Are you planning to start a clothing and fashion business but don’t know where to start? Where to buy cheap clothes, how to choose a business premises, how to attract customers? All the experiences of opening a clothing store for fashion beginners through the article below will help you!
1. Why should you choose clothes, shoes and fashion accessories for your business?
Fashion is not a new industry, but it is an industry that always attracts incredible investment from all kinds of individuals and organizations, large and small. This is the path that up to 30% of people who start a business choose to start a business. And here are the reasons why you should be in the fashion business instead of other fields:
- The customer base is large, the market is potential and has never shown signs of slowing down: you can open a women’s clothing store, men’s clothing store, mother and baby fashion store, middle-aged fashion store…
- The risk ratio when investing is lower than some other trades. Especially with the form of online clothing sales on social networks or e-commerce floors, you will not need to spend money to open a store, no need to rent space.
- Start-up capital to open a clothing shop is smaller than some other business lines such as electronics – strong electricity, car accessories, furniture…
- Diverse sources of goods: garment factories, acting as agents for fashion brands, importing from wholesale clothing markets, clothing sources from e-commerce sites like taobao…
- Easy way to reach customers
Saying low risk ratio does not mean that you can trade profitably without a specific business plan and determination to pursue your goals. In fact, for every 100 stores opened, there are nearly 40 fashion stores that have either transferred their stores or closed due to business failures. Therefore, make sure to grasp the valuable experiences below to have a successful business!
>> 5 reasons why your store revenue is not growing
2. Have a business idea for clothes, shoes or accessories? (Ideas)
Every idea is worthless when you keep it in your head and don’t execute it. If you want to start a fashion business, sketch out your business idea on paper or anywhere that will help you save specific information.
Selection of main business products: from clothes, shoes, bags, backpacks to other fashion accessories such as jewelry, hats, eyeglasses, handmade goods or suitcases, travel accessories… Fashion – Accessories is an industry with many product groups, you can choose 1 main product and combine it with 1-2 items for sale. Example combos: women’s clothes + bags, men’s clothes + shoes + belts…
Your idea needs to state the business item, store style, and business goals. The idea of business development in which direction, the brand names you think of… The richer the ideas, the more choices you will make when considering the ideas offered.
2.1. Store style
Including product style, store layout style and customer service style. All need to be compatible so that every time they think of it, customers will remember your fashion shop with the most professionalism and satisfaction. The effective way to sell clothes shows from the creation of new business ideas. Find out the fashion shop models that customers love.
You can refer to some store decoration trends such as: green, vintage, modern store decoration…
2.2. Fashion store name
One of the experiences of opening a successful clothing store is to think of a fashion shop name. What should be the name of the shop so that customers can remember and impress them, and at the same time, it must be a good name, matching the store style is not easy.
Therefore, let’s try to identify the popular fashion shop names on the market, what are the shop naming trends? That way, you will have many good ideas and will not be duplicated with other clothing, shoe or accessory shops already on the market.
Check out some of the best clothes shop names – these are also the fashion stores that many customers love:
- Unique style: Moc, Be Xiu, Ti Teo..
- Names with English words: Daisy, Retro, Holmes, Adam, Eva, Thunder…
- Name associated with shop owner, brand owner: Trang Boutique, Van Anh Scarlet
- Curious abbreviations such as: JM, HT Store..
- Store name according to the outstanding features of the product: Unique boutique, Sport Closet, Lep’s, ..
- Name fashion stores with numbers and letters: Twenty Five, Eighteen, Seventown, …
2.3. Learn the business of fashion clothing business
One of the things to know when opening a clothing store is to learn from the business experience of the people who went before. From there, set goals when running a store business. Is that goal achievable or not, how long will it take, and how to achieve it?
For example: The goal of reaching a profit of 300 million in the first year, stabilizing the store after 2 months of operation… And the answer about the way to the goal, that is to set up a store business plan.
Malu offers you a business guide and opens a CLOTHING, SHOES shop for beginners.
>> What do you need to prepare to open a shoe shop?
3. Guide to making a detailed clothing business plan
What is a clothing business plan? Business plans are contents presented in the form of sketch documents, detailing the business process of a clothing store over a certain period of time.
The experience of opening a fashion clothing store of many clothing and shoe store owners shows that a business plan is extremely important. It helps shop owners know what they need to do, not to miss out on tasks. At the same time, clearly define the direction of the store in each specific period.
3.1. Define fashion shop business model
You should choose a business model before looking for customers. Because maybe when searching for target customers but your business model is not suitable, what you have done is in vain.
Currently, the clothing and footwear business has many models for shop owners to pursue.
- It is common to open a retail shop, to open a wholesale shop with available goods
- Business of self-designed fashion
- franchise business,
- Fashion store chain business
In terms of online and offline store business, you should choose an online business form on Facebook, Instagram or other popular e-commerce platforms today (Shopee, Lazada, Sendo…). Each sales channel has different advantages/disadvantages, you can learn more about selling on Shopee, Lazada or Tiki e-commerce platforms?
3.2. Identify target customers
When selling clothes, you need to determine who your products will be sold to. Or who can buy your clothes, bags? Identifying this audience, you will have a plan to import goods suitable for potential buyers. At the same time, the customer is also the person who can pay for the items you sell.
Defining your target audience is not just about who they are. You need to find out more information such as:
- Where are the customers?
- What is the age?
- Their occupation?
- Hobbies, daily habits?
- Their favorite shopping channel?
- Their average income?
The more detailed customer portraits you build , the more likely you are to reach them. Besides, understand their habits and preferences to consult customers, sell more professionally and effectively.
Malu’s example of a customer portrait at a children’s clothing store from 1 to 10 years old is as follows:
3.3. How much does it cost to open a clothing store?
How much does it cost to open a men’s clothing store? How much does it cost to open a designer fashion shop? Or how much money does it take to open a children’s clothing store? How much capital does it take to open a women’s clothing store? … These are the questions that most shop owners wonder when they have no experience in opening a store.
The amount of capital to open a clothing, footwear or accessory store will depend on the size of the store, the business model and the geographical area where the fashion shop is located. Ranging from 50 to 300 million with mass fashion shops.
For fashion shops or large franchises, opening a shop can cost from 1 to several billion dong. And of course, to plan the amount of capital you need, Malu will give you a few suggestions so that you can prepare the amount of capital that is closest to the actual amount of capital needed.
Capital for an online clothing business
When opening an online shop, your prepared capital will be much lower than that of fashion shops with large premises in central neighborhoods. Accordingly, capital expenditures include:
- Import capital of goods (about 5-30 million VND)
- The cost of running online ads (6-20 million depending on your budget)
- Some other costs such as packing goods, invoices, using sales management software and online orders (about 10 million).
Thus, to open an online fashion clothing store, you need to prepare a minimum capital of about 30 million to be ready to operate an effective online shop.
How much money does it take to open a clothing store?
To open a men’s and women’s fashion shop or shoe and accessory shops, you need to prepare more capital when trading clothes online. In particular, the indispensable cost items when opening a fashion shop include:
- The cost of renting space (from 3 to 50 million VND) depends on each area is the province or big city, in the alley or outside the street, a facade or 2.3 facades, … And in the contract The lessor also often requires you to pay 3-6 months in advance of the rental.
- Import capital (20-50 million VND): because it is a store, you need to hang enough quantity and models at the store, avoiding the situation of leaving the shelves empty.
- Capital for decoration, purchase of tools and equipment at the store (20-50 million). Including the cost of decorating the storefront, signboards, shelves, clothes hangers, mannequins, etc.
- Other costs incurred: 10 million VND
If you open a shop, make sure you have at least 200 million in hand to be able to open a clothing shop smoothly and conveniently, this is a modest number for small fashion shops in alleys or in stores. provinces have low rental costs. Or do not take into account the space rental fee due to the home business.
A list of all the costs of opening a clothing store
|FASHION STORE OPENING BUDGET AREA 40M2|
|STT||FURNITURE + BOARDS||Content||Quantity||Unit price||into money||Notes (required)|
|first||Sea of identity||expected||1.00||12,000,000 won||12,000,000 won||12,000,000 won|
|2||Furniture: Display shelf, display table, display wooden wall, display iron column||Estimated 2 million/m2 (depending on the ground)||1.00||60,000,000||60,000,000||60,000,000|
|3||Cashier||expected||1.00||4,500,000 won||4,500,000 won||4,500,000 won|
|4||Lights||expected||30.00||270,000 won||8,100,000 won||8,100,000 won|
|5||Cashier seats + waiting seats||expected||2.00||1,000,000 won||2,000,000 won||2,000,000 won|
|6||USES OF EXHIBITION TOOLS||0|
|7||Manocanh||expected||1.00||1,800,000 won||1,800,000 won||1,800,000 won|
|8||Merchandise display equipment||expected||1.00||500,000 won||500,000 won||500,000 won|
|9||Tree on display||expected||3.00||600,000 won||1,800,000 won||0|
|ten||Poster decoration in the booth||expected||2.00||1,500,000 won||3,000,000 won||0|
|11||EYE CORRECTION (if needed)||0|
|twelfth||plaster ceiling||expected||1.00||8,000,000 won||8,000,000 won||0|
|13||Plaster fitting room||expected||2.00||1,000,000 won||2,000,000 won||2,000,000 won|
|14||Floor||expected||1.00||6,000,000 won||6,000,000 won||0|
|15||Wall paint||expected||1.00||1,000,000 won||1,000,000 won||1,000,000 won|
|16||PROJECTED FACE RENTAL|
|17||House rent||expected||6.00||10,000,000 won||60,000,000||60,000,000|
|19||Storage bags, receipt paper||expected||1.00||500,000 won||500,000 won||500,000 won|
|20||PREPARATION OF THE OPENING PROGRAM||0|
|21||Facebook advertising before opening||expected||1.00||5,000,000 won||5,000,000 won||5,000,000 won|
|22||Light sweet party||expected||1.00||1,500,000 won||1,500,000 won||1,500,000 won|
|23||SALE SERVICE TOOLS||0|
|24||Computer||expected||1.00||4,000,000 won||4,000,000 won||4,000,000 won|
|25||Software sales||expected||1.00||5,000,000 won||5,000,000 won||5,000,000 won|
|26||Bill printer||expected||1.00||2,000,000 won||2,000,000 won||2,000,000 won|
|27||Barcode scanners||expected||1.00||1,000,000 won||1,000,000 won||1,000,000 won|
|TOTAL REQUIRED||320,900,000 won|
4. Experience in importing quality and cheap clothes and shoes?
What do you need to prepare to open a fashion store? Of course, it is indispensable for quality clothes, shoes or accessories. But where to import goods is the question many shop owners are most interested in. Here are some clues where you can source diverse and quality fashion goods:
- Importing clothes and shoes from Guangzhou
- Import Thai fashion goods
- Import clothes from Ninh Hiep market
- Importing clothes and shoes at Dong Xuan market
- Import goods at wholesale prices at An Dong market
- Import goods at wholesale prices at Tan Binh market…
- Import goods from reputable garment factories
- Importing goods from franchised brands (with franchised stores)
- Import goods from genuine garment companies (with stores that are agents for the company)
5. Apply for a business license to open a fashion shop
There are many shop owners asking “Does it take a business license to open a fashion shop?” . The answer is yes.
Registering a business license for individuals is a mandatory procedure when you open a fashion store. To avoid unexpected administrative checks from the market police, make sure your business has a license.
If you do not have a business license, your store may be interrupted by being asked to stop operating until the license is issued. Or be administratively sanctioned, in more serious cases, goods may be seized when selling non-originating goods… Therefore, do not forget to register for a business license to start selling successfully!
5. Experience in choosing a fashion business premises
Trading with wards, selling with markets is an experience to choose a convenient place to trade in clothes and shoes.
The criteria to choose a good business premises include:
- Store location
- Ground area
- Business potential of the premises
- Cost rent
- Awareness and convenience
Depending on your financial ability and sales strategy, choose a suitable business premises for yourself. For example, with popular goods, you can open on small streets, convenient traffic lanes, densely populated areas.
But for high-end products, you need to open a shop in a densely populated, highly educated area or on large street fronts, attracting visibility and a busy place for potential customers. .
In addition, consider the cost of renting a store. If you have to invest too much in the cost of the premises but the sales potential is not really good, consider whether the place is really good for business in the future or not?
7. Fashion store design and decoration
After choosing the space, define the design style for your store. One of the biggest trends in retail store design is the green trend. Take advantage of natural light, add greenery and natural materials to bring a comfortable shopping experience to customers.
7.1. Note when decorating the store
The store should not be decorated with too much density, design the space so that customers can stop, sit and rest properly or the testing area is airy. With a shoe shop, ensure aisles for customers, there are seats for customers to try on shoes.
Avoid empty goods on shelves. Make sure the goods are always ready on the shelf for customers to choose to buy. Do not display too many products in the same model on the shelf.
7.2. How to decorate a clothing store to attract customers
Experience in decorating a fashion shop is that you should use yellow lights for clothing stores, white lights for shoe shops. Therefore, when decorating the store, learn how to decorate. Learn more business tips even the smallest when selling clothes and accessories.
Use quality mannequins. A dress worn on a quality mannequin will be much more beautiful and attractive to customers than a dress worn on a poor quality mannequin. And of course, regularly renew your best-selling mannequins. Don’t let the whole month that you still wear the same outfit, or change it 2-3 times.
Use LED storefront mirrors if possible. Mirrors placed under yellow light will help the person standing in front of the mirror look much whiter and more eye-catching. This is also a tip so that when customers try on things at the store, they always feel better than trying on things at home.
8. Build professionalism in sales right from the start
If opening a fashion shop, whether it’s an online or a brick-and-mortar store, build up professionalism in sales right from the start.
The professionalism is shown from the way the store is decorated, the way the product is labeled, the sales method of the staff or the way to pay customers. A store with a sales receipt will be more professional than a store without. Product labels printed with their own branded stamps are also more professional than clothing labels from China or garment factories.
To be more professional in sales and store management, shop owners should use fashion sales management software to help systematize all operations in the store. It will help you:
- Create and print product labels
- Create invoices when paying customers
- Look up goods, consult products for customers by mobile phone
- Manage revenue, expenses, goods clearly on your phone, laptop or tablet…
9. Notes when opening a fashion clothing store
Opening day has a special meaning for business people. “First and foremost” is a concept that has been applied since ancient times. The opening day is favorable, the business process is good after that.
Once you are ready to open a fashion shop, open your own store. And experience to prepare for the opening day, as a clothing dealer, you must know the following notes:
- See good dates for opening
- Make a list of guests to attend on the opening day
- Preparing for the full opening ceremony
- Ready goods and human resources to serve customers on opening day
- Create a promotion program for the opening occasion
- Communicating, introducing to customers about the opening day
When it comes to store openings, pay attention to the smallest details so that everything goes smoothly. Should abstain from quarrels and breakdowns on the opening day. In particular, prepare a good customer attraction program so that the opening day can sell as many goods as possible.
Above are the experiences of opening a fashion clothing store for those who are just starting a business. Hopefully, the article will help future shop owners with business intentions to know how to sell clothes effectively, order a business plan and implement a more successful plan.