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The Garay Brief · Jul 31, 2026

The twelve-garment door into Peru

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Martín Garay · The Garay Brief

Every buyer who has looked at Peru asks the same thing first, and almost nobody asks it out loud: how small can a first order be before a decent supplier stops answering the phone.

The honest answer sits in the shipping pattern, so I counted it. Between January 2025 and June 2026, knitwear left Peru 40,895 times, just under ten million garments in total, from 735 exporters.

Half of those shipments were 25 garments or fewer. Nearly four in ten were twelve or fewer. A shipment of alpaca knitwear runs eight garments at the median, and that is the median of eleven thousand of them.

Those small shipments are almost invisible in any total. Everything at 25 garments and below adds up to 1.5% of the garments and 3.4% of the money. Read the market by volume and this half of the traffic disappears into a rounding error.

The volume is at the far end. Shipments of a thousand garments and up are 5.9% of the traffic and carry 59.9% of everything Peru sends out.

What makes the two ends worth separating is the price. The small door averages $46 a garment. The container door averages $17. The gradient in between is unbroken, from $49 in the smallest tier down through $37 and $24 to $17 at the bottom.

My first read was that this is just sampling. Small shipments are samples, samples come from expensive makers, and the average price is high because of who ships them rather than how much they ship.

That read did not survive the check.

I took the 88 companies that shipped through both doors in the same period and compared each one against itself. In 74 of them the small shipments earned more per garment, with a median gap of about one and a half times and a middle range from 1.14 to 1.85. Same company, same year, same product line, and the small shipment carries a higher price per piece.

Which is what you would expect from a factory floor rather than from a sampling department. A short run pays for the setup, the yarn changes and the hand finishing across twelve pieces instead of two thousand. That gap is the arithmetic of a short run, and it is stable enough to plan around.

The Twelve-Garment Door, then, since twelve is about where it sits.

471 of the 735 exporters used it in the last eighteen months. Only 179 shipped anything at container scale, and 118 companies did both. For most of the industry that door is the main entrance.

The map is organised the same way. A shipment to Europe is 13 garments at the median, to Japan, Korea and China 12, to the United States 54, and to the neighbouring Latin American markets 20. Sorted by price the order barely changes: $34 a garment into Asia, $28 into Europe, $22 into the United States, $10 into the region. The buyers who work in dozens are paying the most per piece and taking the least volume, which is the shape of a specialty trade rather than a wholesale one.

The fibre splits along the same line, and here I used the tariff classification rather than the product descriptions so that the two methods stay independent.

Cotton knitwear moves in shipments of 60 garments at the median and prices at $21. Synthetic moves in 27 at $15. Fine animal hair, which is where the alpaca sits, moves in 8 at $46. The heavier the fibre leans towards craft, the smaller the shipment and the higher the price per piece.

So the answer to the buyer’s question is small, and it is not a favour anyone is doing you. A dozen garments is an ordinary transaction here, priced accordingly, executed by companies that also load containers. Per garment nothing costs more, and it still takes one box to find out whether a supplier can make what they say they can.

A limit on all of this. A short run is priced as a short run, so the cost per garment in a first order will not survive scale and should not be used to model a season. What it buys is information about the supplier.

Have you priced a first order that small? Tell me what you buy and I will point you to the Peruvian makers who already ship it at that size.

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Read the original on thegaraybrief.substack.com

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