Table of contents
- What is the approximate cost of launching a clothing line?
- Creating a distinct identity for a clothing line when you have no prior experience
- Who is the target audience for your clothing line?
- How to Come Up With Ideas for Your Clothing Line
- The Most Comprehensive Business Plan for a Clothing Line
As a newcomer to the world of Google, I was also interested in finding out “how to establish a clothing brand without any prior business or design expertise.” At the very least, anything along those lines. For my first business venture, I created a premium sportswear brand for men and oversaw the whole process, from conception and manufacture to shipping and manufacturing.
This is what I would recommend if you want to establish a clothing line and there is only one thing you take away from this essay, and that is…
Prepare yourself for a rollercoaster of a trip.
Apparel is one of the most difficult categories to navigate in e-commerce since there are so many moving pieces and considerations to take into account in comparison to other categories. Despite this, it is one of the most important and fascinating categories to be a part of. As a result, it is expected to expand to $1.5 trillion by 2020, according to projections.
So, what is the point of telling you all of this?
Because I’m going to teach you how to establish a clothing brand from scratch, even if you have no prior expertise.
I don’t mean from the standpoint of a freelance writer who just reads several similar articles and then sums them all up into a single essay for you. Instead of that, I’m going to walk you through the whole process and teach you everything I wish I had known when I first started.
So, with that being stated, let’s get this party started.
What is the approximate cost of launching a clothing line?
Among the most significant considerations when establishing any e-commerce company, but particularly when launching a clothesline, is the expense of getting started. The most dangerous times to invest are when you’re putting your money at risk for the least amount of possible return.
Why is this even more critical in the garment industry?
In the majority of garment categories, you are not just purchasing a product. Even if you simply start with a single product category, you will still have to deal with differences such as color and size, which may be rather challenging.
In this section, I’m going to assume that you’re beginning a bespoke clothes company, rather than a print-on-demand or a private label business. This is because custom apparel is typically the only viable choice for long-term success. For the sake of this exercise, I am going to suppose you have just one shirt in one color, in sizes ranging from S to XL. And I’m going to presume you’re utilizing high-quality materials such as Pima cotton and that you’re working with a fabric mill and manufacturer that has minimal minimum orders.
If all of these factors are taken into consideration, it might cost anywhere from $1,000 to $5,000.
Even if you aim for lower minimums, the margins won’t be very generous. Nevertheless, with the appropriate distribution channels and price plan, it is conceivable.
When it comes to strong margins and a complete product line with numerous distinct categories included, however, you’ll have to pay a lot more money for your business. Because the garment industry is such a cash-intensive sector, it is not unusual to see apparel companies attempt to secure hundreds of thousands of dollars in venture capital investment as soon as they can.
As a result, starting a clothing company from the ground up is unlike anything else.
Creating a distinct identity for a clothing line when you have no prior experience
Apart from cost, differentiation is by far the most difficult aspect of the apparel business to master. The fact that it is such a large market means that almost every category has been successfully explored. So you’ll need to come up with a compelling argument for why customers should choose your garment brand over someone else’s.
So, to figure this out, we must start with the fundamentals.
Who is the target audience for your clothing line?
Ideally, you’re either targeting a very specific niche or a small, close-knit community of customers. One example of a highly constrained niche is the production of Japanese-themed socks. Socks designed specifically for the Crossfit community are an example of a tightly knit group of people. Either option is effective. To avoid direct competition with billion-dollar brands such as Nike or direct competition with mega-popular DTC brands, all you need to do is stay out of the way.
Knowing this will help you to differentiate yourself in the marketplace.
Choose one of the choices listed below.
Design is the most straightforward component that contributes to a sale. The graphic shirt company and the yoga pants industry are two of the most prominent instances of design-based distinction in business. In both scenarios, the basic product ingredients remain the same, but the design of the actual clothes appeals to a different group of individuals in each situation. For example, TapOut, with its extreme designs, has become the “official” gear brand of mixed martial arts, and you’ll find yoga pants with the strangest motifs, such as Star Wars or nature, on the market.
The fact that the design is easily distinguishable is a plus. In general, it is not expected to result in significant beginning expenditures, as the other two options will do. Designs may also be specialized, which is very easy to do. As a result, you won’t have to put a lot of effort into branding to let people know what you’re about. If your primary point of differentiation is your design, you may start with a print on demand until you’re ready to expand your offerings.
The disadvantage is that it is a company that is simple to imitate. The fact that you can easily understand what distinguishes a design-based firm from the competition and locate a manufacturer or print-on-demand service that can produce the same thing for a reasonably cheap cost makes it difficult to be a defensible brand in today’s marketplace. This becomes more of a challenge when attempting actual scale, though.
Naturally, fit and style are the most important factors to consider while purchasing apparel. Barbell Apparel created a lucrative clothing business by designing pants for people who required additional “leg room” since their legs had grown as a result of their workouts. You’ll also find every fashion company that has ever been in this category since they all compete based on seasonal fashions.
The advantage is that there are still lots of categories to dominate inside this arena. Clothes for short people and clothing for extremely tall people, for example, are both ripe for disruption. This is also the province of fashion designers, who can create wholly new designs that may eventually become popular with the public. This category has the potential to be both narrow and extensive in scope.
Compared to a design-based garment company, the disadvantage is that it is far more costly and needs significantly more understanding about fashion. Unless the size of your clothes is your distinct differentiator, it will take some time for you to comprehend how to create clothing that stands out from the crowd from the minute you first lay eyes on it.
Even though materials are the least prevalent of the three attributes, they are a really fun feature to experiment with. For example, Mizzen & Main, a dress shirt company that developed an 8 figure brand by substituting polyester for ordinary cotton, is a perfect illustration of how materials may be used to differentiate a product. Rhone is another company that has grown to be a multi-million dollar brand by incorporating technologies such as anti-stink technology into its sporting clothes.
The advantage of using materials is that it allows for exceptionally effective message and positioning while also providing for sufficient flexibility in entering particular areas, such as sports apparel. If you are one of the few companies that sell premium men’s underwear made entirely of merino wool, you have a fairly distinct advantage. Premium materials are a marketer’s dream since they allow them to differentiate a garment brand from the competition.
The disadvantage is the price. The most expensive component of clothes is the fabric. When your primary difference is a superior fabric, your expenses will skyrocket in comparison to the other two possibilities. It is also a positive development since it implies that you will have far less competition to contend with. The fact is that you’ll need a lot more money to start this sort of apparel brand.
How to Come Up With Ideas for Your Clothing Line
Because certain categories are inherently far more competitive than others, the specific categories you are placed in may be just as significant as the sort of differentiator you choose to utilize. Shirts, for example, are far more competitive than trousers.
In all circumstances, though, you must narrow your attention to a single category.
I understand that you’ve probably already fantasized about selling everything under the sun, but it’s not the best course of action. Do this when you have a substantial amount of VC money to sustain your company, as well as a substantial amount of wholesale growth. To understand how to establish a clothing brand from scratch with no prior expertise, you must narrow your emphasis to only one area.
Shoes for bodybuilders, for example, are a special sort of shoe.
Tank tops, for example, are a particular sort of clothing.
Pants with a special style, such as performance dress pants.
This will result in significant cost savings as well as the development of a much better brand.
At the same time, you should take advantage of this opportunity to make your life simpler by entering a category that is less competitive. This entails doing a thorough examination of the apparel business and realizing that shirts are more competitive than trousers.
From there, you may add more varieties to your clothing line to make it more diverse.
In the case of a certain sort of dress shoe, for example, you’ll have a shoe line that includes many various colors, sizes, and potentially even designs to choose from. However, they are all made of the same material, which you selected in order to further distinguish your brand from the competition.
The Most Comprehensive Business Plan for a Clothing Line
If you’ve followed the steps up to this point, you should have a well-differentiated clothing line brand concept in hand. Following this in mind, here’s what I would do to advertise it based on my previous experience:
Create a tiny, devoted following or collaborate with an influencer.
The garment sector has a low margin and a large amount of refund space. As a result, when you launch your business, you want to discover every conceivable means to do it without relying on Facebook advertisements. As a result, you either create your own Vogue for shoes or whatever area you’re in, or you collaborate with an influencer to harness their following. In an ideal environment, though, you would do both in order to maximize your reach. In any case, you can expect this phase to take around 6 months.
Starting with owned media is a good idea.
It is expected that you will have either a small audience ready to be sold to or cooperation available when you are ready to debut by the time you are ready to launch. In any case, this indicates that you have a captive audience of some kind. In an ideal world, it would be an email newsletter hosted by Klaviyo. This implies that all you have to do is send out emails to introduce the brand. In an ideal scenario, you will have been pre-selling the concept to that email list for many weeks at this point. In the following days of the launch week, send 1-2 emails every day in order to generate as many purchases as possible.
Earned media may help you grow.
So you’ve released your product, but you still need to generate additional sales without resorting to expensive advertising. You’ll also need the credibility necessary to connect with a more distant audience. That’s when things like public relations come into play. Identify every conceivable publication that has previously published articles on apparel like yours and ask to be included as well. Having an angle or narrative that is fascinating enough to cover is essential in this situation. Take, for example, the case when you’re offering a unique product or the influencer with whom you’ve cooperated is well-known.
Increase your reach with sponsored media.
You’ve now successfully verified your brand, acquired the assets you need for increased conversions, such as “As Seen On” logos, and amassed a wealth of data from which to expand your business. It’s time to switch on your Facebook advertisements if you want to see your business grow significantly. It’s vital to understand that the garment industry has a low-profit margin and a high refund rate. As a result, only items with a high enough profit margin and low refund rates should be promoted. Additionally, you may want to consider offering kits and bundles of products.
Make money with your own publications.
Marketing, like life, is a cyclical process. Initially, you relied on owned media, but as your company grows, it becomes one of your primary profit centers. Email marketing should account for 30 percent of your total revenue, at the very minimum. SMS, search engine optimization, and direct traffic are all methods of generating revenue as well. This is often the portion of the process that makes or destroys the e-commerce business of most apparel brands.
Get into wholesale as soon as possible.
This is the section where most individuals who are learning how to establish a clothing line for the first time get perplexed, yet it is really crucial.
Limiting one’s garment business to just online is a risky strategy. Some categories, such as shoes, are particularly adept at this. The majority of others, on the other hand, believe that after you’ve established your brand via digital marketing, you should capitalize on your triumphs by expanding into retail enterprises, beginning with boutiques and other small retail locations. The reason for this is that owing to the lower margins in clothes, it is necessary to sell a large volume in order to earn money. It’s also a category that needs someone to try on in order to determine whether or not it’s the proper fit for them, which is why the return rate for clothes is far lower in in-person shopping. If there was ever a time when I made a mistake, it was this one. In order to successfully launch a clothing line in the fashion industry, you must first recognize that retail will almost certainly become your most essential marketing channel.