Starting a business always comes with its own challenges, especially for beginners — and the fashion industry is no exception. Besides food, fashion is one of the most sought-after product categories in the online marketplace. This means the demand for fashion in Indonesia is relatively high.
However, in an era dominated by rapidly changing trends and intense competition, taking the first step can often become a defining moment. Even though the prospects of the fashion business may seem highly promising, the possibility of encountering failure is still very real.
However, with the right understanding of the market and the proper strategies, starting a fashion business is not as difficult as you might think. This article will walk you through simple yet effective tips to help you begin your journey in the world of online fashion business.
Easy Tips for Starting a Fashion Business
Starting a fashion business requires careful planning. Your first steps are crucial in determining whether your business will thrive in the future or head in the opposite direction. Without a clear strategy, your business risks stalling halfway. Here are some easy tips to help you kick-start your online fashion business:
1. Conduct market research
As a first step, make sure you conduct market research to determine which products you want to offer. This is important to ensure that your products are well-received by the market. You can’t simply sell whatever you want, nor can you base your product selection solely on personal preference.
There are several methods you can use to conduct market research, such as using Google Trends, social media, or directly asking potential customers. In addition, it’s essential to clearly identify your target market. You can do this by analyzing your competitors or engaging directly with prospective customers.
2. Research your competitors
Don’t forget to conduct market research through your competitors as well. Studying your competitors can help you understand which fashion products are currently in demand among consumers.
So, how do you conduct competitor research effectively? Just like market research, there are several methods you can use to study your competitors.
For example, you can study the products your competitors offer through their websites or social media channels. Additionally, check customer reviews and compare competitors’ product prices. This way, you can offer the right products at competitive prices.
3. Create a business plan
A business plan serves as both a concept and a guide for the fashion business you intend to run. Just like market research, you shouldn’t create a business plan without careful consideration.
Your business plan should include your market research, the products you intend to sell, the marketing strategies you will use, and a financial analysis.
Don’t forget to include a business analysis, covering your business’s potential, strengths, weaknesses, and the challenges you may face, along with the solutions you plan to implement.
4. Prepare your capital
When starting a business, including a fashion business, capital plays a crucial role. However, the size of your capital—whether large or small—is not the sole determinant of your business’s success. The key lies in how wisely you manage and allocate your funds.
This way, your business can run smoothly while maximizing your profits. Just like creating a business plan, it’s also a good idea to develop a financial plan to ensure your business cash flow is well-managed.
5. Create your product brand
The next step is to create a brand. This aspect is equally important, as it helps potential customers easily recognize your products or business. In the fashion industry, a brand also serves as the identity and distinctive characteristic of your products.
As a first step in creating your brand, choose a name that reflects the unique identity of the fashion products you are offering. Ideally, the brand name should be short and easy to remember.
6. Set your pricing
Pricing is also a crucial aspect of the online fashion business. When setting prices, you need to consider several factors, such as the type of clothing (pants, skirts, shirts, jackets, blouses, etc.), the materials used, and the quantity (whether sold individually, as a set of top and bottom, or in multiple pieces).
In addition, pricing should take into account your initial purchase cost (if you’re sourcing products wholesale), production costs (if you manufacture the items yourself), and other expenses, such as shipping fees or transportation costs for sourcing products.
Alternatively, you can set prices using the break-even pricing method (based on your costs or market prices) or the keystone pricing method (setting the selling price at double the cost price).
7. Create appealing promotions
Your online fashion business isn’t complete without effective promotion. To make it easier, you can leverage online promotions through social media platforms such as Facebook, Instagram, or TikTok.
Make sure to present visually appealing content by creating clear photos and videos, and include detailed product descriptions. This way, potential customers can get an accurate understanding of your products.
To attract more potential customers, consider adding special offers. For example, you could offer an opening discount for your business launch, a buy-one-get-one-free deal, cashback on certain purchase amounts, or free shipping to specific areas.
If you have some leftover budget for promotion, you can use it to collaborate with influencers. Invite them to help promote your clothing products.
Often, orders can increase significantly after collaborating with influencers who have a large following.
As you can see, starting a fashion business isn’t as complicated as you might think. So, if you’re ready to dive into this venture, don’t hesitate to take the first step and make it happen!
To make managing your online fashion business easier and more practical, try using the Labamu app!
With Labamu, you can manage your products neatly and in detail. In addition, the transaction process becomes much simpler thanks to the POS Cashier feature, which is secure, supports various payment methods, and keeps all records organized.
Don’t have the capital to start your fashion business? No worries — Labamu also offers financial assistance to help grow your fashion business, with low installment plans and a fast, easy process.
Visit the Labamu page for more detailed information.
