Fabrics as product is one of the oldest product concept in MLM Industry. Many of the MLM companies which started in olden days were providing cloths, fabrics as their product to their members.
Following this tradition, many of the new generation companies also provides fabrics as product. So let’s see how this product works.
In this product, companies provides cloths or fabrics, like suit length, shirt length, pants, shirts, t-shirts, ties, formal clothes etc etc. Some companies also sell each and every clothing items through various mediums like their packages or online shopping portal, etc.
MLM companies, which wants to provide fabrics as product, buys it from some manufacturer or service providers who provides these products in low prices. They can buy it in quantity or they can do a agreement that they will buy fabrics according to sales they will have. after buying this product from manufacturer or service provider, company put this product in their product package or sell it as stand alone product in prices high than the amount they paid to manufacturer or service providers to buy it.
By selling this fabrics, MLM companies earn commissions, it is as simple as selling cloths traditionally but through network of people in stead of shops.
In olden days, when there wasn’t any advancement in fashion world and e-commerce industry in India, old age MLM companies found selling cloths in their MLM company profitable as it is product which everyone needs. But with the advancement in fashion industry and e-commerce industry in India, it is not the same as it was in olden days.
To all the MLM companies planning to provide fabrics as the product, we suggest them not to go for this product. And if still they want to go, they should take care of other aspects as well like competition in the market, which is very huge, sustainability, etc etc.