The comparison is usually presented as a values question. It is more useful as an operations question, because the right answer depends on your quantity, your margin structure and how much your design is likely to change.
Where overseas production is genuinely stronger
- Unit cost at volume, particularly for labour intensive garments
- Access to specialised mills and trims in established supply clusters
- Capacity for very large runs
Where domestic production is genuinely stronger
- Lead time from approved sample to delivered goods
- Lower minimums, which reduces inventory risk
- Direct oversight, including the ability to visit during production
- Faster revision cycles during development
- Simpler logistics and no import duty or long ocean freight
The costs that do not appear in the quote
A landed cost comparison should include freight, duty, customs handling, and the cash tied up in inventory during a long transit. It should also include the cost of being wrong: if a run arrives with a fit problem after a twelve week lead time, the remedy is a season away.
How quantity changes the answer
At small quantities the domestic premium is often modest, because you are not yet buying enough volume for the overseas cost advantage to compensate for minimums and freight. As quantity grows the gap widens. Many brands run development and early production domestically, then decide about volume later with real sales data.
A reasonable default
If you are still learning what sells, optimise for speed and small runs. If you know exactly what sells and need thousands of it, optimise for unit cost. Most brands are in the first position for longer than they expect.