Challenges faced
by Fashion startups
1) Customer Connection
This is the biggest problem faced by fashion
startups these days. Fashion by its very name is
ever changing and ever evolving – and so are their
customers' demands. To keep up with the demand
is a very crucial step for a fashion startup. You
cannot have a design or layout that customers feel
redundant. Your outlet - be it online or offline
needs to add “new” and “trendy” to your
attributes. Your store must look cool to your
customers and not just to you.
Tip: Try doing a survey with people within your
target group and implement feedback.
2) Quality and Price Balance
When it comes to fashion, quality is more
important than price and yet if your prices are
exorbitantly high, no one will try your brand even it
is of finest quality. The fabric, the stitches – all the
minute details that go into your products should
be of high quality yet rightly priced.
Tip: If your products are priced higher than
competitor brands, they will find tough time
selling. Try undercutting them by say 10%.
3) Selections
Say, you want to launch a t-shirt brand and you get
a manufacturer who is ready to produce t-shirts for
you. Now you cannot just launch one single color
or one single design and build a brand right? You
will have to launch an array of products with
different permutations and combinations of
designs and colors. This can sometimes be a huge
investment. For example, If one t-shirt design costs
250 Rs. and say you need 100 stocks to begin with.
You will end up spending 25,000 Rs. per design.
Considering you want 20 designs. You will end up
spending 5 Lakhs merely for launch without even
starting to make profits.
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Tip: Try to get very low trial quantities and sell
them out. If they do well, then get bulk printing
done. Your trial lot can cause you losses but it is
better to absorb them before investing in bulk.
4) Staff Management
This is a crucial problem in most fashion brands
startups. There is little at stake for the staff and the
industry thus sees a high attrition ratio. Managing
the staff and maintaining their moral is crucial.
Tip: Try keeping reliable staff and frequently make
them feel important part of the startup.
5) Buying Terms
This is not a problem but more of an awareness
issue. There are numerous buying clauses you can
have with your manufacturer before you close on
the product. The most important one is Return and
warranty policy in case of defects and damages
from manufacturing end. Typically your vendor
will provide you one year warranty for apparels
and footwear.
Do negotiate for one.