How to build a business in the fashion industry. How to Build a Business in the Fashion Industry Skin Care
5 insider tips
In early June, the Parsons School of Design hosted a public appearance by fashion entrepreneurs. In front of an audience of 500 people spoke: Director of the fashion department on Instagram Eva Chen, founder of the brand of travel bags and suitcases Away Jen Rubio, co-founder of the Brother Vellies accessories brand Aurora James and the owner of the Everybody.World brand, specializing in clothing made from recycled and natural materials, Iris Alonzo and Carolina Crespo.
1. Analyze the market and its free niches. Make sure you really like your future business.
First of all, you should think about those goods that you personally need, but cannot find among the presented assortment. “Two years ago, all I knew about luggage and suitcases was that I also have them,” the founder of the Away brand Jen Rubio begins her story. travel bags right under the customer's door. Rather, I thought about how annoying the moment of choosing a suitcase, when your old one suddenly breaks. "
2. Get ready for hard and stressful work
"You need to be desperately committed to your idea, to be confident in your abilities. Don't be afraid to sacrifice everything and be prepared to fail," says Aurora. She started her Brother Vellies business in 2013 with a start-up capital of $ 5,000. After two years of hard work, the girl won the prestigious CFDA / Vogue Fashion Fund Young Designers Award.
The designer admits that on a daily basis he is faced with typical problems of a start-up business - the need to increase sales and compete with larger companies.
3. Learn the rules of business in the fashion industry from A to Z
Many brands fail due to ignorance of the basic rules of the industry. Those who want to start their own business in this area should first of all learn a lot. Suppose, if a large store made an order with you, and the batch did not sell from him, he may well return the goods and demand his money back, and you must be prepared for this turn of events.
Prior to creating their own brand, Everybody.World, Iris and Karolina worked for the mass market company American Apparel, which sold clothes and accessories through its own chain of stores and online. Outside the corporate system, the girls faced increased risks of working through intermediaries and concluded that pre-order work was ideal for small or start-up brands. Such a system allows you to interact with customers directly and earn money for production, while minimizing losses.
4. Create original style and filing in in social networks
“I believe brands and social media bloggers need to be themselves and be honest with their followers,” says Eva. The director of the fashion department on Instagram once again emphasized that the posts in the feed on the official page should correspond to the main idea of the brand. Improvisation and experimentation are best left for stories, where posts disappear within 24 hours of being posted.
The speakers also mentioned the benefits of using social media advertising. "If you can create good copyright content on your pages, you can have incredible impact with the Facebook and Instagram advertising tools," Jen concludes.
5. Analyze failures
“There is no perfectly flat road to success. It’s much easier to say that you don’t know how to achieve your goal than to take real steps towards your dream,” says Jen Rubio. By the time she started her own company, her knowledge of baggage was minimal. But this did not become an obstacle for Jen, but rather, on the contrary, forced her to work with a vengeance. In 2016, Rubio was ranked among the top 30 under 30 by Forbes. “Every failure that was in my life taught me something. There is no such thing as“ unnecessary experience. ”You always need to move forward,” added Eve.
Let's start our review of fashion business ideas right away with the most interesting!
We present to your attention a company from New York - Rent the Runway, which rents designer dresses!
How it's done? The customer chooses the dress he likes from the virtual wardrobe on the site, places an order, pays the rental cost (about 10% of the cost of the dress, which means a figure ranging from $ 50 to $ 200), and receives his dress in a special case by the postal service.
At the end of the rental period (from 4 to 8 days), the client returns the dress - again through the New York post office. This is about brand new dresses in the trend of the season ...
The rental of dresses from old collections costs only $ 25. Ha-ha ... How profitable it is to love strict classics - you can't see "what a collection this is" from it!
So, well, what are we supposed to do? We're not (I guess) New Yorkers, are we? Welcome to the vykroe k website! Traveling along it will give birth to an ambitious idea in you - to learn to sew by yourself!
If you really want to, you can really still learn to sew on your own and, finally, stop depending on primitive consumer goods, sewn not for your figure, from synthetics, but worth a good chunk of your salary!
Well ... We walked around the site, where a library of all kinds of patterns is collected ... And we are already positioning ourselves as novice fashion designers ... OK. Then it's time for us to go to the store of these very beginning designers!
Our next fashion business idea is Fashionology LA, a brand new interactive branded workshop in Beverly Hills aimed at teens. In essence, it resembles a labor lesson in a school where we sewed aprons, but only in essence ... But in terms of presentation and execution - nothing to do with boring "work"! Magnificent, mesmerizing attraction! However, judge for yourself ...
Just as theater begins with a coat rack, so the design process begins in this workshop, too - right from the entrance. The walls of the hall are hung with screens with examples of successful design.
But the creative process itself begins. With the help of the “Design Panel” with an interactive screen, children first select the item of clothing that they will create - (dress, skirt), then choose a style - (Pop, Rock, Malibu, etc.), and all styles include a wide range of colors ! Further - there are such options as - Sew, Pin, Pinch ...
It’s not for nothing that they say that there is no fashion in America, there is only light industry ... And if there is fashion there, (I’ll clarify for myself) then it’s some kind of very own, naosobitsu. Tell me, Reader, what have you heard about such styles of clothing as the above - "pop", "rock", "Malibu"? I confess (a thoughtful reader of Vogue magazine and a collector of couturier memoirs) - nothing ... "New Look" - I can imagine, "Malibu" - for the life of me ...
And yet, the very business idea of this interactive game for amusing, childish “tailoring” of clothes - inspires. What the Americans are strong in is their enthusiasm and the introduction of high technology - wherever possible.
Let's return, however, to the world of fashion. And - haute couture. Awesome idea of fashion business!
UK-based company Net-a-Porter has become the world's largest online fashion boutique, proving that people are willing to buy high-end designer clothing online.
Since today any page on Runet and social networks is flooded with banner advertisements of some dark shops, outlets and warehouses selling Gucci for pennies, I think we all will be interested in rehabilitating this idea of a fashion business a little by reading how they do a real business selling through internet of branded clothing, and not what you thought about China and the usual Russian scam ...
By the way, now this British company supplies products to more than 170 countries of the world ...
And here is another fashion business idea from the residents of the same country - the British.
They have invented an original service for those migratory "birds" who live somehow, on the checkpoints - in hotels - "an ambulance wardrobe!"
Indispensable for all business travelers forced to attend entertainment events ...
But this idea of the fashion business has delighted (me personally) more than others, and I reserve the right to treat you with it, Dear reader, as a dessert. Attention!
Stockholm Internet service Looklet teaches its users to create a collection of “look-beeches”, make up “Total look” pictures from designer clothes.
The users of the virtual fashion salon are offered more than 2000 items of fashionable and stylish clothes and accessories that can be combined with each other, creating their own unique image, and in addition - 7 different types models with different looks.
Dressing these virtual “dolls” in designer clothes, you save all your works in a special folder, and then present them to the audience, waiting for their comments. (Or hate it).
Audience Choice Award - fame and the opportunity to work as a fashion editor in a fashion magazine.
By the way, this virtual training - to create "sets", shortens our experiences of fast-flowing life, namely, many hours of dressing and undressing in inhospitable fitting rooms of chain clothing department stores ...
Basically, this fashion business idea is not completely new. Many shops have been teaching their fans for a long time to put together “sweaters with skirts” in virtual mode. Here are just the links where you can buy such clothes in real life, all are given for the same dull ones - ma-ga-zi-ny ...
Unlike them, the Looklet service we are describing indicates links (where to buy such a skirt) to design sites! Do you feel the difference? The clothes are unique!
So far, you and I have only a very limited range of possibilities - how to learn how to make a fashionable wardrobe for yourself ... Program “Fashionable Sentence”? "Take it off immediately"? And even a couple of fashionable bloggers, like Rita Galkina, who are engaged in difficult and thankless work - etching out of our collective unconscious - the all-covering image of "Mother-Jacket" firmly rooted there ...
When will we have at least one website or service similar to the startups described above? ..
24.12.2011
Earn up to
RUB 200,000 a month having fun!
Trend of 2020. Intelligent entertainment business. Minimum investment. No additional deductions and payments. Turnkey training.
There are many niches in the beauty industry where you could start making money. We offer ideas that may interest you.
Skin care
Open your own skin rejuvenation and healing cabinet. This is a very lucrative business.
Manicure and pedicure
Although some people know how to do such procedures on their own, in fact there are many more who cannot cope with it. Therefore, you can make money on your nails.
SPA services
The popularity of this new beauty trend is growing every year. There is a great demand for water procedures today.
Art make-up
This makeup is suitable for special occasions: weddings, theme parties, photo sessions, video filming. If you have an artistic taste and a steady hand, then you can do it.
Fitness Centre
Running a fitness center or gym is not a difficult task. You will need a decent room and good equipment, as well as a competent trainer.
Massage room
People often look for sensible massage therapists, because they help relieve stress, restore vitality, eliminate back pain, align posture.
In Russia, more and more local production of clothing appears under its own brand. At the request of Biz360, fashion business experts Dmitry Timurshin (Freedom Team) and Daria Yadernaya (Y Consulting) gave recommendations on how to start a business for a talented clothing designer and conduct marketing in the fashion industry. A , owner of the Kosichkina lingerie brand, , founder of Northwestfur jacket company, , founder of the Siberia brand, and, which produces clothing under the Tanya Snezh-Lebedeva and Silen Shust brands, commented on these recommendations on how to turn clothing manufacturing into a business.
Entrepreneur, expert in launching creative spaces in retail. Director of the Agency for Creative Initiatives Freedom Team, owner of shops of fashion brands of Russian designers in St. Petersburg, studio of printing on fabric Printlab, sewing coworking space Workplace, clothing lines
Freedom by Tecstyle
, organizer of the festival of local fashion brands Freedom Market etc.
1. Be obsessed
Starting a fashion business without experience only makes sense if you have an obsession. Otherwise, you will quickly be blown away.
- : It is also advisable to have a business idea and a clear idea of what exactly you want. Do what you have in mind, no need to try to please the buyer, nothing will come of it. Better to convince the customer that your product is the best for them.
2. Don't start without a business plan
Make a business plan - it's better to lose money on paper than in real. Do not forget to include your own salary in the expense item - at least at the minimum hourly rate. Increase the resulting amount by 20-50% - this will be the real minimum, including unforeseen expenses. You must have a margin of safety for at least three months of negative work.
: If you want to build not a microboutique, but a full-fledged business, then increase the amount not by 50, but by 300% and be prepared for a safety margin of 2-3 years of work in the negative. Most often, when making a business plan, people do not think about certification, accounting, sudden fluctuations in prices for materials, packaging, tags, warehouse containers, couriers, poor-quality work that will need to be redone - from patterns to photographs, and so on..
: The safety margin is needed for at least a year.
: In practice, a brand / store with an expensive segment of clothing has been promoted for at least two years. This is how it was with us - two years of work with minimal profit. That is, you must understand that this is a long-term investment and it is desirable to have an additional source of income or start-up capital that will allow you not to be disappointed in your idea ahead of time.
3. Check the demand for your product
To do this, you can online store in "VKontakte", presenting in it an approximate assortment. Sew samples, samples; let yourself, crookedly, the main thing is to catch the idea, catch the trend. So you can get to know the target audience, see how people react to your product. Based on this reaction, you can make adjustments to the collection, change the numbers in the business plan.
4. Start with a budget of at least 300 thousand rubles
There are precedents when people started the production of clothes with 100 thousand rubles. But today it is unrealistic. The "average temperature in the hospital" is the figure of 300 thousand rubles. This is the minimum that will be spent on product development and tailoring, as well as on everything related to promotion and packaging - website, logo, copyright, photo session, etc. These two large items will eat up the budget roughly equally.
- : Even if you yourself do not know how to build patterns and sew, you can choose two or three models that will be special due to their idea, and sell them in different fabrics and colors. There are many examples of brands that started with such a strategy, take at least the cardigans of the Georgian brand Lalo, which started with one model of cardigans with voluminous braids in different colors... Don't underestimate the packaging. It should be such that the buyer, receiving your product, is fascinated and touched. It is not necessary to spend money on expensive boxes for your dresses, some interesting details are enough.
Tanya Snezh Lebedeva (brands Tanya Snezh-Lebedeva and Silen Shust).
5. For sewing the collection you will need
at least 500 thousand rubles
After you go through the first stage - testing the idea (300 thousand rubles), you will need additional investments, about 0.5-1 million rubles for sewing the collection in circulation. They will be spent on increasing the volume of products, expanding the model range, increasing the quantitative presence, growing the retail network, working with so-called "opinion leaders" (advertising, promo).
Finding (not to be confused with “giving away”) this amount is often easier, since you already have sales statistics. That is, you will not come to the bank for a loan empty-handed.
: To trade normally in an offline store, you need an average of 1-2 million rubles worth of goods.
: If you sew on items, and they "hang", it is quite possible to go broke over the season. Do not do a large edition at first - sew a couple of models in good quality, put it on social networks, show it in showrooms, look at the reaction. Nowadays, many sewing workshops take on piece production. If you do not know a single workshop, look for a seamstress at osinka.ru or arrange with a tailor to provide them with a flow of orders if they give you a discount. Then you can make your models in samples or minimal series, and then sew as much as you order. This is a real scheme to get you started with the lowest cost.
: Fashion brands usually pay little attention to logistics and accounting, considering them boring and ignoble. In fact, the right warehouse will solve the problem of fast order processing and will avoid a very common infection among small brands - the lack of models declared in the store. Do not think that the entire collection will fit well in your garage or behind a screen in your office; plan the storage room, SKUs, regular inventory of the warehouse and people who will be involved in processing and shipping orders. Poor delivery generates far more negative comments on the networks than the models themselves.
Natalya Tarnavskaya (Kosichkina brand).
6. Come up with a catchy name
The brand name for a clothing brand or store, oddly enough, can be anything. It may not even be about clothes at all. Maybe gibberish or numbers, just to be remembered. The main thing is the integrity of the naming and its consonance with the product idea and values. target audience... Your creative and marketing strategy should be clear.
7. Do not chase global brands, but get ahead of them
You won't be able to compete with global brands, and you shouldn't. But this is the case when disadvantages are also advantages. You will always have a small assortment, limited collection, which means that you can guarantee the exclusivity of each item. You will obviously have a higher reaction rate to changing trends, you can always be a little ahead, keep up with world brands. This is something that is appreciated by a young and creative audience. The main thing in the local fashion business is the timeliness, relevance of collections and the right price.
- : You will also be visited by people who need not only dress, but for whom the little things are important, from cut to stitching. Do not pay attention to the “ordinary people”, a mass product is a separate story and you don’t need to go into it. Over time, when you become well known in certain circles, the mass buyer will be interested in you.
Igor Frolov (Northwestfur brand).
8. Study the experience of the "dinosaurs" of the fashion industry
Not competing with foreign "monsters" does not mean that you should not pay attention to them. Study their experience, their early mistakes, sales statistics, marketing moves that took off in due time. But! Always remember: Russia has its own specifics, and foreign experience can be applied here only with a “local adjustment”.
- : I chose Canada Goose as a role model, thoroughly studied their business model and try to apply their technologies in my home.
9. Negotiate with networks
If you are just starting out, then it is better to limit yourself to an online store or enter the market through a promoted retail retail. Write to the administration of the store or network a letter with an offer, accompanying it with a high-quality portfolio of your collection. Call buyers, make appointments, show samples.
10. The price on the Internet and in retail should be the same
Minimum store promotion: 100-150% for sale, 300% for redemption. You can bargain, but it can go on for a long time and nervously. An alternative is selling over the Internet. However, in this case, do not forget about prices in stores - keep them in mind when forming the retail price for your products: the price on your resources (website, social networks) should not differ from the price in stores, otherwise they will not work with you.
11.With the site at the start, you can wait
The website does not hurt a clothing brand, but at the first stage it is not so important - at first you can shop on Vkontakte. Your sales will first go through social networks, so it is better to spend money and attention on them first. A store on VKontakte is created in any group - just enable this function in the settings, fill in the product cards with photos and descriptions, set a price. You will need: good photos, high-quality description of models, good prices and delivery terms.
- : Nevertheless, the site is needed. It will be asked by both wholesalers and retail buyers.
12. Take your time to open a showroom
Opening a showroom can ruin a business at the start. Rent, registration, salaries and other expenses will quickly eat up your conditional 300 thousand rubles without taking into account the "safety margin". At the initial stage, it is much more important for you to create a demanded assortment, to establish production and marketing. If you want to immediately play like an adult, then get ready to invest from 200 thousand rubles to 1 million in an offline point.
: Until you consistently earn money, your offline store is not needed. But then be sure to open at least one to communicate with "live" customers. The wishes of the wholesalers and the end consumer do not always coincide, and you need the end consumer.
: It makes no sense to make a store in large shopping centers - it costs big money and won't pay off. You need a small, cozy showroom in a good accessible place (near the metro, with parking, even in courtyards or on the third floor of a business center). For example, a showroom of 20 "squares" within the Boulevard Ring in Moscow can be found for 40 thousand rubles a month, even cheaper. Make these few meters such that you want to go back there. Do not hire a salesperson, work “by appointment” is common here: your client will be glad if the designer himself meets him.
The shop of fashion brands of Russian designers Freedom Store.
13. Don't exaggerate the seasonality factor.
Unless you are mass-produced, you shouldn't sew coats in the summer or canvas pants in the winter in the hope of high seasonal demand. It is better to design 10 models of seasonal items, stitching three common sizes for each position. And then - act in accordance with real demand.
- : In the beginning, it is better to sew upon receipt of orders. Then you yourself will understand what kind of stocks you need in the warehouse.
14. Don't forget about hardware and software
If you nevertheless decide to launch a showroom, then you will need a specialized accounting system (for example, "1C: Accounting"), equalization, as well as surveillance cameras at the box office and in the hall.
- : It is important to acquire a merchant acquiring - a mobile terminal that accepts cards. It can be connected to any smartphone and accept payment by the client's card. Of course, for this you must have a legal entity, to whose account the money will be transferred. The standard acquiring percentage is 1.5-2.5%. Plus, don't forget the tax in your pricing.
15. Sellers must be loyal to the brand
Sellers - important people in your business. They should be glowing-eyed, absolutely loyal to the brand. It is better to motivate them with the classic salary formation scheme: a fixed part plus a percentage of sales. What size of "fix" to set depends on the efficiency of the employee and your instinct. Uncompromisingly part with the thieves and lazy people who "sit for a salary" and are not interested in a percentage of sales.
16. Do not spend on unnecessary PR
If money is running out, your spending should be in accordance with the principles of necessary and sufficient. That is, neither a splendid store opening nor expensive repairs are needed. Save money on paid fashion shows if it's not part of your PR strategy. And in general, if you are not a PR specialist or a marketer (and there are no others), then no impressions are needed. At the initial stage, it will be enough for you to participate in markets - local "garage sales". This approach will immediately give direct sales and feedback from a live audience. In addition, you can save money by choosing the right form of ownership and type of taxation.
17. Don't skimp on photos
What you shouldn't skimp on are good photos. You will need them both for sales on social networks, and for website design in the future, and for promotion. People buy with their eyes, emotions work. For the same reason, pay special attention to the design of the logo, the history of the brand, and its legend. Do not spare money for good texts and work with social networks.
18. Do not sew from "offensive" materials
There is no point in chasing the price to sew from cheap material of dubious quality. All the same, the cost of sewing will be much higher than that of the mass market. Try to find a middle ground "price-quality". Remember, exclusivity is your advantage. You can't make things out of “offensive” materials.
- : Quality materials are your main competitive advantage, forget about low prices.
19. Tell your story
What to do on social media? Tell your story. It could be yours personal brand- a human designer. Why not? Write about your business, which has become your meaning. Write about what you do really well. People love stories about the brave who are able to follow their dreams. Your story will sell you and what you create.
- : The message to the consumer cannot be like this: buy my product. You have to say: buy my idea. They become fans of the brand thanks to its idea, then they talk about it at every convenient opportunity.
Eduard Minasyan (Siberia brand).
20. Be forward-thinking.
The most common mistakes are thoughtlessness and shortsightedness. Let's say you can buy an expensive fabric, but use cheap accessories and not work out the patterns thoroughly. As a result, you will get a high cost price and an unclaimed product.
21. Listen to your audience
You should not be guided solely by your taste. You should always try to understand the needs of your audience, listen to your customers. The easiest option feedback- the number of applications and requests. If you do not have a single order per day, you should think about the assortment.
- : You don't need to follow the audience either, otherwise you will start churning out what is already being sold in tons around you.
22. Start with a coworking space or small series atelier
If you are aiming at the custom tailoring niche, it makes sense to first go to sewing coworking spaces - spaces where seamstresses, designers, fashion designers work. In the coworking space, residents receive workplace and equipment (sewing machine, mannequins, cutting table, etc.) There is also a separate fitting room where meetings with clients take place. It's cheaper than your own workshop. There you will learn all the pitfalls of the craft. And then you will already make a decision: to open your own business or to give orders for outsourcing.
Sewing coworking WorkPlace.
Another option is to look for a small batch atelier. Opening your own at the initial stage is risky and takes a long time, and the profitability in this case is likely to be negative.
23. Don't chase a broad line
How many things to sew to get started? Don't start with a large assortment. For the first collection, four items per color and size will be enough. Remember, only 20-30 percent of the lineup will bring you 80 percent of your income in the future. Therefore, focus on the trends of the season, offer the most relevant, popular models in the three most popular sizes. You will definitely not lose.
: A small assortment has big advantages for a startup: lower costs and more stable quality.
: When you work and understand which models are going well, which showrooms or stores are buying them and in what quantity, then it is worth making seasonal stocks based on sales plans. But if you are just starting out, it is better to find a couple of homework seamstresses who can quickly replenish your stocks - let the sewing come out and more expensive than in the workshop.
24. Be relevant
Getting into the season is traditionally a weak point of Russian designers. We are constantly catching up, but we do not set trends. If you can ride the wave, your seasonal sales will at least double. How to do it? Listen to your customers and act fast. Go to parties, be where active youth gather. It is she, no matter how bad with money it may be, who will always want to look different than most. If you don't want to hang out, there are trend bureaus. Every six months they publish trend books where you can see new trends.
- : The mistake of many novice designers is that having created some popular model, next season they refuse to sew it, because “this is the past collection”. Until you are the world's fashion monster, you have no reason to stop making models that buy well. Neither you nor your customers need it. Identify your cash cows and offer them in different colors with different additions.
25. Buy consumables in bulk
It is always more profitable to buy fabrics in bulk. Wholesale often starts from one roll. Yes, imagine: just one roll, not a wagon or train, as many people think. Knitwear is often sold by weight. A large batch in this case starts from 20 kg. Therefore, do not be intimidated by this uncomfortable word "wholesale". In addition, traditionally in St. Petersburg (and even more so in the regions) the choice of fabrics and accessories is much less than in Moscow, which means that it makes sense to look for suppliers in the capital.
Buy fabrics and accessories abroad - in China, India, etc. - at the first stage, it makes no sense: your volumes are too small, the price difference will not be perceptible for you.
: In Moscow, Yunsen sells good fabrics for outerwear; they also have a representative office in St. Petersburg. Inexpensive fabrics can be bought from Baltic Textile. Heaters from the All World nonwoven fabric factory are no worse than imported counterparts. In terms of price-quality ratio, I recommend the threads of the Spinning and Threading Mill. CM. Kirov. It is better to take zippers at the Russian representative office of YKK, from the inexpensive ones I can recommend Arta-F. Fittings - buttons, Velcro, etc. - BIG-accessories. This is what we ourselves use for sewing jackets. Materials will differ for other types of clothing.
: It is often more profitable to buy fabrics from stock in Italy than from China and India. Plus, in Italy you can find really original material. The stocks work all year round, but if it is not profitable to travel, there are many shops selling Italian stock fabrics in Russia. In order to get to some specialized stocks in Europe, you can use the services of special agents. Also in Italy there is the city of Prato - the center of the textile industry - there you can easily find warehouses of stock fabrics.
26. Local brands are in great demand now
There is no competition in the local fashion business as such. Although this niche is now in great demand. This is due to the fact that the crisis is only one and a half years old, and few people were able to effectively respond to the vacant niche. Add to this the general global trend of resistance to corporations and giant companies. Your main rival is the mass market. Therefore, it is more profitable not to compete with each other, but to unite, learn from each other.
27. Follow the trends
It so happened that Russia is on the periphery of world fashion, so all trends come to us from abroad. This means that you can at least roughly guess what will be fashionable in the coming season.
28. Learn from successful practitioners
Our institutes train artisans. And for a business to succeed, you need a symbiosis of knowledge, skills, imagination and commercial flair. Therefore, the right step to expand your own professional horizons will be attending intensives and courses from already established professionals with working businesses.
29. Be optimistic
They can deceive you at any stage. But this does not mean that they will certainly be deceived. If you are constantly in fear, it is better not to start anything at all.
30. Look for the “same” idea
Your brand can take off and stay at the top for a long time thanks to just one bright and stylish idea.
- : The sewing business is successful only when professional seamstresses are engaged in sewing and cutting, and marketing professionals are engaged in marketing, not the other way around. The Russian local light industry suffers from a very low quality of tailoring and savings on materials. Startups believe that a bold design or a flamboyant brand will replace a straight line. Please avoid this and only hire artisans, not talented designers.
Business consultant, owner and director of a research company in the fashion industry Y Consulting, buying agencies Y for Buy, lecturer at MGIMO and the British Higher School of Design in Moscow, business trainer Art & Image. She was the director of the business program of Mercedes Benz Fashion Week Russia, an expert at Baku Fashion Week 2014, Caspian Fashion Week 2015, Belarus Fashion Week, etc.
1. Develop a "plan B"
In a business plan, you must not forget about "plan B": what will I do if it does not work out. Calculate how much money you will lose. The product can always be sold - the question is, at what price. And some expenses (for example, the cost of impressions) cannot be reimbursed.
2. You cannot sell a collection without sewing it
If you have known buyers for a long time (buyers of goods for clothing stores) and you a good relationship, it is theoretically possible that buyers look at the sketches and immediately give a purchase summary. In my practice, there was such a case, but it is rare. Prototypes will have to be finished anyway, and only then tested on stylists and buyers.
3. Plan for sewing the collection ~ 300 thousand rubles
The development and sewing of a collection of 10-12 articles will cost about 300 thousand rubles. This is very rough.
In particular, the development of one pattern costs 3 thousand rubles, for 10 articles it will turn out to be 30 thousand. About a thousand more rubles - a graduation of two sizes. In total, 40 thousand rubles for patterns.
If in retail your product costs from 8 to 10 thousand rubles per unit, then the cost of its production is about 2.5 thousand. 10 items in three sizes (30 items) - already 75 thousand rubles. It's in a perfect world. In practice, for the first time it will be about + 30% to the price, that is, 105 thousand rubles. Sewing the first samples will cost twice as much. 10 articles of 5 thousand rubles each - 50 thousand rubles.
Shooting a lookbook - about 30 thousand rubles, and this is the minimum. Tags - about 10 thousand rubles for the minimum batch. Site - 10 thousand rubles, this will include content, payment for a domain and, for example, a Wix.com builder. Registration of a legal entity - about 10 thousand rubles.
This is already 255,000 rubles. Add transportation costs (travel to factories and partners), printing of printed products (catalogs, business cards), etc.
- : It all depends on the product and the approach. We launched our brand for seven thousand rubles, having paid for sewing the first T-shirts, and a year later our turnover was 700 thousand a year. A lookbook, advertising, an online store - all this can be done by mutual account or even free of charge. The main thing is not to lose the quality of performance.
4. Plan your inventory wisely
At least 40 items must be delivered to each point of sale. If you have 2-3 such points, you will need to sew about 120 items. This will require at least 300 thousand rubles of investment. In addition, you need to have in stock the goods for yourself (an online store, instagram sales - also about 100 items. Plus, you need money for PR, a showroom, and so on - for example, dry cleaning after filming.
- : Working with retail sales, you will need to invest significantly more in it than you will receive. For example, to close an assortment at one retail outlet, you need to deliver a hundred units of products. But this does not mean that the store will sell one hundred items in a month - at best it sells twenty pieces, but in a month it will ask to close the holes in the assortment with a new supply. When sewing a batch, be prepared for the fact that you will part with it immediately, and you will receive money for it for the whole next year. At the same time, only large retailers pay money accurately and make tangible sales volumes, so it's not scary to work with them on sales. Small boutiques sell very poorly, and they are used to paying steadily, so it is better to sell them less, but on a prepaid basis.
5. Use marketplaces
There is no point in repeating the path already covered, you have to go your own way, use new opportunities - for example, marketplaces (virtual trading platforms - editor's note).
- : Marketplaces are not suitable for every product. This format is designed for a wide audience, medium or low price segment. Participation in the marketplace of a brand positioned as a luxury and exclusive one can be a blow to the image.
6. Remember the importance of trying on
There is an opinion that it is inconvenient to measure clothes on the markets. Nevertheless, everyone is measured.
7. Showroom will require serious expenses
Opening your own business offline store will require investments of 3 million rubles. This money will be used to repair the premises, retail equipment, lights, music, cash desk, a deposit for the rent and the rent itself for the first month, the goods themselves. Plus the cost of opening a store.
- : To open a showroom without taking into account the cost of goods, 180 thousand rubles will be enough: 80 thousand - rent for the first and last month, subject to a rental rate of 40 thousand rubles, 40 thousand - for a real estate agent, 60 thousand - for repairs and equipment. The showroom should be comfortable, cozy and stylish - it doesn't matter if you have Italian items or from Ikea. Create an atmosphere that any designer can do.
8. Use website builders
The minimum cost of making an online clothing store is 20 thousand rubles. The most important thing about it is ease of use. Better to take a ready-made template than reinvent the wheel.
9. Strike a balance between basic
and experimental models
Assortment selection is a matter of the right balance between base and trend, brand core and commercial experimentation. On average, basic models account for about 40% of the assortment, while the core of the collection and trend - about 40% more. Eye-catchers (bright, eye-catching models) and high trend take no more than 20%.
- : A Russian designer must be prepared for the fact that he will be able to develop models on the basis of available fabrics and accessories, and not vice versa - to select the fabric for the invented model. Linking models to materials means a large purchase of raw materials. Example: you came up with a model, bought fabrics for one batch, the model is in demand, but the suppliers run out of fabric - that's it, you won't be able to repeat the batch.
10. Stop theft by sellers
Five technologies that apparel sellers use to defraud employers:
punching goods to their accomplices at a reduced price, as if at a discount;
scan one product and sell another;
accept for exchange a cheaper product with an expensive tag and exchange it for a more expensive one;
They "sort" the goods - that is, they add cheaper goods under the guise of expensive ones or goods of other brands under fake tags;
writing paper checks, not punching at the checkout.
11. Choose the right tax regime
If you have chosen and are going to pay 15% tax on income after deducting expenses, then think about whether you can accurately account for all your expenses? Often, local clothing manufacturers buy fabrics and accessories unofficially, some of the costs are not considered de facto at all. In this case, it is better to choose 6% of the income, and as the business “legalizes”, switch to the first option.
Participation in paid fashion shows costs from 100 thousand to 2 million rubles, not counting the cost of preparing models. Impressions give PR and recognition, but in general - how you work. If your goal is customers, then focus on local and regional displays, if your goal is PR, then large platforms are more effective. For the sake of PR and recognition among the industry public, it is worth participating in design contests. It does not matter whether you won or not, they will write about you as a participant in the competition, you will get to know the jury in which the industry experts sit, and you will learn more about the inner “kitchen”.
13. Plan PR activities
A PR strategy should be written for the year ahead - all PR events, speeches, publication schedule on social networks, press goals, work with bloggers and celebrities. This is necessary to budget, plan the movement of samples through magazines, and embody the brand image consistently, not chaotically.
- : Never do anything to "fuck off", even posts on social networks. Users feel everything, any negligence. Don't turn social media into a trash can. Both the photo and the description of the product should be at their best - especially if the customer has the only contact with your products via the Internet.
14. Get to know your audience
Look at a real audience. For example, you make clothes for young girls, and mostly women aged 40+ come to you. They, unlike girls, like your products, but they cannot fit into them - they need a different size or fit (retro fit).
- : People love to communicate. Ask the people who bought your product if they liked everything. Whether the manager or the transportation service was polite to them. Do they like the tag on the T-shirt and how did they find out about your brand? You will receive the most valuable comments from buyers.
15. Certification - optional
Garment certification is optional unless it is underwear or children's clothing.
- : You need certificates or declarations of conformity for offline retail or work with large stores, so if you plan to sell the first collections in your online stores and social networks, you can postpone the issue of certification.
16. For discounts - to Selskokhozyaistvennaya street
Everyone asks: where can you choose and buy materials in small wholesale with discounts? Agricultural Street in Moscow will save you.
17. Ask the contractor about his clients
When choosing small-scale production, look not only at the timing and prices, but also at who they are sewing for. This way you can track the quality.
18. Don't miss the price
A "designer" thing in Russian costs from 5000 rubles, according to world standards - from 250 euros in retail.
19. Whether to attract an investor: weigh the pros and cons
An investor is needed when you have already sold several collections (3-4 seasons), but there is not enough money to expand production and PR support. For example, in order to make a large circulation (including for large partners who work only on the basis of sale), to enter the international market, to pay for participation in an international exhibition. Organic growth is good, but slow. Without an investor, growth can take from 5 to 10 years, with an investor - from 2 to 3 years.
- : I am sure that the gradual development option is the best. Don't invest in everything right away, prioritize.
20. The main thing is business processes
Brand strategy can only be built on business processes. Design may or may not be their basis, but without proper business processes, any idea, even the most original, will fail.
21.
Trends: plus size,homeclothes, silver market
What trends do I see in the next 5 years? The plus size niche is now actively developing, but the store market for this environment has not yet been formed, that is, there is a demand for designer clothes, but designers, in fact, have nowhere to sell them. A similar story with home clothes is a very promising market, but it is just being formed.
The silver market is becoming a very important niche - the market for mature buyers over the age of 50. Population aging is a global trend, these buyers have funds that they can spend on themselves. But fashion is still mainly aimed at young buyers in both trends and cut - for example, the market is sorely lacking products with a retro fit.
