Why do brands generally avoid manufacturing themselves?
Because they prefer to focus on branding, marketing, and sales rather than the complexities of production.
Many brands choose to outsource manufacturing to specialized factories to reduce costs, manage risks, and concentrate on their core competencies.
This approach allows them to be more flexible and responsive to market changes without the heavy investment in production facilities.
In addition, manufacturing involves significant logistical, quality control, and regulatory challenges that many brands prefer to delegate.
Overall, avoiding direct production helps brands stay agile and competitive in a fast-changing marketplace.

I have limited understanding of society. When I was studying, the books said that Nike builds its brand and R&D, mastering the high end of the value chain. In developing countries, we do sewing—10e shirts can exchange for one airplane in the US. Later, after studying stocks, I realized that many brand owners don’t do manufacturing. Why is that?
However, in some industries, it seems very difficult to outsource products? For example, the cars you buy.
What are the differences between industries that can be outsourced and those that cannot?

Here’s an example.

1. Mining companies.
   For example, Zijin Mining outsources much of its infrastructure and development of many mines.

2. Real estate.
   Developers like China Resources and China Overseas outsource to companies like China State Construction Engineering and Nantong X Construction.

3. Apparel and footwear.

Publicly listed companies like Huali Group specialize in garment and footwear processing, and even participate in some design and engineering R&D.

4. Chips.

NVIDIA, Intel, outsource manufacturing to TSMC.

5. Mobile phones.
   Apple works with Foxconn. Xiaomi partners with Longqi, and Redmi phones are ODM’d by Wentech.