Business Idea

Start A Denim Brand

About

Starting a denim brand requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell denim, or selling denim online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a denim brand ➜

Key stats

market size
$73.1B
revenue (monthly)
$2K
starting costs
$27.7K
gross margin
53%
avg product price
$50
time to build
9 months
growth
Organic social media
business model
Software
time investment
Full time

About

Starting a denim brand requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell denim, or selling denim online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a denim brand ➜

Key stats

market size
$73.1B
revenue (monthly)
$2K
starting costs
$27.7K
gross margin
53%
avg product price
$50

 

time to build
9 months
growth
Organic social media
business model
Software
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $4,786
Software Expenses $150 $2,420
Other Expenses $0 $300
Total Startup Costs $3,445 $51,873

Successful Businesses

Business URL Rank
ZARA zara.com #528
Tommy Hilfiger tommy.com #3,900
Stussy.com stussy.com #18,105
U.S. Polo Assn. uspoloassn.com #18,952
Poshmark poshmark.ca #37,759
BNKR fashionbunker.com #46,347
Ami amiparis.com #74,465
Lee lee.com #96,651
7 For All Mankind Official Store 7forallmankind.com #97,522
Pepe Jeans pepejeans.com #107,668
Ally Fashion allyfashion.com #111,059

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a denim brand. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your denim brand are typically around 53%, which is considerably high and allows you to grow your business and manage costs easily.
Easy to encourage "impulse buy" In the denim brand, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A denim brand can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the denim brand, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a denim brand, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a denim brand, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.