MoolResha — Closer to the Root

Journey

Price Transparency

A garment's price is made of more layers than its shop tag shows. Here is where the money typically goes, and the layers that make up the price of a shirt.

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Where the money goes

Most of what you pay for a shirt goes to the layers between the field and you.

A garment's price usually adds up materials, making, transport, the brand, the retailer and taxes. Sourcing abroad is one factor among these, not the whole story.

What a shirt's price is made of

An illustration of how a T-shirt's retail price typically splits between the retailer, the brand, materials and transport. The exact split moves with the market and the piece; the source is in the citation below.

  • Retailer60%
  • Brand profit12%
  • Materials12%
  • Transport8%

The source lists these components only. Other components are not shown here.

See the numbers as a table
Share of the retail price of a T-shirt, by component
ComponentShare of the retail price
Retailer60%
Brand profit12%
Materials12%
Transport8%

In a widely cited breakdown of a T-shirt's retail price, about 60% of the price went to the retailer, 12% to brand profit, 12% to materials and 8% to transport. FACT Statista, citing Clean Clothes Campaign, 22 May 2025 (opens in a new tab)

In the same breakdown, under 1% of the price went to factory workers. FACT Statista, citing Clean Clothes Campaign, 22 May 2025 (opens in a new tab)

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02 — Understanding the price

What goes into the price of a shirt?

These are the layers that make up the price of a garment, in the order they usually appear.

Colours only identify the layers. They are not to scale.
  • Fabric
  • Making (cutting and stitching)
  • Finishing
  • Packaging
  • Shipping
  • RTO and returns
  • Platform and payment fees
  • GST
  • Margin
  1. FabricThe cloth itself: the fibre, the yarn spun from it, and the weaving or knitting that turns yarn into cloth, priced by the metre.
  2. Making (cutting and stitching)Cutting the fabric to pattern, sewing every seam, and checking each piece for fit and finish before it leaves the workshop.
  3. FinishingWashing, pressing, trims like buttons and labels, and the final quality check that gets a piece ready to pack and sell.
  4. PackagingThe bag, box or mailer that protects the piece in transit, plus any tags, tissue or inserts packed in with it.
  5. ShippingMoving the piece from the workshop or warehouse to the courier, and from the courier to your door.
  6. RTO and returnsThe cost of parcels that are undelivered, refused or sent back, including return shipping and re-checking the piece.
  7. Platform and payment feesThe commission a sales platform charges per order, plus the fee a payment gateway takes to process the payment.
  8. GSTThe Goods and Services Tax added to a sale at the rate the government sets for the category; see the note below.
  9. MarginWhat is left after every other layer is paid for; it funds the next season's fabric and keeps the studio running.

Our aim, not a promise yet: a real cost breakdown for every piece, once pricing is settled.

Readymade garments priced up to ₹2,500 per piece attract 5% GST; above ₹2,500 per piece, 18%. FACT PIB, September 2025 (opens in a new tab)

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