children's clothing line business plan

How to Start Your Own Children's Wear Fashion Business

• Small Business
• Types of Businesses to Start
• Starting Your Own Business
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Requirements to Open a Clothing Store

How to start your own medical scrubs clothing line, things to know when starting a fashion company.

• How to Start an Accessories Company
• How to Start a Clothes Brand

Starting a kids' clothing business can be an exciting venture for creative designers who want to have control over their designs and fill a space in the market. The process encompasses designing and establishing your demographic, sourcing manufacturers and creating a business plan.

Research the Kids' Clothing Business

The first step to establishing a kids' clothing business is to conduct extensive research. When starting a business, especially one that caters to children, there is much to consider. Parents are often more careful when shopping for their children than they are for themselves. According to the writers at Startup Fashion , you should focus your research on clothing safety, comfort and durability.

Children's clothing must be safe and not pose a hazard. Safety precautions must ensure the clothing is flame retardant, especially pajamas. Pajamas may need to have a close fit so that children don't get tangled as they sleep. Keep these things, as well as other safety precautions, in mind when considering materials and fit.

Comfort and durability are also essential to your research. While designers must consider these aspects regardless of the type of clothing, adult clothing tends to have a bit more wiggle room in these categories than children's clothing.

Create a Business and Marketing Plan

Before diving deep into your children's clothing business ideas, you must create a business plan. A well-thought-out business plan provides the structure necessary to get your business off the ground. This document is vital to running your business and will provide the overall backbone of your company. The more detailed it is, the easier time you may have navigating certain situations and predicting future hurdles.

According to the experts at Sewport , the business plan should include initial ideas about your clothing line and the products you will produce, the target demographic, competitor analysis and budget guidelines. You should also establish your marketing strategy, production and operations, and forecasted financials, such as manufacturing, distribution and operation costs.

It will help your company's long-term success if you consider your marketing strategy. Establish how you will reach your target demographic and the time and financial costs necessary to enact the strategy. Will you need to hire a social media manager or marketer? Will you need to pay for ad space? All of this should factor into your business plan.

Design and Find Resources

To design and sell baby clothes or children's clothes, you need to design with a target demographic in mind. Consider whether the clothes are casual or formal and the age demographic of the parents who will purchase the clothing. This demographic can influence not only your designs but your marketing strategy.

Keep your demographic and designs in mind when shopping for suppliers and companies to manufacture the clothing. You want to produce and mark up your clothing at a price that is profitable for your business and reasonable for your demographic.

You also need to find sources for the fabric for your designs and a manufacturer. Consider the comfort and feel of the fabric, in addition to breathability, ease of wear, washability, durability, color and pattern. Also, consider the cost of shipping the clothing from the manufacturer to you. Purchasing items in bulk may be more cost-effective, but it will likely leave you with an inventory. If you sell online, you also have to consider how shipping costs could affect your demographic's decision to purchase.

• Startup Fashion: How to Start a Kids Clothing Line
• Sewport: Ultimate Guide to Starting a Children's Clothing Line (in Just 5 Easy Steps)

Danielle Smyth is a writer and content marketer from upstate New York. She has been writing on business-related topics for nearly 10 years. She owns her own content marketing agency, Wordsmyth Creative Content Marketing, and she works with a number of small businesses to develop B2B content for their websites, social media accounts, and marketing materials. In addition to this content, she has written business-related articles for sites like Sweet Frivolity, Alliance Worldwide Investigative Group, Bloom Co and Spent.

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Baby Clothing Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Fashion Industry » Boutique (Clothing Store)

Are you about starting a baby boutique? If YES, here is a complete sample baby clothing retail store business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a baby clothing retail store. We also took it further by analyzing and drafting a sample baby clothing retail store marketing plan template backed up by actionable guerrilla marketing ideas for baby clothing retail stores. So let’s proceed to the business planning section.

We all understand without doubt that the general market for baby products might seem relatively recession-proof. After all, the business keeps bringing new customers no matter what’s happening with the economy in the country. When planning to start up a business just like this, it is advisable that you examine every part of the venture before you even open up your doors.

It simply means that you need to write an expressive business plan. A business plan is also important in terms of getting finances for a business and serves as a guide when changes need to be made or when preparing for future growth and expansion of the business. Below is a sample business plan for your use;

A Sample Baby Clothing Retail Store Business Plan Template

1. industry overview.

Businesses in this industry specializes in clothing retailers that sell a wide range of infant and children’s wear, such as dresses, jackets, jumpsuits, sleepwear and more. Supplementary services include basic alterations like hemming, taking in or letting out seams and lengthening or shortening sleeves.

It is believed that the baby’s and children’s Clothing Stores industry is made up of businesses that specialize in retailing apparel for children under the age of 17. We believe that over the years, a rise in the number of births had a positive impact on industry revenue.

But a reduction in the number of adolescents alters some of the gains made from the rising number of infants and toddlers in the industry. While rising consumer confidence index and strong gains in per capita income had a positive impact on demand for industry products, reducing prices are expected to reduce revenue in the overall industry.

This gigantic industry spends about 11.8% of revenue on labour costs. We also believe that this is very customer service oriented. We believe that retailers need to sustain high levels of customer service to aid customers with their purchasing decisions.

We believe that a large portion of labour in this industry is employed on a part-time or casual basis, and employment fluctuates throughout the year.

Also, in addition to customer relations, employees perform restocking, maintenance and inventory. Capital expenditure comes in the form of cash registers, computers and software and physical apparatuses such as shelves and displays.

2. Executive Summary

Our world has changed due to modernization. The advent of cable television, syndicated radio programs, and the Internet has created a world where a clothing statement in Milano will be on the streets of Gotham in few days.

We believe that the speed of telecommunication system has increased young customers’ expectations and demands for products that represent their own cultural statement. This actually means that this field will keep booming as youths and parents are eager to make their kids look good.

This accurate business plan for Pocoyo Inc. offers young customers the youth-oriented products and clothing that are popular in large urban areas but not available locally. We plan to build a business that will accurately offer our customers distinctive products that will attract them and keep the looking good.

Our target customers at Pocoyo Incorporated will be kids within the age of03-18, who listens to alternative music, participates in youth sports like skateboarding and snowboarding, and looks toward alternative clothing trends in large urban areas for inspiration.

We will provide the distinctive clothing, shoes and products that are just ahead of the fashion curve for them. This Business will be established in Evansville. Evansville is a city in and the county seat of Vanderburgh County, Indiana, united states. This Scituate meets that standard we want to build around our business.

3. Our Products and Services

We at Pocoyo Inc. Specialize in the selling of baby and youth oriented apparel, furniture, and accessories to the general public. We at Pocoyo Inc plan to make available a large line of baby and youth clothes and footwear from a number of brand name suppliers.

We at Pocoyo Inc will also carry a full line of products from varying baby furniture manufactures. These products include changing tables, cribs, and special beds for young children.

In addition to maintain a traditional retail store, we will also launch an e-commerce based website once retail operations have commenced. This we believe will allow us at Pocoyo Inc. to rapidly turnover our inventory on a month to month basis. We will also offer young customers the following youth-oriented products and clothing:

• Dresses and skirts

4. Our Mission and Vision Statement

• Our mission at Pocoyo Inc. is to offer distinctive baby and youth-oriented fashion and products to our target customers.
• Our vision at Pocoyo Incorporated is to provide customers with an expansive inventory of clothing , furniture, and accessories for all of their infant, baby’s and children’s needs.

Our Business Structure

Kieran Johnson, the founder of Pocoyo Incorporated will manage the daily operations of the business. Kieran Johnson has seven years of experience in the retail clothing industry and everything about it. After graduation with a B.A. in Sociology from the University of Washington, Kieran started as a sales associate with Angelo Litrico clothing, one of the greatest clothing lines in the world.

In just four years, Kieran was promoted to a regional sales manager for the southern United States. She has been praised as an excellent manager who is particularly good with the youngest staff members.

Kieran is also a member of the popular alternative band, Infantile Syndrome. We at Pocoyo Incorporated believe that the combination of these two professional experiences makes Kieran Johnson uniquely qualified to understand the demands of our target customers and how to reach them. Below are the structures we hope to start Pocoyo Inc.

• Chief Executive Officer (Owner)

Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO

• In charge of providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In charge of fixing prices and signing business deals
• In charge of recruitment
• In charge of payment of salaries
• In charge of signing checks and documents on behalf of the company
• Evaluates the success of the organization
• In charge of managing the daily activities in the ship
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Takes care of vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• In charge of the purchase of goods and products for the organizations
• In charge of planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyse the volumes of transactional data generated by customer purchases
• Takes care of the organization website
• Handles ecommerce aspect of the business
• In charge of installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Takes care of the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• In charge of payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• In charge of cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager

6. SWOT Analysis

The business plan of Pocoyo Incorporated will tell us what to do and how to manage our business and all other activities. This is the reason why we were very careful to conduct a SWOT Analysis. We at Pocoyo Incorporated are very much aware of the large quantity of retail stores in Evansville even in the same location as us.

It is the reason why we are leaving no stone unturned to make sure that we establish a business that will take over the Industry.

We at Pocoyo Incorporated also know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

The SWOT Analysis for our business was conducted by Leather Business Consult. This firm is known to be the leading figure in business improvement and consulting. They did their job judiciously and they also worked with the available workforce we have at Pocoyo Inc, before coming up with the SWOT Analysis that is summarized below;

• Our founder and managers have extensive clothing product development and marketing experience from previous work
• Our owner and managers have a good understanding of and a good network in the market
• Non-existent ‘brand’ of new children’s clothing retail shop
• Untested end-to-end process from product development to delivery of products to customers

Opportunities

• High quality children’s clothing becoming increasingly expensive with brand as key factor driving up the prices
• Increased mortality rate
• Current credit crunch experienced by the financial markets coupled with the increasing oil prices have impacted on discretionary consumer spending
• Time it will take us to gather the exact workforce that we need

7. MARKET ANALYSIS

• Market Trend

It is important to note that the world children’s clothing market is expected to exceed $201 billion by 2016, representing 19% market expansion since 2009. The Americas have a regional stake of over 38% in the global market.

Just in the G8 countries alone, the children’s clothing market is expected to exceed $120 billion in 2016, representing almost 2% yearly growth over a five-year period. It has been noted that the US leads the G8 with a 45% market share.

Also, the US children’s clothing market generates sales of more than $48 billion a year. The US market is expected to reach almost $67 billion in 2017. We believe that the children and infant clothing industry is made up of the design, manufacture and retail of children’s clothes, which are made in a large range of materials including cotton, wool, and linen and may others.

We at Pocoyo have also noted that clothing styles and types change from one country to the next, depending on culture and temperature. We also understand the fact that clothing protects children from various potentially harmful threats such as the elements.

But Western clothing styles keeps being seen in increasing numbers of other countries outside of the West. It is without doubt that the children clothing represents the most rapidly growing sector in the clothing market, accounting for almost 11% of EU spending on clothing.

Increase birth rates and greater spending on clothing per child are driving demand in the industry. The industry is constantly becoming increasingly competitive, and retailers other than those involved strictly in children’s wear are dedicating more and more space to promotional activities for children’s wear. It is also a known fact that retailers are also offering their branded products at stores carrying multiple brands.

8. Our Target Market

Just like we have stated, the children clothes and products is a billion dollar niche in the clothing industry. It has been estimated that over the past ten years, there has been a notable change in population dynamics in the U.S.

It is important to note that the non-metropolitan population has been increasing at the almost the same rate as the urban population. Evansville’s current population is over 117,000 residents. The city is 250 miles from the closest urban centre.

Without doubt Evansville’s young people don’t live near a large urban centre that offers the diversity in clothing products that the youth culture demands. We believe that this have created a small market niche for businesses to sell clothing and products.

We have also noted our target market and the best way to reach them. Listed below are the market group we hope to attract:

• Kids within the age of 03-18
• Skateboarders
• Alternateen
• College students
• High school students

Our competitive advantage

Our competitive advantage at Pocoyo Incorporated is to offer product lines will make a pronounced statement but won’t leave us broke.

We understand that the major brands are costly and not distinctive enough to satisfy the ever changing taste of our target customers. We at Pocoyo Incorporated offer products that are just ahead of the curve and very easy to buy so that our customers will come back to the store often to check out what’s new and patronise our business.

We understand that the products for our targeted market are seen as part of a lifestyle statement. We’re so focused on serving the Evansville youth while earning substantial income.

We also want to represent their style and life choices. We also believe that we will create a loyal customer base that will see us take over the industry. We also believe that we have the required experience and workforce to take over the said industry.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Our major source of revenue is the sale of clothing and footwear for children between 3-18 years old. We plan to carry an expansive inventory of products from many brand name merchandisers. We all know that major branded label apparel manufacturers such as Nike, Reebok, Polo, J. Crew, and Anne Geddes have all launched lines specifically geared for children and kids.

Another source of revenue for us at Pocoyo Incorporated is the sale of furniture for kids. Much like apparel inventories, we at Pocoyo Incorporated will stock a large selection of cribs, changing tables, dressers, and beds for children between new-borns, toddlers and teenagers.

Also in addition to furniture, apparel, and footwear, we will also carry a line of diaper bags, strollers, and other items normally associated with managing the needs of young infants and toddlers. Other products we will be selling that will cover the need of growing kids between 3 to 10 yet as include;

• skirts and dresses
• trousers and jogging pants
• underwear, socks and tights
• accessories
• baby clothing
• unisex clothes
• school wear

10. Sales Forecast

It is very important to note that the lack of information on the market size of our target segment in our business location, it would be difficult to provide a figure for the market share. But our plan at Pocoyo Incorporated is to be able to capture 0.5% of the market by year 3 of the segment in the target area of Evansville. Listed below is an accurate sales forecast for Pocoyo Inc.

• First Year-: $900,000
• Second Year-: $1,600,000
• Third Year-: $2,500, 000
• Marketing Strategy and Sales strategy

We believe that as a firm, we will establish our own line of products, and we will need to apply for intellectual properties, patents, trademarks, design registration, and copyrights to make sure that you’re able to keep these intangibles as part of our business and leverage these at a later time when the brand of the firm has grown and there is demand for its products already.

Our major supplier will be the tailors providing the fabrics and also other suppliers providing key materials and equipment for the firm to complete the creation of the children’s clothes.

• We will follow up our marketing consultant and always bring options to the table
• We plan to Introduce the new range of high quality affordable clothing to the market
• We want to Utilise current network of owners and introduce the product to the market
• We will Position our product as high quality but at affordable prices
• We will define efficient operations for the business from concept of children’s clothing to delivery of services
• We will establish image of good corporate citizen providing excellent customer service as a retail shop
• Work closely with the local government
• Hire only people passionate in improving the industry
• Hire people with a passion for the local area community to ensure delivery of good customer services in retail store
• Liaise with local government to build ways to expose the retail store

11. Publicity and Advertising Strategy

• Build up the brand and the new children’s clothing product range to the target market
• Place adverts on national TV stations, Radio Stations and Newspapers / Magazines
• Run our own special TV program
• Sponsor relevant community programs
• Leverage the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al
• Install our Bill Boards on strategic locations
• Engage in road show from time to time
• Distribute our fliers and handbills to targeted areas from time to time
• Send out introductory letters to households in and around our location
• Work locally to promote products including in local newspapers
• Encourage word-of-mouth build-up of the brand and products through the initial customers
• Utilise website to increase exposure to the target market
• Link with local entities such as the sports club to build image and brand, which is consistent with the overall objective of the new firm.

12. Our Pricing Strategy

We very much understand how important pricing can be for us at Pocoyo Inc.  We also know that the success we hope to achieve in terms of pricing rests on our bargaining power. Which is why our merchandise Manager will have to come together with the Chief Executive Officer to ascertain the price of our goods, and also the price of the inventories we purchase.

We also plan to inculcate all our expenses in our pricing in other maximize profits that will helps manage our business successfully. We hope to inculcate the following into the business price wise;

• Introduce the children’s clothing at above the low-priced products to reflect the high quality value of the products
• Provide pricing range that high quality clothing seekers will find affordable and attractive
• Potentially, price the products at lower than planned margins in order to encourage the purchase of the products as it increases exposure in the market
• Provide discounts to large buyers (i.e. several items)

Payment Options

Pocoyo Inc.  Is a business that is very much aware that the payment options we provide will serves as a factor that brings our business closer to the heart of the people, and we are very much prepared to make use of that extensively. Pocoyo Inc. will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.

We also hope to provide these services by partnering with a renowned bank in the country. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

• Payment by via bank transfer
• Payment by POS
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

13. Startup Expenditure (Budget)

We at Pocoyo Incorporated understand that it isn’t an easy task to start a retail business and can be dictated by a lot of facts. Factors like the location of the business, business niche, the size of the business, and of course the state of the economy.

We at Pocoyo Incorporated believe will be the forerunner of the industry, which is why we are very careful to note all important facts. We hope to spend our start up capital in the following way;

• Office equipment and furniture – $18,000
• Cost for store equipment (cash register, security, ventilation, signage) – $19,000
• The cost for Start-up inventory – $800,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $49,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
• Cost for Shop remodelling – $5,000.
• Cost for payment of rent for a shop for 12 month at $1.76 per square feet in the total amount of – $52,800.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,000
• Cost for hiring Business consultant – $2,500
• Marketing promotion and grand opening expenses – $94,000
• Legal expenses for obtaining licenses and permits as well as the accounting services totalling – $1,300.
• The Total Fee for Registering the Business in the United States of America – $750.
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• Additional Expenditure (Business cards, Signage et al): $5,000

From our Analysis above, we need $1,084,450 to start Pocoyo Inc.  We are very much prepared to organise and manage our business to maximize profits and become the lead figure in the industry.

• Generating Funding / Start up

Pocoyo Inc. is a standard kids clothing retail shop that will be located in the heart of Evansville. This business was founded and will be managed by Kieran Johnson, an experienced individual in the field. The business will be financed by Kieran Johnson and his immediate family members. Which is why the generating of start up capital has been restricted to just Kieran Johnson.

We at Pocoyo Incorporated will utilise the start-up capital in building the business and will not tap any additional sources of funds in the first year of the business. Our start up capital just like we stated above will be sourced from the owner, there has not been any security guaranteed to other capital providers, since these have not been tapped.

We at Pocoyo Incorporated plan to utilise internal cash generated to provide for the funding requirements of the business. Our key performance metric to be used as the business is grown is the sales growth over the first few years.

14. Sustainability and Expansion Strategy

Our major aim is to establish a high quality children’s clothing offering targeting the market in the United States. Our advantage at Pocoyo will be the offering (high quality children’s clothing at affordable prices since brand premium is minimised) and customer service (personal touch given in the retail store unlike versus competitors).

Our focus in the first year is in building the brand of Pocoyo and increase exposure among the target market. We also hope to ensure efficient operations from concept to product development to creation of the children’s clothes. We also hope to provide Customised customer service providing opinions when asked for and allowing for customisation of clothes to ensure fit of clothes with children.

We at Pocoyo sees the key breakdown of the our product line in terms of product and age We have made sure to inculcate the needs of our customers and employees into our long term plan. Our core objectives at Pocoyo are to develop product and brand awareness of our business among the target market identified for the products.

We also want to create a strong demand from the ‘niche’ market through targeted marketing initiatives and word-of-mouth build-up, and achieve profitability within two years. Our plan is to also capture enough share of the market to be recognised as a competitor among the competitors in the high quality children’s clothing sector.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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Sales & Marketing Plan for a Kid’s Clothing Store (Example)

• May 16, 2024
• Business Plan , Sales & Marketing Strategy

Establishing and operating a successful kid’s clothing store goes beyond offering a wide selection of quality apparel; it requires a strategic and well-rounded approach to marketing and sales. This guide will help you craft a tailored sales and marketing plan for the business plan of a kid’s clothing store .

We’ll begin with the importance of a thorough market analysis to understand competitors and customer needs. Next, we’ll focus on building your store’s brand identity and strategic market positioning.

Finally, we’ll explore diverse marketing channels to connect with potential customers and examine sales strategies for revenue enhancement.

Kids’ Clothing Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Market Analysis

A thorough market analysis forms the foundation of a successful sales and marketing plan for your kid’s clothing store.

Competitive Analysis

• Identify Competitors: Conduct extensive research on other kid’s clothing stores in your local and online market. Analyze their product range, pricing strategies , customer feedback, and marketing initiatives to discern strengths and weaknesses.
• SWOT Analysis : Perform a comprehensive SWOT analysis to identify your store’s Strengths, Weaknesses, Opportunities, and Threats in relation to competitors. Use this analysis to leverage your strengths and address weaknesses, thereby enhancing your store’s competitive edge.

Target Audience Profiling

• Demographics and Psychographics: Define the demographics, including the age, gender, income level, and location of your target customers , such as parents, guardians, or caregivers. Additionally, delve into psychographic details like interests, values, and lifestyle choices to understand their buying behavior.
• Customer Needs and Expectations: Identify what your target audience seeks in children’s clothing, whether it’s trendy designs, durable and comfortable fabrics, eco-friendly options, or affordable yet stylish choices.

Branding and Positioning

Establishing a robust brand and effectively positioning your kid’s clothing store is crucial to standing out in a crowded market.

Brand Identity Development

• Crafting Your Story: Develop a compelling brand narrative that resonates with families. Highlight the inspiration behind your store, your commitment to quality, ethical sourcing, or any unique aspects of your collection that set you apart.
• Visual Elements: Create a consistent and visually appealing brand identity, encompassing a distinctive logo, a cohesive color palette, and a store layout or design that reflects the essence of your brand and appeals to your target audience.

Market Positioning Strategy

• Define Your Unique Value Proposition (UVP): Clearly articulate what sets your kid’s clothing store apart. Whether it’s exclusive designs, sustainably sourced materials, personalized shopping experiences, or budget-friendly options, ensure this differentiation is communicated consistently across all marketing platforms.
• Positioning Statement: Craft a succinct statement that encapsulates your store’s mission, values, and the promise you offer to customers. This statement should guide all marketing and operational decisions to maintain brand consistency.

Marketing Channels

Utilize a blend of marketing channels to effectively reach your audience and build brand awareness for your kid’s clothing store.

Digital Marketing

• Social Media Engagement: Utilize platforms like Instagram, Facebook, and Pinterest to showcase your clothing range. Share engaging content such as styling tips, behind-the-scenes glimpses, and user-generated content. Collaborate with influencers or parent bloggers to widen your reach and engage with your audience authentically.
• Email Marketing Campaigns: Build an email subscriber list and send newsletters featuring new arrivals, promotions, and helpful parenting tips. Offer exclusive discounts or early access to sales for subscribers to encourage repeat visits.
• Website and SEO: Develop a user-friendly website showcasing your products with high-quality images, detailed descriptions, size guides, and customer reviews. Implement SEO strategies to improve your website’s visibility in online searches related to children’s clothing in your area or niche.

Local Advertising

• Community Engagement: Participate in local events, school fairs, or parenting workshops to connect with families in the community. Consider setting up pop-up stores or stalls to showcase your offerings and interact with potential customers.
• Collaborations: Forge partnerships with family-oriented businesses like toy stores, children’s activity centers, or parenting groups for cross-promotional opportunities and joint events.

Promotional Activities

Attract potential customers and encourage engagement with your kid’s clothing range through enticing offers and interactive experiences.

• Special Deals: Launch seasonal promotions like ‘Back-to-School Wardrobe Essentials’ or ‘Holiday Party Outfits’ to attract families during peak shopping periods. Offer bundled discounts on clothing sets or accessories.
• Loyalty Programs: Implement a tiered loyalty program where frequent buyers earn points for each purchase, redeemable for discounts or freebies. Provide exclusive benefits for top-tier members to incentivize increased spending and brand advocacy.
• Referral Incentives: Offer discounts or incentives to customers who refer friends or family to your store. Encourage word-of-mouth marketing by rewarding both the referrer and the new customer.

Sales Channels

Maximize sales opportunities by offering various channels while ensuring customer satisfaction and encouraging repeat business.

In-Store Experience

• Upselling Strategies: Train staff to provide personalized assistance and suggest complementary items or outfit combinations, enhancing the shopping experience for customers. Offer a loyalty program or exclusive discounts for in-store purchases to incentivize repeat visits.
• Exclusive In-Store Events: Host themed events or styling sessions within the store, allowing customers to engage with your brand in a memorable and interactive way. Collaborate with local child-centric organizations or parenting groups to host educational workshops or fun activities.

Online Sales

• E-Commerce Platform: Develop a robust and user-friendly online store that provides a seamless shopping experience. Offer flexible shipping and return policies to encourage online purchases. Implement live chat support or virtual assistants to aid customers during their shopping journey.
• Virtual Styling Consultations: Provide online consultations to assist parents in selecting the right clothing for their children. Offer personalized recommendations and styling tips based on individual preferences and needs, leading to increased customer satisfaction and sales.

Membership and Loyalty Programs

• Membership Benefits : Create exclusive membership options with perks such as early access to new collections, birthday rewards, or members-only sales. Offer tiered benefits, unlocking more rewards with increased spending, to foster long-term customer loyalty.
• Personalized Rewards: Implement a personalized rewards system where customers receive tailored offers based on their previous purchases or preferences. Send personalized emails or notifications showcasing items they might be interested in, encouraging repeat purchases.

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How to Start a Kids Clothing Line

04.19.2021 | Fashion Marketing + PR

Launching a kids’ clothing line is a great way to let your creativity shine. Kids’ clothes come in a variety of patterns and designs that you might not have in adult clothing–not to mention the fact that kids’ clothes often allow for different types of creative expression and style.

In order to start a kids’ clothing line, however, it’s important that you take a few things under consideration that you might not have to include in the launch of an adult line of clothing.

1. Do Your Research

Kids’ clothes have unique requirements. Before you even start designing, you will need to know about those requirements so that you can incorporate them into your designs.

Kids’ clothes must be safe and not pose a hazard to their wearers. Kids’ pajamas, for example, should be made out of flame-retardant material. Pajamas may also need to fit closer to the child’s body than other types of clothing. Carefully evaluate those standards and other safety standards before creating your designs.

Not all children’s clothing is perfectly comfortable–including items like pageant dresses, for example. If you want to create kids’ clothes that kids will enjoy wearing–and that, therefore, parents will be more likely to buy–you’ll find that comfort is critical. Check your designs for uncomfortable, scratchy braid, tight spots, or features that will make kids want to get out of the clothing sooner rather than later.

Parents quickly grow frustrated with clothing that gets torn up, falls apart, or gets stained after just a couple of wear sessions. All too often, however, children’s clothing does exactly that. Make durability a priority in your designs. Strong stitching, durable fabrics, and stain resistance–including fabrics that are less likely to stain–can all help your clothing line withstand the “kid test.”

2. Know Your Target Audience for YoUr Kids’ Clothing Line

When selling kids’ clothes, you will often have two key audiences: kids and their parents. Parents are the ones who ultimately make the buying decisions for most children’s clothing purchases. Kids, on the other hand, often have a say in the clothing their parents purchase–either as they show their dislike for particular items of clothing and refuse to wear them (or, conversely, wear the same pieces of clothing over and over again) or as they specifically ask for the brands, characters, or types of clothing they like to wear.

Knowing your target audience can help you create high-quality clothing that your audience will appreciate as well as informing your advertising. A great deal of your marketing, for example, many need to focus on parents: drawing them to your brand and letting them see what you have to offer.

At the same time, you may want some marketing geared toward kids, including displays that will help catch their attention or marketing that appears on the channels kids are most likely to see, including YouTube videos. Consider the average age of the kids you’re marketing toward, too: younger kids will consume very different types of content than preteens or teens.

3. Find Your Kids’ Clothing Line Niche

What is it that sets your clothing brand apart from others on the market? Who, specifically, are you marketing to? Some brands offer luxury clothing appropriate for special events. Others may focus on offering clothing that children can wear to school or at home. Are you creating clothing primarily for boys, girls, or both?

Get to know your niche in the market. Check out your competitors and see what they’re offering and how your product compares. The better you know your niche, the more you can target your marketing and your clothing to exactly the consumers you have in mind.

For example, if you’re marketing to parents in the 25-35 range with plenty of disposable income, you may have a dramatically different plan than if you want to launch a budget clothing line for parents who need their kids’ clothes to last long-term.

There are also many niche clothing brands within the kids’ clothing industry, from companies that focus on comfortable dress-ups that kids will fall in love with because they represent their favorite characters to character-free lines that focus on solid colors and comfortable fit.

4. Design and Source Your Clothes

Once you have an idea of what you’re creating and who you need to market it to, start designing! Find a source for your clothing, including who will produce your designs. Get an idea of what it is going to cost to produce your designs, including the cost of shipping your product to you. Keep in mind that often, bulk costs will be less than producing just a few items of clothing–but you may also end up with more inventory as a result.

5. Create a Kids’ Clothing Line Business and Marketing Plan

How do you plan to distribute your kids’ clothing line to your target audience? Do you want to open your own store, either in a physical location or online? Are there stores that you think would be a great fit for your clothing line? What about marketing : how do you want to handle it? What channels do you want to use for your marketing? Are you focused on social media, display ads, or physical marketing opportunities? Create a business plan that includes the costs you will face as you start distributing your clothing, the niche you want to target, and the different ways you will distribute your clothing.

Your business plan is your guide to launching your kids’ clothing line and will include all the key details of your strategy for getting your business off the ground. That doesn’t mean that you won’t ever alter your business plan, since your needs can change as you move further with your clothing line. However, it can help you monitor progress toward your goals.

Are you ready to launch your kids’ clothing line? Do you need help getting started? We can help you find the tools you need to launch your business and learn more about the strategies you’ll need to start moving forward with your new line.

24 comments

I’d love guidance to be able to start this for my little boy

Nicole Giordano

Hi Kerry, I’m not sure I understand your question. The blog post offer guidance for launching a kidswear line. IS there something specific you’re asking for more clarity on?

Mary Pat Gallivan

I have a very unique coat/jacket for infant and toddler unisex. I am looking to find out where i can get polartec 300 and I need a manufacturer as well.

Gajendra Sah

Hello I am going to start the online kids fashion dress age between 6 months to 10 years apprx, I want to know what I need to keep in mind in respect of statutories activities or Government policies can you help me to figure out the issues.

Hi Gajendra, congrats! I don’t have the details for this as it changes depending on location and age group. You’ll need to research the requirements based on your location and then zero in on requirements for infants as well as toddlers and then children up to age 10.

There will likely be textile requirements, notions requirements, and testing requirements.

Hi I’m interested to join.

That’s great, Nomsa! Are you on our email list? We’ll let you know the next time we open membership.

Ammazing addvice Thank you very mach

You’re welcome, Betty! Are you launching a kidswear collection?

I just signed up for your webinar! So excited! Do you cover where to buy fabrics for kids’ clothing?

Yodit Aberra

Interested in launching a kids fashion business in Addis Abeba Ethiopia.

That’s exciting! Congrats.

Lianne keynes

Wanting to start a new clothing label aimed at toddlers to teens.

My business name is Candy Cane Kids.

I am wanting swimwear and active wear in the custom pink and white with my logo.

Any help would be appreciated.

Have you watched our free webinar about launching a fashion business? You can register here: https://startupfashion.com/registration-page-launch-your-fashion-business-webinar/

Demetria Hewlett

I’m so ready to learn and get started. Thanks for giving your information.

Chinwe Umeh

I would like suggestions on tools and strategies needed to launch a clothing line business.

Hi Terry, I would suggest starting here: https://startupfashion.com/registration-page-launch-your-fashion-business-webinar/

frazestore.com

Irresistible! Thank you so much for this kind and good service.your services is better than better.

Frances Jones Angels & Company LLC

I have a start up company and desperately need advice on manufacturing. I have used three in a five year period and have had awful experiences with each. Can anyone help?

Sylvia Danso-Abeam

I want to be part of this

This is beautiful, I want to be part of this community.

Quinn Kaelyn

Comments are closed.

More Fashion Marketing + PR

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Family Clothing Business Plan

Start your own family clothing business plan

ReHabiliments

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

ReHabiliments, established as a Limited Liability Corporation, is a clothing and apparel business with principal offices located in Sandybar Harbour.  The company sells trendy clothing and apparel, such as casual and active wear, head gear, work-out gear, leather coats, and baseball jackets to an international market consisting of individuals of all ages, from all walks of life.  ReHabiliments markets its product line as “ReHab Your Wardrobe – ReHab Your World,” and commits a portion of the company’s sales revenues to programs that transform the lives of the less fortunate and abolish the exploitation of children forced into activities such as scavenging, rag-picking or marginal economic activities in the streets, drug trafficking, criminal activities, physical and sexual abuse, forced labor, debt bondage, and prostitution.

“ReHabiliments,” is the brainchild of L. Owerd Emlynes, the company’s founder.  While managing musical performance group, Mr. Emlynes developed the idea of promoting the group and increasing revenue by selling tee shirts and sweat shirts bearing the group’s name, logo, and slogan – “There is Strength in Harmony.”

After purchasing $500 in clothing (e.g., tee shirts and sweat shirts), Mr. Emlynes had the apparel designed and silk-screened and then negotiated with two clothing stores in the Sandybar Harbour area to carry the clothing.  In less than one week, both stores were sold out of the apparel.

Mr. Emlynes conceived the idea of carrying the music group’s marketing strategy one step further and developing an entire clothing line around the concept of “harmony.”  After brief negotiations with the group, it was mutually agreed that since Mr. Emlynes was the brainchild behind the idea, the clothing line known as “ReHabiliments,” and the company (e.g., ReHabiliments), would belong solely to Mr. Emlynes.

The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  When people are of one mind, they are supported in their purpose and are accepted despite their weaknesses.  By purchasing “ReHabiliments,” consumers make a conscientious decision to become an integral member of a community dedicated to the greater good of humanity.

Lately, Mr. Emlynes has explored the potential of the “ReHabiliments” concept, expanding the line to include a variety of apparel and, built upon personal marketing efforts and out-of-pocket funds, has sold over $6,000 in products to various venues such as the New York City Jacob Javits Convention Center; the “Black Expo” in Atlanta, GA; multicultural expositions at the Anaheim Convention Center, CA; at street fairs in Englewood, NJ; and through various online, e-commerce sales.

We are seeking funding to expand ReHabiliments’ operations, establish a reputable storefront, and to further develop the business, business infrastructure, internal systems, product and service development, and extensive marketing and geographic positioning.  Based upon conservative market growth projections, once start-up funding is secured, the company expects to generate very healthy sales revenues in Fiscal Years 1, 2 and 3.

1.1 Mission

ReHabiliments, (ReHabiliments) is a clothing and apparel business with principal offices located in Sandybar Harbour.  The company sells trendy clothing and apparel, such as casual and active wear, head gear, work-out gear, leather coats, and baseball jackets to an international market consisting of individuals of all ages, from all walks of life.  ReHabiliments markets its product line as, “ReHab Your Wardrobe-ReHab Your World,” and commits itself to programs that transform the lives of the less fortunate.

The company’s first responsibility is to the men, women, and children who use its products.  As a customer oriented business, ReHabiliments recognizes that customer satisfaction is the key to success and strives to deliver the highest quality customer service and superior products.  ReHabiliments supports the success of its employees, community, and investors, and will conduct its operations prudently to ensure adequate financing and resources necessary to achieve business objectives for future growth.  The company promotes a spirit of sharing and caring, where people eagerly contribute their time, knowledge, and experience towards a successful community.  As a socially responsible company, ReHabiliments contributes to the world’s obligation for the protection of the environment, contributes to the economic strength of society, and functions as a good corporate citizen on a local, regional, national, and global basis.

1.2 Objectives

ReHabiliments’ management recognizes that the company must establish concrete goals that assist management in determining whether or not the company is achieving corporate objectives.  ReHabiliments’ chance of implementing those goals depends upon management’s ability to track progress toward goals and to measure results in conjunction with those goals.  To ensure implementation of the company’s goals, management has established the following corporate objectives:

• Securing start-up funding and subsequent funding through a combination of investment and debt strategies.
• Establishing marketing and sales initiatives to expand the company’s clothing line and capture 10% of the branded urban apparel industry.
• Based upon market growth projections, generating very healthy sales revenues in Years 1, 2 and 3.
• Reinvesting corporate profits for market share growth in the international apparel industry.

1.3 Keys to Success

ReHabiliments recognizes that the idea of keys to success is based upon the need for focus.  To establish itself as a global leader, the company must display extraordinary competence and intelligent foresight.  By making the company’s keys to success the corporate vision, management can ensure the success of ReHabiliments.

To ensure the success of the company, management will:

• Become the industry leader in the branded urban apparel industry.
• Build a brand as “American” as Wrangler or Levis.
• Offer clothing suitable for sizes from toddler to 5XL.
• Establish and commit to “best practices” in all significant business processes, including ethical production practices (no child labor), through extensive training programs, tools, measurement, and sophisticated self-assessment reporting systems.
• Create, nurture, and enhance customer relationships through problem and opportunity awareness, assessment of desired goals and results, and through routines and communications that constantly reinforce target relationships.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

ReHabiliments, established as a Limited Liability Corporation, is a start-up clothing and apparel business with principal offices located in Sandybar Harbour.

ReHabiliments’ roots can be traced back to 1994, when Mr. Emlynes managed an up-and-coming, music performance group.  To promote the group and increase revenues, Mr. Emlynes developed a clothing line bearing the group’s name, logo, and slogan, “There is Strength in Harmony.”  While the group performed, T-shirts and sweat shirts were sold to the public.  In addition, Mr. Emlynes negotiated an agreement with two local clothing stores to carry this unique line of clothing, and within one week, $500 worth of T-shirts and sweat shirts were completely sold out in both stores.  Unfortunately, shortly after implementing this marketing strategy, Mr. Emlynes resigned his position as their manager; however, he continued to maintain a strong relationship with the group.

The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  When people are of one mind, they are supported in their purpose and are accepted despite their weaknesses.  By purchasing “ReHabiliments,” consumers make a conscientious decision to become an integral member of a community dedicated to the greater good of humanity.

This principle has deep-seated meaning to Mr. Emlynes, who serves as a worldwide advocate for the weakest members of society – children.  He represents an ongoing mission to abolish the exploitation of children forced into activities such as scavenging, rag-picking or marginal economic activities in the streets, drug trafficking, criminal activities, physical and sexual abuse, forced labor, debt bondage, and prostitution.

In fighting this exploitation, Mr. Emlynes donates a portion of the company’s proceeds to programs that transform the lives of the less fortunate, such as “Feed the Children” and UNICEF.  Additional donations are given to other causes that support child education and the eradication of life-threatening diseases.  These donations foster social responsibility within the company and represent the company’s commitment to its vision of harmony.  In addition, ReHabiliments is committed to sourcing its original inventory (sweatshirts, T-shirts, pants, etc.) only from manufacturers who can demonstrate use of ethical production practices, with no child labor or forced labor. 

2.1 Company Ownership

ReHabiliments, is a privately held corporation that is solely owned by its founder, Mr. L. Owerd Emlynes.  The company was incorporated as a Limited Liability Corporation.

2.2 Start-up Summary

Total start-up expenses for ReHabiliments are estimated in the tables below.  To date, the majority of these expenses have been financed by direct owner investment; however, ReHabiliments is seeking to secure additional first round funding through a combination of investment and debt strategies that will cover the majority of the company’s start-up expenses.  In addition, the founder, Mr. Emlynes, is working with the Social Security Administration to qualify for the Plan for Achieving Self-Support (PASS) Program, which will provide the company with additional funding.

Most expenses are typical start-up expenses and include, but are not limited to, the following items:

• Legal (Business Incorporation Filing and Taxes)
• Business Planning/Development
• Consulting Fees
• Advertising/Marketing
• Research and Development
• Business Cards, Letterhead
• Telephone/Internet Expense
• Postage/Shipping
• Business Insurance (Initial Policy)
• Initial Rent
• Decorating/Remodeling/Repairing
• Office Equipment
• Office Setup/Vehicles
• Manufacturing/Distribution
• Reference Materials
• Business Travel
• Expensed Equipment

To date, Mr. Emlynes, the founder, has received $10,000 through grant monies (e.g., DVR), plus an additional $7,000 from other investors to assist with start-up expenses.  Total Capital and Liabilities after start-up costs amount to $580.

Assets to be purchased during start-up include:

Inventory:  $50,000

• Miscellaneous Apparel Accessories:  $900
• Embroidery Supplies/Assorted Threads:  $2,000)

Current Assets: $24,950

• Used, 1999 Chevrolet Step Van w/Shelves and Racks:  $15,000
• Two Garment Racks:  $200
• A Dell Computer System with Digitizing Software:  $2,500
• Three Power Spec, 1 Gigabit Computer Systems w/Software:  $4,000
• Telephone/FAX Machines:  $500
• Five Display Mannequins:  $1,250 (e.g., $250 each)
• Office Furniture:  $1,500

Long-term Assets: $34,485

• A Digital Embroidery Station (Model TEHVC-1501):  $22,000
• Five Industrial Sewing Machines (RX-9803A-UTC):  $5,000 (e.g., $1,000 each)
• An Industrial Steam Press (SP643-A):  $6,000
• A Mighty Press (MP#1):  $635
• A Mighty Cap Press (MCP#3):  $450
• Two Cash Registers:  $400 (e.g., $200 each)

2.3 Company Locations and Facilities

ReHabiliments is currently operating as a home-based business located in Sandybar Harbour.  Once the company acquires start-up funding, ReHabiliments’ headquarters will be moved to a facility capable of accommodating both administrative activities as well as apparel warehousing/inventory and production.  We have located three suitable sites in Sandybar Harbour, and will enter lease negotiations once start-up funding is confirmed.  Ideally, the corporate facility will be jointly inhabited by other tenants and/or small businesses, which will enable ReHabiliments to draw additional revenue from leasing.

ReHabiliments offers a full collection of apparel that is classy, upscale, and versatile.  This apparel line includes casual and active wear, headgear, workout gear, leather coats, and baseball jackets.  Clothing sizes range from toddler to 5XL (in most items).

ReHabiliments will start out by adding logos and branding to pre-made items selected from ethically-sound producers abroad, and gradually shift to producing more whole items in-house, using our team of designers. 

3.1 Product Description

Casual Wear

“Casual wear” is only one of the phrases used to describe the trend away from pin stripes and high heels.  Other terms include “business casual” (usually means the Dockers-khakis-polo shirt look), “business appropriate” (a step-up from casual), “business ready” (meaning that a “traditional” suit must be ready to wear at all times), “corporate casual,” “clearly casual,” “resort casual” (definitely not allowed in the office), “refined casual wear” (acceptable provided that you understand what it is), and, perhaps most appropriately, “casual confusion.” 

–CNet News.com, “Casual Wear:  Dressing for Success or For Stress?” June 10, 2000

ReHabiliments carries a variety of products to suit the needs of every individual, whether they are dressing for success or for an afternoon of leisure.  Some of the company’s products include:

• Jerseys (50/50 Weight Ultra Blend)
• Men’s Pullover, Long Sleeve, Small to 5XL:  $65.00
• Men’s/Women’s Pullover, Short Sleeve, Small to 5XL:  $55.00
• T-Shirts (100% Cotton)
• Men’s, Long Sleeve, Small to 5XL:  $60.00
• Men’s, Short Sleeve, Small to 5XL:  $35.00
• Women’s, Long Sleeve, Small to 5XL:  $30.00 (100% Ladies Cotton)
• Women’s, Short Sleeve, Small to 5XL:  $25.00 (100% Ladies Cotton)
• Denim Jackets (100% Cotton Denim)
• Men’s, Small to 5XL:  $65.00
• Women’s, Small to 5XL:  $60.00
• Denim Pants (100% Cotton Denim)
• Men’s/Women’s:  $50.00

In 2004, staying at home to relax will become an important lifestyle choice that will continue throughout the decade.  As dress becomes less formal and more casual most of the time, even at work, so does the desire for differentiation between leisure wear and casual wear.  Consumers will require clothes to “cocoon” in.  These clothes will be soft and comfortable, stretching and retaining shape.  Today, over 50% of consumers require comfort over other qualities in their clothing, as well as wear-easy care. 

Activewear/Sportswear

Athleisure lifestyle apparel, from yoga pants to terry track suits, is on the rise, and ReHabiliments offers a range of high-performance clothing for active sport, trekking, climbing, and travel that is suitable for the street, and practical for the gym.  The collection is characterized by modern, comfortable, high-tech fabrics and functional, ergonomic designs.  The company’s active wear products include:

• Sweatshirts (100% Cotton)
• Men’s/Women’s, Long Sleeve, Small to 5XL:  $70.00
• Men’s/Women’s, Short Sleeve, Small to 5XL:  $60.00
• Sweatsuits (Velour)
• Men’s/Women’s, Small to 5XL:  $100.00

Sports styling will continue to dictate many casual designs throughout 2004, although natural looks where the fabric makes the statement will also be important.  Sportswear and sports styling will continue to grip consumers who desire comfort in everyday wear, yet, as couch potatoes, hardly ever indulge in the activities for which the clothes were originally designed.  (Source:  “Fashion Trends 2004:  Part 1 – General Changes Affecting Textiles,” by Pauline Weston Thomas)

Workout Gear

The return of the Olympic Games will help maintain strong sports fashion influences in city wear for both sexes.  This will be more and more popular as the 2004 Olympic fever gains a grip on individuals globally.  Colorful fashion trainers, rather than traditional running trainers, will accommodate the massive shift in shoe buying habits.  Keyholes, zip inserts, and satin contrast strips and bindings will continue to feature in mass casual wear emphasizing the sporty feel.(Source: “Fashion Trends 2004:  Part 1 – General Changes Affecting Textiles,” by Pauline Weston Thomas)

ReHabiliments offers a line of workout gear that brings together a combination of high-end, high-tech, and unique fabrics with today’s hot fashion trends.  The company’s workout gear includes:

• Workout Tops (100% Spandex)
• Women’s, Small to 3XL:  $25.00
• Workout Bottoms (Coordinating) (100% Spandex)
• Women’s, Small to 3XL:  $35.00
• Socks (100% Cotton)
• Women’s, Fits Up to Shoe Size 15:  $15.00
• Jacket (Cotton/Polyester Blend)
• Women’s, Small to 3XL:  $45.00

Smart consumers are driving the performance fabrics of today.  They want products with more comfort, more durability, and more fashion, which in turn will make their lives easier.  In answer to the consumers’ needs, companies such as DuPont, Milliken & Co., and Mylstar, Inc.  are developing techniques that manage moisture better, so it dries faster; improving dye-techniques to enhance color-fastness; and designing garments that keep people warm without weighing them down.  (Source:  “Arresting Odor and Moisture,” by Michael Fickes, SportsEdge, December 2002)

Leather Garments

The leather motorcycle jacket is much more than a coat – it’s a mentality.  From the early twentieth century, airplanes, automobiles, and motorcycles redefined freedom, idealized speed, and captured the hearts of men and women alike.  The leather jackets developed to protect pilots, racers, and motorists from the elements came to symbolize a romantic sense of rugged adventure.  In particular, motorcycle jackets maintained this ideal for decades to come.  ReHabiliments carries on this American-made tradition of the classic, leather, motorcycle jacket.

• Motorcycle Jackets (100% Black Leather)
• Men’s/Women’s, Small to 4XL:  $300.00
• Leather Pants (100% Black Leather)
• Men’s/Women’s, Small to 4XL:  $175.00

Leather jackets are the most versatile and classic article of clothing the consumer can own.  They may be extremely stylish and popular, following fashion trends from year to year, but the truth is that they are never out of style.

Consumers can find leather jackets in various shapes and sizes or different lengths (e.g., such as trench coat, knee, three quarter, and hip), depending upon the consumer’s body type, height, style, and taste.  Even square-shaped, leather bomber jackets have made their return and continue to be popular.  All leather jackets are stylish.  (Source:  “The Look of Leather,” by Karin Eldor, AskMen.com)

Baseball Jackets

Ever since hip-hop innovators and style aviators Outkast appeared on MTV sporting old school Houston Astros jerseys with rainbow colors and 70s flavor, the rap world has seen a trend toward old school/vintage sports apparel.  Since then, others have been seen in videos “discovering” forgotten logos and athletes.  Retail stores’ shop windows of showcase styles that, by today’s standards, would be considered out of place for men playing on the field.  Vibrant colors and rainbow designs that were once the norm in the seventies and eighties have been replaced with more conservative color schemes, or with shades of gray and black.

ReHabiliments carries a line of new, satin baseball jackets that mimic those worn by teams of the past.  They are made of thick, lined satin with attention to the finest details.

• Baseball Jackets (Satin and 100% Cotton)
• Men’s/Women’s, Small to 5XL:  $75.00

The love affair with the retired logo is merely another trend in hip hop’s long evolution.  A sports symbol can symbolize far more than one might expect.  While wearing the traditional, current logo of a local team can still symbolize an artist’s claims of his/her roots, recent styles of sporting wear attest to more than locality, signifying pure fashion for fashion’s sake in an ever-changing culture.

During the summer, fedoras and mesh caps made of natural grasses found favor among both men and women.  Another common sight was unlikely combinations of feminine clothes and baseball caps, while, as an extension of the layered look, turbans were also a hit.  This fall has witnessed the renewed popularity of the rounded, visored berets known as “caskets” that have been a conspicuous presence since last year.  Hats and caps are coming out in a variety of materials, colors, and shapes, including woolen caps with designs knitted in and hats made of furry materials like angora.

As to why hats have become entrenched as a fashion accessory over the past few years, we believe that headwear offers the easiest means of self-expression in the context of a general trend for casual fashion.  Even a person dressed in a simple outfit like pants and a T-shirt can instantly express his or her personal style just by putting on a hat.

Hats are becoming as much an integral part of young people’s wardrobes as other fashion items, and ReHabiliments carries a variety of hats to suit everyone’s taste.  These include:

• Ski Hat (Wool)
• Men’s/Women’s, One-Size-Fits-All:  $15.00
• Beanie (Polyester/Cotton)
• Men’s/Women’s, One-Size-Fits-All:  $12.00
• Fitted Baseball Cap (Cotton)
• Men’s/Women’s, One-Size-Fits-All:  $25.00

Hats have always combined fashion with practicality, offering protection from both the summer sun and the winter cold.  Right now, hats are experiencing a boom in popularity that has made them an essential item regardless of the season.  More and more people are wearing hats of distinctive designs that, unlike the past hat booms, are not constrained by fashion trends.  Rather than famous brand boutiques, it is specialty shops stocking hats created by daring young designers that are the forefront of the current craze.

3.2 Sourcing

Few countries today have lower labor costs than major apparel manufacturers, such as Bangladesh or India; however, this low cost labor is obtained at the expense of children.  The U.S.  Department of Labor’s 1994 international child labor study, By the Sweat and Toil of Children (Volume I): The Use of Child Labor in U.S.  Manufactured and Mined Imports, catalogued existing information on child labor in the garment industries of Bangladesh, Brazil, China, Guatemala, India, Indonesia, Lesotho, Morocco, the Philippines, Portugal and Thailand.  While the report noted that more research was necessary to confirm the extent and working conditions of child workers, in some cases it stated that children were involved in the production of garments for export to the United States. 

With the exception of Bangladesh, where children regularly worked in large-scale, formal factories, the report found that children were more likely to work in small subcontracting shops or homework situations.  In some cases, children were found to work in locked shops, with armed guards preventing entrance and exit during work hours.  Children worked on tasks such as sewing buttons, cutting and trimming threads, folding, and moving and packing garments.  In small shops and homesites in the Philippines, children were also found embroidering and smocking (making pleats).  In some cases, children worked long hours sometimes six or seven days a week.  Some children received less than the minimum wage and were not paid for overtime work. 

The recent proliferation of codes of conduct can be attributed to several factors.  With media reports and exposés on child labor becoming more frequent, consumers – and therefore companies – are becoming increasingly concerned about the conditions under which the garments they purchase are made.  Companies’ adoptions of codes of conduct serve to ease consumer concerns – and their own – that they may be contributing to the exploitation of child labor.  Often companies adopt codes to project a positive image and protect their brand-name or quality reputation.  Some are motivated by good intentions; some by bottom-line considerations – many by both.

As a proponent for the rights of children, ReHabiliments is extremely sensitive to obtaining goods from manufacturers that use children as their main source of labor.  As a result, management thoroughly researches its suppliers and will continue to do so until such time as the company establishes its own U.S.-based manufacturing operation.  In addition, ReHabiliments operates on codes of conduct and model business principles that ensure the safety and welfare of children, demonstrating the company’s social responsibility.

ReHabiliments currently obtains its garments from three factories, as follows:

• T-Shirt Manufacturing

226, Gokule Street Ram Nagar, Coimbatore -641009 Tamil Nadu, India Phone:  91-422-5584843 FAX:  91-422-4378459

• Garment Labels

Mr. Supot Sanganunt, Managing Director Samchai Label Industrial Co., Ltd. Phone:  (662) 8978090-9 FAX:  (662) 8978100

• Miscellaneous Garments

Winsor Manufacturing Co., Ltd. No.  14, Shilan Road, Xinqiao, Panyu Guanzhou, China

Costs for clothing articles are as follows:

• Denim Pants:  $5.00 per garment
• Jackets:  $5.00 per garment
• Sweatsuits:  $7.00 per garment
• Hats:  $150 per hat
• Long Sleeve T-Shirts:  $1.50
• Short Sleeve T-Shirts:  $1.00 per shirt
• Jerseys:  $6.00 per jersey

Costs per garment vary depending upon the number of garments ordered at any given time.  Bulk shipments cost less than items ordered piecemeal.

3.3 Technology

As in other industries, technological advances, globalization, and changing business practices are affecting the apparel industry.  One significant change is the increased emphasis on quick response to customer demand.  This ability is vital in an industry that sells its products in an ever-changing, fashion-conscious market.  Quick response capability links apparel producers more closely to related firms in the textile and retail sectors of the economy.  Aided by communications technology, such as electronic data interchange, point of sale terminals, and bar codes, information is instantaneously communicated to and received from firms in these industries. 

Other technologies affecting the apparel industry include computerized equipment and material transport systems.  Computers and computer-controlled equipment aid in many functions, such as design, marking, and cutting.  Overhead conveyor systems transport material between sewing machine operators and between processes.  Despite these changes, however, the apparel industry – especially its sewing function – has remained significantly less automated than many other manufacturing industries. 

Computer aided design (CAD) is used to design anything from an aircraft to knitware.  Originally, CAD was used in designing high-precision machinery; however, in the 1970s, the technology made its entry into the textile and apparel industry.  Today, most companies abroad have integrated some form of CAD into their design and production process. 

According to the National Knitwear Association of the United States, of 228 apparel manufacturers:

• 65% use CAD to create colorways.
• 60% use CAD to create printed fabric design.
• 48% use CAD to create merchandising presentations.
• 41% use CAD to create knitwear designs.

The apparel industry traditionally has consisted of production workers who perform a specific function in an assembly line.  Increasingly, this organizational philosophy is being replaced by a team concept, in which garments are made by a group of sewing machine operators organized into production “modules.”  Each operator in a module is trained to perform nearly all of the functions required to assemble a garment.  Each team is responsible for its own performance, and individuals usually receive compensation based on the team’s performance.   These changes have greatly altered the atmosphere and responsibilities from those of the traditional assembly line. 

Fierce competition from abroad has prompted these changes in work structure and technology.  Apparel firms have also responded to growing competition by merging and employing workers in other countries to perform some production functions.  Workers in lower-wage countries are increasingly being hired to assemble garments—the most labor-intensive step in the production process—whereas U.S.  workers now perform a greater share of the pre-assembly functions and coordinate the process.  Such changes in the nature of the domestic apparel industry will certainly continue as globalization proceeds. 

(Source:  U.S.  Department of Commerce, August 2000)

3.4 Future Products

ReHabiliments’ long-range objectives include venturing into an apparel line for college graduates and professionals, with further opportunities in licensed and branded cologne and perfume, bedding, underwear, small leather goods, jewelry, and eyewear.  Beginning in Fall 2004, ReHabiliments will offer a line of clothing marketed as apparel to “Clothe Tomorrow’s Professionals.”

Market Analysis Summary how to do a market analysis for your business plan.">

The recent economic slowdown, combined with the tragic events of September 11, 2001, reduced consumer confidence, which led to declining sales in the apparel industry as a whole.  The impact of the economic slowdown is felt differently by various sub-sectors of the fashion industry, with some being more greatly affected than others, such as the men’s wear industry, in which the demand is more elastic than in the women’s wear industry.

In general, the apparel market is positive due to the immensity and strength of the industry.  However, manufacturers who want to enter the market, will have to be extra-prudent and prepared to make greater investments in promotions and resources to do observation visits, conduct preliminary market tests, and increase their visibility by taking part in trade shows and other activities.  Industry specialists strongly advise using specialized brokers to increase one’s chances of success.

4.1 Market Segmentation

ReHabiliments intends to target men, women, and children in the Tri-State Area who require competitively priced, branded clothing.  Within all groups, there are no color barriers and customers have diverse backgrounds.  Briefly stated, these consumers range between one year and 59 years of age.

According to the NPD, women spend about 80% of all money that goes for sportswear.  They control 96% of the dollars spent on their own clothes, 93% of those spent on children’s, and 60% of those spent for men’s sports apparel.

During 1999, the women’s consumer segment, a constant consumer group, dominated the U.S.  apparel sales market.  Women’s apparel sales growth was 3.7% and represented 52% of all apparel sales, whereas men’s apparel growth was 4.1% and accounted for 31% of total apparel sales.  Women tend to buy at a constant rate, whereas men’s apparel sales have been growing.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45 and older accounted for 25% of the market in 1999.  Girl’s and boy’s apparel rose 0.5% and 3.8%, respectively.

The Market Analysis table and chart, below, show potential customers in the Tri-State Area by gender and age groups, as well as potential Internet sales.

4.2 Target Market Segment Strategy

According to the Yale School of Management (November 6, 2002), larger branded apparel manufacturers with diversified product lines and self-owned outlets report revenue growth of between 2% and 9%.  Mass manufacturing and rapid creative copying of fashion catwalk designs means that many of us can afford innovative looks at high street prices without the couture price tag.  Age is no barrier to following a fashion trend or making a fashion statement, as 10 becomes the new 18 and 50 the new 35.  Consumers are craving new and different products, actively seeking new fashion-forward items on each shopping expedition.

Current opportunities in the Tri-State apparel industry include:

• Adult Apparel (Men/Women, Ages 20 to 49 Years)
• Sportswear (Men/Women, Ages 20 to 49; Boys/Girls, Ages 5 to 19)
• Junior Clothing (Boys/Girls, Ages 5 to 19)
• Children’s Wear (Infants/Toddlers, Ages 0 to 4 Years)

Adult Apparel

The production of adult apparel, particularly women’s clothing, occupies the largest sector of the apparel industry.  In 1990, over 1,000,000 workers were employed to produce an almost infinite variety of dresses, suits, coats, and sportswear.

Traditionally, the women’s apparel business has operated on a five-season basis:  fall line merchandise is usually offered to retail store buyers in April; holiday collections in June; early spring, resort, and cruise wear in October; spring and summer clothes in January; summer and early fall fashions in March and April.

Men’s clothing design and sales are in a state of upheaval.  In the past, manufacturers presented two new lines of classic clothing each year, changing fabrics for seasons.  Today, many firms produce highly styled clothes for department store boutiques and small specialty shops which cater to the fashion-conscious man.  Their problems with seasons, lines and style acceptance parallel those of women’s wear producers.

Other than children’s wear, the market for men’s clothing has grown faster than any other sales category in the industry.  The introduction of state of the art permanent-press fabrics probably initiated this sales increase, but the acceptance of casual fashion in men’s wear, spurred by the growing youth market, has been the main factor.

Although the larger firms are continuing to gain ground compared to smaller firms, and brand-name merchandise already has a large share of the market, the preference for major brands is not longer unanimous.  Retailers are now much more open to adding new product lines.  The current interest in personalized trends, which more closely reflect the consumer’s identity, provides an opening for small and lesser-known collections.

The “cheap chic” trend is also spurring consumers to expect more at a lower cost, seeing little difference in style from one brand to another.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45 and older accounted for 25% of the market in 1999.  The widening age gap between youthful and not-so-youthful wearers represents a multitude of challenges in designing, marketing, and branding for sportswear manufacturers.

The growth of the sportswear industry is particularly marked among female consumers, who now see themselves as more athletic and have begin to wear these collections as street clothes.  Since women are more “outfit-oriented” than men when it comes to exercise clothing, they represent a target clientele for this industry.  The junior market segment is also of primary important in this industry, as sportswear is often tied in to fashion.

A product’s technical characteristics are also very important in this industry, competing with the “sport-fashion” factor in the final buying decision.  Technical consumers are much more consistent in their buying habits and provide stability during economic slow downs.  Technical fabrications, whether relating to textiles or processes (e.g., sneakers) are therefore popular.

Junior Clothing

The strong growth in demand in the junior clothing industry has, so far, been able to minimize the unfortunate effects of the economic slowdown, but heavy competition in the market makes retailers very conscious of fluctuations in demand.  Competition in the junior market segment has shot up in recent years, with a twofold increase in the number of junior clothing chains.

Popularity and brand visibility are very important factors in buying decisions made by this market segment; this reduces the maneuverability of small manufacturers who want to position themselves in the market.  It is crucial to follow trends because this segment follows fashion cycles closely.  It is possible to position one’s self with very up-to-date collections at lower prices than well-known collections; however, this means following the market closely and providing the resources necessary for product visibility.

Children’s Wear

Manufacturers of children’s clothing produce large lines from which the store buyer makes purchases three times a year to cover the main selling seasons of spring and summer, back-to-school and holidays.  Although children’s apparel is a basic family requirement, the fashion revolution is affecting even these styles.  Mothers (controlling 93% of all apparel dollars spent on children’s wear) want their children to have the latest “look.” Children’s wear manufacturers are becoming highly skilled at producing high fashion apparel.  Kid’s fashions have been one of the the fastest growing category of apparel.  To keep pace with this trend, manufacturers have adopted the production and sales techniques used in women’s apparel.  This has led to enormous numbers of children’s wear departments and specialty stores throughout the nation.

The children’s wear industry has grown considerably in recent years, but still remains a small market segment and can be difficult for small manufacturers to enter.  Since children’s wear trends increasingly mirror those of adult apparel, children’s collections must not only please children, but also be very similar to current trends in the adult market.  This calls for constant monitoring of the market and a high degree of flexibility and quick adaptation.  Major firms that market adult collections at the same time as children’s copies have a head start in this regard.  Price, nonetheless, remains a decisive factor in making purchases, given the speed at which children outgrow their clothes.  Manufacturers who are competitive in this regard and have the flexibility to adapt their products to fashion trends can find worthwhile niches.

4.2.1 Market Trends

The Marketplace & Consumer Shopping

Interest in apparel remains high even though there are a number of discouraging factors.  It is the number one choice of items for which to shop, beating out groceries in second place – 34% to 32%.

• In general, women 45 to 64 spend more on clothing per capita than any other group.  The 50+ market spends $26.6 billion a year on women’s apparel and $27 million per day on personal care products.
• The so-called beauty and fashion industry has traditionally focused on white America; however, the new “multi-cultural” math is leading experts to re-think based on these statistics:  35 million African-Americans spend $646 billion a year; 35 million Hispanic-Americans spend $581 billion; 10 million Asian-Americans spend $297 billion.  These individuals currently make up 35% of America.  By 2050, it is estimated that these individuals will make up 50% of America.  This audience is basically untapped when it comes to hair care, skin care, nail care, and cosmetics.
• By 2010, the teen population is expected to grow to 34 million; however, recent recession has put a strain on that spending pattern.  The industry is not sure whether teens are poorer than in previous years or if their parents are forcing them to spend on more practical items in line with the family budget.  Total teen spending in 2002 dropped 3.7% to $20.9 billion.  “Tween” shoppers spent $10.1 billion.
• More and more clothing purchases are planned rather than being impulse/spur-of-the-moment purchases.  A survey conducted in the spring of 2003 revealed that 60% of the respondents say purchases are planned.  This compares to 55% in 2002; in the mid-1990s it was at 53%.
• Shopping trips are getting shorter.  Women are said to spend 88 minutes today (2003) compared with 95 minutes in 2000.  The number of times to shop for clothing per month is holding steady at approximately 1.7 times per month.
• In response to increased competition from new market participants, retailers are exercising a variety of strategies, including downsizing and restructuring, changing their merchandise mix, adding services, and adapting the quick response system for controlling inventory management costs.
• The Internet has become another tremendous advantage to the industry.  With the Internet, consumers can get updated and almost instantaneous information.  The great e-commerce websites of many retailers are helping to ensure global business.  Internet sales are guiding retailers into just the right international and domestic cities in which to build stores, and allowing apparel companies to make their brands known internationally even before they have any physical presence in the international market.

Apparel Selection, Fashion, Personal Appearance, and Image

• Comfort continues to be a very important element when purchasing clothing.  Many consumers elect to wear casual apparel because it feels more comfortable.  In a 2002 survey, 51% of the respondents said they choose comfort over “better looking” clothing items for a night out on the town.  In 1994, 59% opted for the “better looking” clothing items.
• Women have a great deal of “casual” clothing in their wardrobes.  According to Cotton, Inc.’s Lifestyle Monitor, 56% say they own more casual clothing than work clothing, while 35% say the reverse.
• Accessories have gained fashion status during the past couple of years.  Consumers unwilling to purchase big-ticket items to update their wardrobes have seen and used accessories as an inexpensive way to achieve a new, updated appearance.
• Sixty percent of American women are full-figured (size 14 and above).  Expenditures on apparel by plus-sized consumers grew 8% from 1998 to 2001, while those by regular-sized women grew 3%.
• Many manufacturers and retail stores are leveraging their products by licensing their brands for accessories such as sunglasses, watches, fragrances, wallets, and footwear.  This strategy is increasing exposure for well-known brands and building consumer confidence in a specific brand.
• The challenge for many apparel retailers continues to be anticipating the coming trends and deciding how those trends will or won’t fit into the company’s image.  Companies in the apparel industry are becoming more tuned in to what their customers want and giving them what they want.

Textiles (Fibers, Fabrics, Finishes, etc.), Care, and Maintenance

• Stretch continues to be extremely big (1 to 5% Lycra® spandex added to many fabrics).
• Wrinkle-resistant garments are much improved thanks to recent technology; however, consumers must pay more for the product.  Lifestyle Monitor (Article 301) confirms that when given a choice, 53% of the women surveyed said they would pay $35 for 100% cotton wrinkle-resistant slacks versus $30 for a pair of cotton/polyester slacks (July 2003).
• Performance fabrics are not new, but continue to get better and more sophisticated.  New developments are emerging in moisture management and climate control.
• In fashion, novelty prints are on the rise.  Some specifics include abstracts, graffiti, photo prints and Asian-inspired looks.  Textures continue to be extremely good with such looks as crinkled suedes, stretch combinations, etc.  Embellishing will continue with embroidery, lace, and like items.

Apparel Production/Sewing

• The ready-to-wear apparel industry is suffering from cheaper imports and heavy discounting.  According to several experts, “there are too many stores and too much stuff, driving competitor’s use of lower prices as a primary weapon for growth.”  Although consumers benefit initially from this situation, retailers are facing the worst of both worlds – deflation on the revenue side, and inflation on the cost side.  Ultimately, the consumer is hurt when a trusted retailer must sell or go out of business.  Quality is frequently sacrificed in the end.
• A critical element for long-term success in the apparel industry is global expansion.  Companies have to be deliberate in international expansion and expand into countries where the greatest potential exists, as the international sector of the industry becomes more important.

Sources:  

“Apparel and Textile Trends,” compiled by Linda Heaton, Extension Professor Textiles & Clothing, Cooperative Extensive Service, University of Kentucky – College of Agriculture, November 2003

“Apparel Industry,” WowEssays.com

4.2.2 Market Growth

The apparel market, as a whole, has been suffering from a deflationary trend in prices as manufacturers move to independent contract manufacturing overseas.  Another reason for price weakness is the casual trend in clothing – casual is less expensive and generally lasts longer than dressier clothing.  These factors set retailers on something of a promotional spree. 

The U.S.  fashion industry had a modest 2% increase in apparel sales for 2000.  According to leading market information provider NPD Group, Inc., total apparel sales reached $182 billion last year, compared to $180 billion the previous year.  While still a small percentage of total apparel sales, online/Internet sales showed double-digit growth in 2000.

Across all channels of distribution, sales of women’s apparel outpaced total market growth, driven by strong sales in both the large size and petite markets. In contrast, men’s apparel, the industry winner in 1999, lagged in 2000, decreasing in both dollar volume and market share. The infants’ and toddlers’ business experienced record-breaking growth from 1999 to 2000.

In 2003, the market showed some signs of recovery, and at least a little evidence that dressier clothing is selling again. However, the long-term deflationary trend in clothing will continue to challenge the men’s outwear market.

In the challenging U.S.  retail environment, casual sportswear, one of the top categories of the past few years, has been steadily narrowing its appeal, not least for its lack of imagination in attracting youth. 

However, women and men over the age of 35 renewed their allegiance to sports and active lifestyles by buying up to 24% and 19% more, respectively, in 2002 than in the previous year, according to U.S.  analyst STS Market Research. 

Women’s casual sportswear in the U.S.  in 2002 registered a slight contraction compared to 2001, falling to US $38.8 billion from $39.6 billion, while men’s sportswear showed less dramatic growth than in past years, rising to US $26.8 billion. 

The most significant gains were made with consumers over 35 years of age, with men’s shopping at specialty stores up 6% to US $1.7 billion and purchases by women over 35 up 14%, to more than US $4.7 billion, compared to 2001. 

Junior’s Clothing

Marketers are competing to provide these age segments desired products.  Unfortunately, less of teens’ and tweens’ money is being spent on clothing than manufacturers and retailers would like.  From 2001 to 2002, teen and tween apparel purchases fell 3.7% and 4.6%, respectively. 

When looking at clothing purchase drivers for consumers aged 13 to 17, price is a highly ranking attribute for jeans purchases, with 40% of dollar share in 2002, up almost 10% versus 2001. 

The $28 billion children’s apparel market experienced continuous growth from 1998 to 2003, with the exception of the key 2001 holiday season, which was depressed due to the 9/11 terrorist attacks.  This performance stands in contrast to the overall clothing market, which has been noticeably weak in this period.  However, even within children’s clothing, sales of infant and toddler clothing have grown while those for older kids have declined.

There has been further change in the American consumer’s profile during 1998-2003, which began in the early 1990s: a majority of consumers shop at a small number of mass merchandise or national department stores, in which they expect to find a combination of trendy products and value prices.  Leading brand manufacturers are able to retain market share only through alliances with the increasingly dominant clothing retail stores, such as Wal-Mart, Target, Sears, and J.C.  Penney’s.  To follow the trend of consumer traffic, even premier brands in the children’s apparel market are approaching the discount channel, while specialty stores are competing by launching less expensive concept stores.  Yet, demonstrating that children’s clothing is a complex market with a large and distinct group of consumers outside the typical consumer profile, specialty clothing stores gained significant market share in 2001 to 2003.

4.2.3 Market Needs

Men (Age 20 to 49 Years)

• Branded Products:   Men are more up front about their desire for branded goods, while women are more subtle.  Men’s sportswear, for example, often carries enormous logos, while the logo on the expensive lipstick worn by many a woman remains at the bottom of the handbag, to be flashed only discreetly, in the powder room.

In a survey, “Brand New On Thursday,” conducted by Victoria and Albert Museum, nearly half of all male respondents claimed that, “you can learn a lot about a person from the brands they buy.”  In addition, when the research is broken down into 16 to 34-year-olds and those 35 or older, there is a marked difference in responses.  Among the younger age group, 35% admit that they are influenced by brand image, while only 13% of the over-35s claim susceptibility.

• Comfort/Easy-Care:   Men want comfort and easy-care apparel, and the sportswear world provides this through high-tech fabrics.  According to Bill Ghitis, president of global marketing for DuPont Textiles & Interiors (DTI), “Performance fabrics have been a niche for the athlete, but, based on our research, we believe that all men, particularly smart men, want much more out of their clothes.”

Many apparel brands, including proprietary retail brands, see performance as the future too, and they’re going forward with more apparel that’s comfortable and easy to care for.  This includes the older, wrinkle-resistant or wrinkle-free technology, along with newer technologies, such as stain resistance, stretch, moisture management, and UV protection.  (Source:  “Getting Technical” by Brenda Lloyd, DNR , August 2003)

Women (Age 20 to 49 Years)

• Comfort/Easy-Care:   Women avoid wrinkles on their skin, and they don’t want them on their clothes either.  While the Fountain of Youth may be elusive, in the ongoing quest for comfortable cotton clothing that won’t wrinkle, women (and men) are winning the battle.  Technological advances have ushered in a new generation of wrinkle-resistant, 100% cotton garments that deliver on comfort, style, and wear, while retaining a crisp appearance throughout the day.  (Source:  “A Pressing Matter,” in Lifestyle Monitor , Fall 2003)
• Apparel Sizing:   The discrepancy in the actual size of women who may all – accurately – claim to wear the “same” size is one of the many fit anomalies that is a reality today for the U.S.  clothing industry.  Little analysis of body shapes and sizes has been conducted since the 1940s for women, and since the Civil War for men.

This lack of research, along with a lack of sizing standards, added to the growing practice of vanity sizing – adding inches to clothing to make it appear that a woman wears a size smaller than she actually does – has created a disparity between the clothes available to the consumer and their actual body shapes and sizes.  (Source:  “A Fitting Solution,” by Terri Ross, Apparel , August 2003)

• Sportswear:   Until very recently, even if you got women into the stores looking for sporting goods and apparel, there was nothing for them to buy.  There is a definite void in the market for women’s related merchandise, such as feminine looking garments rather than unisex.

Female athletes and enthusiasts in a number of sports have complained about a lack of selection.  For example, Kate Gengo, a professional inline skater, finds apparel offerings for aggressive inline skating to be very slim.  “There is never any selection for women.  Cool clothes are available from small manufacturers.  Buyers aren’t putting it in their stores or defining their customer needs,” say Kate. Women are the primary sporting goods buyers, responsible for four-fifths of all athletic apparel purchases.  As clothing options for the female athlete become more targeted, women looking for athletic clothing and shoes will patronize those shopping environments that understand the apparel requirements specific to their sport.  The woman’s sportswear market raked in nearly $25 billion in 2000 and is expected to top $38 billion by 2005.  (Source:  “Girl Power Boosts Female Sportswear Industry to $25 Billion in 2000,” PR Newswire, New York, January 10, 2004)

• Senior Clothing:   Fitness-oriented boomers and Title IX generation athletes are teaming up to give women’s athletic apparel, a market estimated at $23 billion in 2000, strong growth potential within an otherwise flat sporting goods arena.

Mature consumers are increasing their spending on apparel, as baby boomers reach peak earnings levels and their household expenses decrease, with children beginning to support themselves.  Women aged 50 to 64 surpassed female teens between 13 and 18 as the largest spenders on casual sportswear in 2002.

Children (Boys/Girls, Age 5 to 19 Years)

• Fashion:   With fashion continuing to drive the children’s apparel market, industry players are attempting to work more quickly and efficiently to make sure they have the right looks on the floor at the right time.  According to Robert K.  Futterman, CEO of Robert K Futterman & Associates, “Junior’s clothing – young, urban, and hip fashion retailers – like Forever 21, Wet Seal, Arden B, and H&M are poised for growth.”

Children’s and parents’ ever-louder cries for kids’ apparel with looks that mirror juniors, young men’s, and even adult clothing is also inducing retailers to commit to pint-sized incarnations of older styles, without waiting to see how the latter fares with customers.  Tops with spaghetti straps and multicolored shimmering or sequined borders are gaining ground with girls.  Boys are gravitating toward athletic silhouettes:  brightly colored, printed camp shirts worn over muscle T-shirts, zip-off pants and shorts that extend several inches beyond the knee./FONT> Style is important to these young adults, but style comes in many different packages – cellular phones, cars, and vacation destinations are among them.  In addition, the teen and tween segments appear to find individuality appealing.

Infants/Toddlers (Boys/Girls, Age 0 to 4 Years)

• Ethnic Designs/Colors:   By 2005, at least 40% of the designs and colors seen on children’s clothing will be tailored to appeal to African Americans and Hispanics.  According to The U.S.  Market for Infant, Toddler, and Preschool Clothing, a newly published Packaged Facts report available at MarketResearch.com, children’s clothing companies have identified ethnic markets, and specifically African American and Hispanic segments of the population, as their most important audience.

According to Don Montuori, Acquisitions Editor for Packaged Facts, “Hispanics and African Americans are already making a vast percentage of children’s clothing purchases.  We have found that these ethnic demographics are more than twice as likely to purchase infant, toddler, and preschool clothing.  When you consider this finding in tandem with demographic growth trends of recent years, there can be little doubt that success in the kid’s clothing market rests upon a company’s ability to market effectively to a diverse population.”

4.3 Industry Analysis

The apparel and fabricated textile products industry is a mature, slow growing industry.  Intense competition characterizes this industry and drives its ever-changing structure and operations.  The market is highly fragmented, particularly in the Tri-State Area.  The complexity of this market calls for a high level of research and specialization prior to any attempt at market penetration.

The fashion industry in the Tri-State Area mainly looks to New York City, with its multiple opportunities, in particular the famous Garment District, an area of the city between 35th and 42nd Street and 5th and 9th Avenue.  This district is the main gathering point for buyers and designers in the United States and is beginning to rival the major international fashion capitals of Paris and Milan.  In addition, many firms place their head offices and/or buying offices in New York City.

The rest of the Tri-State Area follows fashion, but in longer cycles, and can serve as the springboard for manufacturers who don’t feel ready for the major challenge represented by the New York City market.

Overall, the U.S.  apparel industry is large, mature, and highly fragmented.  Apparel sold in the United States is produced both domestically and in foreign locations.  According to estimates from the American Apparel Manufacturers Association (AAMA), an industry trade group based in Arlington, Virginia, the dollar value of domestic apparel production was $39 billion at the wholesale level in 1997 (latest available), which was less than the $46 billion (U.S.  wholesale value) of goods imported into the United States.  In addition, $15 billion of goods were produced in both the United States and another country. 

In 1998, Americans purchased approximately $215 billion of apparel and footwear.  According to NPD Group, Inc., approximately $177 billion was spent on clothing in 1998.  The remaining $38 billion was used to purchase more than 1.1 billion pairs of shoes.  With the U.S.  population at 270 million, this accounts for roughly $800 a year per capita spent on apparel and footwear.

4.3.1 Distribution Patterns

In addition to the traditional channels, New York has a unique trade structure that enhances business opportunities.  In addition to having six to eight market weeks each year during which buyers can place their orders, several showroom representatives offer opportunities for placing orders throughout the year.  This market characteristic creates openings for designers who want to enter the market and want good visibility for their products.

In general, traditional distribution channels are followed.  The products are bought from distributors and/or direct from the manufacturers, who have little say in how products are marketed.  Since competition in the apparel industry is extremely intense, the use of a sales representative is strongly recommended to facilitate entry into the market.  Direct distribution in this market can require a very extensive investment of time and money with no assurance of positive results.

4.3.2 Competition and Buying Patterns

Competition in this industry currently turns on prices.  The first two quarters of 2001 were particularly difficult for U.S. textile manufacturers, leading them to shift to a push strategy.  After two years of rising prices, pressure from foreign competition, and shaky economic conditions, leading textile manufacturers are being forced to lower their prices.

In a broad view, the retail apparel industry competes with all other sectors in the retail industry.  These different sectors include electronic retailers, wholesalers, other discount stores, shoe stores, convenience stores, and others.  Many of these different sectors have combined together, and often, a company may operate in various divisions to increase profitability. 

1999 Data indicate that the largest retailers in the apparel industry were:

• Wal-Mart:  $166,809,000
• Sears, Roebuck, and company:  $41,071,000
• K-Mart company:  $35,925,000
• Target Corporation:  $33,702,000
• J.C.  Penny:  $32,510,000

The top retailers in the Apparel Stores category included:

• The Gap:  $11,635,398
• The Limited:  $9,723,334
• TJX:  $8,795,347
• Intimate Brands:  $4,510,836
• Spiegel/Eddie Bauer:  $3,210,225

Many experts point to changes in consumer attitudes as a driving force behind the restructuring that is occurring in the retail apparel industry.  Not only have consumers become more cautious in their buying habits, but they have been reducing the portion of disposable income that they spend on apparel.  In addition, consumers are increasingly demanding quality goods at low prices, which forces retailers to permanently sell merchandise at “sale” prices, with promotions occurring throughout the year.  Economists and sociologists have attributed increasingly volatile consumer demand to growing numbers of new products, the rise of fashion-consciousness for even the lowest-cost apparel, and more selling seasons.  (Source:  “Codes of Conduct in the U.S.  Apparel Industry,” U.S.  Department of Labor, Bureau of Internal Labor Affairs)

4.3.3 Main Competitors

Although the apparel industry is mature and slow growing, it exists in a dynamic and competitive environment.  Many companies are restructuring to create leaner organizations and adopt new technologies, with consolidation prevalent as larger companies gain leverage in market position and cost cutting measures.

ReHabiliments’ competition in the apparel industry is widely varied and comes from a variety of sources, including Tommy Hilfiger, Inc.; The Gap, Inc.; Abercrombie & Fitch; the Jones Apparel Group, Inc.; Polo Ralph Lauren Corp.; Liz Claiborne, Inc.; and Nautica Enterprises, Inc.  The closest competitor in terms of popularity, growth, and product line is the FUBU Corporation.

Tommy Hilfiger, Inc.  ( www.tommy.com )

Tommy Hilfiger Corporation, through its subsidiaries, designs, and sources, markets men’s and women’s sportswear, jeanswear, and children’s wear under the Tommy Hilfiger trademarks.  Through a range of strategic licensing arrangements (almost 40 product lines), the company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings.  The company’s products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, and other countries in the Far East, as well as the company’s own network of specialty and outlet stores in the United States, Canada, and Europe.

Tommy Hilfiger’s clothing company, TOM Inc., is among the leading exponents in the intensified process of mass customization over the last few years.  Beginning with a line of preppy looking, clean-cut, and conservative sportswear –  similar to that offered by The Gap, Inc., but somewhat more expensive – Hilfiger set out in the early 1990s to compete against department store staple lines like Ralph Lauren and Liz Claiborne, who were essentially Young Republican clothing.  In the course of only a few years, this basically khaki, crew and button-down WASP style, while remaining a constant theme in Hilfiger collections, has been submitted to variations which are intended to bring the product closer to Hip-Hop style – bolder colors, bigger and baggier styles, more hoods and cords, and more prominent logos and the Hilfiger name.  TOM’s corporate strategies have been ahead of those of many of its competitors and have always stressed the acceleration of product delivery, new forms of retailing partnership, innovative EDI usage for inventories and customer tracking, and speedy and timely introduction of new lines and redesigned goods, assuring consumers a wide range of product choices.  (Source:  “Tommy Hilfiger in the Age of Mass Customization,” in No Sweat by Paul Smith, edited by Andrew Ross)

For the nine months ended 12/31/03, Tommy Hilfiger’s net revenues fell 2% to $1.37 billion.  Net income before accounting change rose from $30.2 million to $105.3M.  Revenues reflect fewer Wholesale segment sales in the men’s, women’s, and children’s product categories.  Net income reflects the absence of $84.9 million in store closure-related special charges.

The Gap, Inc.  ( www.gap.com )

The Gap, Inc.  is a global specialty retailer operating stores selling casual apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic and Old Navy brands.  The company operates stores in the United States, Canada, the United Kingdom, France, Germany and Japan.  As of February 1, 2003, the company operated a total of 4,252 store concepts at 3,117 locations.  The company’s stores aim to offer a shopper-friendly environment with an assortment of casual apparel and accessories that emphasize style, quality and good value.  Gap stores are generally open seven days per week (where permitted by law) and most holidays.  All sales are tendered for cash, personal checks, debit cards or credit cards, including Gap, Banana Republic, and Old Navy private label credit cards, which are issued by a third party.  Gap designs virtually all of its products, which in turn are manufactured by independent sources, and sold under the company’s brands.

Since The Gap’s founding in 1969, the company has been built upon a culture of passion, creativity, energy, and entrepreneurial flexibility.  These characteristics have helped The Gap continually evolve, to learn from its challenges, and to make the changes necessary to create long-term, quality growth.  The Gap, Old Navy, and Banana Republic are three exceptional brands with strong emotional appeal.  These clothing lines provide customers with clothes and accessories that enhance personal style – clothes that are simple, sexy, and cool.  The power of these brands and the important place they hold in the everyday life of people around the world provide the company with tremendous opportunities to maximize this unique brand affinity.

For the fiscal year ended 1/31/04, The Gap’s net sales rose 10% to $15.85 billion.  Net income totaled $1.03 billion, up from $477.5 million.  Results reflect an increase in comparable store sales, improved merchandise margins and lower occupancy expenses.

Abercrombie & Fitch ( www.abercrombie.com )

Abercrombie & Fitch Co.  is a specialty retailer that operates stores selling casual apparel, personal care, and other accessories for men, women, and kids under the Abercrombie & Fitch, Abercrombie and Hollister Co.  brands.  As of February 1, 2003, the company operated 602 stores in the United States.  The company’s stores and point-of-sale marketing are designed to convey the principal elements and personality of each brand.  The store design, furniture, fixtures and music are all carefully planned and coordinated to create a shopping experience that is consistent with the Abercrombie & Fitch lifestyle.

The company has become the clothier of choice for the young and fashionable, and is no longer “your father’s Abercrombie & Fitch.” The music alone does as much to repel undesirables – say, anyone over 25 – as attract target customers.  Once a respected retailer, the company has attracted controversy with these objectives.  Issues of A&F Quarterly read like a cross between a catalog and hustler magazine.  Featuring nude models in suggestive poses, A&F Quarterly has carried reviews of erotic books and an interview with a porn star, complete with professional tips.  The catalog comes enclosed in shrink-wrap and stamped “XXX,” you must be 18 to buy a copy.  Recently, the company’s bottom line was hit hard by a nationwide boycott and bad press generated by the pornographic catalog, A&F Quarterly.

For the fiscal year ended 1/31/04, Abercrombie and Fitch’s net sales rose 7% to $1.71 billion.  Net income rose 5% to $205.1 million.  Revenues reflects the addition of new stores and continued increases in the women’s market.  Net income was partially offset by higher general, administrative and store operating expenses.

Jones Apparel Group, Inc.  ( www.jny.com )

Jones Apparel Group, Inc.  designs and markets branded apparel, footwear and accessories.  The company’s brands include Jones New York, Lauren by Ralph Lauren, Ralph by Ralph Lauren and Polo Jeans company licensed from Polo Ralph Lauren Corporation, Evan-Picone, Rena Rowan, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Todd Oldham, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Napier and Judith Jack.  Jones Apparel also markets costume jewelry under the Tommy Hilfiger brand licensed from Tommy Hilfiger Corporation and the Givenchy brand licensed from Givenchy Corporation, as well as footwear and accessories under the Espirit brand licensed from Esprit Europe, B.V.  Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer.  Jones Apparel operates four segments: wholesale better apparel, wholesale moderate apparel, wholesale footwear and accessories and retail.

Jones aims to gain stability in the apparel industry as well as retail markets through building “complete lifestyle brands serving a wide breadth of consumers in a wide range of income levels and shopping destination preferences.”  (Source:  PR Newswire, 2/7/01.)  The company has a multi-brand, multi-distribution business strategy.

For the fiscal year ending 12/31/03, Jones’ net sales rose 1% to $4.38 billion.  Net income before accounting change decreased 1% to $328.6 million.  Revenues reflect the acquisition of Gloria Vanderbilt which provided healthy sales.  Earnings were offset by a decrease in gross margin and a decrease in operating margin.

Polo Ralph Lauren Corp.  ( www.polo.com )

Polo Ralph Lauren Corporation designs, licenses, contracts for the manufacture of, markets and distributes men’s and women’s apparel, accessories, fragrances, skin care products and home furnishings.  The company’s sales are principally to major department and specialty stores located throughout the United States and Europe.  It also sells directly to consumers through full-price and outlet Polo Ralph Lauren and Club Monaco stores located throughout the United States, Canada, Europe and Asia.  Polo is also a party to licensing agreements, which grant the licensee exclusive rights to use its various trademarks in connection with the manufacture and sale of designated products in specified geographical areas.

The Polo Ralph Lauren company was established in 1967 with a line of men’s ties.  From the onset, founder Ralph Lauren believed in defying convention to bring about unique, yet timeless styles that decades later have become the company’s trademark.  What began with a tie 33 years ago has grown into an entire world and lifestyle that has redefined how American style and quality are perceived.  Polo Ralph Lauren has built an international mega brand by selling fashions and fragrances to the well heeled through department stores.

In 1999, the company acquired Toronto-based Club Monaco after learning that “something is considered in vogue when it reflects a prevailing social mood – these days, ‘corporate’ is definitely not cool.”  The acquisition of Club Monaco, a much smaller business, was the door to the younger consumers’ market and presented an effective way for the company to capture customers not normally attracted to the clean all-American look of the Ralph Lauren line, without alienating its loyal base of supporters.  The Club Monaco chain offers fashion basics with a European flair at prices well below name designer wear.

For the 39 weeks ending 12/27/03, Polo Ralph Lauren revenues rose 5% to $1.83 billion.  Net income decreased 7% to $94.4 million.  Revenues reflect an increase in retail net sales.  Net income was offset by higher S/G/A expenses due to increased selling salaries and related costs and higher restructuring charges.

Liz Claiborne, Inc.  ( www.lizclaiborne.com )

Liz Claiborne, Inc.  designs and markets an extensive range of branded women’s and men’s apparel, accessories and fragrance products appropriate to wearing occasions ranging from casual to dressy.  The company operates the Wholesale Apparel, Wholesale Non-Apparel and Retail business segments.  Wholesale Apparel consists of businesses that design, manufacture and market to the company’s wholesale customers women’s and men’s apparel.  Wholesale Non-Apparel designs, manufactures and markets accessories, cosmetics and jewelry products.  Retail consists of businesses that sell merchandise designed and manufactured by the Wholesale Apparel and Wholesale Non-Apparel segments to the public through company-operated specialty retail and outlet stores, and concession stores where its products are sold in third-party-owned locations.

The company, founded by Elizabeth Claiborne Ortenberg in 1976, designed and produced moderately priced sportswear for women.  The company’s aim was to provide clothes appropriate for either work or leisure, and Elizabeth’s designs were marked by cleanly sculptured silhouettes and splashes of color; these quickly supplanted the dark, tailored suits then popular.  In 1980, Claiborne was named the fashion industry’s first Entrepreneurial Woman of the Year.  A year later, her firm made a public stock offering, after which the company began to diversify, adding petite, dress, and shoe divisions.  In 1986, the company was listed among the Fortune 500 for the first time.

For the 40 weeks ended 10/4/03, Liz Claiborne net sales rose 18% to $3.21 billion.  Net income increased 19% to $206.6 million.  Revenues reflect the addition of stores and the acquisition of MEXX.  Net income also reflects an increased gross profit margin due to improved company-wide inventory management and improved product performance. 

Nautica Enterprises, Inc.  ( www.nautica.com ) ( www.vfc.com )

Nautica Enterprises sails the deep blue seas of men’s apparel.  The upscale clothier designs and markets sportswear, outerwear, and sleepwear for men, as well as jeans, and childrenswear.  Nautica also globally licenses products such as fragrances, watches, dinnerware, eyewear, rainwear, swimwear, and home furnishings.  The company’s brands include Nautica, Earl Jean (women’s denim), John Varvatos (men’s sportswear), and E.  Magrath and Byron Nelson (golf apparel).  Nautica sells through some 2,300 retailers in the US, 1,500 in-store shops, its flagship store in New York, a handful of direct retail stores, and over 100 of its own outlet stores.  On August 28, 2003, a merger between Nautica Enterprises, Inc.  and VF Corporation (NYSE: VFC) was completed.  As a result of the merger, Nautica is now a wholly-owned subsidiary of VF Corporation.

Since its founding, Nautica has taken pride in an authentic American heritage that draws people together.  The foundation for the connectedness is rooted in the company’s core values – classic, confident, adventurous, approachable.  Nautica, a modern American classic, offers quality, design and value while capturing the essence of an active, adventurous and spirited lifestyle.  Earl Jean offers uniquely styled women’s denim and apparel collections with particular appeal to fit-conscious, fashion-savvy teens and urban professionals.  The John Varvatos Collection of apparel and accessories for men reflects a modern attitude.  Combining the highest-quality European fabrications and design details, this collection redefines American style.

V.F.  Corporation, the parent corporation for Nautica Enterprises, Inc., through its operating subsidiaries, designs, manufactures and markets branded jeanswear, intimate apparel, occupational apparel, knitwear, outdoor apparel and equipment, children’s playwear and other apparel.  The consumer apparel segment includes jeanswear and related products, women’s intimate apparel and children’s apparel, all having similar characteristics of economic performance, product type, production process, method of distribution and class of customer.  The occupational apparel segment is distinguished from the other segments because of a different class of customer.  The outdoor apparel and equipment segment consists of the company’s outerwear and adventure apparel, plus daypacks and technical equipment, and is therefore distinguished from the other segments by type of products.  The all other segment consists primarily of the company’s licensed sports apparel and distributor knitwear operations.

For the fiscal year ended 1/3/04, Nautica’s sales rose 2% to $5.21 billion.  Net income from continued operations before accounting change rose 9% to $397.9 million.  Revenues reflect higher Outdoor Apparel and Equipment segment sales.  Earnings also reflect lower interest expense.

FUBU Corporation ( www.fubu.com )

FUBU took the fashion industry by storm when its label, specializing in urban gear, helped define the look of young America.  FUBU – “For Us, By Us” – is considered one of the hottest urban clothing lines in the fashion industry.  Its owners are neighborhood friends Daymond John, Carl Brown, J.  Alexander Martin and Keith Perrin.  The FUBU label was established in 1992 when John, the company’s CEO, began working out of his mother’s home in Queens to make tie-top hats embroidered with the FUBU logo.  John later recruited Brown, Martin and Perrin, took out a $100,000 mortgage on his mother’s house and moved his operation into the basement.  The partners gradually expanded their line to include hockey jerseys, T-shirts and baseball caps.  After finding it difficult to market their clothing through traditional advertising channels, the foursome succeeded in promoting its line by using celebrities and hip hop artists.

The company’s newest licensed lines include Platinum FUBU; FUBU Footwear for Ladies; Intimate Apparel & Activewear; Swimwear; Watches; the FUBU suit, shirt, and tie collection; and for those special occasions, the FUBU tuxedo.  FUBU has received several honors for their entrepreneurial achievements, including two Congressional Awards, two NAACP Awards, Pratt Institute Award, Christopher Wallace Award, Online Hip Hop Award, and a Citation of Honor from the Queens Borough President.

FUBU’s headquarters are now in New York’s Empire State Building, and the company has added womenswear, footwear, suits, and accessories.  The label is carried in more than 5,000 retail stores in 26 countries.  In 1999, FUBU reported an annual sales volume of $200 million from its menswear business and $150 million from its licenses.

4.3.4 Financial Risks and Contingencies

As with any start-up business, ReHabiliments is subject to certain risks, both known and unknown, including changes to general economic conditions, changes in the level of consumer spending on or preferences in apparel, the company’s ability to successfully implement various new supply chain and merchandising systems in a timely and cost effective manner, unseasonable weather trends, and greater than planned operating expenses.  Some of the more predominant risks include:

Style Piracy:   Because design and styling ideas are such important competitive weapons, they are often stolen.  Fashion piracy is so common that it is considered an integral part of the garment trade.  While trademarks and names can be registered, laws against style piracy are of little practical value.

Copying creative work is standard practice for some firms, especially the smaller and budget houses.  A style produced by many manufacturers and “knocked-off” at successively lower price levels is often referred to as a “ford.”  This term is often applied to runaway best-sellers as well.

To mitigate risk from style piracy, ReHabiliments will ensure that all of its designs are copyright protected.  To date, this is the best solution to design piracy because the application process is cheap and expeditious, and the copyright protects the creative works of fashion designers for a limited term under copyright law.  Due to the short life span of apparel designs, patent protection is neither available nor appropriate.

Market Risk:   Market risk is the risk of loss due to adverse changes in investment from market fluctuations directly related to ReHabiliments’ products, services, and market segments.  As the complexity of the business increases, risk management becomes increasingly important and difficult.  Market fluctuations could aversely affect the results of ReHabiliments’ operations and financial conditions.  To mitigate exposure to market risk, ReHabiliments will use various econometric and statistical analysis tools to monitor the movement of the market interest, perform analyses on the current trends, and forecast results.  In this manner, management can make the necessary adjustments in the asset and liability structure of the company.

Economic Stability Risk:   Changes in the economy will require that the company adjust its operations to account for financial and economical fluctuations.  ReHabiliments will pursue various business strategies, including horizontal integration and economies of scale, geared toward reducing economic risk.  To ensure continued profits during economic instability, the company will control the environment in which it operates by reducing uncertainty, minimizing expensive competition, and capturing a larger share of the market.

Operational Risk:   ReHabiliments, like all large companies is exposed to many types of operational risks, including the risk of fraud by employees or outsiders, unauthorized transactions, and errors relating to computer or telecommunications systems.  To mitigate operational risks, ReHabiliments will maintain a system of controls that is designed to keep operating risk at a minimum, such as limiting authority to conduct business activities to the appropriate functional departments/branches .

Supply Chain/Merchandising Risk:   Due to recent events, such as terrorist attacks and political instability in third world countries, supply chain risks have been introduced or heightened, with pressure to enhance productivity, eliminate waste, remove supply chain duplication, and drive for cost improvement.  To mitigate supply chain risk, management will construct and optimize “what if” scenarios about the company’s future.  These “what if” scenarios will serve as models by which ReHabiliments can refine and extend managerial intuition about major strategic decisions.  Statistical models and methods for developing long-term, supply chain forecasts will support these scenarios.

Early Stage Business:   As a start-up company, ReHabiliments has limited operating history beyond the industry experience gained by the founder.  To mitigate risks relating to inexperience, the company will leverage the experience of external advisors to provide support for management decisions, as well as industry expertise and day-to-day operations.

Brand Identity:   Since brands do not live in vaults without time or threat, brand risk is threatened by the loss of value due to a change in consumers’ perceptions of the company.  Establishing, building, strengthening, and maintaining ReHabiliments’ brand, regardless of product or service, is important to its ability to attract and retain customers.  Brand recognition is key to the success of ReHabiliments in local, regional, national, and international markets.  To mitigate the risk associated with brand, ReHabiliments will ensure that the company’s brand is clear, specific, and unique to its product and service offerings, and will build brand strength through leadership, stability, market, geography, trend, support, and protection.

Intellectual Property:   ReHabiliments’ copyrights, trade-marks, trade secrets, methodologies, practices, tools, and other intellectual property rights are critical to success.  The company relies on a combination of trademark and copyright laws, trade secret protection, nondisclosure agreements, and other contractual agreements with its employees, affiliates, clients, strategic partners, acquisition targets, and others.  ReHabiliments’ management will prudently monitor the company’s intellectual property and ensure that adequate measures are taken to protect intellectual property belonging to the company.

4.3.5 Industry Participants

The Apparel Industry is made up of small firms.  The average number of employees in an apparel business is 38, and two-thirds of all establishments employ fewer than 20 workers.  The average establishment size, however, varies considerable across product sectors.  With 109 employees, the average men’s wear establishment is more than three times the size of the average women’s wear establishment.  Establishment size had been growing until the early 1980s, when this trend reversed across all product categories.  Firms with fewer than 20 employees now account for less than 10% of the industry’s workforce, while 37% of the workforce is employed in establishments with 250 or more employees.  (Source:  “U.S.  Industry in 2000:  Studies in Competitive Performance (1999),” Peter Doeringer and Audrew Watson, Boston University)

The U.S.  apparel market can be divided into two tiers: national brands and other apparel.  National brands are produced by approximately 20 sizable companies and currently account for some 30% of all U.S.  wholesale apparel sales.  The second tier, accounting for 70% of all apparel distributed, comprises small brands and store (or private-label) goods.

Apparel is sold at a variety of retail outlets.  Based on data from NPD Group, discount stores, off-price retailers, and factory outlets accounted for 30% of 1998 apparel sales, while specialty stores and department stores accounted for 22% and 18%, respectively.  Another 17% were sold at major chains, and direct mail/catalogs accounted for 6%.  The remaining 7% of apparel sales occurred through other means of distribution. 

The major players in the apparel industry are the large manufacturers headquartered in the U.S.  There are also many local manufacturers that are much smaller and who usually specialize in a particular area of apparel.  Sports wear, active wear, and other related products are offered for sale at specialty outlets as well as in retail stores nationwide.  Such outlets are able to cut one-third off the garment price at a retail store.  Apparel is available to consumers through multiple avenues: e-commerce, retail stores, outlets, and wholesale through the manufacturer for mail order catalogues and smaller boutique style outlets.

Strategy and Implementation Summary

The company has developed a strategy that will ensure the long-term growth and success of ReHabiliments in the apparel industry.  This strategy will continue to evolve and initially includes:

• Focusing on target markets and aggressively marketing the full-range apparel collection as an alternative to existing clothing lines.
• Differentiating the company’s products through exclusiveness and brand awareness, thereby fulfilling the promise of “ReHab Your Wardrobe-ReHab Your World.”
• Developing partnerships with both industry leaders and competitors.  In this manner, the company can neutralize its competitors by treating them as allies.
• Building a relationship-oriented business that fosters long-term seller/customer relationships, not “single-transaction” deals.
• Fostering social responsibility within the company through commitment to programs that transform the lives of the less fortunate.  In support of this strategy, ReHabiliments donates 5% of all proceeds towards “Feed the Children” and other charities.

5.1 Competitive Edge

The debut of the FUBU Corporation in 1992 was based upon the a slogan, “For Us, By Us” (FUBU), that expressed the founder’s purpose of creating a line of popular clothing designed for African-Americans, by African-Americans.  At the time of FUBU’s inauguration, numerous clothiers were targeting black consumers for their urban wear; however, none of these companies was black-owned or operated.  The company’s earliest collection consisted of T-shirts, rugby shirts, hockey jerseys, and baseball caps, all embroidered with the FUBU logo.  By 1999, the company reported an annual sales volume of $200 million from its menswear business and $150 million from its licenses.  What had originally begun as a clothing line for African Americans had developed into a multi-cultural base of customers, all wearing FUBU’s clothing.

The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  The company’s name, ReHabiliments, and its clothing line, ReHabiliments Apparel, are competitive advantages in themselves.  The name is not attached to any particular group of customers, which allows the company entry into different segments of the apparel industry.  Another competitive advantage stems from ReHabiliments’ partnership with the entertainment industry and the use of mainstream celebrities in advertising and promoting the company.

In a market where consumers are barraged by advertising and marketing campaigns delivering an onslaught of lifestyle and fashion messages, a brand name is a powerful weapon.  Established brand names, with a quality image, make the consumer’s shopping experience easier and faster.  For manufacturers, brands build consumer loyalty, which translates into repeat business.

5.2 Marketing Strategy

People want to think of themselves as belonging to a group that they admire or respect, and will dress as they think a member of that group would dress.  Although they may believe their object is to reflect their individuality, the differences they stress in choosing a clothing style are really between their own chosen group, and all others.

The “message” of clothing is therefore directed primarily to its wearer.  People associate the way they dress with the way they feel.  For many individuals, their choice of clothing may not be the most becoming outfit they could wear; however, they are expressing their membership in a class of other people with whom they feel a connection, expressing it to themselves and to whomever may be looking. 

ReHabiliments’ marketing strategy is based on the following:

• Product differentiation based upon “ReHab Your Wardrobe-ReHab Your World.”
• Building a relationship-oriented business.
• Fostering corporate social responsibility.
• Focusing on the diversified “communities” as the company’s target markets.

ReHabiliments’ brand and marketing message are not directly attached to any particular group of customers, but rather to a diversified community of consumers who believe in humanitarianism and equal opportunities and choices for everyone.  The company does not simply offer products that clothe the body, but rather products that clothe the soul – clothing that supports people, either directly or indirectly, through difficult situations.

The company’s primary marketing strategy is to establish itself as the “Apparel Company of the Future.” With management’s deep roots in humanitarianism coupled with a firm belief in harmony and honesty in business and advertising, ReHabiliments will greatly increase the marketability of its apparel line.

5.2.1 Pricing Strategy

ReHabiliments’ pricing strategy remains competitive with all other high quality apparel companies , but offers much more in terms of meeting the company’s mission and purpose for existing.  As a general rule of thumb, 50% of each garment’s cost is consumed in actual manufacturing, divided among labor and materials.  The other 50% is allocated overhead and shipping expenses.*  Average mark-up is 40% of cost.

Currently, all of the company’s products are on target in price, as compared to other similar branded apparel.  ReHabiliments with regularly monitor its operating expenses, delivery costs, cost of sales, trade discounts offered, damage allowance, hazards, and other variables to ensure that the company’s pricing strategy remains competitive with industry standards and expectations.

*Note: overhead includes non-payroll operating expenses as well as purchase and replacement of production equipment, included here as part of start-up assets.

5.2.2 Promotion Strategy

ReHabiliments’ brand is a competitive advantage in itself, as it is not directly attached to any particular group of customers and allows entry into different segments of the apparel industry.  In addition, the company has an established marketing strategy that relies upon celebrities, market specific advertising, product promotion, and “giveaways” that have established ReHabiliments’ presence in the apparel industry.

ReHabiliments will depend upon several promotion strategies to reach new customers.  These strategies include:

• Advertising – ReHabiliments will utilize industry-wide apparel magazines and newsletters as primary sources of advertising.
• Magazines/Newsletters:   Industry magazines and newsletters are considered to be effective advertising media because they consistently reach the company’s target markets.  Because magazines and newsletters are tangible media, they help advertisers relate intangibles, such as believability, quality, and prestige.  These types of media are non-intrusive, quiet, personal vehicles that usually have a long life.  Their primary audiences pass them along to secondary readers, so that their reach builds over long periods of time, making them a long-term investment.
• Direct Mail – ReHabiliments will explore the benefits of incremental, coordinated, direct mail campaigns which ensure that the company’s advertising is:
• Targetable:   When using direct mail, each customer is carefully selected.  This enables ReHabiliments to “speak” to the customer in their own language and about their individual needs.  In addition, the company can time its direct mail efforts to coincide with critical points in the customer’s buying cycle.
• Efficient:   Direct mail ensures that ReHabiliments knows that every dollar spent is being directed at people who are genuine prospects for the company’s services.
• Flexible:   Direct mail is capable of handling a variety of advertising or marketing tasks.  In addition to being able to sell directly, it is a medium that can deliver a sample right to the customer regardless of whether the sample is an actual product or a demonstration of a product.
• Measurable:   With a direct mail campaign, there is no guesswork when it comes to the results and virtually no waiting – when ReHabiliments has a winning product, management will know immediately!
• Accountable:   As responses pour in, the value of the direct mail campaign speaks for itself.
• E-Mail – ReHabiliments’ e-mail campaign will extend the company’s marketing reach and visibility with minimal resource allocation.  As ReHabiliments builds its customer database, it will gather e-mail addresses with opt-in permission to contact current customers and prospective customers via e-mail and other electronic means.  Many of the benefits of a direct e-mail advertising campaign include:
• Great Direct Response Vehicle:   If the customer is receiving the e-mail, the customer has already demonstrated his/her interest in the content they are receiving.
• Timely:   E-Mail is the perfect tool for targeting specific dates.
• Placement:   ReHabiliments’ advertising will have little competition.
• Media – ReHabiliments will initially develop a local media campaign, including radio and television, built around service innovation.  This campaign will begin with a “Who We Are” statement and be supported by other advertisements that reinforce the company’s marketing message to consumers of casual, active, and sports apparel.
• Radio:   One of radio’s greatest strengths is its ability to deliver a marketing message to a selective audience.  The media is portable, free, and very accessible – at least one radio exists in most American homes.  ReHabiliments’ radio campaigns include advertising with WMCA 570 and WWDJ 970, which are two of the largest radio stations.
• Television:   Nearly 31% of total TV households watch prime-time television (ABC/NBC/CBS affiliates), a share change of 38.8% since 1985-1986.  People spend more time with TV than with any other medium, which due to its sight and sound uniqueness, creates awareness, interest, and desire.  Executed properly, ReHabiliments’ TV campaign will lend prestige and glamor to the company’s marketing message.
• Cable Television:   Cable television service is available to 95% of all television households in the United States, and about two-thirds of all television households subscribe to it.  Most of those systems offer at least 30 channels (57% have between 30-53 channels and 13% have 54 of more channels).
• Trade Shows/Trade Fairs  – ReHabiliments will actively participate in industry and Chamber of Commerce trade shows to promote the company’s products.  By taking advantage of trade show participation, the company enhances its opportunities to learn, grow, and connect with potential clients and other businesses in the apparel industry.  Trade Shows/Fairs are a marketing tool for communication promoting dialogue between retailers and manufacturers and will allow the company to exploit its unique clothing line to a concentrated group of buyers.

5.2.3 Distribution Strategy

The primary distribution channel in the apparel industry is still the bricks and mortar store, augmented by catalogues and direct selling.  The incredible success realized by other industries in Internet e-commerce has not followed into apparel.  Existing limitations from product licensing and distribution agreements to fit and trial issues have stunted the growth of the industry in the Internet space.  The most successful players tend to be those with a ‘click and mortar’ strategy such as The Gap, or those companies with a strong background in catalogues and direct selling such as Lands’ End.  The fit and trial issues and difficulties with color and texture perception on computer monitors, however, continue to be issues that keep Internet sales relatively low compared to the total market for companies.  Another area to see some success is that of off-price and discount clearing houses like Bluefly.  This is an example of how the inefficiencies of the existing industry model for apparel has spawned a whole new category of retail both on-line and off-line in factory outlets and clearing houses. 

ReHabiliments has several potential methods of penetrating the Tri-State Area market.  They are, from least resource-intensive to most resource intensive:

• Sell directly to stores or contact buying offices to be placed on their lists.
• Present the company’s merchandise at trade shows or hire a sales representative.
• Open a store.

ReHabiliments will begin with options 1 and 2, above, and open a store when we have the available resources and growth to warrant it.  For now, the company plans to use a direct sales force, the entertainment industry, retailers, and the Internet to reach its target markets.  These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

5.2.4 Positioning Statement

For men, women, and children seeking clothing with style, selection, differentiation, and “substance,” ReHabiliments offers a unique clothing line that is affordable, trendy, exclusive, and fashionable while meeting both the physical and emotional needs of the consumer.  Unlike ReHabiliments’ largest competitor, FUBU Corporation, the company offers affordable, trendy “ReHab Your Wardrobe-ReHab Your World” clothing that promotes the principle of harmony and dedicates a portion of the company’s clothing proceeds towards ongoing humanitarian efforts.

5.3 Sales Strategy

ReHabiliments’ sales team will be tasked with generating sales leads on a local, regional, and national basis.  They will also be responsible for establishing connections with other wholesaler and retail outlets.

A key factor in the success of ReHabiliments will be its distribution.  The company plans to use the following retail distribution channels:

• Supercenters, such as Wal-Mart
• Department Stores, such as Dillards and Foley’s
• Apparel Specialty Stores, such as The Gap
• Boutique Clothing Stores
• Internet Store

Consumers buy apparel from a variety of retail outlets.  In 1998, discount, off-price, and factory outlet stores accounted for 30% of apparel sales, specialty stores accounted for roughly 22%, department stores for 18%, and major chains for 17%, according to data from NPD Group Inc.  The remaining 13% was sold through mail order and other means.

Differences exist in the distribution mix for men’s, women’s, and children’s items.  For example, more women’s apparel is purchased in specialty and department stores than is the case for men’s apparel.  Men’s apparel is more prevalent in discount stores and general merchandise chains.  In the children’s segment, a considerably higher portion of apparel is purchased in discount stores.

Catalogues are another important method of distribution.  Consumers have less time to shop, and for some, catalogue shopping offers a more convenient and pleasant alternative.  In 1996 (latest available) an estimated 13.3 billion direct mail catalogs were printed in the United States – more than 50 for every man, woman, and child in the nation.  According to NPD Group, approximately 6% of apparel retail sales were through direct mail/catalogs in 1998, representing a 29% decline from 1997.

The distribution channel that has received the most attention recently is the Internet.  Although it now represents only a small portion of apparel sales, this distribution channel has the most potential for growth.  Consumers like the convenience of being able to shop from anywhere and at anytime they wish.  Manufacturers with websites use them for marketing and informational purposes.  With expected technological advances in hardware, software, and data pipelines in the future, shopping for apparel should gain popularity.

Currently, however, due to technological and infrastructure limitations, consumers are not fully satisfied with the speed, quality, security, and cost of Internet shopping.  Another hindrance to wider acceptance is the fact that consumers cannot see and touch the product.  Although some manufacturers have started to sell directly to consumers on the Internet, many of them are being cautious not to alienate their retail (brick-and-mortar) customers.  ReHabiliments expects these issues will be resolved eventually, which will make the Internet an important method of distribution in the future.

5.3.1 Sales Forecast

The following table shows our projected yearly Sales revenues.  Cost of Sales here represents only inventory purchases (including shipment of inventory from abroad); totals for labor, shipping, and overhead can be found in the Profit and Loss statement.

We anticipate moving a higher number of products through wholesale contracts with retailers, but the higher price we can charge with direct sales (Internet and, eventually, retail) means the revenue streams from these lines will be roughly equal.  We are forecasting 50% of sales values on a cash basis, and 50% as accounts receivable.

5.4 Strategic Alliances

ReHabiliments currently has strategic alliances with both Music Records and the Entertainment Group.  These alliances are critical to the company’s marketing strategy, as they provide the exposure for the company’s apparel line and associate ReHabiliments’ products with celebrities.  Celebrities are valuable strategic allies, as they receive free apparel for their participation in interviews, concerts, and music videos.

Current and potential product line representation and advertising contracts are as follows:

• Infinity Broadcasting
• WMCA 570 & 970 DJ
• Crystal Blue Media
• BulkWorks.com
• K’s Corporation, Japan
• Shop America Network, Inc.

In addition, ReHabiliments has a promotional collaboration with one of the hottest disc jockeys in America, “Degas VanGO.”  He travels throughout the world entertaining listeners, aged 13 to 40, on New York Radio 107.5 WBLC, FM.  Degas VanGO has his own radio show and is very well known.  He is well connected in the music industry, which is one of ReHabiliments’ primary target market areas, and has used his connections to forge a relationship between ReHabiliments and Virgin Records America, Inc.

Through our affiliation with Degas VanGO, Virgin Records has allowed ReHabiliments to use their famous logo on promotional items, such as leather jackets, hats, and T-shirts.  This affiliation sends a very powerful message to investors and customers alike.

ReHabiliments has the earning potential to become the fastest growing, most universally accepted clothing line since FUBU.  The partnership with Degas VanGO is the golden key to countless hundreds of thousands of dollars in sales, as well as a direct promotional channel.

5.5 Milestones

The following table lists important program milestones, with projected start and finish dates, the names of the individuals in charge of completing each milestone, and budgets for each milestone.  The milestone schedule indicates the company’s emphasis on planning and implementation of the business.

What the table doesn’t show is the commitment behind each milestone.  ReHabiliments’ business plan includes complete provisions for plan-versus-actual analysis, and the company will hold monthly follow-up meetings with key management to discuss any variances and to plan a course of action to resolve those variances.

Web Plan Summary

Clearly defining the goals and plans for ReHabiliments’ website are important steps toward the company’s success.  Implementing a web presence as part of the company’s active marketing plan is critical to the visibility of the company in its local, regional, national, and global markets, and allows the company to inexpensively advertise its products and promote sales to a variety of “virtual” customers. 

The company’s corporate objectives for its website are:

• To provide current and potential customers, public relations, and media entities with an efficient, secure, interactive means by which to communicate with ReHabiliments and obtain relevant information about the Company, its mission, and its products.
• To provide customers with efficient, user-friendly, automated processes that allow them to easily browse the company’s products and to place orders for products through the website, thereby effectively reducing administrative costs associated with mailing product information.

ReHabiliments foresees its Internet presence as a tool that will allow the company to effectively manage its customers and their buying patterns and to track and manage corporate activities as they relate to different market opportunities.  Through the company’s website, ReHabiliments will be able to swiftly respond to sudden shifts in demand, new market trends, and changes in customer needs and demands.

6.1 Website Marketing Strategy

It is not enough for ReHabiliments to build a website and then expect customers to flood to the company’s new online presence.  Since the Internet is growing exponentially, ReHabiliments’ direct competitors are also vying for pole positions in their respective markets and doing their utmost to advertise and promote their sites to the Internet’s global audience.

ReHabiliments’ business strategy will lead the way in determining the company’s online objectives for promotion and development of the website.  The Internet and the technology behind it will provide business opportunities to create customer services and develop promotional opportunities that would be impossible in the “physical world.”

The company will rely upon a combination of offline and online methods to promote its website.  Offline methods include:

• Business Cards
• Printed company Materials
• Local Newspapers
• Presentations
• Conferences/Events/Seminars
• Radio/Television/Press/Cinema
• Internet/Web Journals

Online marketing methods include:

• Usenet Groups
• Reciprocal Links
• E-Mail Signatures
• Search Engines
• Web Directories
• company Specific Domain Name
• Portal Sites
• Banner Advertising
• E-Mail Marketing
• Online Competitions
• Affiliate Partnerships

ReHabiliments will ensure that the company’s website carries masses of useful product and company information that is not only interesting, but informative.  This will contribute to the customer’s overall experience of the website, as well as internally promote other sections of the site through relevant links that are strategically placed on the page and allow customers to “chase up” information.  For example, if ReHabiliments provides a series of web pages that describe the company’s products in detail, at the bottom of each page will be included a standard set of useful, follow-through hyperlinks, such as:

• Place an order with us now!
• Need detailed product information?
• Want to contact a salesperson?
• Read customer reviews on our products!

By investing time, effort, and money to maximize ReHabiliments’ business presence on the Internet, management can ensure that the company’s website effectively promotes its products and positively contributes towards the success of the company.  Build it, market it, and they will come.

6.2 Development Requirements

Realizing that every business is different, with different e-commerce needs, ReHabiliments has opted to contract out its web development services to ensure that the company’s final website meets specific e-commerce needs.  Once completed, the website will include:

• A Web hosting account.
• A registered domain name
• A secure SSL Certificate that allows the browser to create an encrypted connection to ReHabiliments’ website and the shopping system.
• The shopping cart system.
• A merchant account that is tied to ReHabiliments’ checking account and allows the company to accept credit card payments.
• Terminal software that allows ReHabiliments to process credit cards.
• A payment gateway account that allows ReHabiliments to take credit cards using automated processing and approval with the shopping cart.

Final development costs for the entire e-commerce website will range between $5,000 and $8,000 for a fully enabled, e-commerce website.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

ReHabiliments’ management philosophy is based upon responsibility, mutual respect, and profitability, and the founder believes that the company’s present and future growth are based upon:

• Exceptional People
• Social Responsibility
• Uncompromising Commitment to Customer Service
• Commitment to Core Values

7.1 Management Team

Mr. L. Owerd Emlynes – Chief Executive Officer (CEO).  As the CEO, Mr. Emlynes will report to the Board of Directors and/or be assisted by a Board of Advisors.  He will have overall responsibility for all aspects of the company, including operations, marketing, strategy, financing, company culture, human resources, compliance regulations, sales, and public relations.  Mr.  Emlynes’s most important role is in setting the strategy and vision for ReHabiliments.  In addition, he will be responsible for steering the organization in budgets, partnerships, making final decisions on product/service lines, and industries.  Mr.  Emlynes has over thirteen years in the music and production industry in capacities ranging from bass guitarist musical director to choreographer and production manager.  In addition, he has extensive experience in fashion and design, working for Bonds Men’s Clothing Store for a number of years.  Although paralyzed from the chest down, L. Owerd is a motivational speaker, a professional racecar driver, a professional musician, an amateur body builder, a teen mentor, and an entrepreneur.

Ms. Ravel d’Eddge – Vice President of Business Development/Strategic Alliances.  The VP of Business Development/Strategic Alliances identifies, evaluates, and pursues the strategic and financial prospects of new market opportunities.  Ms. d’Eddge will direct the assessment of future markets and be responsible for coordinating commercial input to specific programs as necessary.  She will establish new strategic partnerships, joint ventures, and alliances, and follow through on all partnership activity, including the tracking, documenting, and status reporting of all collaboration along the business development pipeline.  Ms. d’Eddge will establish and implement appropriate development strategies, interact with existing corporate contacts, facilitate communication, track milestones, and identify opportunities for enhancing these relationships.  In addition, she will oversee the planning and execution of a comprehensive marketing strategy, including responsibility for the preparation of presentation and marketing materials for professional meetings, seminars, and conferences.  Ms. d’Eddge has a Master of Arts in Computer Resources and Information Management and a Master of Business Administration.  She has over eighteen years of experience in information management/technology and business, systems management and administration, business procedures documentation, business planning/development, and currently owns a business planning and development consulting business. 

Unfilled positions Other management positions have not yet been filled.  We are currently talent scouting, and will begin the hiring process in April, 2004.  All management positions will be filled by June 1st, 2004.

7.2 Management Team Gaps

ReHabiliments lacks “seasoned” professional management (e.g., what investors call the “gray haired factor”) with experience in the retail apparel industry.  The company will require a strong finance manager to closely guard cash flow to ensure potential partners and investors that ReHabiliments’ finances are strong and support future growth.  As the company matures, it will actively pursue adding more experienced individuals to the team that meet “gray haired factor” requirements.

Additional, senior level positions that are currently open and have yet to be filled include: 

Chief Financial Officer (CFO).  This position is currently open within ReHabiliments.  As the CFO, the potential candidate will be responsible for day-to-day operations, including development of guidelines, distribution of resources authority consistent with planning, continuous review, and evaluation of performance, as well company overview of commitments against available financial resources and established schedules.  He will direct the development of and implement changes to financial reporting and management systems that are subject to frequent and major modifications, as well as recommend financial policies and procedures.  This individual will provide professional consultation to management regarding financial matters and in the application of information technology to support the operation of various accounting, auditing, or budgeting reporting systems and requirements.  In addition, he will serve as the primary contact for investors and investor-related issues.

Vice President of Product Management (VP/PM).  This position is currently open within ReHabiliments.  As the VP/PM, the potential candidate will establish current and long range objectives, plans, and policies, subject to approval by the Board of Directors, to create a technical vision for ReHabiliments.  This individual will plan for implementation of new products and/or product lines, dispense advice, guidance, direction, and authorization to carry out major plans and procedures consistent with established policies.  He will work with product/service development, sales, and marketing to discern competitiveness of new products, review operating results of ReHabiliments, and compare them with established objectives, create technical budgets, allocate resources, and determine schedules.

Vice President of Marketing.  This position is currently open within ReHabiliments.  As the VP of Marketing, this individual will be responsible for developing and implementing marketing programs to drive sales and raise community awareness.  The person in this position will define, analyze, and implement print and media programs and monitor the results of such programs; mentor and train operations personnel on marketing terms, rationales, and strategies with emphasis on the operations role in effective marketing execution; and support new product/service rollouts with strong unit communications and public relations activities.  This individual will develop and implement new unit opening programs and grand re-openings, as well as be aware of new industry trends, economic factors, new marketing programs/strategies, and media tools.  The VP of Marketing will provide assistance with new sites, relations, and closings, as well as develop subordinates such as Marketing Supervisors/Assistants.  This individual will be a brand and position expert and manage both internal and external public relations.  In addition, he will possess relevant marketing emphasis and Internet experience including sponsorships, affiliate programs, search engine optimization, e-mail, and electronic newsletters.

Vice President of Sales.  This position is currently open within ReHabiliments.  As the VP of Sales, the potential candidate will be responsible for developing the company’s sales strategy, acquiring of customers, planning sales compensation, and building the sales organization and infrastructure to support the sales strategy.  This candidate must have experience executing the entire sales cycle, from generating prospects, to closing the sale, and must have the ability to sell strategically to key decision makers (CFO, CTO, CIO, VP IT) as well as tactically at the operational level.

Additional positions will be identified as necessary.  As necessary, ReHabiliments will rely on external advisors and consultants to provide support for management and financial decisions, as well as provide industry expertise for day-to-day operations.

7.3 Personnel Plan

The following table summarizes the company’s personnel expenditures for the first three years.  The company believes this plan is a compromise between fairness and expedience, and meets the commitment of the company’s mission statement.

Financial Plan investor-ready personnel plan .">

ReHabiliments’ Financial Plan has the potential of providing expansion of the business, paving the way for new investments or loans, or changing the way in which the company conducts business.

ReHabiliments’ financial objectives are:

• To secure financing from an SBA lender.
• To reinvest profits for market share growth in the restaurant industry.
• Based upon market growth projections, to generate very healthy sales revenues in Years 2005, 2006, and 2007.

Financial projections are based upon sales volume at the levels detailed in the sales forecast and represent, to the best of management’s knowledge and belief, the company’s expected assets, liabilities, capital, revenues, and expenses.  Furthermore, these projections reflect management’s judgment of the expected conditions and the company’s expected course of action, given the financial assumptions.

8.1 Key Financial Indicators

The following chart shows some key benchmarks for the business.  We anticipate gross margin remaining relatively steady, despite increasing sales, because of our commitment to secure raw materials from ethically sound producers.

8.2 Break-even Analysis

The company’s break-even analysis is based on the first year of operation, from April 1, 2004 through March 31, 2005.

ReHabiliments’ estimated fixed costs include, but are not limited to, the following items:

• Insurance (Vehicle and Business)
• Depreciation on Equipment
• Meetings/Dues
• Advertising/Business Promotion
• Office Supplies
• Miscellaneous Repairs
• Legal/Professional Fees

Average percent variable cost takes into consideration variable costs of inventory that will fluctuate with the products provided to the customer.

8.3 Projected Cash Flow

The Projected Cash Flow table represents ReHabiliments’ cash flow for the next four years (e.g., 2004, 2005, 2006, and 2007).  The related bar chart illustrates monthly cash flow in the first year, with one bar representing cash flow per month and the other representing the monthly balance.  Annual cash flow figures are included in the Projected Cash Flow table, with monthly cash flow projections included in the appendices.

8.4 Projected Profit and Loss

ReHabiliments is in its early stages of development.  Therefore, initial projections are based upon industry statistics, demographics in the Tri-State Area, and on the most important market segments believed to drive the income statement.  As the company matures and gains operational history, management will track planned versus actual financial figures.

The following table and associated charts illustrate ReHabiliments’ projected profit and loss.  Monthly projections are included in the appendices.

8.5 Important Assumptions

ReHabiliments’ main assumptions and projected forecasts are based upon similar products and on the operational history of its competitors.  Interest rates, tax rates, and personnel burden are based on conservative assumptions.

The more important underlying assumptions are:

• A strong economy, without major recession.
• That there are no unforeseen changes in the apparel industry that would make the company’s products immediately obsolete or uneconomical to produce.
• Access to equity capital and financing options sufficient to maintain the company’s financial plan as outlined in this Business Plan.
• That first round funding will be obtained through a combination of equity, debt, and investment strategies.

All assumptions made about the company’s market are supported by industry standards, relevant market research, market trends, surveys, and personal interviews.

8.6 Projected Balance Sheet

The Projected Balance Sheet shows healthy growth of ReHabiliments’ net worth and strong financial position.  Monthly projections are included in the appendices.

8.7 Business Ratios

Standard business ratios for ReHabiliments are included in the following table, along with ratios for the Women’s and Children’s Clothing Industry (SIC Code 5137) for comparison.  ReHabiliments differs from these industry standard ratios in a number of ways, since no industry code exactly matches our business type. 

These ratios show a plan for balanced, healthy growth.  One of the more important indicators is the increase in working capital, which is critical to the growth and financial health of the company.  Although there are significant differences between ReHabiliments’ ratios and the standard industry ratios, these differences reflect our mixed business type.  We manufacture, distribute (wholesale) and sell our products directly to consumers (retail).  Our asset structure, in particular, reflects that of a manufacturer rather than a retailer or distributor, since we need both inventory (raw materials) and production equipment. 

ReHabiliments’ competition in the apparel industry is widely varied.  Direct competitors are other established brand manufacturers, such as Tommy Hilfiger, Inc.; The Gap, Inc.; Abercrombie & Fitch; the Jones Apparel Group, Inc.; Polo Ralph Lauren Corp.; Liz Claiborne, Inc.; and Nautica Enterprises, Inc.  The closest competitor in terms of popularity, growth, and product line is the FUBU Corporation.

In such a climate, the best investment opportunities will be awarded to companies that have the ingenuity and creativity to meet the customers’ demands for fashion in an industry driven by economic conditions, demographic trends, and pricing.  The industry has moved from a “buy now, wear later” consumer to a “buy now, wear now” consumer.

The company’s management is confident that the ReHabiliments can achieve its aggressive sales forecasts, generating total sales of approximately $5.5 million $9.9 million and $10.6 million in years, 2005, 2006, and 2007, respectively.  In addition, ReHabiliments’ management has carefully considered its market, potential customer base, and its ability to grow its sales average to capture 10% of the branded urban apparel industry.

ReHabiliments has the potential to become a highly regarded resource in local, regional, national, and international markets.  Due to the company’s aggressive marketing strategy, establishment of the company as a “unique” entity in its industry, careful development of its products coupled with strategic partnerships with some of the industry’s retail clothing outlets, and the company’s profitable revenue model, ReHabiliments has the potential to provide lucrative returns to potential investors.

For ReHabiliments to achieve status as an industry leader, it must secure initial capital.  This capital will be used for start-up costs, to establish a reputable storefront, and to further develop the business, business infrastructure, internal systems, product development, and extensive marketing and geographic positioning.  Providing that the company is able to acquire its funding requirements, ReHabiliments should be able to achieve operational success for many years to come.

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How To Start A Children's Clothing Business

If you ask any entrepreneur, starting a business comes with its fair share of challenges.

Starting a children's clothing business requires a great deal of effort, dedication and most importantly passion .

If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.

We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.

Start A Children's Clothing Business ➜ avg revenue (monthly) $333K see all children's clothing businesses ➜ starting costs $13.7K see all costs ➜ gross margin 47% time to build 300 days growth channels Email marketing business model Subscriptions best tools Shopify, Google Drive, Instagram time investment Full time pros & cons 35 Pros & Cons see all ➜ tips 8 Tips see all ➜

💡 Introduction To Starting A Children's Clothing Business

Is the children's clothing business for you.

Let's look at the pros and cons of starting your own children's clothing business

• Flexibility: One of the biggest advantages of starting a children's clothing business is that you can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Ability to start your business from home: It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
• Little startup costs required: The cost to start a children's clothing business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.
• Rewarding work: Starting a children's clothing business can be really rewarding and fun work. After all, you're bringing joy and excitement into peoples lives.
• Crowded space: Competition is high when it comes to your children's clothing business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
• Finding the right supplier: Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Creating a successful children's clothing business means that you will have the ability to sell, provide stellar customer service, communicate with vendors and motivate your team (even if it's down the road)!

Brick & Mortar vs eCommerce Business Model

When deciding whether or not to start a children's clothing business, it's important to first decide what type of business model you want (brick and mortar, eCommerce, or both)!

Here are a few things to keep in mind when considering a Brick & Mortar store:

Brick & Mortar Model

If you do plan to open a physical store, it's important that you find a spot in a high-traffic area. This is a great way to gain exposure for your business and also get new customers.

It's also important to consider the higher costs associated with operating a physical store (ie - employees, rent, utilities, etc) and the long days/hours associated with running a store.

The main benefit, however, is that customers love being able to see products in person. It's important to recognize that although some people enjoy shopping online, there will always be the shopper persona that likes to touch, feel, and see the product they're buying.

eCommerce Business

One of the main benefits of operating online is that you are exposed to the entire world, versus just one local area. Rather than depending on foot traffic, you have all the tools at your disposal to create exposure for your store online.

Additionally, there are much lower costs to operate an online store - fewer employees, you can operate from your home, and you get to create your own schedules (yes, holidays included!)

Although you are operating online and have the ability to connect with people all over the world, it's important to consider that you will need to invest marketing money upfront in order to promote your store to the right audience.

So, which business model should you go with?

Each model has their benefits, however, the consumer trends for children's clothing business are shifting towards e-commerce businesses.

Big Players

• Children Salon (2.06K Alexa Ranking)
• Patpat US (3.22K Alexa Ranking)
• J.Crew (3.79K Alexa Ranking)
• Carter's (6.87K Alexa Ranking)
• Children's designer clothing (11.7K Alexa Ranking)

Small Players

• NG Apparels - Revenue $1.33M/month
• Bailey's Blossoms - Revenue $750K/month
• Parker Baby Co. - Revenue $500K/month
• zapato FEROZ - Revenue $500K/month
• Stonz - Revenue $250K/month
• Buckle Me Baby Coats - Revenue $200K/month
• Bambox - Revenue $60K/month
• Joah Love - Revenue $39K/month
• CoziGo - Revenue $26K/month
• Baby Wit LLC - Revenue $1K/month
• Sat Nam babe - Revenue $500/month
• Sawyer - Revenue $0/month

How To Name Your Children's Clothing Business

It's important to find a catchy name for your children's clothing business so that you can stand out in your space.

Here are some general tips to consider when naming your children's clothing business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your children's clothing business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your children's clothing business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your children's clothing business:

• Tiny Town check availability
• Lovey Dovey check availability
• BabyPlace check availability
• Tiny Treasures check availability
• Teddy Bear Products check availability
• Kiddle Place check availability
• BearyBaby check availability
• BabyLove check availability
• Tiny Crews check availability
• Toys And Tots check availability
• Baby Paradise check availability
• Giggles spot check availability
• Cottage County check availability
• Perfect Playtime check availability
• KidSwing check availability
• Baby Boutique check availability
• Baby Mall check availability
• Cuddles n’ Chuckles check availability
• Baby Couture check availability
• Mommy & Baby check availability
• Childsplay check availability
• FunWood check availability
• Brand New Baby check availability
• Itty Bitty Baby check availability
• Bratatatmania. check availability
• Little Adventurers check availability
• Small Town Baby check availability
• Euro Ess Childrens Clothing check availability
• Nex Babies check availability
• Little Misses check availability
• Happy littles clothing outlet check availability
• Adorned check availability
• Little People check availability
• Baby Born check availability
• Silly Baby check availability
• Bebe’s Palace check availability
• Top Notch Toys check availability
• Unbelievable Babies check availability
• Baby Life check availability
• BaBaBaby check availability
• Better Baby check availability
• Little One Stop check availability
• CelebU check availability
• Tiny Tycoons check availability
• Soft Sleep check availability
• FashionTotz check availability
• Peas in a Pod check availability
• Baby Motif check availability
• Leaps Inc check availability
• Uluru kids check availability
• MommyClub check availability
• Tummy Time check availability
• 4kidsOnly check availability
• Child Chic check availability
• Baby Wishes check availability
• PlayFactory check availability
• Lullaby’s check availability
• Baby Boo check availability
• Star Babies check availability
• Kid Clouds check availability
• Toys Republic check availability
• Blooming Babies check availability
• Current Kids check availability
• The Charming Baby check availability
• Toys N’ Dolls check availability
• Curly Winds check availability
• Kidcelence check availability
• Kid Care check availability
• Bountiful Blessings check availability
• Pint-Sized check availability
• Carousel Clothing Co. check availability
• Little Beauties check availability
• PLay Degree check availability
• Baby + Me check availability
• WeLoveBabies check availability
• City Baby check availability
• Sunshine Cuties check availability
• Blessed Babies check availability
• Rock-a-Bye Baby check availability
• Plush Play check availability
• Baby & I check availability
• EuroDudz check availability
• Kids Kupboard check availability
• Perfect Babies check availability
• Not a Grown Up check availability
• Wonderland Kidswear check availability
• Bouncing Babies check availability
• Kid Mart check availability
• Beautiful Bundle check availability
• Lovely Newborns check availability
• ‘Bout the Baby check availability
• Mom & Babes check availability
• Child City check availability
• Teeny-Weeny Babies check availability
• Elle’s Babies check availability
• Sunny Baby check availability
• Criss Cross check availability
• Baby Story check availability
• La La Buys check availability
• Sprouting Beauties check availability
• Fabustars check availability
• FunTime check availability
• Stuff 4 Baby check availability
• Charming Softies check availability
• Baby Happy check availability
• SvelteKids check availability
• Kiddies County check availability
• Little Monkeys check availability
• Boy Wonder check availability

Read our full guide on naming your children's clothing business ➜

Gia Paddock, founder of Boutique Rye explains how they came up with the name of their business:

What took the longest was deciding on a name and our logo; I wanted it to be meaningful, and I cared so much about what people thought.

Looking back, my advice would be to quit thinking about other people. This is my business, and all that matters is if I am happy the name and logo.

A popular national brick & mortar women’s boutique that many may have heard of is called Francesca’s… How original, right? So we came up with Boutique Rye named after our son, Riley. We put "boutique" in front to be a little different.

Now came the logo… Oh man, was this a task. We hired a graphic designer that we went to high school with, and went back and forth with him for about a month and a half. I wanted something that really described my style which is kind of “boho chic” and decided on a dreamcatcher. The dreamcatcher is also what our son’s nursery was decorated in, so it truly felt like a family business.

Search Interest

Let's take a look at the search trends for childrens clothing over the last year:

Learn more about starting a children's clothing business :

Where to start?

-> How much does it cost to start a children's clothing business? -> Pros and cons of a children's clothing business

Need inspiration?

-> Other children's clothing business success stories -> Marketing ideas for a children's clothing business -> Children's clothing business slogans -> Children's clothing business names -> Children's clothing business Instagram bios

Other resources

-> Profitability of a children's clothing business -> Children's clothing business tips -> Children's clothing business manufacturers

🎬 How To Start A Children's Clothing Business

Identify Target Customer

A very critical piece in building children's clothing business is to identify your ideal target customer.

• Develop a niche and create a consistent brand that reflects your target customer.
• The colors, logo, content, and overall website should resonate with your target customer and should draw them in by helping them solve their specific "need".

Identifying Customers: Sat Nam Babe Example

I launched Sat Nam babe in Spring 2017, a mindfully made line of yoga-inspired clothing for kids under six and babies (think ethical supply chain, pants made out of recycled plastic bottles, fun prints and an overall uplifting message).

Early on, I thought my main customer would be Lululemon wearing, organic produce buying, millennial age yoga moms.

While they may be my end customer, my direct customer is many times the woman looking for a unique baby or kid’s birthday, Christmas, etc type gift for the special kid in their life or the hip Grandma who has a disposable income and wants to spend it on her precious grandkids!

Write a Business Plan

Writing a business plan from the start is critical for the success of your children's clothing business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Setting Up Your Children's Clothing Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

Purchasing Inventory For Your Children's Clothing Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

• Identify your target audience : Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
• Research your competition : Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
• Create an inventory wishlist : Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
• Find a supplier Make sure to first compare prices and analyze different options.
• Delivery timing : Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog. .

How Much Does It Cost To Start A Children's Clothing Business

If you are planning to start a children's clothing business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a children's clothing business and outline the costs you should expect for each:

• The estimated minimum starting cost = $12
• The estimated maximum starting cost = $27,209

Emily Casseday, founder of Blush Boutique Co describes how she was able to stay under $10K to get off the ground:

Because we were starting small, we didn’t have a lot of overhead. One of the biggest downfalls of starting a business is having too much to carry without a lot of income, which is why we decided to start in my basement instead of fully going brick and mortar.

We wanted to test the waters first to see if we had a viable business for our community. In order to finance the beginning of our shop, we used some savings and one credit card. Our goal was to never outspend what we made, so we started with a limit of $10,000 on the card and paid it off as we went. That first year, we didn’t take a paycheck so that we could completely get out of debt.

Raising Money

Since the startup costs to start children's clothing business range between $12 - $27,209, there are ways you can raise money to cover these costs.

Here are a few ways you can secure additional funding:

• Launch your product on Kickstarter
• Raise capital by asking friends and family
• Apply for a loan
• Find an investor!

Crowdfunding Campaign Example: Sat Nam Babe

I used iFundWomen to launch my company with a crowdfunding campaign, raising approximately 70% of what I needed to launch my business.

Crowdfunding is an excellent way to raise capital and test your market in a controlled and safe environment (aka friends and family) without draining your savings.

I raised about 40% of my goal within the first 48 hours because I was prepared, promoted heavily and had 100% of my energy in the game.

I can’t recommend this avenue enough because since most companies fail, why would you want to drain your savings or take out a bank loan when you can get early buy-in, early-stage customers and early feedback through crowdfunding?

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

• Draw Your Initial Design on Paper
• Form pieces of fabric together
• Consider Taking A Generic Product And Putting Your Own Brand On It
• Try Making the Product Yourself
• Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here .

Krystian Frencel, founder of Two Bunch Animals created a paper form of two pieces of fabric that made up their product:

There are other creative methods of "sketching" out your design, and it doesn't always have to be with a pen and paper.

I started by deconstructing, AKA pulling out the stitches from a pair of the Stonemen briefs. Created a paper form of the two pieces that made up the brief, and had it digitized.

I also connected with a graphic designer who helped set artwork into the digitized template and made it match at the edges for a beautiful seamless print.

I searched for local sewing classes first, thinking I was going to learn to sew myself. I don’t know what I was thinking.

I was eventually recommended a sewing shop by one of the sewing classes/workshop places I contacted. This is where I met the owner of the shop, a masterful older German lady. She reminded me of my father a bit, an old soul with an immense amount of knowledge and experience.

She was an expert at her craft. She talked me through the manufacturing process and taught me a lot about it.

She connected me with a fabric supplier, a waistband supplier and set out a timeline to create prototypes. All I had to do was provide the printed templates of the underwear on a roll of fabric.

Revenue Expectations

We've interviewed several different founders in the children's clothing business and asked them how much $ they're making today.

• $0/year in revenue
• Sells kids clothing.
• 3 employees
• $312K/year in revenue
• Sells baby strollers
• Solo founder
• 2 employees
• $468K/year in revenue
• Sells premium children's clothing
• 7 employees

Sat Nam babe

• $6K/year in revenue
• Sells yogi children's clothing
• 0 employees
• $720K/year in revenue
• Sells baby products subscription box

Buckle Me Baby Coats

• $2.4M/year in revenue
• Sells car seat friendly coats

How To Price Your Childrens Clothing

One of the most challenging aspects to starting a children's clothing business is determining how much to charge for your childrens clothing.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your childrens clothing, it's critical that you first identify all of your costs and consequently mark up your childrens clothing so you can factor in a profit.

The actual cost of your childrens clothing may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your childrens clothing, you'll want to create goals for revenue + how much profit you want your children's clothing business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your childrens clothing is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your childrens clothing fits best in the marketplace.

All of these factors play an equal part in pricing your childrens clothing, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:

I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.

The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.

How To Find A Supplier For Your Children's Clothing Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

• Are you looking for a manufacturer to produce your product idea ?
• Do you want to find a supplier that can simply purchase existing products for you ?
• Do you want a drop-shipper to supply and fulfill orders?
• Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Manufacturing Example

The next step was to look for manufacturing partners, but funnily enough, we didn’t even know what we were looking for. Are we looking for the fabric itself, or a company that produces dress shirts?

We knew the properties that we wanted, so looking through online directories we set up a spreadsheet with possible companies and started emailing them with our requests to "make dress shirts from sports materials".

At the end, we emailed all the companies that had a website, as well as an email address (you’d be surprised how many didn’t) and started setting up meetings in a span of a week that we can take off from our jobs and travel back to Bulgaria to meet with all of them.

At first, most of them didn’t know what we were talking about and looked a bit confused, but after a week of meetings and discussions, there was one company that said they could be able to create such a product, so we decided to shake hands and proceed to make samples.

Alibaba Tips From Founders

I did not have expensive prototyping design software, so my “designs” were free-hand drawings I created with colored pencils. It didn’t cost thousands of dollars and it was efficient.

The next process was to packaging my product. I knew I wanted elevated packaging because I thought of my product as an affordable, luxury product ($29.99 per pair). For this box, I went straight to the source: Alibaba.

If you’re not familiar, Alibaba is a site where you can access factories (mostly in China) and get almost anything made. It’s an inventor’s playground. I posted my box design specifications, and within 24 hours, I had selected a factory that could make my boxes for about $1.10 each.

When you look for a factory on Alibaba, make sure they are a “Gold Supplier” with “Trade Assurance”.

Alibaba validates and scores its factories though a badge/award system, so make sure you check these qualifications carefully. I have been lucky and had no issues so far.

🚀 How To Launch Your Children's Clothing Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Children's Clothing Business:

There are various different ways you can launch your children's clothing business successfully.

Here are a few different strategies to get customers excited about your children's clothing business:

• Set up a Facebook page for your business. This is a great way to establish an online presence
• Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
• Get Press! Pitch your story to the media and you may just land in an amazing publication
• Live sales to get customers excited
• Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Traditional Launch Strategies Example

Collaboration is key. We worked together a lot with like-minded emerging brands, local artists, and events.

One of the first sales we made was actually at a local weekend market in Crows Nest. Dealing with mostly online transactions, the experience to meet our very own customers in person is actually amazing.

The biggest lesson is probably to reach out, work with people, and support each other.

For example, we were able to have our pop-up space by sharing the cost with fellow independent brands. We’re stronger together.

Gia Paddock discusses how live sales on Facebook was KEY to her launch success:

Our official launch happened the day after my birthday, July 26, 2017.

I decided to get the word out by going “live” on Facebook. When you have a personal profile, Facebook will allow you to record yourself in real time, and they allow any of your friends to click on the video and watch if they want. I told everyone our background story and that we would have our first live sale that next night, which was a Thursday. Little did we know Thursdays would be “our day”!

Live sales were something that I wanted to do, and it was different than other online boutiques I had seen. Basically, I would go “live” on our boutique’s Facebook page with our new inventory and show each item, give a little description on it, how it fits, price, sizing, etc. It really feels like I am everyone’s own personal shopper, which is amazing!

Our first live sale was pretty successful. Most of our first customers were my friends or acquaintances from school. We decided to start right away and do a giveaway if they shared the live sale video. We gave away a $100 gift card raffle as an incentive to anyone that shared the video.

This would prove to be by far our best strategy to grow the boutique without spending a dime on traditional advertising.

Marketplaces

There are various different marketplaces that you can effectively sell and promote your children's clothing business, whether that's local or online!

Here are some of the most common ones:

• Your own website! Shopify is known to be the best for e-commerce stores
• Local places! Gift shops, farmers markets, festivals, grocery stores etc
• Etsy - E-commerce website for craft supplies
• Craft is Art Marketplace to buy and sell handmade crafts & fine art
• Aftcra Online marketplace where you can buy and sell handmade products
• Storenvy Marketplace for authentic brands

Etsy Tips From Founders

Etsy is one of the most common marketplaces for this business type, however, there are some tips and tricks from other founders you'll want to consider prior to listing:

Financially speaking, Etsy is a really great way to start a business because it’s essentially free until you start selling. It cost nothing to launch besides my 20 cent listing fees.

Etsy has been encouraging free shipping with a lot of pushback from sellers, but I built everything into our prices about a month ago and introduced free shipping shopwide , which seems to have improved conversion rates and search visibility already.

I honestly attribute the bulk of my success to photography. I was a photographer first so obviously very lucky to have no issues launching with great images and it’s something I consistently produce.

With Etsy especially, there are a ton of mediocre amateur photos so it was an easy way to set myself apart from the start, and I don’t think Etsy themselves would feature my products and market them so often otherwise. We’re also able to compete fairly well on price because 80% of customers are American, and our dollar is much weaker.

One big mistake I’m seeing from other people selling handcrafted items is regarding Etsy. I’m seeing people do one of two things:

• Under-utilize the platform
• They are solely using the platform

What I mean by this is that I’m seeing a whole lot of handcrafters that only use Etsy because it’s easy. But referring people to an Etsy page as your webpage isn’t as professional as a dot com webpage, plus, Etsy’s fees are much higher than Shopify. Also, when Etsy makes changes to its marketing structure, I’ve seen people who have no other website get absolutely screwed and their shops go under.

The other camp is those that refuse to use Etsy at all. Etsy is a marketplace, with a built-in audience that is often searching for exactly the product you make! Both camps are making the mistake of not diversifying their markets. Use Etsy, it’s an amazing sales tool, but don’t rely on it solely.

Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

• Easy and seamless process to get your product listed on Amazon
• There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
• Can help grow your business exponentially and reach new audiences
• You may encounter some "copycats" and counterfeit products
• Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
• If you already have a low-markup, amazon may not wrth your while and you could end up losing money
• Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

🌱 How To Grow Your Children's Clothing Business

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your children's clothing business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to children's clothing business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Host A Social Media Giveaway

People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.

If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.

One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.

This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.

🏃🏼‍♀️ How To Run Your Children's Clothing Business

How To Retain Customers For Your Children's Clothing Business

Retaining customers is one of the most effective ways to grow your children's clothing business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your children's clothing business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Erin Hooley, founder of Bailey's Blossoms discusses the key to retaining customers:

A product without a person is just a product. If you can manage to connect with people on a personal level, you will have a fan for life. And a fan is a thousand times more valuable than simply another customer.

My customers have always been my top priority. I can never get enough of their feedback! It was those willing to speak up and provide constructive criticism that I credit my success to. In an effort to constantly progress we chose to get up more times then we fell and it ultimately paid off!

With a total customer base of around 750,000, we hope to pass 1 million by the end of 2020.

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Diversifying Product Example: Joah Love

The future for JOAH LOVE is bright! Customers have been telling us that they’ve been coveting their kids’ wardrobes for years, and this season, we’re going to make a collection just for them with the launch of a new line for adults.

It will include Mommy + Me and Daddy + Me collections, complementary clothing for parents and their kids.

We’re also in the early stages of exploring clothing options for children with special needs. There’s growing demand for sensory-sensitive apparel to help outfit these children and support their parents, and we’re excited to reenvision how our incredibly soft materials can help these families.

We put together the best resources on the internet to help you start your children's clothing business.

• Platform tools such as Shopify , WooCommerce , Amazon , Etsy , eBay , Google Shopping , BigCommerce , Adobe Creative Cloud or Amazon Web Services
• Email tools such as MailChimp , Klaviyo , SendinBlue , ActiveCampaign , Omnisend , Planoly , G Suite , Whatsapp or WeChat
• Social media tools such as Facebook , Instagram , Twitter , YouTube , Pinterest , Sprout Social , Vimeo or Later.com
• Advertising tools such as Facebook Ads , Instagram Ads , Google Adwords , Google AdSense , Amazon Ads or Google ads
• Reviews tools such as YotPo , Stamped.io or Google My Business
• Design tools such as Canva or Adobe Suite
• Shipping tools such as ShipStation , ShippingEasy , Stamps.com , EasyPost , Shippo , USPS , UPS WorldShip , FedEx , Royal Mail , Amazon FBA , DHL , Return Magic , UPS , Canada Post or 2ship
• Analytics tools such as Google Analytics
• Productivity tools such as Google Suite , Dropbox , Slack , Microsoft Office 365 , Notion , NetSuite , Redbooth , ClickUp , Stickermule or Box
• Payments tools such as Paypal , Shopify Payments , Amazon Payments , Apple Pay , Venmo , Afterpay or Braintree
• Customer service tools such as Zendesk , Intercom or Gorgias
• Blog tools such as WordPress
• Accounting tools such as Quickbooks , Xero , Wave or A2X
• Sales tools such as Ultimate Special Offers
• Freelance tools such as Fiverr or Upwork
• Referral tools such as ReferralCandy
• Education tools such as Udemy or Skillshare
• Stock images tools such as 123rf , Unsplash , Pixabay or Istockphoto
• Affiliate tools such as Skimlinks or ClixGalore
• App tools such as Gravity Forms
• Seo tools such as Screaming Frog or Moz
• Web hosting tools such as GoDaddy
• Podcast tools such as SoundCloud , Spotify or Stitcher
• Payroll tools such as Paychex or Payworks
• Wholesale tools such as repzio or shopzio
• Crm tools such as Zentail
• How Any Kid Can Start A Business: Shaan Patel

Start Your Own Clothing Store and More: Women's, Men's, Children's, Specialty (StartUp Series)

Let My People Go Surfing: The Education of a Reluctant Businessman--Including 10 More Years of Business Unusual

The Adventures of Tom Sawyer (Dover Thrift Editions)

Web Resources

• How To Sell Kids Fashion Online
• Kid's Clothing Store Business Plan Sample - Executive Summary
• How To Start A Children's Clothing Brand
• Starting A Children's Boutique Career Series #2

Case Studies

• Starting a Kids Clothing Brand and Growing to $12k/mo
• How Emma Lovell Built A $26K/mo Baby Stroller Business
• How I Built A Children's Lifestyle Clothing Brand
• How I Started A Business Selling Yoga Clothing For Kids
• How We Grew Our Baby Subscription Box To $60K MRR
• How A Single Mom Designed A $50,000/Month Car Seat-Friendly Kids Coat
• Lessons Learned From 20 Years In E-Commerce
• How I Started A $750K/Month Infant And Toddler Clothing Brand
• How We Started A $325K/Month Practical Baby Products Brand
• How I Started A $185K/Month Baby And Children Vegan Footwear Brand
• 35 Pros & Cons Of Starting A Children's Clothing Business (2024) 1 of 10
• 8 Tips For Starting A Successful Children's Clothing Business (2024) 2 of 10
• 15 Children's Clothing Brand Success Stories & Case Studies [2024] 3 of 10
• How Profitable Is A Children's Clothing Business? (Updated for 2024) 4 of 10
• How Much Does It Cost To Start A Children's Clothing Business? (In 2024) 5 of 10
• 400+ Cute Children's Clothing Line Names 6 of 10
• 298+ Best Instagram Bios For Your Children's Clothing Brand [2024] 7 of 10
• 300+ Clever Children's Clothing Business Slogans 8 of 10
• 90 Best Wholesale Children's Clothing Suppliers [2024 Edition] 9 of 10
• 80 Marketing Ideas For A Children's Clothing Business (2024) 10 of 10

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How To Create a Green Business Plan for Kids' Clothing: Checklist

By henry sheykin, eco-friendly children's clothing line bundle.

Related Blogs

• Starting a Business
• KPI Metrics
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• Startup Costs
• Pitch Deck Example
• Increasing Profitability
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• Rising Capital
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• How Much Makes
• Sell a Business
• Business Idea
• How To Avoid Mistakes

Welcome to our blog post on how to write a business plan for an eco-friendly children's clothing line. In an increasingly eco-conscious world, the demand for sustainable and organic clothing options is on the rise. According to recent statistics, the global organic textiles market is projected to grow at a CAGR of 16.4% from 2021 to 2028, reaching a value of $10.17 billion. Now is the perfect time to enter the market with your environmentally-friendly clothing line and make a positive impact on both fashion and the planet.

To successfully launch your eco-friendly children's clothing line, it is crucial to follow a structured and comprehensive business plan. We have prepared a checklist of nine essential steps to guide you through the process. By carefully following these steps, you will be able to research the market, identify your target customers, define your brand, analyze the competition, develop sustainable production methods, create a pricing strategy, devise a marketing and sales plan, assess the financial feasibility, and outline the operational structure of your business.

Researching the eco-friendly children's clothing market is the first step towards understanding the industry's trends, opportunities, and challenges. By analyzing the target market and identifying potential customers, you can create clothing that meets their needs and preferences. Defining your brand and unique selling proposition will help you differentiate yourself from competitors and create a strong brand identity. Conducting a competitive analysis allows you to understand the market landscape and develop strategies to stand out.

Determining sustainable production and sourcing methods is crucial for maintaining the eco-friendly aspect of your clothing line. By partnering with local artisans and manufacturers, you can ensure fair trade practices and support local communities. Creating a comprehensive pricing strategy will help you strike a balance between affordability and sustainability, ensuring your products are accessible to eco-conscious parents.

Developing a marketing and sales plan is essential for promoting your clothing line to potential customers. Utilize digital marketing strategies, social media platforms, and targeted advertising to reach your target audience effectively. Assessing the financial feasibility and identifying potential funding sources will give you a clearer picture of the financial requirements and investment needed for your business. Lastly, outlining the operational structure and logistics of your business will help you streamline processes and ensure smooth operations.

By following these nine steps, you will be well on your way to writing a comprehensive business plan for your eco-friendly children's clothing line. Emphasize quality, affordability, and sustainability, and make a positive impact on both the fashion industry and the environment. Good luck!

Research the Eco-Friendly Children's Clothing Market

When starting a business, it is crucial to thoroughly research the market you will be operating in. The same holds true for launching an eco-friendly children's clothing line. By conducting comprehensive research, you can gain valuable insights into the current trends, consumer preferences, and market opportunities within the eco-friendly children's clothing industry.

Here are some important steps to consider when researching the eco-friendly children's clothing market:

• Identify and study existing eco-friendly children's clothing brands: Look into established brands in the eco-friendly children's clothing market to understand their product offerings, target audience, pricing strategies, and marketing tactics. This will help you gain a better understanding of the competitive landscape and guide you in developing a unique selling proposition.
• Stay up-to-date with industry trends and consumer demands: Follow industry publications, blogs, and social media accounts to stay informed about the latest trends and consumer preferences. This will help you identify emerging market opportunities and ensure that your clothing line meets the demands of eco-conscious parents.
• Consider the growth potential of the eco-friendly children's clothing market: Evaluate the size and growth rate of the eco-friendly children's clothing market. Look for statistics, market reports, and industry forecasts to assess the viability and long-term sustainability of your business idea.
• Understand the regulatory landscape: Familiarize yourself with relevant regulations, certifications, and standards governing the use of sustainable and organic materials in the clothing industry. Ensure that your production and sourcing methods comply with these regulations to build trust and credibility with your target market.

Tips for researching the eco-friendly children's clothing market:

• Attend trade shows and conferences: Participate in industry events to network with other professionals, gain insights from industry experts, and learn about the latest market trends.
• Engage with potential customers: Conduct surveys or interviews with eco-conscious parents to gather firsthand information about their preferences, needs, and pain points. This will help you fine-tune your product offerings and marketing strategies.
• Utilize online resources and databases: Explore online resources, such as industry associations, market research reports, and consumer surveys, to gather valuable data and insights about the eco-friendly children's clothing market.

Analyze The Target Market And Identify Potential Customers

One of the most crucial steps in developing a successful business plan for an eco-friendly children's clothing line is to thoroughly analyze the target market and identify potential customers. This market analysis will provide valuable insights into the preferences, needs, and purchasing behaviors of your target audience, enabling you to tailor your products and marketing strategies to meet their demands.

To start, begin by conducting thorough research on the eco-friendly children's clothing market to gain a comprehensive understanding of the current trends, key players, and growth potential. This will help you identify any gaps or opportunities in the market that your clothing line can fulfill.

Next, define your target market by considering factors such as demographics, psychographics, and behaviors. This can include age groups, gender, income levels, lifestyle choices, and environmental values. Understanding your target market's preferences and values will allow you to create products and marketing messages that resonate with them.

Consider segmenting your target market into smaller groups based on specific criteria, such as age ranges or geographic locations. This will help you identify different customer segments and tailor your marketing strategies accordingly.

Tips for analyzing the target market and identifying potential customers:

• Conduct surveys or interviews with potential customers to gather valuable insights and feedback on their preferences and needs.
• Utilize online research tools and databases to gather data on market trends, competitor analysis, and customer demographics.
• Monitor and engage with relevant online communities and social media platforms to gain insights into discussions and trends among your target audience.
• Consider partnering with influencers or industry experts who align with your brand values to reach and engage potential customers.

By conducting a thorough analysis of the target market and identifying potential customers, you will be able to develop a more targeted and effective marketing and sales strategy. This will not only help you attract and retain customers but also differentiate your eco-friendly children's clothing line from competitors.

Define Your Brand And Unique Selling Proposition

Defining your brand and unique selling proposition (USP) is crucial in setting your eco-friendly children's clothing line apart from competitors and attracting customers. It helps you communicate your brand's values, mission, and the unique benefits offered by your products. Here are some key steps to follow:

• Identify your target audience: Understand who your ideal customers are, their preferences, and their values. This will help you tailor your brand's message and positioning to resonate with them.
• Create a brand story: Craft a compelling narrative that highlights your brand's mission, vision, and values. Your story should connect with your target audience and showcase your commitment to sustainability and environmental consciousness.
• Develop a brand personality: Determine the tone and voice of your brand. Are you playful and fun, or sophisticated and elegant? Your brand personality should align with the preferences of your target audience.
• Highlight your unique selling points: Identify what sets your eco-friendly children's clothing line apart from competitors. Is it the use of specific sustainable materials, innovative design techniques, or ethical production practices? Emphasize these unique selling points in your brand messaging.
• Create a memorable brand name and logo: Choose a name and design a logo that aligns with your brand's personality and values. Ensure that it is visually appealing and easily recognizable.
• Consistency is key. Ensure that your brand messaging, visuals, and overall brand experience remain consistent across all touchpoints.
• Focus on building an emotional connection with your target audience. Highlight the benefits and positive impact your eco-friendly clothing line can have on their children's well-being and the environment.
• Stay true to your brand's values and mission. Authenticity is vital in building trust and loyalty among eco-conscious parents.
• Consider conducting market research or surveys to gather feedback from your target audience. This can help you refine your brand positioning and messaging.

Conduct A Competitive Analysis

Conducting a competitive analysis is a crucial step in developing a business plan for your eco-friendly children's clothing line. This analysis will help you gain insights into the market landscape and identify your competitors.

During the competitive analysis, research and identify direct competitors who already offer eco-friendly children's clothing. Study their product offerings, pricing strategies, target market, and brand positioning. This will help you understand their strengths and weaknesses and identify opportunities to differentiate your business.

Additionally, it is important to analyze indirect competitors as well. These may include traditional children's clothing brands that do not prioritize sustainability but still attract a portion of your target market. By understanding what sets them apart from your eco-friendly clothing line, you can identify ways to position yourself as a more desirable option.

• Look for gaps in the market that your competitors have not capitalized on. This can provide you with opportunities to offer unique and innovative products.
• Consider conducting surveys or focus groups with your target market to gather insights on their preferences and perceptions of your competitors. This can help you understand your competitive advantages and potential areas for improvement.
• Monitor your competitors' marketing strategies, such as their online presence, social media campaigns, and collaborations. This will allow you to stay updated on industry trends and identify potential partnership opportunities.
• Keep an eye on the pricing strategies of your competitors to ensure that your pricing is competitive while reflecting the value and quality of your eco-friendly children's clothing line.

By conducting a comprehensive competitive analysis, you will be equipped with valuable information to refine your brand positioning, develop effective marketing strategies, and create a unique selling proposition that sets your eco-friendly children's clothing line apart from the competition.

Determine The Production And Sourcing Methods

In order to create an eco-friendly children's clothing line, it is crucial to carefully consider the production and sourcing methods. These decisions directly impact the sustainability and ethical practices of your business. Here are some important factors to consider:

• Sustainable Materials: Research and identify sustainable materials that align with your brand's values. Look for options such as organic cotton, bamboo, hemp, or recycled fabrics. These materials not only minimize environmental impact but also provide comfort and safety for children.
• Local Artisans and Manufacturers: Establish partnerships with local artisans and manufacturers who share your commitment to sustainability and fair trade practices. This allows you to support local communities and reduce carbon emissions associated with long-distance transportation.
• Supplier Transparency: Ensure that your suppliers adhere to ethical and eco-friendly practices. Request information about their manufacturing processes, certifications, and labor conditions. This transparency will help you make informed decisions and build trust with your customers.
• Reduce Waste: Implement strategies to minimize waste throughout the production process. This can include using efficient cutting techniques, repurposing scraps, or recycling materials. By embracing a circular economy approach, you can contribute to a more sustainable industry.
• Lifecycle Analysis: Consider the entire lifecycle of your products, from sourcing and manufacturing to distribution and disposal. Aim to minimize the environmental impact at each stage and seek opportunities to improve sustainability.

Tips for Determining Production and Sourcing Methods:

• Regularly communicate and visit your suppliers to ensure they align with your sustainability goals.
• Consider implementing a certification process to verify the sustainability and ethical practices of your suppliers.
• Explore innovative technologies or processes that can enhance sustainability, such as 3D printing or digital pattern-making.
• Collaborate with other eco-friendly businesses or initiatives to share resources and knowledge.
• Continuously evaluate and improve your production and sourcing methods as new techniques or materials become available.

Create A Pricing Strategy

Once you have conducted thorough market research and analyzed your target market, it is important to develop a pricing strategy for your eco-friendly children's clothing line. This strategy will help you determine the optimal price point for your products, ensuring that they are competitive in the market while also allowing you to generate a profit.

Consider the following factors when creating your pricing strategy:

• Cost of production: Calculate the expenses associated with producing your eco-friendly children's clothing, including the cost of sustainable and organic materials, manufacturing, packaging, and labeling. This will help you determine your cost per unit.
• Profit margin: Determine the profit margin you aim to achieve for each product. This will depend on your business goals and financial projections.
• Competitive analysis: Analyze the pricing strategies of your competitors to understand the market dynamics and position your products effectively. Consider factors such as quality, brand reputation, and target market when determining your pricing.
• Perceived value: Assess the perceived value of your eco-friendly children's clothing line by considering factors such as the quality of materials, craftsmanship, and ethical practices. This will help justify your pricing to customers.

Tips for creating an effective pricing strategy:

• Offer a range of price points: Consider offering a variety of products at different price points to cater to a wider customer base.
• Implement a value-based pricing approach: Focus on highlighting the unique benefits and features of your eco-friendly children's clothing line to justify a higher price.
• Consider bundling or promotional pricing: Explore strategies such as bundling multiple products together or offering limited-time promotions to attract customers and boost sales.
• Regularly review and adjust pricing: Monitor market trends, customer feedback, and production costs to ensure your pricing remains competitive and profitable.

By carefully considering these factors and implementing an effective pricing strategy, you can ensure that your eco-friendly children's clothing line is both financially viable and attractive to your target market. The right pricing strategy will help you strike a balance between affordability and sustainability, attracting eco-conscious parents who prioritize their children's well-being and the environment.

Develop A Marketing And Sales Plan

Once you have defined your brand and unique selling proposition, it is crucial to develop a comprehensive marketing and sales plan to promote your eco-friendly children's clothing line and attract potential customers. This plan will serve as a roadmap for reaching your target audience, increasing brand awareness, and ultimately driving sales. Here are some important steps to consider:

• Identify your target audience: Conduct market research to understand the demographics, preferences, and buying behaviors of your potential customers. This information will help you tailor your marketing efforts and messages to resonate with your target audience.
• Create a compelling brand story: Highlight the eco-friendly and sustainable aspects of your clothing line in a way that resonates with your target audience. Clearly communicate the benefits of choosing your clothing line, both for children's comfort and the environment.
• Choose the right marketing channels: Determine which marketing channels are most effective in reaching your target audience. Consider utilizing online platforms such as social media, influencers, and organic search, as well as traditional channels like print media, events, and collaborations.
• Build a strong online presence: In today's digital age, having an online presence is essential for any business. Create a visually appealing website and optimize it for search engines. Set up social media accounts and regularly engage with your audience through valuable content and promotions.
• Build partnerships: Form partnerships with other eco-friendly brands or organizations that align with your values. Collaborating on promotions or events can help increase brand exposure and attract new customers.
• Offer incentives and rewards: Build customer loyalty by offering incentives such as discounts, rewards, or referral programs. This encourages repeat purchases and word-of-mouth marketing.
• Measure and analyze: Continuously monitor the success of your marketing campaigns and sales efforts. Use analytics tools and customer feedback to identify areas for improvement and optimize your strategies.

Tips for Developing a Successful Marketing and Sales Plan

• Set clear, measurable goals for your marketing and sales efforts.
• Stay up-to-date with industry trends and adapt your strategies accordingly.
• Regularly communicate with your target audience through various channels to build brand awareness.
• Utilize storytelling techniques to connect with your audience on an emotional level.
• Continuously evaluate and refine your marketing and sales strategies to stay ahead of the competition.

Assess The Financial Feasibility And Identify Funding Sources

Assessing the financial feasibility of your eco-friendly children's clothing line is crucial to ensuring the success and sustainability of your business. This step involves evaluating the costs involved in launching and operating your business, as well as identifying potential funding sources to support your venture.

To assess the financial feasibility of your business, start by creating a detailed budget that includes all the necessary expenses, such as production costs, marketing and advertising expenses, rent, and employee salaries. Consider consulting with industry experts or financial advisors to get a more accurate estimation of costs.

• Research potential funding sources: Identifying suitable funding sources is an essential part of securing the capital needed to launch and grow your eco-friendly children's clothing line. Research both traditional and alternative funding options, such as loans, grants, crowdfunding platforms, or angel investors. Look for opportunities specifically targeted towards eco-friendly or sustainable businesses, as they might offer additional support or incentives.
• Prepare a compelling business plan and pitch: Potential investors or lenders will require a comprehensive business plan that outlines your company's mission, goals, market analysis, and financial projections. Take the time to create a persuasive plan that highlights the unique selling points of your eco-friendly children's clothing line. Craft a compelling pitch to clearly communicate your vision and the potential financial returns of investing in your business.
• Build relationships and network: Networking is crucial when it comes to finding suitable funding sources for your business. Attend industry events, trade shows, and conferences to connect with potential investors, lenders, or fellow entrepreneurs. Building relationships and establishing a strong network can increase your chances of finding the right funding partners for your eco-friendly children's clothing line.
• Consider bootstrapping: Bootstrapping, or self-funding, can be a viable option for launching your eco-friendly children's clothing line. Look for ways to minimize costs, such as starting small, using shared resources, or exploring cost-effective marketing strategies. Remember that some investors or funders might appreciate your commitment to self-sufficiency and sustainability.
• Take advantage of grants and subsidies: Research and apply for grants or subsidies that support eco-friendly or sustainable initiatives. Many organizations and government entities offer funding opportunities specifically targeted towards businesses that prioritize environmental sustainability. These grants can provide valuable financial assistance and support for your eco-friendly children's clothing line.
• Explore crowdfunding platforms: Crowdfunding platforms offer a unique opportunity to raise funds for your business while simultaneously engaging potential customers and building brand awareness. Create a compelling campaign that resonates with eco-conscious individuals and promotes the values and benefits of your eco-friendly children's clothing line.

Outline The Operational Structure And Logistics Of The Business

When it comes to running an eco-friendly children's clothing line, establishing a solid operational structure and efficient logistics is crucial for success . A well-organized and streamlined operation will not only ensure smooth day-to-day processes but also enhance customer satisfaction. Here are some key aspects to consider when outlining the operational structure and logistics of your business:

• Inventory Management: Implement a robust inventory management system to track and monitor stock levels. This will help you avoid overstocking or understocking, minimizing waste and optimizing sales.
• Production Process: Clearly define your production process, from sourcing materials to manufacturing the clothing. Consider working with local artisans or manufacturers who align with your eco-friendly values.
• Sourcing and Supply Chain: Ensure that your supply chain adheres to sustainable practices. Source materials and components from eco-friendly suppliers who prioritize fair trade and ethical production methods.
• Quality Control: Develop stringent quality control procedures to ensure that your garments meet the highest standards. Regular inspections and testing will help identify and rectify any issues before the products reach the customers.
• Warehousing and Distribution: Determine the most efficient warehousing and distribution methods for your business. Consider factors such as proximity to suppliers and customers, transportation options, and eco-friendly packaging materials.
• Customer Service: Establish excellent customer service protocols to handle inquiries, complaints, and returns efficiently. A prompt and helpful customer service team will contribute to customer satisfaction and loyalty.
• Consider implementing a cloud-based inventory management system that allows real-time tracking and updates.
• Build strong relationships with your suppliers and manufacturers to ensure reliable and timely delivery of materials and finished products.
• Regularly review and optimize your production and supply chain processes to identify areas for improvement and reduce environmental impact.
• Explore partnerships with eco-friendly logistics providers to minimize carbon emissions and support your commitment to sustainability.

By addressing these operational considerations, you'll create a solid foundation for your eco-friendly children's clothing line . This will not only help you efficiently manage your business but also enable you to uphold your sustainability goals and deliver exceptional products and services to your customers.

Conclusion:

Writing a business plan for an eco-friendly children's clothing line requires careful research and consideration of various factors. By following the nine steps outlined in this checklist, you can ensure that your business plan covers all the essential aspects needed for success. From understanding the market and target customers to developing a marketing strategy and assessing the financial feasibility, each step plays a crucial role in building a sustainable and profitable business. With a clear vision and well-defined plan, you can confidently launch and grow your eco-friendly children's clothing line, making a positive impact on both the industry and the environment.

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How to Start Children's Clothing Business-The Most Comprehensive Guide

Introduction:

If you are thinking about starting a Kids wholesale clothing business, you have chosen the ideal business opportunity. Your Baby clothing company could be a huge box retailer with low-cost things aimed at the majority of families or a boutique with distinctive designs and higher-priced merchandise. This easy-to-follow comprehensive guide, will help you, get started with your Kid's wholesale clothing store.

These guidelines will ensure that your new Kids wholesale clothing store is well planned, legally compliant, and correctly registered.

Planning, making important financial decisions, and completing a series of legal activities are all part of the process of starting a Kids wholesale clothing store.

I.Is a children's clothing business profitable? 

1. children's clothing is in high demand.

Kid’s wholesale clothing business is the most profitable now a day. Amid global economic uncertainty, the market has shown incredible resilience, and it is expected to reach a value of $173.6 billion this year,

with a stable compound annual growth rate of 4.2 percent.

Despite accounting for only 12% of the overall garment market, selling baby clothes online business has seen the most increase in recent years. Starting a kid's clothing line increased by 6% in 2015,

compared to just 4% in the men's and women's apparel categories. Hence proof trendy baby clothes wholesale business is one of the most lucrative among the world’s fashion industry.

2. Children's clothing is a lucrative business in every country

In the United States, there are more than 50 million children, and each year, new parents purchase about 9 million pairs of pants and dresses for them.

The majority of this rise can be attributable to demographic trends. Many countries encourage childbirth, such as the United States, China, Russia, and Japan.

There is a great demand for children’s clothing and the market. In the United States and the United Kingdom, parents are having children later in life, when they have more spare money and can spend more on their children's clothing. Furthermore, the industry has grown in the Asia-Pacific area because of a growing middle class.

The market for children's clothing in the region is presently the fastest growing in the world, with sales expected to reach $76.6 billion by 2020.

3. Young parents prefer to buy clothes for their children

Furthermore, industry experts have observed changes in how adults purchase children's clothes, which may be beneficial to small business owners.

The children's fashion industry has begun to follow the adult fashion industry in recent years, with parents becoming increasingly worried about their children being "on-trend."

This implies there is more room for the market to expand, as well as more opportunities for Kids wholesale clothing firms to break into the industry.

Kid’s wholesale clothing  is most demandable for the following reasons:

• Children grow up fast and change clothes quickly.
• Parents will be willing to dress up children.

We should search for our customers, who are children's boutique owners. They told us how much profit they could make. Some local Kids' wholesale clothing boutiques or stores can make annual sales of around USD 200,000. On average, the personal net profit for a Kids wholesale clothing boutique owner is around USD 60,000 per year.

II.How much does it cost to start a children's clothing business?

Startup expenses vary considerably amongst clothing lines, but in general, a small wholesale kids boutique clothing will require a minimum of $500 to get started, a medium-sized brand would require

between $1,000 and $5,000 in startup expenditures, and a large wholesale kids boutique clothing will require between $25,000 and $50,000 in startup costs. An affordable children’s boutique clothing

brand might cost anything from $2,500 to $5,000 to start. You can begin with a small number of objects and expand from there.

Before you begin creating your kids branded clothes wholesale, you need estimate and budget for initial costs such as:

• Costs of production
• Material costs and product sourcing of kids wholesale clothing
• Design and delivery of kids wholesale clothing
• Costs of a website and marketing (which may include product photography)
• Costs of distribution of kids wholesale clothing

Before considering funding your kids' clothing business, most potential investors will want to see a kids wholesale clothing business plan. Many Wholesale kids clothing suppliers are tempted to utilize their business plans purely for

this purpose, but a good plan should outline the direction of a company's future. A business plan is essential for allocating resources throughout a company. It is a tool that can be used to assist you to seek fresh

money or as a strategy paper. A strong business plan explains how you intend to use the bank loan or investment you have requested.

1. Capital Costs of kids wholesale clothing:

The money that businesses use to finance their operations is referred to as capital. The cost of capital is simply the interest rate at which a company must borrow money.

Supplier credit, such as an account with payment due in 30 days, may be the only source of capital for very small enterprises. Longer-term debt, such as bank loans,

or other liabilities may be included in capital for larger enterprises.

2. Budget and Cash Flow:

When a crisis strikes your company, one of the first things you should do is prepare or amend your budget. The cash flow budget forecasts the company's future revenue and expenses,

as well as any periods when it may be financially strapped.

3. Brand Identity of kids wholesale clothing:

Building a brand identity is a multi-disciplinary strategic effort in which each component must contribute to the broader message and business objectives.

It can comprise a company's name, logo, and design, copywriting style and tone, product appearance and composition, and of course, social media presence.

4. Form a legal entity:

Wholesale kids clothing suppliers with legal rights and duties, including tax filings, is referred to as a legal entity. A company can engage in contracts as a vendor or a supplier, as well as sue or be sued in court.

5. Become tax compliant:

One of the most difficult aspects of beginning a new firm for many small business owners is dealing with the particular tax concerns that occur.

While many small business owners choose to hire accountants to help them with these issues, owners must have a basic understanding of the tax requirements that apply to them,

including the implications of starting or closing a business, yearly tax requirements, and employment tax issues.

6. Embrace Regulatory Compliance:

Regulatory compliance refers to a company's adherence to applicable state, federal, and international laws and regulations. Depending on the industry and type of business, particular needs may differ.

7. Access suitable Insurance options:

Business insurance protects companies from financial losses caused by occurrences that occur in the normal course of business. Various types of insurance for businesses cover all property damage,

legal liability, and employee-related hazards.

8. Brand your business:

The purpose of kids wholesale clothing brand development is to create a unique and lasting image in the marketplace by adopting tactics and campaigns to raise knowledge about your company.

III.Establish your kid's clothing business plan-make first-phase preparations:

Supplier credit, such as an account with payment due in 30 days, maybe the only source of capital for very small enterprises. Longer-term debt, such as bank loans,

3.  Brand Identity of kids wholesale clothing:

6.  embrace regulatory compliance:, iv.choose a suitable location for your offline children’s clothing stores:.

If you are thinking about starting a business, you will need to decide whether you will sell your products in a physical store, an online store, or a combination of both.

You have three options for selling your products: a physical and mortar store, a pop-up shop, or an online retail option. Physical stores, such as brick-and-mortar or pop-up shops, are great because they allow shoppers to walk in and try goods on, reducing the likelihood of returns.

Furthermore, having a physical store helps you to have a higher sales volume than you would online, and buyers can see, touch, and feel the product for themselves.

When it comes to physical stores, however, you are limited in your market by the closeness of your customers to your store. Additional costs, such as rent, renovations, personnel costs, and so on, are common.

Furthermore, pop-up stores are an excellent approach to test the market and determine whether your business will flourish. When you rent a storefront, gallery, or office space for a day, week,

or weekend to exhibit and sell things, it is called a pop-up shop. This is also a fantastic way to get rid of excess goods and to promote your online store.

Make sure you promote and market your pop-up shop before you test it out so that people in your region know where to find you when you will be open, and for how long.

The truth is that, like any other business, starting your own is difficult and risky. There are numerous factors to consider before beginning your search for a location to sell Kids' wholesale clothing.

• Convenient transportation
• The rent is cheap
• The surrounding infrastructure is relatively perfect
• High passenger flow
• Business Circle Center

V.Choose the right platform to build your online children's store:

It is the most important step to search for the right platform to build your Kid's wholesale clothing store. If this is your first journey in business then it is ideal for you to try dropshipping.

• Dropshipping is a supply chain management in which the retailer outsources the administration and distribution of products to third-party companies rather than keeping goods in stock.

2. Dropshipping is a low-cost, low-risk alternative that is ideal for starters if this is your first journey into the business world.

3. Dropshipping allows you to delegate some of the responsibilities of running a business to a low-cost third-party manufacturer.

You do not have to worry about holding stock, sending things on schedule, or being stuck with pricey over-stock when orders are dispatched directly to customers.

Dropshipping allows you to devote more time to developing your online presence and branding your website and social media accounts.

For example, buying in bulk from a wholesaler like Alibaba may be less expensive. Dropshipping, on the other hand, is likely to be far less expensive in the end due to its low-risk character.

If you want to have things from Alibaba drop-shipped, AliExpress is the place to go. Choose a local popular platform according to your country or region.

There are some popular platforms suitable for novices to open a kids wholesale clothing store:

• Shopify（In recent years, especially since the epidemic, it has been very hot）
• Lazada (Lazada is mainly users in Indonesia, Malaysia, Philippines, and Thailand)
• Etsy (Etsy is an online store platform, with the main feature of buying and selling handicraft products)

VI.How to Choose Wholesale Kids Clothing Supplier That Fits You Best:

A product distributor who sells to a retailer. A wholesaler will sell his product to retailers in big amounts, allowing the store to save money.

There are thousands of Wholesale kid's clothing vendors all around the world, but one truth to remember is that China has the best and Cheap kid's designer clothes wholesalers. All you have to do is find reputable Kids clothes wholesale distributers, browse their inventory, and select the products you want to list on your website.

You may make a decent profit working with trustworthy wholesalers this way.

The top 11 Kids clothes wholesale distributors:

1.  Kiddies World  is a well-known and respected Wholesale kids clothing supplier established in the United Kingdom.

The Kids clothes wholesale distributor has a diverse selection of products from well-known brands such as First Step, Mini Kids, Cute and Cuddly, and Baby Town.

The company is keeping its products in stock at all times, so you will not have to worry about running out. In addition, this Wholesale kids clothing vendor is continually up to

date on the current fashion trends for children. A team of dedicated specialists will provide first-class service.

2.  Kellies Gift  is a prominent Wholesale children's boutique clothing supplier situated in Texas, USA.

Here you will find a large selection of baby goods at fantastic and inexpensive pricing. Baby outfits and accessories have a variety of age groups. The nicest part about this Wholesale kids clothing vendor is that your products will arrive within a day or two.

The quick delivery helps you to maintain track of your inventory and stock up on supplies at all times. You can also place your orders via fax, email, phone, or the internet.

3.  Alanic Clothing  is also the latest and best wholesale children's boutique clothing supplier.

It has been in the industry for more than 10 years and it is one of the major wholesale kids clothing vendors in the United States. If you are seeking high-quality Wholesale kid's boutique clothing, Alanic Clothing is the place to go. You will acquire experience working with one of the leading wholesale baby clothing

manufacturers in the United States with Alanic Clothing.

4.  Honeydew  is a well-known and well-known Wholesale kids clothing supplier from the United States.

A wholesaler focuses on the most recent trends in children's fashion.

You will find some of the Trendiest baby clothes, including girls’ and boys' clothing, as well as a plethora of accessories.

5. Kidswholesale.co.uk  is the renowned Boutique wholesale kids clothing distributor situated in the United Kingdom.

They have a remarkable 35 years of expertise in this industry,so they know exactly how to please their clients. This Kids clothes wholesale distributor has the largest selection of Trendy kid’s wholesale clothing and accessories at the most affordable pricing.

This store has the largest selection of children's clothing and accessories at the most affordable pricing. You may get a wide variety of well-known Trendy children’s clothing at reasonable prices here.

This will allow you to maximize your profits and move your company to the next level.

6.  KISKISSING ,  one of the best Wholesale kids clothing manufacturers and top Wholesale children's boutique clothing suppliers.

Kiskissing aims to assist Trendy kids wholesale clothing stores and retailers. around the world in achieving long-term growth and not having to worry about their children's clothing stock shortage.

7.  Penguin Kids Wear, Inc  is a company that specializes in children's and adult clothes.

Its objective as a Boutique wholesale kids clothing distributor is to deliver high-quality and Trendy kids wholesale clothing

to all stores to assist them to improve sales and profits. Only genuine licensed products constructed of high-quality materials are sold.

8.  Wholesale7  has the most up-to-date fashion and trends for your children.

They provide a diverse variety of products that would persuade your clients to buy more and more from you.

Provide your consumers with the most up-to-date and Trendy kid’s wholesale clothing.

9.  Chinese Wholesale kids clothing supplier  is a well-known supplier for selling Kids wholesale clothing.

They sell their items at a lower price than the others on the list do because they are manufacturers

based in China. We would use this drop-shipping wholesaler because it comes highly rated.

10.  Appaman  is also a top Wholesale children's boutique clothing supplier.

Every season, appaman develops new works and updates our tried-and-true classics. In the summer of 2003, the new series premiered.

Every season, Appaman expands its product line by adding new series, goods, and product lines. It aspires to be a leading Trendy children’s clothing wholesale in the United States. Although Appaman is expanding,

it will never lose sight of our commitment to excellent customer service and high-quality clothes.

11.  Fashion go  is the best Wholesale kids clothing supplier that will help you keep ahead of the competition.

It is the leading B2B Wholesale kids clothing vendor where you can find the Trendy kids wholesale clothing

for small tots. Fashion Go is formed in 2002 and has since grown to become a prominent marketplace for both shoppers and sellers. Furthermore, this platform is a vast place where buyers and sellers may assist

one other in growing their enterprises.

VII.How to Start Your Own Children's Wear Fashion Business?

1. determine which children's age group clothes to sell.

When it comes to starting a Baby clothing company, you will want to consider the company's identity, the types of things you would like to offer, and the age group you want to target.

It is critical to have a firm grasp of your target market early on. When it comes to Baby clothing companies, branding might vary a lot depending on the age range you are targeting.

Younger children's clothes are more creative, with more patterns and bright colors, whereas older children's clothing is more related to their adult fashion equivalents.

This is why it is important to have a branding model in mind before you begin selecting things to sell.

2. Choose the right way to promote the store

Also, keep in mind that the age group to which you are selling will determine the type of advertising you use. You will usually be advertising to their parents if you are marketing to younger children.

If you are marketing to older children and teenagers, though, you should promote more directly to them.

3. Start a children’s boutique business online?

People who want to sell clothing online might use online shops to get started, especially if they are not ready to quit their day job. Individuals can sell clothes they have developed on a variety of online venues,

such as Etsy, or they can create their website. Online shopping saves time for both buyers and storeowners: finding and purchasing things takes less time for shoppers, and there is no physical area to clean, manage,

or organize for shop owners. Online costs are lower than offline, and online management costs are low. Only the rent of the website server is needed, which is relatively low; offline rent and management costs are higher;

in contrast, online shopping The increase in the number of people, the increase in online advertising is lower than the cost of offline.

Furthermore, internet retailers have a much broader reach than local stores, and you can use outreach methods like social media to create strong customer relationships. Customers, on the other hand,

bear the brunt of online shopping in delivery time and costs, and online retailers have a significantly higher return rate.

4. Open an offline clothing store for children

Having both an offline and an online store might be beneficial, but it takes time. You will need staff to assist you to run your physical store, and you will almost certainly need a webmaster to keep your online store up to date.

Mixing the two models can be a good business plan, but you will still have to deal with many of the drawbacks of having both online and offline stores: high return rates, extra costs, and trying to make a profit.

Each strategy has advantages and disadvantages, but it is up to you to decide which is best for your company. Will people in your neighborhood buy your products if you establish an offline store? Will you be able to compete

with other online retailers if you open an online store? These are all things to consider as you prepare to open your real or virtual front doors.

VIII.Marketing activities for Children's Clothing Business:

You have to start thinking about reaching your audience online once you have chosen the products for your niche and determined whom you will be selling.

Using social media to find an audience is the simplest method to get started. Keep in mind that your social media marketing strategy for children's apparel is mostly based on the age range you are selling.

For branding purposes, it is preferable to include lifestyle photographs of children wearing your products alongside other images. You can either snap your images or utilize the photos

in our starter package that are downloadable. As your company expands, you could even re-post photographs of your consumers wearing your products to assist build brand recognition through word-of-mouth.

There are some marketing strategies to grow your Kids wholesale clothing business:

• Advertising on SNS, Facebook, INS, Pinterest, YouTube, Snapchat, get more spotlight and traffic.
• Regular posts are posted on social media to increase exposure.
• Accumulate the praise and promotion of old customers
• Pay attention to word-of-mouth marketing, accumulate word-of-mouth, and regularly carry out welfare activities for old customers, so that old customer can enjoy exclusive treatment

IX.Do research before you start the children's clothing business?

Creating a children's clothing line is a fantastic opportunity to express your creativity. Kids' clothes come in a wide range of patterns and styles that you will not find in adult clothing,

not to mention that they often allow for other sorts of creative expression and style. There are a few factors to consider when launching a children's clothing line that you might research before launching an adult clothing line.

• First and most important our business plan will serve as a roadmap for launching your children's clothing line, outlining all of the important components of your strategy for getting started. 
• That does not imply you will not revise your company plan in the future, as your needs may change as your clothing line grows. It can also assist you in tracking your progress toward your objectives.
• Collect all kinds of data, the more the better. Use the Internet, and field trips
• To find competitors and learn from them. Learn the good things for me
• All links must be prepared, from site selection and decoration of physical stores, construction of online stores, supplier selection, advertising and marketing, product packaging, quality inspection, delivery, 
• and after-sales processing. Be prepared.

Conclusion:

The guidelines outlined in the preceding article can help you start your Kid's wholesale clothing business. Proper research and calculations, as well as a business plan, should be a major concern.

However, branding and building an identity for your organization are both necessary. Your logo should be easily recognizable on every internet platform or social media page, and the colors you employ across

your marketing materials should be consistent. Try advertising on social media platforms such as Instagram or Facebook, as well as sharing photographs with bloggers who could be interested in what you have for sale!

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How To Write a Retail Store Business Plan (+ Examples)

Creating a retail store business plan can help you clarify your goals and secure funding. Learn how to write a business plan and use our free template.

You’ve imagined what it would be like to open your dream retail store. Perhaps it’s a handmade ceramics store, or it’s an online shop selling customizable candles. You might have considered launching a temporary pop-up shop , a simple online shop, or a brick-and-mortar store. 

But knowing the exact specifics of how to launch a retail business isn’t easy. There are sales channels to choose from, marketing strategies to plan, and funding models to analyze.

A solid retail store business plan can help you develop a clear strategy, identify your competitors, evaluate market conditions, and assess the feasibility of your business before sinking resources in its launch. 

Ahead, learn how to write a retail store business plan, some mistakes to avoid, and see examples of successful real business plans to inspire you. 

How to write a retail store business plan

The best way to write a retail store business plan is to use a proven framework. Using a clear outline will give your plan structure and make it easier to complete. You won’t need to worry about staring at a blinking cursor or a blank page either. 

Here’s a breakdown of every section you should include in your retail business plan: 

Executive summary

The executive summary is a quick overview of your business plan. It summarizes all the key details in the rest of your plan. 

Your executive summary is the first section time-pressed investors, or lenders will read if you’re seeking investment. So, keep your executive summary to a single page. Including more details is tempting, but sticking to a limit will keep your summary concise.

Since the executive summary is a synopsis of your business, it’s often easier to write when you’ve finished the rest of your plan. While writing the rest of your plan, highlight the key points of each section and use them to write the executive summary. 

Here’s what to include in your executive summary: 

• Business name and location: Start with your business's name and physical or online location.
• Mission statement: A single sentence summarizing your business goals and market needs.
• Products/services: Briefly describe your offering, highlighting its unique features.
• Business model: Summarize how you generate revenue.
• Target market: Identify your customer base with basic demographic details.
• Financing: List startup costs, your current earnings, and forecasted revenue.
• Goals: Outline major objectives.

Company description

A company description provides a detailed look at your retail business, explaining what you do, the market needs you meet, and what sets your business apart from competitors.

This is the time to share your business’s unique story about who you are, what you do, and why. 

Whether you share the plan with investors or not, it’s still an opportunity to clarify your core values and beliefs. 

Here’s what to include in your company description: 

• Business overview: Mention whether it’s a new venture or an expansion. 
• Your story: Include how your business started and any other relevant background information.
• Your values: Add your core beliefs and philosophies.
• Business goals: Include short-term and long-term targets

Clothing brand Hiut Denim uses its company description to share its history and the why behind the brand. 

Market analysis

A thorough market analysis helps indicate if there’s enough demand for your products. 

Choosing the right market means finding one where many customers understand your product and need it. Get this right and you could be on to a winner. Failing to correctly assess demand, though, will make it tough for your business to thrive. 

You also need to assess market conditions and how they could impact your business's success. Time it right, and your business could achieve huge success. But get it wrong, and you may find it hard to stay afloat. 

Market research also helps convince investors that your business is worth investing in. Plus, it’ll help you confirm whether previous assumptions are correct. 

Include the following in your market analysis: 

• Market size analysis: Include data from reputable sources to highlight the potential size of your product’s market. 
• Target market: Detail the specific group of customers you aim to serve. Detail their demographics, such as age, income level, and buying habits. Explain why these customers need your products.
• Competitive landscape: Explain your competitors’ positioning and how your business compares.
• Future trends and changes: Include your predictions and analysis of the market. 
• Where your business fits in: Share your business’s positioning and how it can meet demand and outshine competitors. 

Market analysis example: 

Urban Green Store targets eco-conscious individuals aged 25-40 in Portland, Oregon. This retail industry segment is expanding as more consumers seek environmentally responsible products.

We cater to a community that is increasingly aware of its environmental impact. Our customers value practical, stylish, and eco-friendly home goods. Typically, they hold a high level of education, are high-income earners, and live in urban environments.

Local competitors in Portland's sustainable market are growing, but Urban Green Store differentiates itself through exclusive products and personalized customer services. Our competitors mainly offer general eco-products without a focus on home goods.

Marketing plan

Your marketing plan will outline how your retail stores plan to attract your target audience. It should highlight your current strategy, what’s worked in the past, and your future strategies. Your plan should always reflect how your products and business are the right fit for your target customers.

Here’s what to include in your marketing plan: 

• Promotion strategies: Describe your main promotional activities, such as online advertising, social media campaigns, email marketing, and in-store events. Highlight how these activities align with your target market's preferences.
• Sales channels: Specify the platforms where you'll sell your products like your physical store, online store, or third-party retailers. Explain the benefits of each channel for your business.
• Customer engagement: Detail how you plan to build relationships with customers. Include strategies for customer service, loyalty programs, and community involvement.

Marketing plan example:

Urban Green Store will market its unique, eco-friendly home goods through social media and community engagement. Our approach focuses on building a strong online presence and an inviting physical experience in Portland.

Social media strategy:

• Platforms: We'll target Instagram and Pinterest, where our eco-minded, home-focused audience spends their time.
• Content: Expect posts showcasing our products in stylish settings, DIY eco-friendly home tips, and highlights from our community events.
• Advertising: We'll run targeted ads on these platforms to reach potential customers looking for sustainable living solutions.

Sales channels:

• Physical store: Located in the heart of Portland, our store offers a hands-on experience with our products, enhancing customer trust and satisfaction.
• Online store: An easy-to-navigate website with detailed product information, customer reviews, and the story behind each product will complement our physical presence, providing convenience for those who prefer to shop online.

In-store engagement:

• Events: Once a month, we'll host in-store events that promote sustainability and community. Think workshops on zero-waste living and meet-ups with local eco-activists.
• Atmosphere: Our store will be a community hub for eco-conscious consumers to learn and connect.

Next, outline how you intend to convert potential customers into actual buyers. Specify your business's strategies and tactics to achieve its sales targets. If you pitch to investors or lenders , sharing specific and realistic numbers is important. Be honest about the numbers you hope to accomplish without being overly optimistic. 

If you have a revenue history, use these numbers to inform your future targets and explain how you arrived at each number. 

Here’s what to include in your sales plan: 

• Sales targets: Set clear, quantifiable sales goals that align with your business objectives. These might include monthly sales targets, revenue goals, or specific numbers of new customer acquisitions.
• Sales strategies: Describe the techniques you will use to meet your sales targets. This could include direct sales, cross-selling, upselling, or seasonal promotions.
• Sales channels: Detail the primary channels you will use to sell your products, emphasizing both physical and digital storefronts.

Sales plan example:

Urban Green Store is committed to hitting a monthly sales target of $50,000 by the end of our first year. Here's how we're planning to make it happen:

• Storefront sales: Our physical store in Portland will serve as a primary sales driver, offering customers a hands-on experience with our eco-friendly home products.
• Online sales: Our website will complement in-store efforts, providing an accessible, user-friendly shopping experience.

Promotional tactics:

• Seasonal promotions: We'll tap into seasonal trends by offering discounts during key shopping periods like Earth Day, Black Friday, and the holiday season.
• Special offers: Regular promotions, such as ‘Deal of the Week’ on high-demand items, will keep our offerings fresh and engaging.

Partnerships and community engagement:

• Local collaborations: We'll partner with other local eco-friendly businesses to cross-promote products and services, expanding our reach within the community.
• Events: Hosting monthly in-store events focused on sustainability, like DIY upcycling workshops or eco-lifestyle talks, will draw in our target market and foster community ties.

Competitive analysis 

This section is a chance to prove how your business will stand out from competitors. What will you do differently? How will you be better? 

Assess your direct and indirect competitors by analyzing their strengths and weaknesses relative to your retail business. Look for potential gaps in their offering, customer service, or pricing. Then, aim to capitalize on these weaknesses. 

It’s also a chance to assess the potential challenges in your market landscape and how your business can address them. 

Here’s a breakdown of what should go into your competitive analysis: 

• Key competitors: Identify major competitors in your niche, noting their market share, and product offerings. Consider both physical and online businesses.
• Competitor strengths and weaknesses: Evaluate your competitors' advantages (like established brand recognition or extensive product lines) and weaknesses (such as poor customer service or limited selection).
• Differentiation strategy: Highlight what sets your business apart from the competition. This could be your unique selling propositions, superior product quality, customer service, or innovative marketing strategies.
• Opportunities for advantage: Identify gaps in the market that your competitors have overlooked. Focus on how your business can capitalize on these opportunities to capture market share.

Competitive analysis example:

Urban Green Store enters a thriving market in Portland, known for its eco-conscious community and retail businesses, including local boutiques and national chains specializing in sustainable goods.

Key competitors:

• Green Home Goods: A national chain with extensive product offerings ranging from kitchenware to bedding. While they boast wide availability, their customer interaction and community involvement are minimal.
• EcoLiving Spaces: A local favorite that offers a variety of eco-friendly home decor products. Their focus is mainly on higher-end luxury items, which limits their customer base to a higher income bracket.

Differentiation strategy:

• In-store experience: Urban Green Store will captivate our local market with interactive, hands-on experiences in our store. Workshops, product demos, and community events will create a hub for sustainable living.
• Exclusive products: We'll feature products designed and produced by local eco-friendly artisans, offering items that aren’t available in larger retail chains. This exclusivity supports local creators and draws in customers seeking unique, locally sourced goods.

Organizational structure

In this section, clearly detail each team member's roles and responsibilities. Explain the hierarchy and flow of communication within your business, too. 

Document the finer details of every team member’s role so that anyone who isn’t from your company can understand what everyone does. 

Here’s how to outline your business’s organizational structure: 

• Management team: If you have a team, detail management positions, including the roles of the founder, store manager, marketing director, and others critical to your business operations. Briefly describe their responsibilities and how they contribute to the business.
• Staff positions: Identify other essential staff roles, such as sales associates and customer service representatives. Explain their day-to-day duties and how they support the overall operations.
• Communication flow: Describe the communication structure within your organization, specifying how information is shared across different levels of the company to ensure efficient operations and decision-making.
• Organizational chart: Consider including a simple chart that illustrates your business structure, showing the relationships between different roles and departments.

Products and services

This is the place to list the specifics of all the products and services your business sells. If you sell a wide range of different product lines, you can share overviews. But if you sell fewer products, provide detailed explanations of their features and benefits that meet the needs of your target market. 

You can also mention any new products you’re planning to add in the future. 

Here are the key components of your products and services section: 

• Product range: Detail the categories, key items, and any signature products exclusive to your store. Mention the quality, price range, and any sustainable or ethical aspects, if applicable.
• Services: If you provide services in addition to products, such as personal shopping or delivery options, highlight these. Explain how these services enhance the customer experience and provide added value.
• Product sourcing: Briefly touch on where and how your products are sourced, focusing on partnerships with suppliers or unique production methods that differentiate your offerings from competitors.

Operating plan

Here, outline the day-to-day operations of your retail business. Start by highlighting how you produce your products or services, how you manage stores, and how the team handles customer interactions. 

• Production processes: If your business involves manufacturing or assembling products, describe the process. Include information on sourcing materials, production timelines, and quality control measures.
• Store operations: Cover store hours, staffing, inventory management, and sales processes. Mention any technology or systems used to enhance operational efficiency, like point-of-sale (POS) systems or inventory management software.
• Customer interaction: Detail how your business manages customer interactions, from greeting customers to closing sales. Include policies on customer service, handling inquiries, and resolving complaints.
• Facility management: Describe the physical setup of your store or production facility. Discuss location, layout, and any significant equipment or technology used.

Financial plan

Even with the best idea, a business sinks or swims based on its financial health. Investors need to see that your business is financially viable and a worthwhile investment. 

This section is a chance to show how you will manage finances to ensure sustainability and growth. Even if you’re not seeking investment, doing some number crunching will help you see if your business model is viable or needs adjustments. 

• Startup costs: List the initial expenses required to launch your business. This includes costs for leasing or purchasing space, renovations, initial inventory, equipment, branding, and initial marketing efforts.
• Revenue projections: Outline your expected income over the first few years of operation. Base these projections on market analysis, pricing strategy, and sales forecasts. Be realistic and consider different scenarios.
• Funding requirements: Specify the amount needed to launch and maintain your business until it becomes profitable. Identify potential funding sources, such as loans, investments, or grants.
• Profit and loss statement: Provide a projected profit and loss statement that includes all expected revenues and expenses. This should cover the first three years to show potential profitability and financial health.
• Cash flow management: Discuss how you will manage cash flow to ensure operational stability. Include strategies for handling slow periods, managing debt, and reinvesting in the business.

Funding sources

If you’re seeking investment, this section describes the various options available for securing the capital needed to grow your retail business. It should clearly outline potential sources of funding and the strategies for accessing them. Depending on your funding plans, you can choose to include or exclude the ones that make sense for your goals. 

• Equity financing: Discuss the possibility of raising money by selling your business's shares to investors. This could include friends and family, angel investors, or venture capitalists.
• Debt financing: Detail opportunities to secure loans from financial institutions like banks or credit unions. Mention any government-backed loans designed for small businesses.
• Grants and subsidies: Explore any grants or subsidies from government agencies or private organizations supporting retail startups, especially those promoting sustainability.
• Crowdfunding: Consider using platforms like Kickstarter or Indiegogo to raise funds by pre-selling products or offering other incentives to backers.
• Personal savings: Mention the role your personal savings might play in funding your business, emphasizing the importance of having skin in the game.

In the appendix you can include any additional documents supporting your plan's statements and projections. Using an appendix for documents also helps keep your store business plan clear of clutter or confusion. 

These documents provide detailed evidence and back up your business strategy .

Here are some documents you may need to include in your appendix: 

• Resumes of key team members: Include detailed resumes of any key staff members to emphasize their qualifications and experiences relevant to running your business.
• Product pictures and descriptions: Provide photos and detailed descriptions of your main products, highlighting unique features and benefits.
• Legal documents: Attach copies of important legal documents such as business registration, licenses, patents, or lease agreements.
• Financial statements: Include historical financial data, detailed financial projections, and any third-party financial audits.
• Market research data: Add detailed findings from your market research, including data on industry trends, competitor analysis, and target market insights.
• Letters of intent from suppliers or partners: Include letters of intent from suppliers, potential partners, or other stakeholders that demonstrate support and potential collaborations.
• Marketing materials: Provide samples of your marketing materials, including digital marketing campaigns, brochures, or your content marketing strategy.
• Press coverage and testimonials: If your business has already received any, include press articles and customer testimonials to bolster credibility.

📚Learn more:  The 12 Key Components of a Business Plan

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5 Mistakes to avoid in your retail store business plan

With multiple moving pieces, it’s easy to overlook some key elements of your retail store business plan. 

Here are five mistakes to avoid: 

1. Lack of clear objectives

Without specific, measurable, achievable, relevant, and time-bound (SMART) objectives, success or failure is difficult to gauge. Instead of setting vague or unrealistic goals, define clear benchmarks to aim for. The key is to strike a balance between aspirational and achievable goals. 

2. Underestimating the competition

Failing to fully analyze both direct and indirect competitors prevents you from understanding the reality of the market. It can be tempting to rush through your competitor analysis in order to get your product to market quickly but you need a clear picture of your competitors’ strengths and weaknesses before you launch.

3. Poor understanding of target market

A well-defined target audience will help you hone your messaging, marketing, and sales strategies to the people most likely to purchase from your business. Misunderstanding your target audience's needs and buying habits may result in ineffective marketing and sales strategies. 

Once you’ve completed research into your target customers, create some detailed buyer personas that you can reference any time you launch a new marketing campaign. 

4. Inadequate financial planning

A lack of detailed financial projections or unrealistic revenue forecasts makes it challenging to accurately plan your business’s finances. It’s also off-putting for investors and lenders. 

Always include detailed, realistic financial plans with contingency strategies for potential setbacks.

5. Rigid business model

A lack of flexibility can stifle a growing business. While it’s important to create a detailed plan for your business and know the direction you’re heading in, you need to leave some room for change. For example, as your business grows, you may find you want to expand some product lines and discontinue others. Alternatively, you may need to adapt to new trends and market demands. 

What to do before and after writing your retail business plan

Before you put pen to paper, take these steps so your retail plan is as accurate as possible.

Before writing your retail business plan

• Conduct market research: Gather information about your industry, market trends, target customers, and competitors. This research will provide the necessary data to create a well-informed business plan.
• Define your vision and objectives: Define what you want your business to achieve in the short and long term. This vision will guide the direction of your business plan.
• Engage with potential customers: Start conversations to validate your business concept and understand their needs and preferences. Conduct some surveys, focus groups, or informal discussions.
• Consult with industry experts: Seek advice from mentors, industry experts, or business advisors who can provide insights and feedback on your business concept and planning process.
• Review successful business plans: Look at examples of successful retail business plans to understand what elements contribute to an effective plan.

After writing your retail business plan

Once you’ve completed the first edition of your retail business plan, follow these steps: 

• Ask for feedback: Show your business plan to trusted mentors or advisors for feedback. They might be able to spot any gaps you didn’t include or provide some insights on where it could be made clearer.
• Implement the plan: Begin executing the strategies outlined in your business plan. This includes setting up operations, launching marketing campaigns, and hiring staff.
• Prepare for funding: If your business plan includes seeking financing, prepare the necessary documents and pitches for potential investors or lenders. Ensure your financial projections and value proposition are clearly outlined.
• Monitor progress and metrics: Regularly track progress against the goals and objectives set in your business plan. Use key performance indicators (KPIs) to measure success and identify improvement areas.
• Revise and update regularly: Treat your business plan as a living document. As your business grows and market conditions change, update your plan to reflect new strategies.

Business plan retail store example

Sometimes, writing your business plan is easier when you can see how all the components fit together for another business. Ahead, review an example retail store business plan to help you write your own. 

Executive summary 

Nature’s Thread is an eco-conscious clothing boutique in the Wynwood neighborhood of Miami, established to meet the increasing demand for eco-friendly and sustainable women's apparel. Since its launch in 2023, Nature’s Thread has distinguished itself by offering a carefully curated selection of green fashion that appeals to style-conscious consumers.

Nature’s Thread is a clothing retailer located in Miami’s Wynwood neighborhood. Established in 2023 as a sole proprietorship, we specialize in eco-friendly and sustainable women’s apparel.

Our store sells unique, hand-selected pieces and hosts community events that align with sustainable living. The clothing retail market in Wynwood is thriving, with a growing demand for green consumer options. Our vision is to be the go-to destination for sustainable fashion in South Florida, aiming to expand online sales by 50% over the next two years.

Nature’s Thread will use social media advertising on platforms popular with our demographic, including Instagram and Pinterest, to attract our eco-conscious audience. We'll complement online efforts with monthly in-store events that promote community and sustainability. Our sales channels include our physical location in Wynwood and our online store, providing accessibility and convenience.

To retain customers, we will introduce a loyalty program rewarding purchases and referrals, and engage customers through regular newsletters and exclusive offers.

Nature’s Thread aims to achieve a monthly sales target of $80,000 by the end of the first year. We will use direct sales through our storefront and online sales through our website. We will implement promotional offers and seasonal discounts to increase traffic during peak shopping periods. 

We plan to expand our customer base through collaborations with local eco-friendly brands and hosting community events that attract our target market. To further drive sales, we will implement an email marketing campaign focusing on special deals for subscribers.

Competitor analysis

Nature’s Thread operates in a competitive market dominated by both local and national sustainable apparel stores. While competitors like Leaf & Stitch have a broad product range, they lack strong community engagement. 

Our boutique will differentiate itself by providing exceptional in-store experiences and exclusive local products. We also see an opportunity to outperform competitors online with a superior website design and user experience, drawing more traffic and conversions. 

Our direct partnerships with local eco-friendly designers give us a unique product line that isn't available at larger retailers.

Nature’s Thread is led by a founder who oversees all strategic and operational aspects. The store manager handles day-to-day operations and reports directly to the founder. 

Our marketing director is responsible for all marketing and advertising efforts and works closely with the sales team to align promotional activities with sales tactics. 

Below them, sales associates and customer service representatives form the frontline team, ensuring exceptional customer interactions. 

Our organizational chart reflects a streamlined structure designed for agility, promoting quick responses to market changes and customer needs.

Products and services 

Nature’s Thread specializes in eco-friendly women's apparel, offering a range of clothing from everyday wear to special occasion outfits. We source our products from certified sustainable suppliers and local artisans to ensure quality and reduce environmental impact. 

We also offer personal shopping services to help customers make style decisions that align with their values. 

We train our in-store and online support teams to provide comprehensive customer service, including product advice, order tracking, and handling returns. 

Operating plan 

Nature’s Thread operates from a centrally located store in Miami's Wynwood neighborhood, open daily from 10 AM to 8 PM. 

We use an advanced POS system integrated with our inventory management software to streamline sales and stock monitoring. Production of our exclusive apparel line is local, with materials sourced from verified sustainable suppliers, ensuring a quick turnaround and high-quality products. 

Customer interactions are guided by our commitment to excellence, with staff trained to offer knowledgeable and friendly service, enhancing the shopping experience and fostering customer loyalty.

Financial plan 

We project annual revenues of $960,000 by the end of 2024, with a growth rate of 20% annually for the next three years. We aim to secure $100,000 through a small business loan and the remaining through private investments. 

We aim to secure $50,000 through a combination of personal savings and contributions from family, reducing reliance on external debt. We will apply for a $100,000 small business loan from a local bank, taking advantage of favorable startup interest rates. 

Additionally, we are exploring crowdfunding campaigns to raise $20,000 by pre-selling our exclusive eco-friendly apparel line, engaging more customers, and creating buzz around our brand. We will also investigate grants aimed at supporting green businesses.

The Appendix for Nature’s Thread will include the resumes of our founder and store manager, detailed product catalogs of our eco-friendly apparel line, our business registration, recent and projected financial statements for the first three years, comprehensive market research outcomes, letters of intent from two local designers, and samples of our upcoming social media campaigns. 

📚 Learn more:  7 Business Plan Examples to Inspire Your Own (2024)

Retail business plan template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they never work with an investor. That’s why we put together a free business plan template to help you get started.

Go from retail store business plan to shop owner 

A retail store business plan can help you consolidate the steps needed to build a successful business. Following a clear framework can also help you identify potential challenges in the market or your business. 

Whether you’re seeking investment or funding your own business, learning how to write a clear retail store business plan will help you get strategic about achieving goals. 

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Retail store business plan FAQ

What is the purpose of a retail store business plan.

A retail store business plan serves as a blueprint for your business, outlining your goals, strategies, and how you plan to achieve them.

It helps you navigate the complexities of launching and growing a retail business, from financial planning and market analysis to marketing strategies. Plus, a well-crafted business plan is essential for securing funding or loans, as it demonstrates your business's viability and potential profitability.

How do I project the financials for my retail business plan?

To project your retail business's financials, start by calculating:

• Startup costs: Calculate initial expenses such as inventory, equipment, and leasing space.
• Ongoing expenses: Estimate monthly costs, including rent, salaries, and utilities.
• Revenue projections: Forecast monthly sales based on realistic targets and pricing strategies.
• Break-even analysis: Determine when your business may start turning a profit.

Tools: Use financial software or spreadsheets for organization and regular updates

What are potential funding sources for a retail store, and how should I present them in the business plan?

Within your business plan, clearly outline which funding sources you’d like to target and how much funding you’d like to secure. There are five main ways of funding a retail store.

• Equity financing: Consider investors such as venture capitalists or angel investors. Present the equity you're offering in exchange for their investment.
• Debt financing: Explore loans from banks or credit unions. Include terms and how you plan to meet repayment obligations.
• Grants and subsidies: Identify applicable grants, especially those supporting small businesses or specific industries. 
• Crowdfunding: Use platforms like Kickstarter to raise money through pre-sales or donations. 
• Personal savings: Mention personal funds you'll invest and highlight your commitment to the business's success.

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Central Kids Store in Moscow: a paradise for children

Central Federal District

Sightseeing

Food & Drinks

Art & Culture

Anastasiya Molchanova | Live the World

November 23, 2022

Sometimes we all want to get back to our childhood and enjoy that careless time. Childhood is probably the happiest time of our lives and memories about it are always priceless.  Central Kids Store in Moscow  can help you to make this little dream come true: a 6-floor giant shop can offer much more than Barbies and Lego. After being renovated in 2015, the store has become a popular attraction mostly for Moscovites, and if you are visiting Moscow , this  paradise for children  is a must!  

What Central Kids Store actually is?

The Store looks like a big shopping mall for kids with a lot of shops, and you are probably wondering what an adult can do there, right? Alright, let me give you a hint! Firstly, if you are  travelling with children , they will be excited to see the statues of Iron Man, Hulk, all My Little Pony ponies, Lego girls and much more! Secondly, this place has many activities for the younger generation : a museum with life-sized dinosaurs that explains the life of these magnificent extinct animals, InnoPark - a center of scientific discoveries for kids and many more! The interior of the store is made of light marble, while on the ceiling in the main hall, you can observe a glass Pano with the heroes of Russian folk tales. 

What to do there besides shopping? 

Central Kids Store in Moscow  attracts a lot of people every day because of its ice cream. I’m not kidding! Ice creams  with many flavours, such as chocolate, strawberry, blueberry, vanilla, caramel must be found and immediately eaten! The quality is very high because the visitors are mainly children, and you know that they are just the fond of this dessert! After eating the ice cream, go straight to the 6th floor and find the  Observation Deck  sign. The price is 50 roubles (less than $1) and the view is breath-taking! From the Observation Deck, you can see the Kremlin, St. Basil's Cathedral, Moscow State University and many narrow streets, winding and cozy. It’s a very romantic and nice place to visit in the evening. The sun reflects on the roofs of the buildings and creates many different colors on them: golden shades of the sunset are mixed with pink and blue.  

Why is it worth visiting it? 

Central Kids Store  at Lubyanka metro station is a perfect place for those who think that walking along the streets is not enough. Watching  Moscow  from a bird’s eye perspective is a great experience as well. A sweet tooth can enjoy a delicious ice cream and a cup of coffee, and young guests of this  paradise for children  can find out what their Russian peers are fond of.  

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I've taken 4 Disney cruises without kids. Here's why they're actually the perfect adults-only getaway.

• Out of the 15 cruises I've been on, Disney Cruise Line is my favorite company to travel with.
• Disney cruises offer the perfect getaway for adults without children.
• From animation classes and private islands to Broadway-style shows, I never run out of things to do.

After taking over 15 cruises on most of the major lines , one stands out as my favorite company to travel with — Disney Cruise Line. Disney cruises combine what I love about the theme parks with relaxation and stellar dining, making them the perfect getaway.

I also love that Disney continues to invest in its cruise line. For example, the company's newest ship, Disney Treasure , plans to embark on its maiden voyage in December.

And next year, Disney Destiny and Disney Adventure will set sail for the first time. The company also invested between $250 million and $400 million in a new island in the Bahamas, which I was lucky enough to visit.

Although some may think of Disney Cruise Line as a company that caters to kids, I've had an incredible time on adults-only vacations with my sister, mother, friends, and husband. Here's why I think Disney cruises are the perfect choice for travelers without children.

I’m never bored on a Disney ship.

On most of the cruises I've been on, the main activities include eating and drinking. However, that's not the case on Disney cruises.

In addition to having great pools, Disney ships are known for having a wide variety of activities throughout the day. My favorites include trivia, mixology classes, panel discussions with Disney animators, and animation classes.

The food is by far the best I’ve had at sea, and I’ll always splurge on the specialty restaurants.

Food plays a big role in determining where I vacation, and I've had some of the most incredible meals on board Disney ships. In addition to the food, the restaurants are well-themed and detailed. While there are plenty of elevated eats, there are also casual bites, like pizza, and Disney favorites, including Mickey waffles.

While the main dining rooms are delicious — and included with the cruise fare — I'll always splurge on one of the specialty restaurants that charge an additional fee.

These upcharge restaurants offer a more intimate experience with super personalized service and a greater variety of dining options. My favorite is Palo, which is open for both brunch and dinner. Here, I've enjoyed fresh pasta, standout wine, and high-quality wagyu.

I love the themed bars, and the drinks are surprisingly affordable.

While Disney doesn't offer a drink package that includes cocktails, the well-themed bars are worth the splurge.

From a Star Wars-themed watering hole to a Peter Pan-themed speakeasy, I really enjoy the inventive cocktail programs and immersive settings. Each bar also has its own unique themed drinks, which keeps things exciting.

As a regular at Disney World, I was also surprised to find that drinks are much more affordable on a Disney Cruise, with prices consistent across the ships I've been on.

For example, my favorite Dole Whip spiked with rum was $9 on board, compared to the exact same version priced at $14 at Disney World .

There are plenty of adults-only spaces.

While I tend to spend much of my day at the lively main pool, which features Disney movies and live entertainment, there are also plenty of adults-only spaces, including pool areas exclusive to guests 18 and older.

Some ships even have bar districts with multiple venues exclusive to adults.

The rooms are spacious and practical.

I've found the rooms on Disney cruises to be the most spacious — and practical in design — I've encountered.

Most rooms on Disney ships also have a split bathroom, which means the toilet area is separate from the shower. This is a vacation lifesaver when multiple adults are trying to get ready at once.

There are also plenty of opportunities to enjoy Disney Magic.

I love Disney ships because, from dressing up for pirate night to meeting my favorite characters, there are plenty of opportunities to feel like a kid again.

The shows on board are Broadway-quality.

I'm a sucker for live entertainment, and each Disney ship offers at least one Broadway-style production. From "Frozen" to "Beauty and the Beast," I always make sure to check out these high-quality musicals, which are included in the price of the cruise.

Disney’s private islands are very relaxing.

I've been to several cruise-line private islands, but Disney's are by far my favorite. Castaway Cay , located in the Bahamas, exudes relaxation. The island is home to one of my favorite activities, the Castaway 5k, which is included in the cruise fare and allows participants to earn an exclusive race medal.

Disney's newest island destination, Lookout Cay at Lighthouse Point, is located near the southern tip of Eleuthera in The Bahamas. The beaches here blew me away and were some of the best I've experienced after dozens of trips to the Caribbean and Mexico.

Disney Cruise Line is the perfect adults-only vacation, and I can't wait to plan another trip.

As a big fan of the parks, Disney Cruise Line takes those magical elements and upgrades them at sea with incredible food, live entertainment, and relaxation — making for the perfect adults-only vacation.

Its ships are home to some of the most exciting, highly themed lounge options I've encountered, and I love the Broadway-quality productions. While on board, I'm able to do as much or as little as I want.

• Main content

29 Russian Clothing Brands: From Moscow to the World

Here are the top 29 Russian Clothing Brands that I reviewed for you.

A few years ago, the Russian fashion scene was dull, and I was really disappointed when I explored Russian clothing brands.

But now, Russia has a growing fashion scene and industry, and younger generations show more interest in the ever-changing fashion world

New generation Russian fashion designers like Ulyana Sergeenko and Valentin Yudashkin are now using innovative Western concepts and ideas by blending them with Russian designs.

The Russian fashion sector is emerging, and I believe it will get only better from now on.

So, let’s get started!

After its first store opening in 2003, the Moscow-based brand soon advanced into a beloved clothing brand among the Russian masses.

Due to befree’s extremely affordable price range and fashionable products, the retail brand expanded into an outlet network, with more than 235 stores scattered across Russia.

The prominent Russian clothing label provides a full range of casual ready-to-wear apparel for men and women and covers each and every fashion need of its valued customers.

Click to check the official website of befree .

2. Grunge John Orchestra. Explosion

Grunge John Orchestra. Explosion is a Russian clothing brand specializing in cool urban apparel for men and women accompanied by high functionality and a genius blend of high-tech and natural fabrics.

Due to its unique fashion store concept, Grunge John Orchestra. Explosion has made it to the forefront of Russia’s fashion scene.

The founder and creative mastermind behind the label, Igor Isaev, creates modern streetwear influenced by his love for grunge music and European and Japanese underground scenes.

You will be able to find a fabulous variety of practical outerwear, shirts, hoodies, sturdy backpacks and much more.

Click to check the official website of Grunge John Orchestra. Explosion

5. Ralf Ringer

Ralf Ringer is a renowned shoe manufacturer and retailer with headquarters in Moscow.

The company now manufactures nearly 3 million each season and is sold by Russia’s largest distributor with over 2000 outlets in Russia alone.

Ralf Ringer presents a huge variety of stylish footwear for men and women, prioritizing supreme quality, exceptional comfort, and attractive design.

Click to check the official website of Ralf Ringer .

Sela is one of the most dominant clothing retailers in Russia and its surrounding region, with over 400 stores in the country itself and a strong presence in Kazakhstan, Kyrgyzstan, Ukraine, Belarus, and Moldova.

The highly successful retailer offers a large variety of trendy apparel for men, women, and children under one roof at extremely affordable prices. 

Despite low prices, the brand maintains outstanding product quality.

Sela’s collections include stylish apparel comprising casual wear, outerwear, sportswear, denim, knits, and accessories, becoming a one-stop store for the whole family.

Click to check the official website of Sela .

7. Vika Gazinskaya

Vika Gazinskaya is a renowned Russian fashion designer known for her eponymous brand that masterfully blends bold, sculptural silhouettes with whimsical details.

Gazinskaya’s brand has gained international acclaim for its distinctive aesthetic and innovative designs.

Vika Gazinskaya’s collections include women’s ready-to-wear apparel and accessories.

Vika Gazinskaya’s designs often feature hand-drawn prints, reflecting the designer’s artistic background and adding a personal touch to each piece.

Click to check the official website of Vika Gazinskaya .

8. Ulyana Sergeenko

Ulyana Sergeenko is a celebrated Russian fashion designer known for her eponymous haute couture label.

Sergeenko has romantic, fairy-tale-inspired designs characterized by exquisite detailing, rich fabrics, and dramatic silhouettes.

Ulyana Sergeenko’s collections consist of haute couture, ready-to-wear, and accessories for women.

The brand stands out for its commitment to maintaining traditional craftsmanship.

Each garment is meticulously crafted by some of the best artisans, often using age-old techniques to create unique and high-quality pieces.

Click to check the official website of Ulyana Sergeenko.

9. Valentin Yudashkin

Valentin Yudashkin is a prominent Russian fashion designer, known for his namesake brand that has been a cornerstone of Russian fashion.

Yudashkin’s brand is renowned for its blend of opulence, craftsmanship, and Russian cultural motifs.

Valentin Yudashkin’s collections span across women’s and men’s apparel, as well as accessories and jewelry.

The brand’s clothing line is characterized by its grandeur and elegance, combining luxurious fabrics, intricate detailing, and innovative designs.

Click to check the official website of Valentin Yudashkin .

10. Kira Plastinina

Kira Plastinina is a notable Russian fashion designer who burst onto the scene as a teenage fashion prodigy.

Since the establishment of her eponymous brand in 2008, Plastinina has gained recognition for her youthful, trendy designs.

Kira Plastinina’s collections include women’s ready-to-wear apparel and accessories. The brand’s clothing line stands out for its playful, incorporating trendy bold colors, and fun prints.

From stylish dresses and tops to chic trousers and skirts, each piece is designed with the modern, fashion-conscious woman in mind.

Click to check the official website of Kira Plastinina .

11. LES by Lesia Paramonova

Lesia Paramonova is a celebrated Russian fashion designer known for her unique brand that beautifully blends Russian fairy tales and nature.

Established in 2011, Lesia Paramonova’s label “LES” has gained recognition for its ethereal, whimsical designs and commitment to sustainable practices.

Lesia Paramonova’s collections include women’s ready-to-wear apparel and accessories.

The brand’s clothing line is known for its fantasy-inspired designs, featuring flowy silhouettes, nature-inspired prints, and soft, organic fabrics.

Click to check the official website of LES by Lesia Paramonova .

LaModa is a leading online fashion retailer in Russia, providing an extensive range of clothing, footwear, and accessories from both international and local brands.

Since 2011, LaModa has grown to become one of Russia’s largest e-commerce platforms, known for its vast selection, fast delivery, and excellent customer service.

LaModa’s inventory includes collections for women, men, and children. Their wide range of clothing covers all fashion needs, from everyday casual wear to formal attire.

Click to check the official website of LaModa .

13. Alexandre Plokhov

Alexandre Plokhov is a renowned Russian-American fashion designer with international recognition for his magnificent creations.

Born in an exceptionally creative family near Moscow, Alexandre Plokhov followed his family’s path and attained a BA in Fashion Design from Chicago’s IAMD, creating his path into the world of fashion.

The numerous award holder is best known for his fabulous designs, strong customer base and exceptionally fine tailoring.

Click to check the official webpage of Alexandre Plokhov

14. Anteater 

Popular Russian label Anteater is a clothing brand specializing in supreme quality trendy streetwear.

Launched in 2007 in St.Petersburg, the creative brand has been convincing its large consumer following ever since with funky logo prints, easy, yet interesting cuts, alongside practicality within each piece.

At Anteater, you will find an intriguing collection of apparel for men highly influenced by its founder’s interest in street culture and extreme sports such as skating and snowboarding, as well as graffiti.

These collections are made in collaborations with graffiti, tattoo and extreme artists alongside illustration designers and other street culture activists all contributing brand’s ever-changing exclusive products consisting of limited editions.

Click to check the official website store of Anteater .

AFour is a widely renowned brand among Russians best known for its A-class footwear.

Established in 2009 in St.Petersburg, AFour displays martial art aesthetics as its collection’s essence using Yin & Yang symbols reinvented in a creative way. 

Besides great quality footwear like its Code Runner sneakers, AFour also provides sporty vibes clothing design.

The apparel collection of the brand includes printed t-shirts, Panama hats and Olymp Track jackets mirroring a harmony of black and white alongside other simple color accents like red to add a pop of color.

AFour has a vast amount of great footwear options for men and women and even offers custom creation services where you get the chance to design your very own unique pair of shoes.

Click to check the official website of AFour .

16. MIR Stores

MIR Stores is a Russian apparel brand covering all your basic wardrobe needs.

The Russian fashion label designs and produces high-end casual wear, including its iconic handmade oversized sweaters in beautiful calm shades.

Furthermore, MIR Stores offers a beautiful range of tops, sweatshirts, skirts, dresses, and jackets, and a unique jewelry line highlighting beading techniques in pretty color combos.

Click to check the official website of MIR Stores .

17. Outlaw Moscow

To get a sneak peek into Russian fashion culture, you must check out Outlaw Moscow.

Founded by the designer duo Di Minrakhmanova and Maxim Bashkaev, the avant-garde clothing label evolved into a widely admired hub for fashionistas forming an international community.

Best known for its edgy designs of outer and innerwear alongside funky cuts and peppy color combinations, Outlaw Moscow embodies Russia’s distinctive fashion culture.

Outlaw Moscow covers all your fashion needs, whether for men or women. Lately, one of the well-known German Fashion brands , namely Puma has collaborated to produce under the Aytao label.

This unique label stuns with a massive selection of casual wear, including shirts, pants, skirts, dresses, knitwear, bombers, jackets, bags, accessories, and more.

Click to check the official website of Outlaw Moscow .

18. I AM STUDIO

If you’re a lover of luxury apparel but can’t get over its insane prices, let me introduce you to the Moscow-rooted clothing brand I AM STUDIO.

Created by Daria Samkovich, the elite clothing brand preserves its essence of “affordable luxury” through clever fabrications utilizing wonderful materials and processing them into contemporary fashion pieces of timeless elegance.

I AM STUDIO highlights a colossal collection with everything from A to Z.

Click to check the official website of IAMSTUDIO .

19. Gosha Rubchinskiy

Georgiy Aleksandrovich Rubchinskiy or better known as Gosha Rubchinskiy, is a well-known Russian designer and photographer.

The Moscow College of Technology and Design graduate has always wanted to work in the fashion scene from a very young age. 

Thus, after gaining experience in hairdressing and makeup, the ambitious gentleman landed in the fashion circles of Russia and created his eponymous brand Gosha Rubchinskiy with its first collection in 2008.

The designer draws inspiration from the dissolution of the Soviet Union as well as Russia’s street fashion, its youth’s culture, and his own experiences throughout his life.

Gosha Rubchinskiy offers a wide range of casual wear for men and women, along with premium quality shoes and bags.

Click to check the official webpage of Gosha Rubchinskiy .

Discover the meaning of sophisticated femininity and classic elegance with ZARINA.

The widely adorned clothing brand aims to create a modernist style. By emphasizing female silhouettes and letting today’s women enjoy their inner beauty through its wholesome collections.

Marina offers a massive range of ready-to-wear attire, including outerwear, costumes, blouses, shirts, skirts, dresses, accessories and many other products that will give you the sense of fashion and comfort you’re looking for.

Click to check the official website of ZARINA .

21. 12 Storeez

Created by twin sisters Irina and Marina Golomazdin, 12 Storeez is an elite clothing brand solely dedicated to women.

The brand concentrates on simplicity and versatility yet keeps it beautifully composed and approachable for any urban context.

Since the twin duo doesn’t release seasonal collections, new mini-collections are launched each month, concluding 12 lines every year, hence the name 12 Storeez.

From dresses and jumpsuits to trousers, blazers, jackets and knitwear, if you can afford luxury prices, 12 Storeez this brand won’t disappoint you.

Click to check the official website of 12 Storeez .

22. IZBA Rouge

Are you looking for a fine-quality lounge and home wear? 

The Russian brand IZBA Rouge is dedicated to producing cozy, comfortable apparel with a chic touch and an unexpected twist.

Launched in 2014, IZBA Rouge came up with the idea to reinvent the pajama style into a streetwear outfit for those who want to feel at home anywhere at any time.

Yet, Izba’s designs simultaneously keep a very modern and sophisticated look in mind.

IZBA Rouge offers pajamas and pajama suits in beautiful colors made from fine materials like a-quality wool and the highly sought-after cashmere.

Click to check the official website of IZBA Rouge .

Launched in 2017 by Andrey Dugin, St.Petersburg-based clothing brand Wolee creates attention-grabbing designs best known for their easy fits.

Lovingly referred to as the Russian Stussy, Wolee offers a hassle-free style being easy, versatile, but modern and trendy at the same time.

You will be able to discover cool urban streetwear for men and women, including printed t-shirts, hoodies, caps, socks, bags, trousers, and much more.

Click to check the official website of Wolee .

24. A La Russe 

A La Russe is the wonderful outcome of Anastasia Romantsov’s ambition to reinvent Russian fashion and captivate it in magnificent attire enhanced with modern aesthetics.

A La Russe is best known for its explicitly fine tailoring and timeless elegance.

A La Russe stuns with luxurious formal dresses, and extremely trendy separates, contributing to a highly sophisticated glamorous look.

Click to check the official website of A La Russe .

25. Sonya v carstvo Diva (Sonya in Divoland)

Sonya in Divoland is an intriguing business concept of Russian movie director Sophia Gorlenko who got galvanized through her engaging documentaries about the Russian North and created this fashion brand.

Wonderful coats, men’s tunics, loose shirts, and lovely dresses beautified with old Russian prints, ornaments, and influences of old Russian fairy tales and architecture are the quintessence of the clothing brand.

Other creations involve mystical creature prints, while each collection’s color palette signifies rich earthy and nature-reminding vibes but also includes some poppy color elements.

Click to check the official website of Sonya in Divoland .

29. Felix Malikovich

Felix Malikovich is a Russian streetwear brand best known for its iconic Moscow Zoo sweatshirts.

The Moscow-based clothing brand produces hassle-free and versatile street fashion of supreme quality dedicated to men and women.

Felix Malikovich’s designs are worn by numerous well-known Russian personalities, including musician Katya Kishchuk from Serebro.

You can check Felix Malikovitch products at Kollektivmsk.com .

29. Kruzhok

Kruzhok is a renowned Russian clothing brand focusing on designing and manufacturing prestigious urban wear for men and women.

Initially starting in 2015 as a photo journal, Kruzhok transitioned only 2 years later, in 2017 into a strong, established streetwear brand founded by Stas Falkov.

Kruzhok’s apparel lines comprise an exquisite assortment of chic, sophisticated ensembles inspired by its roots in photography.

Click to check the official website of Kruzhok .

30. Kultrab

Launched in 2017, the Moscow-based fashion label Kultrab swears by its striking designs created in collaborations with numerous big names in Russia’s art and music scenes.

The brand believes that streetwear is an artistic way of self-expression and freedom of speech.

Kultrab offers exclusive urban attire for men and women, featuring eye-catching designs and innovative cuts.

Click to check the official website of Kultrab .

Founded in 2010 in St.Petersburg, Oh, my is a clothing brand providing premium-quality attire made from 100% natural materials.

The label focuses on designing and producing everyday fashion needs, including basics like dresses, shirts, sweaters, hoodies, etc. 

The designs are kept in a monochromatic color palette consisting of white, black, and gray.

Since all garments are made in Russia, Oh, my provides stylish clothing attached with reasonable price tags.

Click to check the official website of Oh, my

32. Daria Bardeeva

Daria Bardeeva is everything a fashionista can dream of.

As one of Russia’s most celebrated fashion designers, Daria Bardeeva’s remarkable innovations and avant-garde concepts can be spotted in each collection.

The elite designer offers two lines. 

One fashion is a prêt-a-porter line comprising seasonal collections of luxury retail apparel and a made-to-order sartorial line creating custom designs tailored to the client’s needs and wishes.

Especially known for its dresses and suits, Daria Bardeeva also offers a vast amount of luxury casual wear that can make anyone stand out.

Click to check the official website of Daria Bardeeva .

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Ukraine war latest: Russia dismisses Turkey offer after Putin meets Erdogan; day of mourning in Ukrainian city

Residents in Dnipro are observing a day of mourning after six people were killed and dozens more injured in a daylight Russian attack yesterday. Meanwhile, Vladimir Putin's spokesperson has ruled out a suggestion by the Turkish president that he could help mediate peace talks.

Thursday 4 July 2024 14:26, UK

• Kremlin dismisses idea that Turkey could help end war
• Zelenskyy challenges Trump to reveal peace plan
• Indian PM to visit Russia next week
• Number killed in Dnipro attack rises - as city observes day of mourning
• Exclusive : Russia, Glasgow and why the cost of living crisis came to an end
• Your questions answered: Has the West been honest about Ukraine's failures? | Is Kyiv next?
• Listen to the Daily above and tap here to follow wherever you get your podcasts
• Live reporting by Bhvishya Patel and, earlier,  Katie Williams

Russia's ambassador to the US has said his assignment is coming to an end, a move that would pave the way for Moscow to send a new envoy to Washington at a time when relations are at their worst in decades.

Anatoly Antonov's exit was flagged by Russia's Kommersant newspaper, which spotted a handwritten note that Mr Antonov had sent to congratulate a Moscow thinktank on its 30th anniversary.

"My assignment is coming to an end. I hope that together we will continue to defend the interests of our Fatherland!" Mr Antonov wrote in the congratulatory letter.

When asked about the matter today, Russian foreign ministry spokeswoman Maria Zakharova was cited by the Interfax news agency as telling reporters: "There is no reason to comment here. Everyone can have their own personal plans. 

"Decisions on the appointment and change of ambassadors are made by the president."

Mr Antonov took up his role in Washington in September 2017. 

Before that, he served as a deputy defence minister and as a deputy foreign minister.

We reported earlier that Ukrainian troops have pulled back from a part of the key frontline city of Chasiv Yar in Ukraine's eastern Donetsk region (see post at 8.12am).

Now, Kyiv's military spokesman Nazar Voloshyn has said Russian forces "did not leave a single building intact".

"The positions of the Ukrainian defenders were destroyed, and keeping personnel there was a threat to the lives of our soldiers," he said in an interview with the Kyiv Post .

He also said: "The enemy did not leave a single building intact; after the bombing and artillery shelling, it looks like a 'moonscape'".

For context : Chasiv Yar is a strategically important city in the eastern Donetsk region.

It lies a short distance west of Bakhmut, which was captured by Russia last year after a bitter 10-month battle.

For months, Russian forces have focused on capturing Chasiv Yar, a city which occupies a strategic, elevated location.

Its fall would put nearby cities in jeopardy, compromise critical Ukrainian supply routes and bring Russia closer to its stated aim of seizing the entire Donetsk region.

Russia's defence ministry has released footage of its forces firing from a howitzer at Ukrainian troops.

The video (stills below) was captured in an undisclosed wooded area of Ukraine.

One person has been killed and gas infrastructure has been damaged in a Russian missile attack on Ukraine's Poltava region, the country's energy ministry has said.

In a post to Telegram , the ministry said Russian forces struck a facility of gas producer UkrGasVydobyvannya yesterday.

Unspecified infrastructure was damaged, while a 49-year-old employee was killed and three other workers were hurt, it said.

Ukraine's air force said yesterday that it downed a Russian missile over the central Poltava region, but the regional governor reported damage from missile debris.

Ukraine is addressing its manpower challenges by forming new brigades, but delays to Western supplies of weapons are likely preventing them from being properly equipped, according to military analysts.

The Institute for the Study of War said Kyiv is relying on "timely and appropriate Western security assistance".

It described prompt aid from Ukraine's allies as a "crucial determinant of when and at what scale Ukrainian forces can contest the battlefield initiative and conduct operationally significant counteroffensive operations in the future". 

It comes after Volodymyr Zelenskyy told Bloomberg TV that Ukrainian forces were better positioned in terms of manpower than a few months ago - but any future counteroffensive was dependent on brigades having heavy equipment and artillery.

The Ukrainian president said military equipment pledged by the US was taking too long to arrive on frontlines.

"This is the biggest tragedy of this war, that between the decision and real fact, we have a real long, long, long wait," Mr Zelenskyy said.

Russia will potentially target Ukraine's supplies of materials including gold, uranium and coal in a bid to "grind down" its economy, the UK's Ministry of Defence has said.

In its latest intelligence update, the MoD said Ukrainian government sources have "long highlighted Russian theft of Ukrainian resources from areas it has occupied".

It said materials such as iron ore, coal, titanium, uranium, manganese, gold and lithium deposits are "almost certainly covered by Russia but also potential targets as Russia seeks to grind down Ukraine's economy".

Moscow is looking to improve transport networks in occupied Ukraine in order to "extract more Ukrainian minerals", it said.

Indian Prime Minister Narendra Modi will visit Russia next week for talks with Vladimir Putin, India's foreign ministry has announced.

Mr Modi will visit the country for two days from Monday at Mr Putin's invitation, it said in a statement.

According to the foreign ministry, the two leaders will review their countries' developing bilateral ties and discuss regional and global issues.

The Kremlin said earlier this week that the planned visit had been likely to take place in July. Spokesman Dmitry Peskov described it as "very important".

"In addition, our trade and economic cooperation is also one of the main issues that is being discussed, the most diverse areas of cooperation that we intend to develop, for which there is mutual political will," Mr Peskov said. "This is the main thing."

Mr Modi last visited Russia in 2019 for an economic forum in the far eastern port of Vladivostok.

India is the world's third-largest crude consumer and a major buyer of Russian oil, increasing its purchase more than 20 times compared with 2021 as Russia discounts its barrels amid Western energy restrictions. 

Mr Modi sent Mr Putin "warm congratulations" when he extended his presidential term in March following an election which Western nations deemed to be neither free nor fair.

India has retained a neutral position on the conflict, refraining from publicly criticising Mr Putin's invasion while trying to maintain ties with the West.

Russia has increasingly sought to strengthen ties with its partners as it tries to avoid becoming a global pariah following its invasion of Ukraine. 

Mr Putin has made recent visits to both North Korea and Vietnam, and in the former signed a security deal. 

Four people have been injured in an early morning attack by Russia on the northeastern Ukrainian region of Kharkiv, officials have said.

The regional prosecutor's office said Russian forces carried out airstrikes in the village of Hlushkivka at around 5am today, injuring three women and a man. 

A number of private homes and commercial buildings were also damaged, it said.

A Russian court has ruled to keep a French citizen accused of illegally gathering information on the Russian military in pre-trial detention until August - rejecting an appeal against his arrest.

Researcher Laurent Vinatier, 47, was arrested in a Moscow restaurant by masked officers in June. He stands accused of failing to register as a "foreign agent" while collecting information about Russia's "military and military-technical activities".

The offence is punishable by up to five years in prison.

Yesterday, Russia's federal security service (FSB) said Mr Vinatier had pleaded guilty during questioning.

The Russian state-owned RIA news agency quoted him as telling the court today that he "loved Russia" and his life was "connected with Russia".

Vladimir Putin has held talks with Iranian interim president Mohammad Mokhber at the sidelines of the summit in Kazakhstan.

Moscow and Tehran are in the process of discussing a "comprehensive agreement" reflecting the "unprecedented upswing" in their bilateral ties, according to Russia's foreign ministry.

Earlier this year it said the treaty was in the final stages of being agreed.

Mohammed Mokhber was appointed acting president of Iran after the death of former leader Ebrahim Raisi in a helicopter crash in May.

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