The clothing business is a great way for people who have a passion for fashion to make a living and turn their creativity into a career. Online selling is easier than ever and can help new business owners make a profit. There are many ways to sell clothes, from finding wholesalers and collaborators to offering great products to excited customers. This is everything you need to know to help you start a clothing company.
9 Steps to Start Your Own Clothing Line
1. Find Your Niche
Fashion is a huge industry that includes many brands with different styles and niches. It is important to find your niche and stick with it. This will allow you to develop a product line that appeals to your target market and help you build a solid brand. As tempting as it is to think you can be all things to all people, the best brands are those that have a niche and stay there.
These are a few examples of successful clothing companies operating in different niches.
- Wrangler (casual).
- Adidas (athletic)
- H&M (trendy)
- Ralph Lauren (classic)
Finding a niche is about focusing on your strengths. You will spend most of your time creating and designing pieces if you are a skilled seamster. You might be a visual artist and create artwork that can be printed on T-shirts or other clothing items.
2. Know Your Audience
It’s crucial to identify your ideal customer early on. Fashion can make it both easy and difficult to establish your business. Although you can imagine the people who will wear your clothes, it is not difficult to figure out where they are located (in brick-and-mortar stores) and how to get there.
These are some questions you should ask when determining who your audience is.
- Who are they?
- Which clothing brands are they most fond of?
- Are they able to identify with specific brands?
- Where can they shop?
- How often do they shop?
- Are they concerned about the latest trends?
- What price range do they have?
- What factors influence their purchasing decisions?
These questions will help you gain a better understanding of your target audience. This allows you to build your brand more strategically, create products they want, and distribute them so that they are easily found by those who will purchase them.
3. Make a marketing plan
Next, you need to create a marketing plan. Although it may seem like a lot of work, it doesn’t need to be extensive. However, you must detail the channels you intend to use to sell your products, such as Amazon, Etsy, and boutiques …), and how your business will be promoted to ensure sales.
These are the essential elements of a business marketing plan.
- Market and competition
- Distribution channels
- Marketing strategy
- Marketing and advertising channels (e.g. social media, PPC ads).
- Marketing budget
The marketing plan is basically how you market your clothing line. It can help you to determine how your product distribution will be and how your advertising strategies will affect your sales.
4. Name your brand and create brand assets
It’s time for you to pick a business name if you don’t have one yet. Names for clothing businesses can be very different. For example, Under Armor, ASOS, Banana Republic, L.L. Bean, American Apparel TopShop, Brooks Brothers and Dickies. Your clothing business can be called anything you like.
These are some tips to remember when naming your clothing company:
- It should be easy to spell and pronounce
- Pick a memorable or catchy name
- Take a look at how it is translated into other languages
- Check if it is available as a domain name (e.g., yourbusinessname.com)
After choosing a business name, select a slogan (optional), and create your logo. Canva is an affordable drag-and-drop tool that allows you to easily create your logo. It also has many pre-made logos that you can customize. You can also get a professionally designed logo for $5 on Fiverr.
5. Register Your Clothing Business
Next, you will need to register your company with your state. Although it’s not an enjoyable step, it is necessary. Even for new clothing businesses, you will need an Employer Identification Number to be able to accept payments for your products. Register as a company to obtain an EIN. It also allows you to work with retailers and get wholesale prices.
Your state will have different requirements for how you register your business. However, you will file it with the Secretary of State. A Limited Liability Corporation (LLC), which typically costs $100, can cost as low as $40 or as high as $250 for small businesses, is the best choice. You can learn more about the LLC and how to create an LLC.
6. Design and source your clothing products
You probably already know the way you want to source and design your products. If your mind isn’t set on a particular path or you’re open to new ideas, there are three main options for you.
- Wholesalers: Buy products
- Make your own designs and have them made
- You can design and sew your own home-made garments
How you intend to sell your products will determine your choice. If you plan to create clothing collections to sell online via your website, Amazon, or other platforms, you might consider purchasing products from wholesalers and drop shippers. Dropshipping is an excellent way to lower upfront costs, especially if selling wholesale products. This does, however, mean that your products may not be as unique, requiring more marketing.
7. Pricing Your Clothing Line
Two key variables are important in pricing fashion products. The first is the price of the goods (e.g. labor costs and materials), and the second is the niche that you are targeting. The keystone strategy is the most common markup strategy for clothing. It takes the cost of production and doubles it to calculate the price. Depending on your niche, the price can be raised up to 5x.
These are some key costs that you should include in your product pricing:
- Material costs
- Advertising and marketing
Your products should be priced appropriately if you are aiming to establish a luxury brand. Premium prices should be given to items that take time, effort, and care.
Conversely, clothing companies that are focused on high volumes can offer items at lower prices. To encourage consumers to purchase more, you can offer flash sales and discounts to increase purchases.
8. Distribute your products
There are many distribution options for clothing businesses. These include selling direct via their website or selling on third-party sites like Amazon and Etsy. They can also sell in-store through local retailers or big-box retailers. It is a good idea to have multiple product distribution channels to maximize exposure and increase sales.
Even if your goal is to sell products online or directly, you should still have a website. It helps you build your brand. If you plan to approach retailers, it allows them to view your product catalogs and lookbooks. You can learn more about how you make a website and the best online e-commerce platforms to help you create an online shop where your products can be sold directly to customers.
You should have your website regardless of how you plan to sell most of your products.
You can also use Etsy and other highly ranked E-Commerce platforms to reduce your work load. You can spend less time fixing a website and more time designing clothes.
9. Promote Your Clothing Brand
You must market your clothing brand to reach your target market. Although there are many ways to market clothing businesses, you should choose the channels that will reach your target market. Also, go where your customers are.
These are the top marketing channels and strategies that clothing brands use:
- Organic social media marketing (e.g. Instagram, Pinterest)
- Paid social media advertising (e.g. Facebook Ads, Youtube Ads)
- Paid search advertising (e.g. Google Ads).
- Forums (e.g. Reddit).
- Content marketing
- Marketing to Influencers
- Paid positions
- Banner ads (e.g. Google Adsense).
- E-commerce ads (e.g. Amazon Ads, Etsy Ads).
- Search Engine Optimization (SEO).
Keep your brand in mind when choosing the best marketing channels and strategies for your clothing company. You should consider whether it will stay on brand and if you can afford it. Multichannel marketing is important for maximum exposure, just as you would choose distribution channels.
It’s a great way for creative passion for being combined with business acumen. You can also show people your work and turn your passions into a business. It’s also easier than ever to start your own clothing line. You don’t have to invest a lot to do so.
Most Frequently Asked Questions
What is the cost of starting a clothing business?
The startup costs for any business will vary depending on the size of the business. A small clothing company will require $500, while a medium-sized business might need between $1,000 and $5,000. Larger businesses may need $50,000.
Are clothing businesses usually profitable?
It is possible with hard work and dedication. According to estimates, profits could range from 4% up to 13%. Because fashion trends change so rapidly, there will be many changes.
What business plan do I need to start a clothing company?
Although you don’t necessarily need a business plan in order to start a clothing company, it is a good idea. A strong business plan will allow you to stay true and focused on your original vision. You can plan for the future by planning out your goals, suppliers, and general growth strategy.
Where can I find products for my online shop?
There are many sources that you can purchase products for your online shops, such as wholesalers, manufacturers, and distributors. You can also find clothes at thrift shops and garage sales. These stores often have gently used clothes, sometimes ones that were never worn. Alibaba and DHgate are two of the most popular aggregators for manufacturers. Many store owners turn to sites such as Faire and Abound for wholesale products.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: email@example.com