The major brands are just marketing firms
I know most of you who have had some exposure to business already know this. I knew they outsourced their work, but I didn't realize the extent to which it happens.
If you buy a t-shirt from brands like Allen Solly, Van Heusen, Louis Philippe, or Basics for Rs.1000, only Rs.300 goes into making the shirt. Rs.400 is for the brand name, and the remaining Rs.300 is for the store owners who operate it as a franchise.
All the big brands use their image to build franchise demand. Then they don't even pay the manufacturers their bill for four months, which essentially means they are getting 0% loans for that period and only paying after the profits kick in.
While I'm frustrated that I am paying a Rs.700 markup for a shirt, I am also inspired by the power of marketing and brands.
Take away what you want from this.