Private Label, Merch, CMT, Full Package, OEM and ODM: Which Production Model is for Me?

Time to read: 10 minutes

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If you’re a fashion brand founder or product designer looking to bring your ideas to life, you’ve probably encountered a blizzard of acronyms and industry jargon: merch, CMT, FPP, OEM, ODM...

At Tech Packs Co., we guide brands through product development and manufacturing, and one of the first—and most crucial—decisions a brand can make is choosing the right production model. Each option comes with trade-offs in terms of cost, control, quality, and speed to market.

In this post, we’ll break down what these terms actually mean, what they cost, how long they take, and, most importantly, who they’re best suited for.

Flat lay of fabric swatches, tech pack sketches, and garment-making tools used in apparel production.

Quick Glossary

Before diving into comparisons, here’s a cheat sheet of the terms:

• Bespoke—Creating a product from scratch specifically tailored to an individual customer's unique requirements and measurements. 

• Made-To-Measure—Creating products based on a customer's individual measurements but using a pre-existing pattern and design as a base. 

• Just in Time—Products are made on demand, based on customer orders being pulled through the system, rather than made in bulk based on future forecasts.

• Merch (merchandise) or white label—premade promotional or branded products, often blanks with printed graphics with color options.

• ODM (Original Design Manufacturer)—The factory provides designs, but with high levels of customization options.

• Private Label—Your logo on a pre-existing product, with medium/high levels of customization options and an exclusive license.

• Full Package Production (FPP)—The factory handles everything from materials to sampling to production for completely custom designs, sometimes including branding, marketing, and distribution as well. 

• OEM (Original Equipment Manufacturer)—You provide the design and specs, and the factory manufactures it for your brand. 

• CMT (Cut, Make, Trim)—You supply the design, specs, and materials; the factory just assembles.

Bespoke and made-to-measure require a specific business model to sell these kinds of garments specifically. Just-in-time production, one day I hope, will become the gold standard, but there are a limited number of suppliers who have this set up. 

We will go into more detail on the other types below, as these are the ones we see the most with garments and accessories in the “ready-to-wear” categories.

Side-by-side view of different fashion production models, from merch to full-package manufacturing.

Option 1: Merch or White Label

Basic promotional products (usually blanks like t-shirts, sweatshirts, joggers, or tote bags) that you customize with your branding and artwork. There’s often a catalogue of colors or basic options to choose from.

Best For:

• Groups, influencers, creators, bands

• Event organizers or corporate gifts

• Quick seasonal drops/limited runs

Pros:

• Extremely fast to launch

• Print-on-demand and super low MOQs available

• Minimal to no development knowledge or skills required

Cons:

• Limited product range

• Less distinctive than custom-developed items

• Potentially lower perceived value

Exclusivity & Intellectual Property

None

Timeline:

A few weeks to have finished products on shelves

Typical MOQ:

Typical MOQs are 100 or so pieces, with some companies offering as low as 10/20 pcs!

Avg. Unit Cost:

Mid-High (this option is going to give you smaller margins but little-to-no setup up cost)

Option 2: Private Label or ODM

You're buying ready-made products and adding your own branding (e.g., labels, packaging, logos, prints). You’ll be able to not just rebrand products as your own but to make small tweaks as well. 

Sometimes there are options for different fabrics. Sometimes, there are even different fits to choose from, for example, short sleeve, long sleeve, boxy fit, etc. 

Best For:

• Influencers, creators, organizations

• Startups testing market fit

• Companies launching house brands quickly

• Entry-level product testing

• Brands that want to scale quickly with limited design resources

Pros:

• Fast time-to-market

• Low minimum order quantities (MOQs)

• Low upfront costs

Cons:

• Less control over design

• Limited control over materials

• Harder to build long-term brand equity

Exclusivity & Intellectual Property

Designs can be a little more unique than with white label/merch. Designs are already pre-made by the supplier, so there’s no IP for you to “own.” 

When you private label, it’s possible to get an agreement for exclusive distribution rights so that the supplier cannot reproduce your exact design variations for anyone else. 

Timeline:

2–10 weeks

Typical MOQs:

50–500 units

Avg. Unit Cost:

Low to moderate, depending on product type. Lower margins but low setup cost.

Option 3: Full Package (FPP) 

The factory handles everything—design, materials, sampling, grading, and production. And they’ll be creating a custom design for you. Some will also offer agency-style services such as distribution, fulfillment, shipping, web design, and marketing too. Many of the larger suppliers in the USA fall under this description. 

Fashion designer reviewing product samples and production options in a design studio.

Best For:

• Startups with a higher budget

• Brands that want to scale fast

Pros:

• One-stop-shop

• Fewer vendors to manage

• Many different tasks off your plate

• You can make unique products in more limited quantities

Cons:

• Less transparency on sourcing

• Risk of overpaying if you don’t understand the costs

• Less control unless you’re hands-on

Exclusivity & Intellectual Property

Typically (unless agreed otherwise), you won’t own the IP, as the supplier has created it for you. 

Timeline:

12–50 weeks  

Typical MOQ:

Varies widely, but MOQs can be lower than with CMT and OEM (described below) as you’re paying for development services in addition to unit costs.

Avg. Unit Cost:

High, but includes development fees. 

Option 4: OEM (Original Equipment Manufacturer)

You bring a custom design with its own tech packs, and the factory produces it under your brand. You own the IP. The factory will help you source the materials and trim following your specs. Many to most suppliers internationally can be described as OEM. 

Best For:

• Brands with IP-protected products

• Those needing proprietary design

Pros:

• Full ownership

• High differentiation

• Help with sourcing

Cons:

• Requires clear tech packs

Timeline:

12–26 weeks

Typical MOQ:

500–2000 units

Avg. Unit Cost:

Low to moderate, but you’ll have to factor in prior development costs.

Option 5: CMT (Cut, Make, Trim)

What It Is:

You provide the factory with all the designs, specs, artwork, patterns, materials, and instructions; they just cut, sew, and finish the garments. Suppliers can be described as CMT when they don’t offer any development, sourcing, or other services, only bulk production. Many smaller suppliers likely fit this category, and they are often harder to find as they don’t have marketing departments or much of a website. 

Best For:

• Experienced brands or designers

• Those with technical and sourcing capabilities

• Designer, artisanal, premium, or luxury brands 

• Better for brands with unique designs, materials, or trims

Pros:

• Highest level of control over all choices

• Unlimited options

Cons:

• Requires clear tech packs. 

• Requires high-level development experience and skills

• Managing sourcing and logistics is complex and time-consuming.

• Not ideal for beginners

Exclusivity & Intellectual Property

As you’ve done the design and development, the product will be unique and exclusive to your brand, with you owning the IP. 

Timeline:

4–12 weeks after a full development process is completed elsewhere

Typical MOQ:

Varies widely. Typically smaller suppliers start at 200/300 units, and bigger suppliers at 1000 and up. 

Avg. Unit Cost:

Low to Moderate, but you’ll have to factor in prior development costs

So… Which One Is Right for You? Final Thoughts

There’s no one-size-fits-all answer when it comes to production models. The right approach depends on your product, brand, business model and sales goals. The biggest deciding factors will be timeline, MOQs, and budget.

You can minimize potential concessions by adopting different strategies for different products in your mix.

At Tech Packs Co., we specialize in bridging the gap between creative ideas and production reality. Whether you’re developing a custom technical garment, accessory, or another type of soft good... You’ll need a solid foundation to start working with a CMT or OEM supplier. 

👉 Book a free discovery call to talk through your development strategy with our CEO and design expert, Belinda. Our goal is to get you through your production deadlines as quickly and profitably as we can. 

External Links/Sources

For additional reading and references on production models and fashion manufacturing:

• Fashion Manufacturing Terms Glossary – MakersTV

• Private Label vs White Label Explained—Shopify Blog

• What Is a Tech Pack? – TechPacks.co

• Understanding Minimum Order Quantities (MOQs)—Common Objective

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