The fashion industry is experiencing tremendous growth. According to Statista, the global fashion ecommerce market is expected to hit $781.5 billion in 2024 and surpass $1.6 trillion by 2030.
Although the idea of starting a clothing line might seem intimidating, anyone can establish a successful brand with the right resources and guidance. If you’ve been thinking (or dreaming) of starting your own clothing brand, now is the perfect time to make it happen.
This article will look at the steps you need to take to launch a clothing brand, and provide a few successful online clothing brands to inspire you.
What does it cost to start a clothing brand?
You may be able to fund your clothing business idea yourself. Start by designing and sewing made-to-order clothes. This way, you won’t need a huge inventory. But, you’ll need to buy equipment and lots of fabric upfront. Don’t forget shipping supplies, website fees, and marketing costs.
If you’re working with manufacturers, be ready for higher costs. You’ll need to meet their minimums. Having a solid plan will help you figure out how much money you’ll need.
Expect to spend a few thousand dollars upfront. Think about buttons, fabric, rent, labor, utilities, and shipping.
To get that startup cash, consider a business loan or crowdfunding. Low-cost options like print on demand, dropshipping, and consignment can also help you start small.
How to start a clothing brand in 15 steps
- Identify a need in the market
- Determine your target audience
- Develop your fashion design skills
- Write your clothing business plan
- Choose a business model
- Look into fashion trends
- Design your clothing line
- Create collections
- Find a clothing manufacturer
- Build your clothing brand
- Choose a price point for your items
- Create your distribution strategy
- Market your clothing brand
- Set a realistic sales goal
- Do a soft launch, then seek more investments
1. Identify a need in the market
You might already have some ideas for what you’d like to sell. That’s great—but don’t jump in just yet.
One of the biggest reasons that new business owners fail is that nobody actually wants what they’re trying to sell. And you don’t want to go through the whole process of learning how to start your own clothing line and never find the success you hoped for.
That’s why market research is your best friend at this stage.
There are two types of market research: primary market research, which is data you collect on your own, and secondary market research, which is data you get from other sources who already did the research, like Nielsen, NPD, and MarketResearch.com.
Heads up: Buying research reports can get pricey. If you’re bootstrapping your fashion business, you might want to focus more on primary research.
Here are some primary market research ideas:
- Search for specific items on Google Trends and see what’s steady or growing in popularity
- Dig into Facebook Analytics to learn about the likes, interests, and behaviors of people who might be your future customers, or your target audience (more on that soon)
- Do some competitor research on other online clothing brands to see what people love and what they don’t (pay special attention to negative comments—that’s where you can swoop in with a solution to their problems.)
Here’s a quick search for “crop tops” on Google Trends. It’s had a steady level of popularity the past year, and is projected to spike as the spring approaches.
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2. Determine your target audience
Figure out who needs your products and find your target audience. These are the people who will want to buy what you’re selling.
You’ll spend your days trying to connect with these groups. Knowing them well helps you keep them as loyal customers.
To run a successful online clothing store, you need to know your target audience inside and out.
Research until you get both the demographics and psychographics of your target market:
- Demographics: age, gender, income, marital status, location, etc.
- Psychographics: their likes, dislikes, hobbies, interests, lifestyle, and buying habits, and the companies they shop with and why. Understand their problems and how your products can solve them.
3. Develop your fashion design skills
Launching a successful clothing brand requires good knowledge of design and business. You can gain these skills through various methods. Watch online tutorials and take courses on platforms like Udemy and MasterClass to learn the basics of tailoring, fabric selection, and design.
Another pathway is to enroll in formal education programs. Schools like Parsons and Central Saint Martins offer comprehensive fashion design courses. Alternatively, look into fast-track or online courses that fit your schedule. Community colleges, for example, often have part-time classes that are budget-friendly.
Getting real-world experience is also key. Working for other brands and designers helps you learn the ropes. You see how the industry operates and gain confidence in your abilities. This hands-on experience is invaluable as you prepare to launch your own brand.
4. Write your clothing business plan
Writing a business plan is an important step in starting a clothing line. A business plan helps you see the big picture, set goals, and stay on track. Every business needs a clear direction and a strategy for growth.
A good fashion business plan outlines:
- Who you are as a company, including your team, company mission statement, and what you sell
- What you’re trying to accomplish, including specific, actionable, and measurable business goals
- Why you think the company will be successful (this is where your market research comes in)
- How you plan to meet your business goals, backed by specific steps and strategies
Ideally, your clothing business plan covers the first three to five years of your business. Of course, things won’t always go exactly as planned, but you need to have something to work toward.
More importantly, you need to have something to compare your progress to so that you can better understand if you’re on track to meeting your goals, or if you need to make changes to your original plan.
Plus, your clothing line business plan is what you’ll show to potential investors and partners. If your plan is thoughtful, strategic, specific, and promising, you’re much more likely to get people on board to support your business and help it grow.
The US Small Business Administration (SBA) has great resources for writing a business plan, including how to lay it out, section by section.
5. Choose a business model
Another important aspect of developing is choosing a business model. Your choice will shape your entire business strategy and determine how you approach production, sales, and marketing.
A few business models are:
- Hand production: Create and sell your designs directly to customers through your website, online marketplaces, or at local markets. This gives you complete control over your products.
- Print on demand: Design graphics for blank t-shirts and other items, then sell them online. The print-on-demand service handles production and shipping for you.
- Manufacturing partnership: Develop collections and have a manufacturer produce your clothing. Then, sell your line wholesale to other retailers for quicker scaling.
Each model has different requirements for time, effort, and funding. Choose the one that best fits your skills and resources.
6. Look into fashion trends
Would you buy from a fashion designer who stays on top of the latest trends, or one who’s out of touch?
If you said the first one, then you understand why following trends matters. Staying updated helps you design what people want.
Look at fashion magazines, follow style influencers, and subscribe to fashion newsletters. These sources are good to keep you inspired and ahead of the curve.
You can also attend fashion shows and trade events to see what’s trending firsthand.
7. Design your clothing line
Now for the fun part. Get your creative juices flowing and create your masterpieces.
Here are some things to keep in mind when designing your clothing line:
Keep a sketchpad on you at all times. You never know when creativity will strike, so be sure you’re always ready to jot down new ideas and inspiration.
Don’t compromise on materials and overall product quality. Especially if you’re building a luxury line or boutique, your customers will know if you’re cutting corners to save money.
It’s a great idea to create your own samples. An intimate understanding of the process will help you run your clothing business more smoothly, especially while negotiating costs with your manufacturer. But don’t get so caught up in the technical side that you’re sacrificing your creativity and ability to design new pieces.
Start building your “tech pack” early. This is the basic info you’ll hand off to your manufacturer when it’s time for them to produce your clothing line. Your tech pack should include technical specifications and product details like measurements, materials, and accessories.
8. Create collections
Creating collections is a great way to keep your clothing brand exciting and relevant. Collections show your ability to adapt to trends and seasons, which keeps your audience interested.
Time your collections to the seasons so that they align with customers’ requirements. For example, you can design airy sundresses for summer and cozy sweaters for winter.
You can also consider themes that resonate with your audience. If your customers love a certain lifestyle or trend, design a collection around that.
Look at social media trends, fashion shows, or ask your customers what they want. Plan your collections well in advance to ensure everything is ready on time.
9. Find a clothing manufacturer
On your journey to starting your own fashion brand, finding the right manufacturer is a big deal. That’s why you should take the time to do your research and properly vet your options before you make a decision.
Here are some tips for finding a clothing manufacturer.
Consider whether you want a domestic or overseas manufacturer
You might save money with an overseas manufacturer, but find that ultimately it’s not worth the potential drawbacks, like longer delivery times or lower product quality.
Get creative with your search
Do a good old-fashioned search on Google, and look through social media sites like Facebook groups. You might also find industry meetups, directories, or networking opportunities.
Once you have a list of manufacturers, vet them thoroughly by asking plenty of questions and taking note of their response times. Check online to see if they have any good or bad reviews from other clothing companies.
We have a whole guide on how to find a clothing manufacturer. Check it out.
10. Build your clothing brand
It’s time to develop the creative materials that shape your brand identity: things like your brand name, logo, graphics, product photos, and color palette.
Doing all the branding and design work can seem intimidating. If you don’t have any design skills or the budget to hire a professional developer, there are plenty of free, beginner-friendly resources to help you keep things affordable.
Check out Shopify’s tools page to see what’s on offer, including:
You can also find an affordable graphic design freelancer on marketplaces like Fiverr, 99designs, DesignCrowd, or Upwork.
11. Choose a price point for your items
To choose an appropriate price, you’ll need to have a good understanding of how much it costs you to manufacture the items, also called the cost of goods sold (COGS). COGS includes things like the cost of materials, labor, and production.
You’ll also want to consider the overhead for running your clothing line, like how much you pay in rent for your warehouse, shipping costs, and payroll for your employees.
Once you know how much it costs to run the business, you can choose a price that covers those costs as well as makes you some profit after all the bills are paid.
One common pricing method is called the keystone markup, where you simply double the price. So if it costs you $10 to manufacture a blouse, you might sell it in your store for $20. Or, you can sell to wholesalers for $20 and sell in your online store for $40.
However you decide to price, make sure you’re also considering how much your target audience will be willing to pay. It might take some experimentation to find the perfect price point.
Check out this article on pricing strategy for more tips.
12. Create your distribution strategy
When it comes to distribution, you’ll want to use as many channels as possible. Make sure to cover all bases by:
- Selling directly on your website and through platforms like Amazon and Etsy
- Offering products in local shops or even big retailers if possible
- Setting up your own website, even if you don’t plan to sell directly online
Having a website helps build your brand. Retailers can check out your catalogs and lookbooks there. It also gives customers a place to find you.
If you’re not ready for a full website, use Etsy or other ecommerce platforms. These can save you time on site maintenance, letting you focus on designing clothes.
A good mix of online and offline channels can maximize your reach and sales. Plan ahead and choose what works best for you.
13. Market your clothing brand
Marketing is a critical part of learning how to run a clothing business online. After all, nobody will buy from your store if they don’t know it exists, right?
Ideally, you should start setting up your marketing before your clothing store even launches. That way, you’re ready to hit the ground running.
You start setting up Facebook Ads, which is a popular advertising method for clothing companies to build their customer base. Facebook has incredible targeting capabilities that help you reach the right people.
If you’re tight on ad budget, you can start with organic social media marketing strategies, which focus on creating excellent content that engages and entices people to follow and shop with you.
Influencer marketing is a great idea for a low budget: offer free items in exchange for shoutouts from social media users with a strong follower base within your target audience. Here’s Instagram influencer @gonolivier posting to promote a new denim line from clothing company boohooMAN.
You can also host a giveaway to build your email list before your store goes live, then use email marketing to build stronger relationships with them after the launch.
14. Set a realistic sales goal
You know that old saying, “Rome wasn’t built in a day.” The same goes for anyone mastering the art of how to start a clothing business.
In the early stages of your company, you’ll have a lot to learn. A lot of trial and error. A lot of testing and tweaking and testing again.
Make sure you’re going easy on yourself by setting realistic goals. It’s not realistic to say you’ll make a million dollars your first year (though it is possible!).
A more realistic goal might be to grow your revenue by 20% every quarter for the first year you’re in business. This kind of growth-oriented goal helps to make sure you’re not choosing arbitrary financial figures that just aren’t attainable.
15. Do a soft launch, then seek more investment and partnerships
Now that you’ve set up a presence and built up some anticipation, you can launch your masterpiece into the world.
This is when you can pull the trigger on all the marketing campaigns you’ve been working on. Keep working and building on them—just like everything else on the journey of how to start a clothing company online, you’ll need to keep experimenting and building as you go.
And this is also when you can turn your sights to growing on the business side by seeking out more investment dollars and partnerships with other companies.
Try pitching your clothing line to retailers who are already selling products to your target audience. Depending on the size of the company, you may need to reach out to multiple people before you can secure a meeting. Keep at it!
The same goes for finding investment partners. Polish up your business plan to present to them—be sure you’ve nailed down specifics, like how much money you’re asking for and where those dollars will be spent within your business.
And of course, make sure you’re offering a juicy incentive for them to choose you. Will they get partial ownership of your company, or a certain percentage of your revenue once you successfully grow?
Clothing business store examples
Let’s look at a few great Shopify clothing stores for inspiration.
Khara Kapas
Khara Kapas means “pure cotton” in Hindi. The company boasts handcrafted clothing made from pure and homegrown Indian fabrics. It does an excellent job of showcasing this in its product photography, creating a natural, down-to-earth feeling that instantly appeals to its audience.
Pour Moi
Pour Moi is a UK online clothing store for lingerie, swimwear, nightwear, and more. It has created a sleek and sexy brand that appeals to stylish women who want to look and feel good.
The Candi Factory
The Candi Factory is owned and operated by Candice Levine, who makes all products from start to finish in Toronto, Canada. The brand has a lot of personality and it’s showcased beautifully on the company’s website. Candice is a perfect example of an entrepreneur who learned how to start selling clothes online and absolutely nailed it.
Should you start a clothing business? Yep.
By now, you should have a solid idea of what it takes to learn how to start a clothing business online.
The most important thing to keep in mind is that you won’t be a millionaire overnight. You’ll need to constantly try new things, keep track of your progress, and tweak what isn’t working.
Sure, it’s not a walk in the park, but when you have the passion and dedication to do it right, you’ll find that the rewards can be amazing.
How to start a clothing brand FAQ
What is the first thing I need to do to start a successful fashion brand?
The foundation of any successful business is having a niche idea. Think about what you can offer and who will buy it. Focus on your target audience and spend time building your brand. These steps will set you up for the next phases of launching your clothing brand.
Do I need a license to start a clothing brand?
Bootstrapped fashion brands may need a few licenses to legally operate as a business. Requirements vary based on location, but usually include an apparel registration certificate and a permit to sell and collect tax. Also, consider adding any licenses for brick-and-mortar if you plan to sell clothing in person.
Can I put my own label on wholesale clothing?
The answer depends on your wholesaler’s policies. If they allow merchants to private label (rebrand with your own tags) or white label (sell generic products under your own brand), then you can. The process involves buying wholesale clothing from a supplier, adding your branded tags, and reselling them directly to your customers through your online store under your own brand name.
How do I name my clothing brand?
Naming your clothing brand can be tough, but keep a few things in mind. Make sure it reflects your brand identity and resonates with your audience. If your brand story is personal, using your own name could be a good fit. Shopify has a free business name generator you can use to spark ideas and find the perfect name for your brand.
What’s the future of the clothing industry?
The integration of tech will change the clothing industry forever. Consumers will expect brands to deliver more immersive experiences, driven by new tech like augmented reality and virtual showrooms. Fashion brands that adapt and embrace these changes will thrive both online and while selling in person.