American Giant CEO Bayard Winthrop said the company’s red, white and blue T-shirt line has become profitable and the company now makes sweatshirts for Walmart.
Back in June, Made in America’s flagship American Giant Announces partnership with retail giant Walmart It will sell a series of T-shirts with the phrase “American Made” for $12.98.
at that time, I was a little skeptical About collaboration.
I’ve been a fan of American Giant for years, and there’s no question that the company sells premium products at a much higher price point than your average Walmart product. Even though the American giant managed to outbid Walmart’s T-shirts much lower than normalWalmart sells T-shirts. Even cheaper pricingEven for $3.98.
But American Giant did it.
Founder and CEO Bayward Winthrop He recently told the Wall Street Journal that Walmart’s line of made-in-America cotton T-shirts has been extremely successful. American Giant is currently preparing to sell American-made sweatshirts to retailers for $38.98.
Winthrop pointed out that there were several keys to a successful collaboration. First, it required the innovation of American Giant, which invested in machinery to automate parts of the production process and streamline the most labor-intensive part: sewing. However, the volume of orders still led to jobs, as American Giant ended up hiring 75 people at its Los Angeles factory.
Walmart also played an important role. According to a WSJ report, Walmart prohibits its suppliers from displaying the American flag or using the term “Made in the USA” on products that are not made in the U.S., which makes the American Giant T-shirt It has become more prominent in stores. But perhaps more importantly, retailers agreeing to huge purchase orders upfront gave American Giant the peace of mind it needed to make investments that ultimately cut costs. That’s what it means.
Winthrop said that unless Walmart acts as a backstop by committing to buying a certain number of shirts over time, American Giant’s suppliers will have confidence in automation and other upgrades that reduce production costs. He said that he would not have been able to invest. A Walmart spokesperson confirmed that the retailer has signed purchase orders that are essentially non-cancelable.
Winthrop’s comments to the Journal echo remarks he made during an interview with U.S. Trade Representative Katherine Tai in October. There, he outlined how he was able to create a completely American-made apparel company. From the root.
Winthrop said Walmart’s confidence in American Giant’s ability to fulfill orders was key to the partnership’s success. “It requires a commitment of time and volume, and Walmart is committed to that and building lasting goodwill,” he said at the time.
The collaboration between American Giant and Walmart Made in America is sadly rare in the retail industry. Approximately 97% of all clothing sold in the United States is importedand the rest of the U.S. textile manufacturers. continue to face uphill battlesThis is partly due to biased policies that favor importers over American manufacturers and workers.
But there are signs that the tide is turning. President Biden has enacted important industrial policies during his term to encourage the expansion of domestic manufacturing, and President-elect Donald Trump has expressed willingness to implement additional tariffs that could level the playing field for U.S. manufacturers. I am doing it.
Winthrop told the Journal that he is starting to hear from major brands about possible partnerships if tariff increases are implemented. But there’s no reason companies can’t start now, especially given the success of their partnership with Walmart.
“If I, at a young age, can create a big program for Walmart, I’m sure any major brand that’s committed can do the same thing,” Winthrop told the Journal.
