Industry Insights

The Shift Toward Direct Factory Relationships Among Mid-Size Brands

Brands that once relied on trading companies or sourcing agents are increasingly moving to direct factory relationships as they scale.

Published 2026-04-28 · Industry Insights

What’s Driving the Shift

As order volume grows, the pricing and communication benefits of a direct factory relationship increasingly outweigh the convenience trading companies and agents once provided at lower volumes.

What Mid-Size Brands Should Plan For

Transitioning to direct sourcing requires building internal capacity for supplier evaluation, QC oversight and logistics coordination that a trading company previously handled — a transition worth planning deliberately rather than rushing.

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