This seemingly generic garment was born from a partnership between American Giant and Walmart. The retail giant was searching for ways to begin deploying the $350 billion investment it had publicly committed to US manufacturing in early 2021.
The company connected with American Giant to discuss the possibility of creating an exclusive made-in-America t-shirt it could sell in more than 4,600 US retail locations.
Applying Walmart’s Scale to a Fledging Supply Chain
The key unlock was Walmart’s scale and willingness to make the financial commitments necessary to bolster American Giant’s fledgling supply chain.Walmart
The hurdle, as has always been the case with made-in-America garments, was price. The challenge was making a t-shirt that, while pricier than others on the shelves at Walmart, still needed to cost dramatically less than any other made-in-America t-shirt.
The key unlock was Walmart’s scale and willingness to make the financial commitments necessary to bolster American Giant’s fledgling supply chain. The prospect of making t-shirts at the volume of Walmart’s needs incentivized all parties involved to invest in efficiency improvements, which helped drive costs down. American Giant also implemented less labor-intensive sewing methods and swapped in less expensive yarn to lower costs further.
The result is a t-shirt made in America from 100 percent American-grown cotton that costs $12.98
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Publish date : 2024-12-30 03:01:00
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