Have a go at our Clothing Brand Business Planning Quiz below. The results of previous respondents are then explained throughout this blog:

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From shoulder pads to miniskirts, from skinny jeans crop top vests, the clothing industry see more adaptations and changes than any other. The constantly changing and evolving tastes and styles of consumers make the clothing brand sector an exciting and dynamic place to conduct business. 

The UK spends £800 a year on new clothes with the latest studies showing the average number of items in a UK adult’s wardrobe number a staggering 95 pieces of clothing.

The demand for clothing is a clear and the nose on your face and despite the huge number of clothing brand businesses in the market the consumer trend towards individualism give start up businesses in the clothing brand sector every opportunity for success. 

You have landed here because of your expressed interest in learning more about the clothing brand business sector. Please enjoy the blog below and learn more about this ever more popular sector.

Industry Stats

The figure below shows some of the key industry stats including market value, projected market growth and number of percentage of online clothing sales. The sustained growth of the industry and the multiple applications and areas of specialism encourages creative entrepreneurs to begin their own ventures. Each adopting and adapting subtly different business plans to carve out their own unique offering.

Small, independent clothing brands are an extremely popular start-up venture. There is a multitude of online and offline places to market and sell clothing wears and a range of tastes and budgets to suit all target customer bases.

The sector is particularly popular with the ‘hidden’ or ‘cottage-industry’ economy as ventures can be started on a small budget and can be market tested with low risk whilst able to reach national and international markets on global platforms like Amazon and eBay. The ever-increasing shift towards making clothing purchases online, popularised by big players such as Asos, has changed the buying patterns of consumers, who have confidence in shopping online for clothing. In fact, 60% of clothing purchases are now made online making them the most popular items to buy over the internet.

The low barriers to entry and relatively low risk have encouraged a number of budding entrepreneurs to try developing a clothing brand. The lifetime of many is short and there is considerable value in creating and planning a proper business plan to maximise any commercial opportunity.

A small but established clothing brand may expect to see an average of around 55 daily customers. This does, of course, vary greatly depending on the nature of the product and where it is sold, whether they are sold directly to consumers or wholesale to other retailers.

Clothing brand products can fall into 7 broad sectors. Larger companies can develop ranges to cross over multiple categories but for most new businesses one or two category areas is more likely. Each category can be further subdivided in an almost infinite number of styles, practical uses, materials and body types. The graphic below shows these categories and their popularity within business offerings as percentages.

 

Ladies’ clothing is the largest area of popularity with clothing brand businesses, not surprising considering the women’s fashion market is worth twice that of the male market. That said the men’s clothing market is growing at a quicker rate than women’s, 62% of our respondents offer men’s clothing in some form.

Shoes and accessories represent 48% and 41% of the popularity share respectively. Each can be considered as sectors in their own right and as a basic rule of thumb have higher price points than other categories.

Average Customer Spend for Clothing Brand

The average spend in a clothing brand is just under £70 per purchase. This is very much an average as there is an enormous range is pricing within the clothing market from £1 socks to £3,000 coats and everything in between.

How Do Clothing Brands Get Financed?

Depending on the nature of the offering a clothing brand can be stated on a couple of thousand pounds. There is a great number of ways to produce sellable goods from sourcing bespoke products, through customising ready-made goods to producing the items in-house. There are as many ways to sell a clothing brand a well. Businesses can leverage online marketplace platforms such as Amazon and eBay, or via their own website, they can sell at a physical site like market stalls or their own shops or they can sell through third-party retailers.

Whichever the method of reaching customers a clear business plan is required in order to maintain focus and a clear strategy. Patrick started ‘Falcon Gymwear’ as a part-time venture to his daytime Physiotherapist job. His products stylised a gym wear range that provided musculature support to aid injury prevention. By selling direct to consumers online costs were able to be kept low.

The £500 spent on his professionally written business plan gave Patrick a clear vision of his profit margins and forecasted income. This way he has been able to make better decisions and understand that his model wouldn’t fit a wholesale style operation.

A high proportion of clothing brand entrepreneurs have used their own savings to fund projects as the numbers are relatively low. There is also popular levels of finance secured funds from Start Up Loans and other debt finance from traditional bank loans. The table below shows the main sources of business finance and their associated percentage. In some cases, for larger projects, businesses may need to obtain finance from more than one source.

The layperson may be misled into thinking a fully written business plan would only be a requirement if looking for outside finance. Whilst it is true a solid business plan would be a pre-requisite for any form of form debt or equity finance the value of having a quality business plan cannot be underestimated. Even for those self-funding, a viable and robust business plan is a sure way to keep focused and accountable which will ultimately lead to better business decision making.

Importance of a business plan

The right pricing structure, ability to reach new customers and have a clear understanding of sales and marketing channels is vital to any clothing brand business. As is the understanding the business’ revenue model, showing the number of customers it requires, in order to hit breakeven.

Any serious company should look to invest in a proper, written business plan in order to maximise its potential. The graphic below shows a high proportion of clothing brand businesses have invested in a professionally written plan and all new ventures should look to do the same.

So what can we say about starting your own clothing brand business?

Pros

  • The industry is experiencing fantastic growth
  • Varied potential customer base
  • Ventures can be started on minimal budgets

Cons

  • Strong market competition makes it important to establish a recognisable brand and reputation
  • Takes time to build traction and cashflow planning is therefore key

 

How you can succeed

The best way to get ahead of the competition and eliminate the biggest unknowns and risks when starting your own clothing brand business is to invest in a high-quality business plan. The investment is invaluable. We at MyBizPlan provide the highest quality and yet lowest cost business plan in the UK, for a minimal outlay you can obtain a high-quality, visually stunning, financially robust business plan. It will give you a greater chance of seeking that vital finance and in the long run, could save you thousands.

 If owning and running a clothing brand business sounds like the kind of business for you, get started with a Clothing brand Business Plan from MyBizPlan. See which of our solutions is right for you by having a go at our – Do You Really Need a Business Plan Questionnaire?

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