Sourcing Tips

The True Cost of Knitwear: Breaking Down Yarn, Labor, and Logistics

Felix Zheng
#cost#budget#pricing#yarn#logistics#production

Quick Summary

Understanding the cost structure of knitwear manufacturing, from raw materials to finished garment, and where your budget goes.

Understanding where your production costs come from helps you make smarter decisions about design, materials, and sourcing strategy. This breakdown shows where your production budget goes and how to optimize it.

The Cost Breakdown

For a typical mid-quality sweater (7GG, cotton blend), here is how costs break down:

1. Raw Materials (35-45%)

Component% of Total Cost
Yarn25-35%
Trims (buttons, zippers, labels)5-8%
Packaging2-3%

Yarn is the single biggest cost driver. The fiber type dramatically affects price:

Yarn TypeRelative Cost
Acrylic1.0x (baseline)
Cotton1.5-2.0x
Cotton-wool blend2.0-2.5x
Merino wool2.5-3.5x
Cashmere10-15x

2. Manufacturing (30-40%)

Component% of Total Cost
Knitting labor12-18%
Linking & seaming10-15%
Finishing (washing, pressing)5-8%
Quality control3-5%

3. Overhead and Margin (15-20%)

Component% of Total Cost
Factory overhead5-8%
Sourcing/management fee5-8%
Compliance & certification2-3%

4. Logistics (5-10%)

Component% of Total Cost
Ocean freight (to Europe)3-5%
Insurance0.5-1%
Customs clearance1-2%
Inland transport1-2%

Cost Drivers by Design Choice

Gauge

Fine gauge (12GG-14GG)
+30-50% vs. 7GG — More machine time per garment, higher skill level required, more yarn waste

Pattern Complexity

Plain stockinette
Baseline
Simple stripes
+5-10%
Cables
+15-25%
Jacquard patterns
+20-35%
Intarsia colorwork
+30-50%

Sizing

Standard range (S-XL)
Baseline
Extended range (XS-5XL)
+10-20% — More pattern pieces needed, more machine programming, higher sample costs

How to Optimize Cost Without Compromising Quality

1. Yarn Selection

Choose the best quality your budget allows. A slightly more expensive yarn makes a dramatically better garment. Start with: quality combed cotton or anti-pilling acrylic.

2. Design Simplification

Reduce pattern complexity on some styles while keeping hero pieces complex. A collection with 70% simple + 30% complex designs often performs better than 100% complex.

3. Quantity Planning

4. Consolidation

Group multiple styles using the same yarn and gauge. Shared materials and machine setup reduce per-style costs.

Hidden Costs to Watch For

Transparent Pricing

At JIERQI Clothing, we provide detailed cost breakdowns for every order, so you know exactly what you are paying for and where there is flexibility.


Want a cost estimate for your collection? Contact us with your design specifications.

Interested in discussing your knitwear sourcing needs?

Contact Us

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Frequently Asked Questions

Common questions about sourcing tips.

How do I find a reliable knitwear manufacturer in China?
Start by defining your requirements (product type, yarn, gauge, certifications). Then research factories in Shantou's knitwear cluster, request samples, and start with a trial order. See our step-by-step guide.
What is a good MOQ for knitwear?
Industry standard MOQ is 500-1000 pieces per design. JIERQI offers a 100-piece MOQ, making it accessible for emerging brands and capsule collections. Learn more about MOQ.
What certifications should a knitwear factory have?
Key certifications include OEKO-TEX Standard 100 (product safety), BSCI or Sedex (social compliance), and ISO 9001 (quality management). European retailers typically require BSCI or Sedex. Full certification guide.
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