What is a production line?

Discussion in 'Growing and Managing a Business' started by hurray, Mar 16, 2014.

  1. hurray

    hurray
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    While going through an article about the famous jewellery brand Pandora, I read that in their early stage when they were planning to develop their products, they decided to open up their own production line in Thailand. So my question is, did they build a jewellery factory from scratch in Thailand to manufacture exclusively their products under their brand or did they sign a contract with an existing jewellery manufacturer in Thailand to product their jewellery line?
    It has always intrigued me how many clothing brands get their products manufactured from the same factory in countries like Bangladesh. Isn't there a risk of the factory owner revealing design of Brand A to Brand B or to a new brand wanting to get their products made from the same factory? Or does the factory owner in Bangladesh sign a contract with each Brand to keep their designs secret? I doubt that each brand has it's own factory in Bangladesh. That would mean a lot of investment to build a factory and one would need to know the culture and work environment of the country. But may be I could be wrong.
    Can someone please enlighten me how this is done?
     

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