Business Idea

Start A Niche Fashion Business

About

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

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

Key stats

market size
$368B
revenue (monthly)
$6.5K
starting costs
$45.5K
gross margin
47%
avg product price
$55
time to build
11 months
growth
SEO
business model
E-Commerce
time investment
Full time

About

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

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

Key stats

market size
$368B
revenue (monthly)
$6.5K
starting costs
$45.5K
gross margin
47%
avg product price
$55

 

time to build
11 months
growth
SEO
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
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $9,936
Total Startup Costs $7,811 $74,397

Successful Businesses

Business URL Rank
StartUp FASHION startupfashion.com #157,148
Fashion Schools fashion-schools.org #792,827
Scotland Kilt Co thescotlandkiltcompany.co.uk #1,355,866
FrenchFashionCorner frenchfashioncorner.com #1,442,753
LilKong Brand lilkongbrand.com #2,841,422
The Nice Niche theniceniche.com #2,946,996
HeraCloset heracloset.com #3,093,101
NICHE magazine niche.style #3,137,103
Welcome to NoDa noda.org #3,718,607
Ahwenepa.com – African Fashion Hub ahwenepa.com #3,853,133
Fabric Incubator fabrictempe.com #4,431,392

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!
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 niche 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 11 months. This will allow you to bring your product to market faster.
Easy to encourage "impulse buy" In the niche fashion business, 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
Crowded Space Competition is high when it comes to your niche 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 niche 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.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a niche fashion business, 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.

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.

  • 2

    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.

  • 3

    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.