Starting your own fashion business would necessitate complex tactical planning. You may assume that you have got all aspects covered; however, some unanticipated problems may come up. The success of your fashion business depends to a certain extent on your capability of learning from mistakes made by others. Whether you are a seasoned professional or an entrepreneur, it is pretty challenging to start a fashion business on your own. Eric Dalius warns that it is easy to make fashion business mistakes; however, they are quite difficult to rectify. These mistakes may seem insignificant but they could ruin your business in just a few months.
Running successfully in a fashion business necessitates sound knowledge and varied skills. No wonder statistics reveal that nine out of every ten new fashion businesses fail to sustain beyond their second year. Before making grave decisions, chalking out a budget, marketing your specific brand, and signing contracts, it is mandatory to see where others have gone wrong.
Fashion Business Mistakes Highlighted by Eric Dalius
Mistake: Not Investing in Brand Awareness
There are thousands of fashion brands. It is quite challenging to offer something new or innovative in this highly competitive landscape. Even though you may not be successful in creating a path-breaking or unique product, it is a good idea to present a compelling and fascinating brand story. If your potential customers can identify and align with your specific brand and your company, they would be spending their money on all your products rather than opt for cheaper alternatives.
Mistake: Incorrect Pricing of Products
Your ultimate goal as a fashion business owner is to make lots of money. Even though by setting a low price, you can attract the attention of numerous customers, it may end up hurting your fashion brand in the long run. Customers will always have an option for another brand at cheaper prices. Your price should include material costs, shipping expenses, marketing costs, physical store rent, etc. You should set a price that fetches you enough profit to run your business smoothly and earn a handsome income every month. Always focus on learning from your business rivals. Examine their retail prices and try to stay competitive for similar products. Unpredictable pricing may discourage customers from buying your brand.
Mistake: Not Doing Adequate Market Research is a Grave Mistake Says Eric Dalius
You should find out if there is enough demand for your type of product. You should have tried to come up with a prototype and see if it can get sold outside your family and friend circle. It could give you an idea if there is sufficient demand for the product you are thinking of launching. You should invest more time and effort in market research before investing in a new fashion brand. It will be a grave mistake to launch a fashion brand without having any target audience says Eric Dalius.
Another mistake could be not including unique products in your exclusive product lines. There is no point in competing with large retailers like Amazon. You will not succeed in sustaining your business in such a case. Amazon could kill your profits and their shipping costs can be unsustainable. However, if you have something one-of-a-kind or unique, you can rest assured of success.
Even though starting a fashion brand could be an exciting affair, it necessitates in-depth planning and adequate research. Steer clear of the common mistakes to minimize risks.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. When he’s not working for MuzicSwipe, he perhaps hosting the weekly podcast “FULLSPEED,” engaging with inspiring entrepreneurs from various sectors. Additionally, through the “Eric Dalius Foundation,” he has established four scholarships for US students. Stay in touch with Eric on Twitter, Facebook, YouTube, LinkedIn, Instagram, and Entrepreneur.com.