By Yuko Tsuruta
- Research your niche in the market – It is very hard to succeed in the fashion industry by just creating the clothing that you want. Also, it is possible to start a fashion business to just ‘make money’ by creating what you love but it is far more interesting, meaningful, and sustainable if you can start a business that could make a difference in the world. It doesn’t have to be big. It just has to be meaningful to you. Think about what specific market in the fashion industry that is not currently being filled. Try to find a product that should exist but that is not offered by a major clothing company yet.
- Develop a business plan – Once you know what to create, start developing a business plan. What is your goal on this journey? What do you want to succeed by doing a fashion business? Is your goal to be a brand like Nike that’s internationally known? Or is it more like a local brand or boutique in Soho in New York City? Or do you want to create a brand name like Jimmy Choo and then sell it to a global fashion luxury group like Capri Holdings Limited? Identify your vision and goal to have a solid business structure and strategy for success.
- Identify your target audience – This step is an important part that comes along with step 2 above. Even if you create amazing products, if there are no customers to buy your products, you will not be able to generate enough sales and maintain the business. So before you create the product, think about what generation you exactly want to target. Is it millennials who do 60% of their shopping online?
or is it middle-aged customers who may be able to afford a higher price point? This answer will lead you to have a stronger online platform or actual store, an affordable price or a higher price point, etc.
- Create your website – In the past few decades, online shopping has become a multibillion-dollar industry. According to Statista, 1.8 billion people worldwide purchased goods online and the global e-retail sales amounted to $2.8 trillion in 2018. Since the coronavirus pandemic has accelerated the online shopping market, the projection shows that global e-retail sales are going to grow up to $4.8 trillion by 2021.
The survey “COVID-19 and E-Commerce” issued last month by United Nations Conference on Trade and Development shows that more than half of the survey’s respondents now shop online more frequently and rely on the internet more for information. More than 90 % of consumers research the product online before purchasing. So today, your online presence has become more important than your physical location. Make sure to include details of you, your products on the website going forward and the website is easy for your customers to use. Incorporate an e-commerce platform like Shopify or Etsy for easy purchases directly accessible from your website too. Also, it is important for your brand to be found in search engines for relevant keywords. If necessary, study how search engine optimization works or you can always ask us about it too if that’s not your strong suit!
- Start designing and plan out your first collection – We have talked a lot about business and strategy but this is the best part where your creativity shines!
This is the introduction of your brand to the world. So make sure your first collection reflects the core essence of your clothing line and includes the style your customers consistently expect from you. And don’t forget, whatever you’re designing will have to be produced in a cost-effective manner. Being a successful fashion designer is always a blend between the ideal and the attainable.
- Think about a brand name and logo – If you have your designs, start thinking about your brand name and logo that you can put in your design. From a legal perspective, we do not recommend you to use your own name. If you want to hear more about it regarding ‘use of your own name’, shoot us an email!
- Prepare for manufacturing – Since this is a very important step, we have provided a whole separate article about it. Check out “How to Manufacture Like A Pro, What Brands Need to Know!” and they will answer all of your questions.
- Choose a price point – You must know what price point you should be choosing at this point. What was the target audience that you chose in step 3? Does that price point cover your production cost? To create a smart pricing strategy, you have to know how much it costs you to produce your clothing items. This part requires you to calculate all the numbers. To sustain your business over time, what price point is enough for you to make a profit? How much do your competitors charge? What amount do your customers think about your product worth? Researching is always the key!
- Create your marketing strategy – Being creative to design collections that make people want to buy them is important but keeping up with the latest trend and being creative to advertise new products are also very important. How do the people who may purchase your product live and behave? If your target audience is millennials, utilizing Instagram for brand awareness is good but if your target audience is middle-aged customers, that may not work well. Do the market research, analyze your potential customers, and develop your marketing strategy.
- Distribution – Do you want to sell your products only in online distribution channels? Or in retail too? Determine where you want to sell your products.
- Look for investment and partnership – To sustain and grow the business for start-up fashion brands, this is a crucial step. All start-up brands need access to capital at some point. The most traditional way is taking on a business partner who can provide the capital in exchange for a cut of future proceeds but investor and partner relationships can come in many forms. How much do you want them to be involved in the decision-making process? Business-minded people can be very different from creative people. List the pros and cons for every investor and partner you can think of. What do you want to gain from them? Write out in detail to not be lost on the way!
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