Start A Fashion Business - Business Ideas

Updated: September 15th, 2022
Start A Fashion Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

In 2022, the fashion industry was valued at $473.42B, with a growth rate of 8.3% over last year. To become successful in this highly competitive & ever-growing industry, you must have passion, perseverance, and the ability to take risks.

With platforms like TikTok and Instagram, the way that fashion products are marketed online has completely changed, so it’s essential to keep up with these trends.

Starting a fashion business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell fashion line, or selling fashion line 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 fashion business ➜

Key Stats

revenue (monthly)
$13.3K
starting costs
$25.2K
gross margin
47%
time to build
300 days
growth
Advertising on social media
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$0

$6,000

Inventory Expenses

$300

$5,000

Training & Education Expenses

$0

$1,000

Software Expenses

$162

$3,094

Total Startup Costs

$6,499

$50,261

Successful Businesses

Business URL Rank

Stylekhoj

instagram.com/stylekhoj

24

Farfetch

farfetch.com

581

Zumiez

zumiez.com

3,295

Nykaa

nykaa.com/

3,800

Everlane

everlane.com

5,463

Depop

depop.com/

6,508

Michael Kors

michaelkors.com

7,094

Vestiaire Collective

vestiairecollective.com

8,500

Allbirds

allbirds.com

9,312

Touch of Modern

touchofmodern.com

9,596

The Business of Fashion

businessoffashion.com

13,735

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.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Rewarding work

Starting a fashion business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

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 fashion business. This could be the start of an incredible business opportunity!

Quick build time

The average time it takes to build your product is quick - typically around 10 months. This will allow you to bring your product to market faster.

Cons Description

Crowded Space

Competition is high when it comes to your fashion business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

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.

High employee turnover

In the fashion business, 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.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 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.

    Learn more about word of mouth ➜

  • 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.

    Learn more about social media advertising ➜