HOW MUCH MONEY DOES IT TAKE TO LAUNCH A FASHION BRAND?

One of the questions I receive almost daily is, how much does it take to launch a fashion brand? The truth is, there is no clear-cut answer to this question. Much of your expenses in starting a label depend on a variety of things, which will ultimately factor into how much money you will need to get your fashion startup up & running.

YOUR BUSINESS GOALS MATTER

This is why you should write a business plan before taking any steps to design a collection. You must decide at the beginning stages, whether you want a small independent label following your own trans-seasonal calendar or become the next “Off White”. Will you launch a made to order business or produce your collection in advance in small quantities? Are you looking to produce in China, or must your products be “Made In America”? Is a brick and mortar store your vision or will your label be focused on e-Commerce only. Will you design your collection or sell second-hand clothing? All of these decisions are a must in order to determine at least a rough estimate of how much funding you will need to get started.

THE TYPE OF BRAND YOU WANT TO BUILD IS IMPORTANT

A T-shirt brand is one of the least expensive ways to enter the fashion game. On the other hand, if you would like to develop a premium brand, a luxury collection or a bespoke label, this is where things begin to get costly. Sourcing your raw materials & prototype creation can cost you hundreds, if not, thousands of dollars. Moreover, your overall expenses of bringing your products to market can cost you thousands of dollars before you’ve even sold your first unit.

DIRECT TO CONSUMER, WHOLESALE OR BOTH?

If you wish to wholesale, especially in department stores, you will in most cases need a minimum number of units to receive buyer consideration. In many cases, department stores & boutiques will only take your products on consignment, this means that you will need to produce goods in advance at your expense and trust stores to sell your items without any guarantees that you will receive your funds, once they have sold your goods. If you get your money, you will need to fork over an average of 28% and in some cases as high as 48% of those profits, before you can collect. Next, if you wholesale to department stores, your production process must meet deadlines for timely order fulfillment, in addition, there is a potential charge back fee, if the goods aren’t sold. Let me warn you now, charge backs can and will most often bankrupt a small brand. These fees are typically based on the amount of profit lost on what the buyer paid as well as the potential loss of profit, providing they sold as a markdown OR if they sold at all.

All of these questions and many more, can make launching a brand as low as $2500 or the industry average of $1,000,000 - $2,00,000 for a full-scale premium brand. When starting your company, it would be best to speak with a consultant to get a better understanding of what your potential expenses will be and how to make the best use of your funding, creating the greatest impact to advance your business.

Are you interested in launching your brand or do you need help on the next steps? Set up a free consultation with me here. What are your thoughts on launching a fashion brand? Leave your comment below. Follow me on Instagram, Pinterest, Facebook, Quora, & Twitter.

TOP 5 REASONS YOUR FASHION BRAND COULD FAIL

One out of every ten fashion brands WILL fail within their first year and many more will continue to fold before hitting the five-year mark. There are several reasons for this, but lets look at the five most crucial reasons your fashion brand could fail.

1 YOU BELIEVE BUILDING A FASHION BRAND IS EASY

The glitz & glamour of the fashion industry fool many Designers into thinking that it will be easy to break into fashion. On the other hand, what you don’t see, is the amount of financial resources, personal sacrifices, long work days and weekends that went into the brands of your successful counterparts. Let me say this now, if you have a poor work ethic and are not willing to make sacrifices, this business isn’t for you. Sometimes, just taking one week of downtime could put your business back by an entire month or even an entire year. You will need to give up on having a social life, family time, and sleep to make it happen in the early stages. If you aren’t prepared to do this, save yourself the stress, time and the potential bankruptcy you could bring upon your finances.

2 YOU CAN’T HANDLE CONSTRUCTIVE CRITICISM

The Beyoncé record “ego”, is your anthem. You’ve got a big ego, but unfortunately, it could be the end of your fashion dream. I understand as a creative person the feeling when you have put your heart and passion into something. As a result, I can relate to the feelings of disappointment when someone is critical of your final masterpiece. However, your customer doesn’t care about your feelings, they want a product that excites them and that is worth spending their hard-earned money. If you can’t see someone’s feedback, although brutal, as a teachable moment, you might as well shut down your brand now and save yourself the trouble of spending another dollar to develop it.

“Designers should focus on delivering products, with a viable profit margin, for their target market to buy.”

— Kemal Forrester

3 YOU THINK YOU KNOW IT ALL

A truly intelligent person knows that there is always more to learn and is, therefore, receptive to the teachings of others. Most Designers who want to start their own fashion brands have very limited knowledge of how the industry operates. I cannot tell you how many Designers are resistant to the knowledge of experts, who do things their own way and act surprised when it fails. Some designers think that because they took one online class or read a blog article on WWD, this qualifies them as an expert. There is no true test like industry experience, hence, the reason for Consultants. Their goal is to save you from making costly mistakes that could force you close your business. The reality is, there is too much noise out there, too many people fighting for market placement. As a result, if you want success, it pays to listen to someone with the knowledge and insight who can help you to make it happen.

“I am the wisest man alive, for I know one thing, and that is that I know nothing.”

— Socrates

4 YOU ARE WASTING MONEY ON THINGS THAT WON’T INCREASE SALES

Yes, Tiffany & Co has beautiful packaging, but that should be the least of your concerns as a young brand. I have seen Designers spend hundreds of dollars on custom packaging, but haven’t found a manufacturer for their designs. In other cases, they are spending hundreds of dollars to advertise with high-end publications with the goal to look credible as opposed to letting the product speak for itself. Yes, noise, commands attention, but what often happens to the loud attention seeker is that they are not taken seriously. Too many brands want the recognition, but they are not doing the right things to make that happen.

“Business is about creating healthy cashflow by selling a product or service that people want, delivering growth and profitability. ”

— Forbes.com

5 RUNNING OUT OF MONEY

Number four on this list will certainly lead to running out of funds. You must invest large amounts in cash towards production related expenses and marketing. You will need money to create your products and to invest in a focused marketing to create brand visibility. There are no overnight success stories. What seems like going viral took someone at least two years to accomplish.

Are you guilty of any of these items on the list? Would you like my help in turning getting your brand off the ground or turning it around? Schedule a free discovery call with me here. Follow me on Instagram, Facebook, Quora & Pinterest.

FRENCH SAVOIR FAIRE - WHAT IS IT?

Did you know that all of the terms used in English to describe something done passionately or with a unique quality are in French? The term “joie de vivre” means the exuberant enjoyment of life. Another is “je ne sais quoi”, an expression to classify a special quality about a person or thing that cannot be described. In a previous post, I briefly touched on the French term Savoir Faire. If you haven’t heard of it, then you need to get better acquainted with the true essence of luxury in the world of French luxury fashion.

SAVOIR FAIRE

The literal translation of “savoir faire” is “know how”, therefore, it is no surprise that France is the birthplace of luxury. As a result, it appears in various aspects of luxury fashion:

CRAFTSMANSHIP

Savoir faire is evident during the production process. Each step is managed by skilled artisans who have received specialized training in these areas to construct products with precision using exceptional materials & tools. As a result, they have a keen eye, which is an important aspect of quality control. These artisans have often spent several years honing their craft to ensure the perfect final product.

Image via Madame Figaro

CUSTOMER SERVICE

Another area where savoir faire is omnipresent is, retail. The sales staff is not only well versed in the product, but can often make recommendations to consumers that may prove equally satisfactory. They have mastered the art of upselling. In my personal experience, the sales associates in luxury stores are extremely knowledgeable, accommodating and eager to serve, creating a first class experience  for every customer. Their goal is to create a lasting impression through creating a personalized interaction, allowing you to have an emotional connection. This is a part of extensive training of the sales staff. As a result, working as a retail associate in the luxury sector is highly competitive. In luxury, it’s not about the product, it’s about how it makes you feel. As a result, the brand’s culture triggers a pleasurable experience in order to create a loyal following.

Image via Gilon

VISUAL PRESENTATION

This is a part of an extensive training provided to the sales staff. As a result, working as a retail associate in the luxury sector is highly competitive. In luxury, it’s not about the product, it’s about how it makes you feel. As a result, the brand’s culture triggers a pleasurable experience in order to create a loyal following.

Image via Pinterest

Are you familiar with French Savoir Faire? What do you think about French Fashion? Share your comments below.

Does your brand need help to get off the ground or are you stuck with the next steps on how to advance your start-up? Find out how I can help you here. Perhaps you would like to start a career in fashion. In the meantime, follow me on Instagram, Facebook, Pinterest, & Quora

Why The French Luxury Industry Sets The Bar For High Fashion

You haven’t really made it until your brand has broken ground in Paris. This is the consensus of the industry. Many global brands have struggled to break into the Paris luxury world, including the likes of Victoria’s Secret who, despite its popularity in the US and its highly received televised fashion show, remains somewhat excluded. In spite of its retail space installation at Paris-Orly in 2016, Victoria’s Secret is not a household name & lacks that sought after stand alone brick & mortar in the city center. To be quite frank, with Paris as the birthplace of lingerie - I mean, the word lingerie is French after all- it is rather common to find lingerie at various price points without compromising quality. For instance, the brand ETAM, which is essentially the Forever21 of lingerie, retains quality & has a selection which surpasses the “higher-end” Victoria’s Secret. As a result, the brand never really stood a chance in the Parisian market. Moreover, there are very good reasons for this, which brings me to how French luxury goods have set the bar for the fashion industry:

BRANDING

Your brand is more than just a visual aspect, it is about generating an emotional response with your target audience by getting them to connect with its message & heritage. French fashion houses have mastered the art of creating a lifestyle experience through their products and in essence, selling you the life of your dreams. As a result, the logo becomes a status symbol.

PRESENTATION

In every shopping experience in Paris, from clothing to pastries, visual presentation is paramount. When ordering your Macaron from Ladurée or other shops, the packaging can often be used as a keepsake-yes, it’s THAT pretty. This is all intentional and ties in with branding. It is a way to identify their products through colors & font, just by looking at a tote bag or box.

QUALITY

This trait comes in the form of consistency in their product with regard to the textiles or ingredients as well as the finish or flavor. It is all about the feel and craftsmanship of the products. Made in France, says quite a bit about the products because they are held to very different standards than anywhere else. Yes, it is true, several fashion houses produce goods in China and other locations in Europe. However, there are quality assurance checks to prevent inconsistencies. A part of French culture in luxury goods is about Savoir Faire. It is the attention to detail in various steps of product development.

What are you thoughts on French Luxury? Share your thoughts below.

Does your brand need help to get off the ground or are you stuck with the next steps on how to advance your start-up? Find out how I can help you here. Perhaps you need want to start a career in fashion. In the meantime, follow me on Instagram, Facebook, Pinterest, & Quora