to photograph and list the item for sale, along with looking for potential buyers.

Sadly, what I thought would be a good way to assist in paying for the girls' dance has become a somewhat disheartening process.  Each year, more is lost to Aliexpress.  And I do have people interested in what I make.  The most recent messages have been asking for a price reduction.  And even when I do reduce by a small amount, it's not enough for them.  I'm sorry but I'm not giving away my products.  

5 comments:

Emily said...

I love your products and would hands down buy them if I lived in the US - your pricing is totally fair. For me it stinks because I live in Canada. So while your pricing is totally fair in USD by the time I add in the exchange rate to CAN plus the cost of my PO box where it would ship to and the drive to pick it up (only 40 minutes return but still) it makes it not worth it for me.

Anonymous said...

I can see how that would be really frustrating! I have admired the tote bags you’ve made your girls that you’ve posted. I’d love to buy library bags for my son and two daughters. Is that something you’d be interested in making/selling? —Kate

Anonymous said...

It seems like this issue has popped up in multiple job markets. As we become a more global economy it is hard to compete with laborers who work for free (prisoners/slaves) or those who work for low wages because the low wage is either a decent wage for them or they do not have an alternative. People also tend not to value quality as much as they used to, we have become more of a throw away culture. Instead of repairing things, we just replace. Most people do not have the money to buy everything high quality so they try to save wherever they can, do that they can buy more stuff. Such a shame though, as your dresses look lovely as I sure many other handmade items do. I wonder if in the future there will be a move back towards local and handmade...

Sarah said...

Thanks for all the great comments.

Emily - I've seen this in my fabric groups too. Folks who live in Canada talk about how expensive it is for them to buy fabric from the US.

Kate - I typically do not take custom orders because of keeping fabric in stock and not knowing how much time/when I'll be able to sew (especially with my dad's current situation.) That being said - I have been thinking about sewing up some bags and wallets for sale. I'd list them here if/when I do that. My mom and I had been thinking about renting a vendor table at a local craft sale this year but she still has residual problems from her cancer treatments and currently cannot sew.

Anon - Very true!

caedmen said...

I have a small sewing business too and I have found the same thing. I try to find those few items that China doesn't make and people want. I make baby bonnets in the summer and fleece ponchos in the winter. So far I do well with them. I also find customers to be a bit frustrating at times. People have no idea how much fabric costs and what the logistics would be to have a large amount of fabric for them to choose from. I do not take custom orders. I only sell what I have already made. Also, being from Canada it's even more of a challenge to source fabric and it is more expensive up here. We just don't have the different stores that you do in US.