How to Start a Clothing Brand: AJG Fashion Consulting's Ultimate Guide
Setting out on your journey to start a clothing business can be thrilling but challenging. A lot of work goes into creating your product before it will be ready to show to your customers or share with wholesale buyers.
To navigate this complex industry successfully, you need to equip yourself with the right knowledge and strategies. Fortunately, you've found AJG Fashion Consulting's ultimate guide to starting a clothing brand, covering key aspects from finding the right clothing manufacturer, avoiding common fashion business mistakes, tips on fabric sourcing, how to reduce production costs, collaborating with a manufacturer, and getting your brand in stores and in front of your target audience. Our guide delves into the nuances of product development, international sourcing, fashion tech packs, and debunks myths surrounding overseas manufacturing. Whether you're an aspiring fashion entrepreneur or a seasoned designer looking to refine your skills, this guide is a valuable resource to set you on the path to success in the fashion industry.
Looking for a more in-depth guide to the entire product development process? You can purchase our Startup Fashion Brand Guidebook to give you more tips on design, development, samples, regulations and laws, production, and shipping.
What Kinds of Mistakes Do Fashion Brands Make and How Can I Avoid Them?
Fashion brands can make a variety of mistakes when entering the industry. Fortunately, many of these errors can be avoided with the right strategies. Oftentimes, mistakes happen from not having experience, lack of industry knowledge, or not choosing the right manufacturing partners. It’s important to invest time in learning about the fashion world by attending seminars, reading industry publications, and seeking mentorship.
Not having a proper tech pack is one of the biggest mistakes new brands make. Not having an accurate, detailed tech pack can result in the factory using the wrong fabric, not following approved design details, or packaging the product incorrectly. This can lead to miscommunications that will cost you time and money. Working with a professional designer who specializes in your product category can ensure your tech pack has all the details it needs.
Another critical error is not working with a trusted and compliant factory. To avoid this, conduct thorough research and partner with reputable manufacturers known for their ethical and quality standards. Some factories may pressure you to pay a deposit on production before seeing samples - never put any money down on production before seeing samples and approving prototypes first. Paying for production without seeing samples can lead to costly mistakes, so always scrutinize product samples before committing to full-scale production. Keep track of all the materials and samples to ensure that the final product matched what you approved.
Proper budget planning is often neglected, but it can be addressed by developing a comprehensive business plan with a realistic budget, cash flow projection, and profit margin analysis. Look into retail math calculations such as margin rate to make sure you understand how much profit you are making per garment, and to ensure it’s enough to keep your business going strong. Be sure to allocate funds to marketing efforts, as having a great product isn’t always enough - you need to educate your customers, have an easy-to-shop website, and a clear brand identity. Proper inventory management, planning assortments based on your customer base, and pricing your retails appropriately to ensure proper profit margins are also vital.
By avoiding these common mistakes and seeking support when needed, you can increase your chances of success in the fashion industry, where creativity, problem solving, strategic thinking, and perseverance are key.
For more tips, check out our blog: Top 11 Fashion Brand Mistakes and How to Avoid Them
What Should I Know About Fabric Sourcing?
Fabric sourcing is a crucial element of designing a product. Choosing the right fabrics can either bring your creative vision to life or take it in a completely different direction - you wouldn’t make a men’s suit out of the same material as a t-shirt, so understanding the basics of fabric such as fiber type, color or dye process, price, eco-credentials, weight, construction, and functional properties will help you articulate the aspects you need in the fabric you are sourcing.
When sourcing fabric, it's important to ask potential suppliers several questions. Ask about minimum and maximum quantities, lead times, repeat orders, pricing, and fabric width to ensure that the fabric aligns with your needs and budget. Moreover, prioritize sustainability and ethical considerations in your sourcing strategy, as responsible sourcing is a moral and market imperative in today's conscientious consumer landscape. It’s also important to research fabric care, as properly labeling your product with care instructions is a US law.
Once you have found a supplier and material that works for your product, you can order fabric swatches or a small amount of yardage to test the fabric out. This allows you to explore various materials without significant cost, and adapt your creative ideas based on what's available.
One Common hiccup to avoid is not ensuring stock continuity - check with the manufacturer on how much stock they have or if the fabric will be remade if it sells out to prevent disappointments during the production process. To find reliable suppliers for full-scale production, consider different categories, such as mills, converters, and jobbers, and conduct your search online or attend trade shows to meet potential suppliers and assess their offerings.
Attention to detail can make the difference for a successful business. Remember that the right fabric sets the stage, so meticulously considering factors like minimum quantities, lead times, sustainability, and supplier reliability is crucial to developing a robust fabric sourcing strategy that ensures your designs materialize flawlessly.
For more information, check out our blog: The Ultimate Fabric Sourcing Checklist for Fashion Designers
What Should I Know About the Fashion Tech Pack?
An apparel tech pack is the blueprint of your design, and is an essential element in the process of bringing a fashion concept to life. This comprehensive document encompasses several critical elements that play a pivotal role in ensuring the quality and accuracy of production. The tech pack comprises various sections, and is a living document that will be updated constantly through the development process. Enlisting the help of an experienced designer will make sure all of the details are documented accurately. Having a highly detailed, up-to-date document prevents costly mistakes in production.
The detail page provide essential information about the garment, including style name, description, design sketches, construction call outs, diagrams, and reference images for your style. This is where you can tell the factory the specific construction details about your style.
The POM (Point of Measurement), or Spec Page, is dedicated to precise measurements and specifications for each size and component of the garment. It encompasses size charts, tolerances, and helps track fitting comments or any changes made during the development process. Also included are grade rules, which dictate how measurements should adjust as the garment size varies, ensuring consistency in proportions and fit across all sizes.
The bill of materials page lists every material required for production, including fabric, trims, interfacing, linings, thread, labels, and tags. Information for each version of your product is displayed in the BOM to allow the factory to correctly assemble each colorway. Finally, packaging instructions ensure that the finished garments are packed and labeled correctly for shipping.
The importance of an apparel tech pack cannot be overstated. It eliminates ambiguity, streamlines communication, enhances cost efficiency, supports quality control, enables scaling, and offers legal protection. In essence, a well-prepared tech pack is a testament to a fashion brand's commitment to excellence and precision, providing a clear path to success in garment production. Partnering with a trusted fashion brand consultancy can ensure all of these essential details are met, ensuring that your creative vision is translated into high-quality garments that meet industry standards and consumer expectations.
You can download our Ultimate Tech Pack Template in the AJG shop.
For more information on Fashion Tech Packs, read our blog: Demystifying the Fashion Tech Pack: Blueprint for Production Excellence
How Should I Navigate the Product Development Journey?
From the initial prototype samples to the critical top of production (TOP) stage, each phase of the product development journey plays a pivotal role in refining your fashion products. Understanding the sequence of sample types and their respective assessments empowers you to confidently navigate the journey from concept to quality production.
The process begins with prototype samples, which serve as the starting point for reviewing design, fit, and trims. Fit samples come next, offering the chance to assess how the fashion product fits and functions, and allows for testing of the selected fabrics. After approving the samples for fit and fabric, a Purchase Order (PO) is placed. After the factory orders the bulk materials, the Pre-production (PP) samples follow, made with all production materials, trims, labels, and packaging. This is the last review before production commences. Finally, TOP samples are taken directly from production line, and many brands use these samples for marketing.
Along the way, the guidance of a fashion brand consultancy can be indispensable. These industry experts, equipped with extensive knowledge and strong manufacturing partnerships, streamline the process, reducing minimum order quantities and enhancing efficiency. Success in the fashion industry relies on meticulous attention to detail and the support of experts, so embark on your fashion product development journey with confidence, watching your vision come to life.
For more insight, check out our blog: Types of Clothing Samples: Navigating the Product Development Journey with Expert Guidance
How Do I Find a Clothing Manufacturer?
Fashion brands can make various mistakes when it comes to finding the right clothing manufacturer. One common error is not clearly defining their vision. Without a comprehensive project brief that outlines the clothing product's purpose, target audience, materials, and design elements, collaboration with a manufacturing partner becomes challenging. It’s important to have this information ready, so you can find the manufacturer best suited to your particular product category. Every manufacturer specializes in something, and you wouldn’t want a children’s t-shirt factory to produce men’s dress shirts, for example.
Conducting thorough research is key to finding a reputable manufacturer. Researching the manufacturer's track record, seeking references, and evaluating their expertise is crucial to choosing the right manufacturing partner. Failure to address regulatory standards and certifications can also lead to complications - ask for all of the factory’s certifications and credentials before starting work with them. This research helps ensure that the chosen manufacturer can meet quality standards and bring the brand's vision to life.
Using search engines, industry directories, and trade publications can help identify potential partners. Enlisting a trusted fashion brand consultancy is another smart move, as they bring industry knowledge and can utilize their trusted manufacturers for your brand. Fashion consultants can help identify a suitable manufacturing facility, negotiate contracts, and ensure compliance with industry standards, laws, and regulations.
Visiting industry trade shows provides opportunities to meet factory representatives, discuss brand goals, and learn about processes and requirements. It's also essential to check for relevant certifications and compliance measures, prioritizing ethical labor, sustainable practices,and quality standards. Requesting references and visiting facilities can offer further insights into a manufacturer's capabilities, working conditions, and professionalism.
By following these tips and seeking expert guidance, fashion brands can avoid costly mistakes and find trustworthy production partners to realize their vision and set the stage for long-term success.
For more advice on finding a manufacturer, read our blog: How to Find Clothing Manufacturers
How Do I Collaborate with a Manufacturer?
Collaborating with a manufacturer is a critical step in the journey of any clothing business. First, clearly define your vision and provide a comprehensive brief that outlines your project's goals, target market, materials, design elements, and regulatory requirements. This clear vision lays the foundation for a successful collaboration.
Next, choose the right manufacturer with experience aligned to your brand's needs, conducting thorough research and requesting references to ensure a good fit. Open communication is vital - as well as treating your partner with respect, working through challenges together, and building a long lasting partnership for the future. Maintaining transparent and continuous dialogue, sharing your goals, and seeking their insights and suggestions throughout the manufacturing process can significantly enhance the collaboration.
Creating prototypes, controlling for quality, and documenting every step of the process ensure your fashion product meets the desired standards and allows for troubleshooting when needed. Be aware of any regulatory requirements, and ensure your factory can adhere to any laws or regulations required of your product and that they can provide the necessary documentation for you when importing the goods into the US.
Additionally, the guidance of a trusted fashion brand consultancy can streamline the sourcing process, helping you make informed decisions and achieve the quality and cost-efficiency your brand aspires to. AJG has many trusted partners within our global network who have produced for many brands, including Target, Meijer, HomeGoods, Nordstrom, and more. Partnering with an agency allows you access into factories who may not take on a new brand without a referral. Collaborating with a manufacturer is pivotal for bringing your fashion brand's vision to life and setting the stage for long-term growth and success.
For more details, read our blog: Top Tips for How to Collaborate with a Manufacturer
How Can My Fashion Startup Reduce Costs?
Evaluate the components of your product to identify areas where cost savings can be achieved, such as reducing fabric consumption, using a stock trim instead of customized, or using stock fabrics rather than custom dye. Identifying specific cost drivers, such as production and material costs, can help address profitability roadblocks and allow you to determine if moving product overseas will be worth the investment.
To reduce costs for your fashion startup, consider international sourcing as part of your strategic approach. But before you pull the trigger on international sourcing, determine if your brand is at the right stage, with customer data and insights guiding your future production strategies. Overseas factories require higher MOQs, which means a bigger investment in product cost.
When dealing with higher Minimum Order Quantities (MOQs) in international sourcing, focus on utilizing available stock materials to avoid custom dye fees. Some brands also consider importing materials in white or Prepared For Dye (PFD) finishes to meet higher MOQs. Finally, plan for various costs associated with importing materials, including duties, shipping, and logistics expenses, by collaborating with a global logistics partner who can provide guidance.
These strategies can significantly reduce expenses and make your fashion brand more profitable, helping you achieve long-lasting success in the industry. Remember that thinking globally opens up a world of opportunities for your fashion startup.
For more advice on reducing costs, read our blog: Strategic Savings: How to Reduce Costs for Your Fashion Startup
Can I Save Money by Sourcing Internationally?
International sourcing can be a great strategic move for fashion startups to alleviate the high costs associated with material and the manufacturing process in the United States. Starting small can be a good approach for some brands, however profit margins within the US for low quantity production can be a challenge for a starting business. AJG can help you plan ahead and analyze if Domestic or Overseas production is right for your brand.
One significant area to focus on is the cost of fabric, as it's a primary component in your fashion products. Exploring international sourcing for fabric can lead to substantial cost reductions, improving your profit margins - however, if you are importing fabric into the US, you want to make sure you understand the added cost of duties and shipping before making your purchase. When producing overseas, factories will often source fabrics from their partner mills, allowing you to save money on shipping and duties which would be handled by the factory.
Additionally, labor costs in the US are much higher than overseas. While there are many amazing, high-quality factories within the US, the machinery and technology are not as advanced as overseas and therefore the categories of apparel within the US are limited. Higher complexity apparel, especially outerwear, lingerie, handbags, formal suits, etc. are best suited for overseas manufacturing.
Understanding the importing costs and logistics involved in overseas sourcing is crucial. Duties, shipping fees, and various charges need to be accounted for in your pricing strategy. Understanding the terms of the production, if they are FOB (Freight on Board), LDP (Landed Duty Paid), or DDP (Delivered Duty Paid), can help you ensure you are prepared for which fees the factory will cover, and which fees will be your responsibility.
By strategically navigating international sourcing and minimizing cost roadblocks, you can build a profitable and enduring fashion brand. Thinking globally and considering overseas sourcing options opens up numerous opportunities for success in the fashion industry.
For more information on international sourcing, check out our blog: How to Save Money with International Sourcing
What are Some Myths about Overseas Manufacturing?
Many believe that overseas manufacturing implies lower product quality. However, quality isn't solely determined by location but by the manufacturer's capabilities and standards. Reputable overseas manufacturers adhere to stringent quality controls, with facilities equipped to maintain high standards. Global brands like Adidas and Nike produce overseas while ensuring top-notch quality. The key is to choose manufacturers with established reputations and track records for quality production.
Another myth suggests that overseas factories have poor labor conditions and exploit workers. While poor labor conditions exist in some factories, there are third party certifications that factories can achieve through audits to certify proper labor practices are in place. Ethical manufacturing practices are a global concern, prompting many overseas factories to improve working conditions in response to increased scrutiny. Brands can ensure ethical production by conducting audits, enforcing labor laws, and partnering with manufacturers committed to fair labor practices.
A common misconception is that tariffs or duties make overseas sourcing financially impractical. However, tariffs and duties vary depending on the product and country of origin. Working with trade experts who understand tariff regulations is crucial. Some countries have trade agreements that reduce or eliminate tariffs, but often overseas manufacturing is still less expensive than within the US even after factoring in all the additional fees.
There's a myth that shipping costs and duty fees are exorbitant and outweigh potential savings. While these costs are considerations, strategic planning can minimize expenses. Shipping by sea is a cost-effective option, though it requires longer lead times. Reliable global logistics partners can help navigate these costs efficiently, ensuring reasonable expenses.
Finally, the myth persists that overseas manufacturers require extremely high MOQs. However, MOQs vary widely among manufacturers and products. Some factories are flexible, especially with a strong relationship. Strategies like focusing on core materials or fabrics used across collections can meet quantity requirements. Smaller brands can explore collective production and work with fashion brand consultancies to access networks and expertise in managing MOQs effectively.
By dispelling these myths and working with a fashion brand consultancy, you can confidently navigate overseas manufacturing, leveraging the cost-saving and quality opportunities it offers.
For more information, read our blog: Overseas Clothing Manufacturing Myths Debunked
How Do I Get My Clothing Brand in Stores?
Getting your clothing brand into large retail stores and in front of your target audience can be exciting but challenging. To increase your chances of success, here are five essential tips for presenting your fashion startup to major retailers.
Your linesheet, which acts as your visual fashion business card, should be well-designed, easy to navigate, and contain crucial information about your products, including high-quality images, detailed product descriptions, wholesale pricing, minimum order quantities, and available sizes and colors. A professionally crafted linesheet demonstrates your commitment to professionalism and helps retailers quickly assess your offerings.
To stand out, offer competitive wholesale pricing that is both appealing to retailers and sustainable for your business. Carefully calculate your costs, including manufacturing, overhead, and profit margins, and be transparent about your pricing and discounts to build trust with potential partners.
Efficient inventory management is crucial when dealing with large retailers, so highlight your capabilities in this area, from production to distribution. Explain how you manage inventory effectively, and if you have systems or software in place to track stock levels and forecast demand, share this information to instill confidence in retailers.
Lastly, persevere and network persistently. Rejection and silence may be part of the process, but don't be discouraged. Continuously refine your pitch, seek feedback, and network within the industry through trade shows, events, and networking sessions. Building relationships takes time, but it can lead to valuable opportunities in the long run. By following these tips and navigating the dynamic world of fashion retail, you can increase your chances of securing partnerships with major retail stores. Remember that success often depends on seizing opportunities and staying committed to your goals.
For further guidance, check out our blog: How to Get My Clothing Brand in Stores: 5 Tips for Presenting Your Fashion Startup to Large Retailers
Consider AJG Fashion Consulting
The world of fashion is both dynamic and exciting. Success in the clothing industry hinges on a combination of creativity, strategy, perseverance, and informed decision-making. Hopefully, we’ve shed some light on what can make or break your fashion business. From finding the right manufacturer to fabric sourcing, avoiding common mistakes, and achieving cost efficiency, we've offered insights and strategies to help you navigate the complex landscape of fashion.
By applying the knowledge and recommendations provided in this guide, you can turn your dreams into a reality, helping your brand stand out in this competitive and ever-evolving industry and land your fashion product in your target audience's shopping carts. With the right guidance and an unwavering commitment to your vision, the possibilities in the world of fashion are endless. AJG Fashion Consulting is here to support your journey, and we're excited to see your clothing brand flourish.
Would you like to talk to us about how we can help your brand grow? Reach out to us here.
