No doubt it is a long-struggling path towards success for every startup to survive in the world of today where the business is dominated by big corporations. When it comes to fashion startups, the challenges become even stiffer with additional burdens of time constraints and trends coming and going in a whiff. Do you think you figured out everything about your fashion startup? Wrong! Here are 7 obstacle in business to face that you should be concerned about while planning or running your fashion startup.
1. MONEY CONSTRAINT
The first obstacle in business and the most common problem for all… the MONEY FACTOR!!
Right down from finding investors, setting up the enterprise, renting a showroom, ordering products, manufacturing, maintaining inventory, hiring salespersons, paying for marketing and campaigns and finally post-sale services… it is all where only money speaks.
Though the fixed costs are manageable up to some point with some patchwork, there can be absolutely no compromise with the variables – the manufacturing and sourcing of the clothing and accessories in the right quantity, right price and right quality.
Setting up a manufacturing factory is not a reasonable option but then again gaining economic manufacturing without a manufacturing unit is an unreachable option. For fashion startups, the requirement is a smaller work order with product diversification, all the while ensuring quality – an uphill task which is absolutely not cheap!
2. DEMAND FORECAST
What will be the trend that will be sweeping the people off their feet in the coming autumn? Or winter?
Believe or not, forecasting demand is not some guesswork that will strike gold on one lucky moon. It is a major obstacle in business of fashion. It is a science that can be understood from the ongoing trends of the society and how public opinions are taking shape. It is one detailed and intricate process of work that requires utmost attention and professional insight.
As a consequence, only the startup that can offer the right thing at the right time will see success. Only for them will the sales soar. For others, who will not be able to understand the science and tap into the pattern of customer demand, the cycle of countless modifications will continue in hopes that one day luck will shine.
3. WISE SOURCING
A fashion startup is defined by what it sells. And, what it sells is what it sources.
So, whether or not a fashion startup will survive in the market of competition depends a lot on the right manufacturer to source from. And, all the existing fashion startups will tell you how difficult it is to get a reliable manufacturer who will be delivering constantly and be responsive to the needs of the startup.
Many startups take up the manufacturing to itself only to realize that, in most of the cases, the manufacturing setup becomes a burden to bear in itself. The smartest choice will always be to find dependable sources first before opening up an outlet.
4. FAST FASHION
Fast fashion is dominating the market and it is changing faster than the weather changes itself.
Fashion trends and designs are arriving and becoming old faster than you can place an order. Today’s top trendy jeans are tomorrow’s trash. A hot sale on the outlet takes absolutely no time to get up to the rack of inventory in the garage.
At such fierce pace of the trend and design changes of today’s integrated world. One of the most fierce obstacle in business to face as a fashion startup is – keeping up with the trend and selling what is in hot demand.
5. DRAFTING DESIGN
Innovation and business go hand in hand. And, there are plenty of examples around on how original ideas are taking center stage and imitations are getting lost in their shadows.
The struggle for fashion startups is certainly one to be saluted here. We understand that money constraints often force fashion startups to opt for cheaper imitations of bigger brands, but we must say that you cannot keep the business alive with imitation for long. It is just not sustainable in the long run.
We understand that getting designers are expensive options, but we would certainly recommend showcasing original products. Unique and innovative design is a way to make a sustainable business.
6. MAINTAINING QUALITY
Not to be forgotten, just selling a product is not a sustainable business model any more. A post-sale positive review of the product has found its way up to the mandate list for fashion startups if they want to survive in today’s competing market.
For consumers of today, an out of place stitch on that leather purse you thought is not noticeable will take no time find its way to the internet right under your tagged company name – not a situation you would want to be if you want to continue business.
Therefore, the importance is on sustainable manufacturing without any compromise on the quality of your product. Some might say, quality is the thing that is selling best in today’s market.
7. BUILDING CREDIBILITY
Arguably the steepest climb in the business is to gain the trust and faith of the customers – especially if you are in the fashion accessories business. Be assured that there is no shortcut down this road. A severe obstacle in business that you are bound to face.
Right from the get go, you need to give your customers products that they would want to come back for. For ages, the trick has always been to tap into what a customer wants and for fashion startups it might seem no different. But generically, quality is the best trade.
It is a MUST DO that you give quality in whatever you are selling right from the product and fast forwarding to the post-sales services. One let up in quality and you might remember it with pain and anguish for an unbelievably long time.
(Bonus) INVENTORY MANAGEMENT
Accessories startups are usually not sure what products to source and stock in the early stages. And worse still, unsold items taking up all the space.
The early stages of fashion startups are crucial – it is the period where you don’t have a definite idea of the demand and source items at random hoping that it will sell. And, within a few days when you know what will sell, chances are, you will also find out that you had sourced a lot of the initial products for nothing.
Most of all, fashion products are subjected to seasonal change. Thus, more often than not, inventory management plays an important role in determining business. To get rid of the stock or not at discount rates or pulling up a product meant for much later in the year might prove to be determining factors in today’s age of fast fashion.
