Clothing Line Business Plan Sample

Have you ever considered creating your own clothing line? The fashion industry is a growing sector that is not only competitive but also has significant environmental impacts. In this clothing line business plan sample we will show you what it takes to write a plan that has a strong business case while considering the impact on our planet.

1.0 EXECUTIVE SUMMARY

Sample Clothing Line, (The Company) was registered in the Province of British Columbia on January 15, 2020 by CEO and Creative Director, Sara Jane. Sara will establish the company as a street style clothing brand for a male, female, non-binary audience, of youth consumers ages 18 – 28.

Through an aggressive digital marketing strategy, Mrs. Jane will develop a community of “advocates” purchasing the company’s comfortable, sustainable, yet authentic clothing. Moreover, a collaboration between independent artists, and the company will make the Sample Clothing Line platform truly unique. “At the very core of the Sample Clothing Line brand is a belief that art can unite us through fashion. Our platform enables artists to showcase their work through the very clothes we create. As the pioneers of this platform we’ve been met with abounding support by our target audience, local artists, and the slow fashion community.” – CEO and Creative Director, Sara Jane

For the first two years of operation Sample Clothing Line will execute a purely digital strategy; marketing its products and building its community on social media; while selling apparel through the company’s online store. In May of 2021 the company will officially launch in Canada, establishing its domestic customer-base. In the following year, Sample Clothing Line will expand into the US, establishing itself as a sustainable, purpose-driven street style brand. In Year 3 the company will continue its growth in the North American market, while developing two physical stores located in strategic cities.

Today more than ever, youth want to support conscious brands. In fact, 70% of streetwear’s young fans consider themselves as socially-conscious. Sample Clothing Line has identified the massive market opportunity for a clothing line that can captivate its young audience through positive brand messaging. Sample Clothing Line is just that, a brand that is artistic, grounded in social justice, while offering the most coveted selection of street style fashion available.

The company is seeking a CAD $60,000 loan through Futurpreneur Canada and the BDC, primarily to expand the company’s website, e-commerce store, and for the garment-making of its 2021 clothing line. This funding in combination with Sara Jane’s initial investment, and 10 year background in the industry, will enable Sample Clothing Line to streamline its market entry, and ensure an effective ascent in the Street Style Fashion industry.

2.0 BUSINESS OVERVIEW

“Sample Clothing Line ” is a street style fashion brand serving a youth audience aged 18 – 28 years old. The company is focused on establishing itself with a brand identity rooted in vital issues for youth consumers, such as social justice, sustainability, individuality and transparency.

2.1 Business Summary

With over 10 years of experience in the Fashion and Beauty industry, Mrs. Jane plans to exercise her experience with Sample Clothing Line. The company will take an ethical approach to Street Style fashion by removing elements of exclusivity, hype culture, status symbolism; which are commonly practiced is the Streetwear Industry. Rather, Sample Clothing Line will continue building its community through principles of inclusion, art, positivity, and celebration.

For the first two years of operation Sample Clothing Line will exclusively sell it’s clothing products online through its flagship ecommerce store. Moreover, the company will capitalize on the availability of social media platforms hosting an abundance of target customers including Instagram, Tik Tok, and Twitter. Later in Year 3 Sample Clothing Line plans to open two physical brand stores in strategic cities across North America.

Throughout this stage of growth the company will further differentiate itself by establishing a platform where artists can collaborate and bring new, innovative fashion items to Sample Clothing Line’s customers. Instead of giving artists “free range”, Sample Clothing Line will work with them to develop fashion that is cohesive with the brand’s current or upcoming clothing line. Together, the Sample Clothing Line brand will serve it’s audience by creating sustainable clothing; both environmentally and socially, and progressing individuality over hype culture.

2.2 Industry Overview

We estimate the size of the global streetwear market at USD $185 billion in annual sales, making it by some estimates about 10% of the entire global apparel and footwear market. Streetwear’s impact – both on retail culture and the numbers involved – has caught the attention of some of the most iconic, established brands in the retail, luxury goods, and fashion industry in general.

Streetwear players come from various parts of the fashion industry. There are pure streetwear brands, while sportswear names are developing their traditional portfolio of sports equipment into a growing streetwear portfolio with the concept of cool, hip sneakers and hoodies. In addition, luxury brands are also working to gain a significant stake in the streetwear market.

2.3 Mission & Vision Statement

Our mission is to promote slow fashion to our target audience.

2.4 Sustainability

Sustainable Supply-chain

Sample Clothing Line is committed to procuring the most sustainable materials available. As the company is established it will work to find a supplier of hemp fabrics, as this material has been recognized as a way to reduce our environmental impact.

2.5 Goals and Objectives

Secure $60,000 in funding from Futurpreneur Canada and the Business Development Bank of Canada.
Execute the company’s “official launch” on May 1, 2021 via social media and the Sample Clothing Line website/ecommerce store.
Control costs while establishing a loyal customer base in Year 1.
Expand Sample Clothing Line’s reach into the US marker in Year 2.
Continue developing the brands online community on social media platforms Instagram, Tik Tok and Twitter.
In Year 3 establish two physical brand stores in strategic North American cities.

2.6 Key Success Factors

Collaborations that create a bigger audience
Establishing our community on social media
Providing healthy compensation to local artists
Keeping intune with our target audience and reflecting that in our clothes
Inventory management: not producing too many articles of clothing
Being able to identify and adjust trends quickly
Taking risks in styles we’re confident with

2.7 Staffing

Chief Executive Officer (CEO):

The CEO’s core responsibility is to ensure the health and success of the company. Operations, marketing, finance, strategy, company culture, human resources, hiring, sales, public relations all fall under the responsibility of the CEO. As CEO Mrs. Jane will learn the ins and outs of every position in the company. She will be directing, planning and coordinating operational activities and devising policies and strategies to meet company goals.

Creative Director:

Responsible for overseeing the creative concepts of all collections, artistic work, and collaborations. The responsibility here lies in ensuring the clothing will suit the demographic and represent the brand to its fullest potential.

Community Outreach Manager:

This customer relations role deals with the basic communications between the company and its customers. Responsibilities will include answering calls, responding to emails, customer questions, resolving most customer issues. The more advanced part of this role will be learning and developing our ideal customer. We understand as a brand the importance of thoroughly understanding our customer so this role will include capturing information about the way our customers communicate; therefore, developing our voice and the way we can best reach our audience. Community outreach will be essential to the growth of Sample Clothing Line as we want to collaborate with not only artists, but other businesses as well. The community outreach role will include the planning and implementing of outreach strategies. This position will cultivate relationships with businesses, communities, and relevant organizations that may lead to increased brand awareness through cross promotion.

Store Manager:

The store manager will be responsible for overseeing the operations of their location. One of their main responsibilities is overseeing the company culture of the store and ensuring it’s in line with the wider Sample Clothing Line company culture. Additionally, the Store Manager is to create an environment where our employees love to be. It is the responsibility of the store manager to not only oversee the running of the store, but to exemplify how it is to work for Sample Clothing Line and create an environment that reflects that. We want our employees to actually enjoy being at work, to look at it like a blessing and not a chore. Aside from company culture, the main roles will include:

The recruiting, training, supervising of staff
Dealing with customer queries and complaints
Maximizing profitability. Setting/meeting sales targets. Motivating staff
Present sales incentive opportunities for our employees
Managing budgets. Maintaining statistical and financial records
Liaising with head office
Scheduling
Upkeep of store displays, merchandising standards, standards in general

Fulfillment Manager:

This role will be responsible for monitoring all E-commerce orders, as well as seeing through their fulfilment. This would entail packing all orders to company standards and ensuring everything that leaves the facility matches the quality control set in place by the company. Presentation will be a key part of our brand so the way our packages are delivered to our customers will be essential. We want our customers to be excited about the process of receiving and opening our products. We want to connect with our customers on as many levels as possible, so the role of our Fulfillment Manager helps in elevating the company’s overall appearance and standards. The responsibility here is upholding our company’s presentation and ensuring all orders are packed and shipped out properly. This role will also deal with receiving any returns or sending out any exchanges.

Social Media Manager:

Due to the fact that we will reach our target audience heavily through social media, this position will be essential to the growth of the company and reaching the perfect target audience. This role will plan, implement, monitor and manage the company’s social media strategy. Responsibilities will include increasing brand awareness and posting relevant social media content. Sample Clothing Line will lead the way in new trends, do our own thing, and never “follow or tag onto tacky trends”.

Graphic Designer:

Sample Clothing Line will have it’s own in-house graphic designer to create graphics that will be printed or embroidered on our clothes during the times we are not collaborating with an artist. The graphic designers responsibilities will be bringing the creative directors vision to life. This role will include regular meetings to discuss ideas for future collections where the graphic designer will then produce the work, where a second revision will take place. This role is very important as the graphic designers vision needs to line up with that of the Creative Director. This position is responsible for expert knowledge of our target market and understanding our industries norms and trends in order to produce the most persuasive, on brand designs as possible. The graphic designer will help with any social media marketing needed, company and website design development, advertisements and assist in growing the aesthetic image of the brand.

Seamstress:

This role is to work alongside the Creative Director in creating all in house made samples for each garment. Eventually we would love to produce all our own samples in house, in order to keep overhead costs down. The Seamstress’ role will be unique in that it won’t be a standard Seamstress position. The in house Seamstress will also be responsible for all finishings on clothing, whether it be silkscreening or embroidering. Industry knowledge is very important in this role as the Seamstress will be expected to add to the creativity of the line, bringing new ideas to the table as well as working off the ideas of the creative director. Roles will include constructing samples and garments, operating and maintaining sewing and finishing equipment.

Sales Associate:

Our sales associates will be people our customers not only go to for clothing or style advice, but will add their own personal flare to the store as well. We want to be a company that supports individuality for our staff and customers. Our stores will be a place for people to connect, and collaborate so we want our sales associates to be individuals that our customers will look up to. This position has the responsibility of upholding our company culture, values, providing a heightened level of customer-service, and building return customers. We expect our sales associates to be good people and want the best for our customers. The general duties for this position are as follows:

Greet and welcome anyone who comes into our space
Sales and product education
Product knowledge
Ensure high levels of customer satisfaction through excellent service
Advocate for our brand
Operating tills, POS machines, processing sales, returns, exchanges
Styling and providing personal shopping if necessary or asked for
Increasing sales and meeting sales targets
Maintaining overall appearance of store, displays, and products
Having a good “customer service” attitude no matter what the occasion. Sometimes customers are rude but we need our team to remain calm and kind regardless

2.8 Management Team

Sara Jane

CEO and Creative Director

3.0 PRODUCTS & SERVICES

PRODUCTS

Women’s Clothing

Tops: Long sleeve top, Tee shirt, Long sleeve crop top, Tee shirt crop top, Tube top, Tank top, Button up baseball tee, Mock Neck shirt – $45

Sweaters: Crop hoodie, Crop crew neck, Full length hoodie, Full length crew neck, Oversized boyfriend hoodie – $60

Outerwear: Bomber jacket $120, Coaches jacket $65, Vest – $80

Bottoms: Chinos, Carpenter pants, Painters pant, Trouser $85, Oversized cuffed boyfriend sweatpant – $65

Accessories: Socks, Tote bags, Crossbody bags, Toques/beanies, Bucket Hats/Snapbacks, Boxers/thongs – $30

Swimwear: Bikinis, One pieces – $60

Athleticwear: Yoga pants, Yoga shorts, Biker shorts, Sports bra $60, Crop athletic jacket $120

Men’s Clothing

Tops: Long sleeve shirt, Tee shirt $45, short sleeve button up shirt, long sleeve button up $70

Pants: Chinos, Carpenter pant – $85

Outerwear: Vest $80, Bomber jacket – $120

Accessories: Socks, Tote bags, Crossbody bags, Toques/beanies, Bucket Hats/Snapbacks, Boxers – $30

Swimwear: Trunks – $30

Unisex Clothing

Tops: Long sleeve, Short sleeve, Button up, Mock neck shirt – $45

Sweaters: Crewneck – $60

Outerwear: Coach jacket – $65

Accessories: Socks, Tote bags, Crossbody bags, Toques/beanies, Bucket Hats/Snapbacks $30

4.0 OPERATIONS

The company’s operations can be summarized into an 8 stage cycle:

Customer Demand: We are always watching to see what’s developing in the Street Style fashion industry. This stage is critical in developing new products.
Product Creation: We develop a small order of prototypes. New products are always developed with minimal environmental impact; and a commitment to develop clothing that will positively progress the Sample Clothing Line brand.
Product Surveying: We receive feedback on our prototypes from a small, diverse set of target customers. Changes are made on the prototype until we are fully confident in the end product.
Production: We develop an order of clothes ready for our customers. We utilize sustainable products and service providers to ensure our products represent our values.
Marketing: Utilizing our preferred social media platforms, muse marketing, instagram ads and in some situations brand partnerships, we get our fresh products in front of the community and other prospective customers.
Ecommerce: Our audience is funnelled to our ecommerce store where they access the latest products available. They purchase items unique to their taste, and size.
Fulfillment: Our fulfillment team ensures our customers receive their products on time, and without any hassle.
Customer Care: We separate ourselves from our competition by being widely available by email, direct message and phone 24/7 to service customer concerns, complaints or suggestions.

4.1 Location

Sample Clothing Line Headquarters

For the first year of operation this space will be utilized as the company’s shipping facility, photoshoot area, and product manufacturing centre; executing silk screening and embroidering.

4.2 Equipment

Current Equipment

Total Resale Value: $4,150

Laptop – MacBook Pro – $2000

Used for all business purposes

Afford-A-Flash -flash cure unit – model no. LC1600 $850

Used to cure silk screen ink

Silkscreen Press – INTBUYING 1 colour silkscreen press -$200

Used to hold screens for silk screening

Silkscreen ink, supplies, solvents -$300

Supplies for silk screening

Silkscreen Screens -Stanley’s Signs – $400

Used to print images onto clothes

Silkscreen station – $100

Workbench for silk screen press

Sewing machine – Husqvarna Viking -No.730061859- $270

Used for The Blanket Project and finishing any final cuts

Sewing kit – $30

Used for sewing

Equipment to Acquire

Total Sum: $2,573 + GST

HP ENVY Photo 7155 All-in-One Colour Inkjet Printer – $200

Used for printing heat transfer images for clothing

Vevor 5 In 1 Heat Press Machine – $260

Used to transfer images onto clothing

Brother computerized embroidery machine SE600 – $1000

Used to embroider logos and make patches

Fabric scissors – $26

Used to make crop hoodies, tops and long sleeves

Vintage Olympus film camera – $289

Used to photograph clothing and create desired images for social media

Canon EOS Rebel – $548

Used for digital images for website photoshoots and social media

Lumina Pro Ring light – $250

Used for taking professional photos for the sale of jewelry and will also be used for social media

4.3 Inventory

The 2021 Sample Clothing Line Clothing Line

Upon business funding, a total of $33,000 including taxes will be allocated to Sample Clothing Line’s 2021 Clothing Line. $30,000 will be invested in garments for the company’s primary “Cut and Sew” clothing line, and an additional $3,000 will be spent on wholesale clothing. The company will utilize these materials for Women and Unisex clothing only; subsequently, saving Men’s clothing for their 2022 clothing line.

Starting pieces will be :

Unisex button up shirt in short and long sleeve lengths
Womens crop top in short and long sleeve length
Unisex full length tee shirt and long sleeve shirt
Biker shorts for women
The “perfect” crop hoodie – we call it this because it literally needs to be perfect. There are too many crops out there right now to launch anything other than the right material, size, shape and fit.
Baggy, wide leg, heavy cuffed sweat pants to match our Crop Hoodie

5.0 MARKET OVERVIEW

Overall, there has been significant growth in the Street Style Fashion Industry. We estimate the size of the global streetwear market at $185 billion in annual sales, making it by some estimates about 10% of the entire global apparel and footwear market. Streetwear’s impact – both on retail culture and the numbers involved – has caught the attention of some of the most iconic, established brands in the retail and luxury goods sectors and fashion industry generally. Streetwear players come from various parts of the fashion industry. There are pure streetwear brands, while sportswear names are developing their traditional portfolio of sports equipment into a growing streetwear portfolio with the concept of cool, hip sneakers and hoodies.³

5.1 Market Segment

The Street Style Fashion market is divided into four segments:

1. Product type:

Footwear is the key driver of purchases. More than half (62%) of consumer survey respondents selected footwear as the product they were most likely to buy, followed by roughly a third (30%) who selected tops, including both T-shirts and hoodies. Only 6% of consumer respondents selected accessories. The general appeal of sneakers and shoes helps to explain footwear’s strong showing. This sector is powered primarily by big players (Nike, adidas, Puma) and plenty of smaller labels, bolstered by constant variety (endless collaborations), extreme versatility (shoes can be worn with all manner of clothing) and relatively affordable price points in comparison to luxury clothing.

In contrast to consumers’ reported desires, industry respondents overall reported hoodies, T-shirts and footwear to be their best-selling products at an equal rate. However, when looking specifically at luxury streetwear brands, a higher rate (72%) reported sneakers as their best-selling products, compared with 58% for hoodies and T-shirts. Companies who tactfully introduce sneakers to their product offering can meet the consumer’s demand and enter this market.

2. Cost per product:

Nine percent of North American and European respondents reported spending $500-$1,000 per month on streetwear, while 18% of respondents in Asia reported spending this amount. Meanwhile, 33% of North American and European consumers reported spending less than $100 a month, while only 21% of Asian respondents reported spending less than $100 a month. In terms of average spend per streetwear product, more than half (61%) of respondents from North America and Europe reported an average spend of $100-$300, while 11% reported an average spend of $300-$500. Average spend per product spend jumps significantly when looking at data from Asian respondents. Among Korean and Chinese respondents, 20% reported an average spend of $300-$500. By far, Japanese respondents reported the highest average spend, with 28% reporting an average spend of $300-$500 per product and another 32% reporting an average spend of $500 or more per product.⁵

3. Type of Fashion Companies:

These segments include: high street fashion brands, mid-range fashion brands, luxury brands, sportswear brands, footwear brands, e-commerce retailers, freelance creative brands.

4. Regional Interests:

When measuring why consumers like streetwear, North American and European consumer respondents placed higher importance on streetwear’s community aspect in comparison to newer markets, such as Asia. Among North American and European consumer respondents, close to half (40%) indicated community was a key factor, compared to only 12% of respondents in Asia. Meanwhile, almost half (41%) of Chinese and Japanese respondents indicated political statement as a key factor determining why they like streetwear, while only 11% of North American and European respondents reported political statements.⁶

5.2 Market Trends

ECOMMERCE FASHION INDUSTRY

There are four notable opportunities driving growth in the ecommerce fashion industry:

Expanding global markets outside the West
Increasing online access and smartphone penetration
Emerging worldwide middle-classes with disposable income
Innovating technologies to create experiential ecommerce

PERSONALIZATION OF PRODUCTS

According to data presented by Nosto at a recent Growing Your Online Funnel Webinar, personalization is a leading factor in ecommerce at large:

43% of purchases are influenced by personalized recommendations or promotions
75% of consumers prefer brands to personalize messaging, offers, and experiences
94% of companies see personalization as critical to current and future success⁷

5.3 Competition

https://afends.com/

https://thrills.co/

https://pleasuresnow.com/

5.4 Competitive Advantage

Sample Clothing Line’s competitive advantage lies in its ability to understand the audience.

5.5 Risk Analysis

The most notable risk factors for the company include:

Inventory Management: If too many pieces of clothing are produced the company may be at a loss. If not enough clothing is produced the company may be seen as a standard streetwear company “creating hype”.

Trend Analysis: In a perfect world the company’s products will represent trends on the rise, and trends in style. However, if the company is selling products that are out of style it may lose appeal and credibility.

Marketing: This is a sensitive area that must be executed carefully. The company’s brand identity and messaging must be in parallel with the target audiences expectations. If at any time the brand is misrepresented, customers may be lost.

Covid-19: Considering the company’s digital strategy, Covid-19 only poses a minimal risk. Sample Clothing Line will continue its digital strategy until Year 3, where two physical brand stores will be opened. At that time the global population will be largely vaccinated, and if Covid-19 posed an additional risks the digital strategy could be continued.

Industry Landscape: The sheer competitive landscape of the clothing industry poses a huge risk to industry players. Sample Clothing Line plans to minimize this risk by offering products that form a cult-like community of customers. The company’s products will be of the highest quality fabrics, sourced sustainably, and designed by local artists and our creative team to satisfy our customers desire to express individuality and unite for social justice.

6.0 SALES & MARKETING PLAN

Our customers’ problem is they feel like none of the standard stores or shopping malls have clothing that suits them. It’s all fast fashion with no soul, or purpose behind it. All the brand logos and clothing items look the same. Our target customer wants a brand they can be a part of, and belong to.

6.1 Target Customer

Our target customer has the following characteristics:

18 – 28 years of age
All genders
Low-medium income quintile ($35,000 – $45,000)
Socially conscious, likes to support good causes
Passionate about music: rap, punk, r&b, hip hop, metal
Considers fashion as a way to express their personality
Price conscious with new brands but will buy in once brand trust has been gained
Cares about outward appearance but not in a materialistic sense
Either skateboards, snowboards or surfs
Health conscious and loves brands that provide knowledge on health and wellness
Cares about shipping prices

6.2 Key Channels

Social Media Marketing: Our young audience lives on social media. By engaging daily on Instagram, Tik Tok and Twitter we plan to build our Sample Clothing Line community. Our competitors have proven that social media is the most effective medium to reach 18 – 28 year olds.

Instagram Ads: Pay per click advertising (PPC), and specifically Instagram ads are an excellent way to grow our customer-base due to the availability of targeted marketing geographically and demographically.

Brand Partnerships: By partnering with other companies to create specialty items we receive visibility that wouldn’t otherwise be there. Brand partnerships are seen as a crucial channel for growth in the Street Style fashion industry.

Muse Marketing: This is our proprietary approach to “influencer marketing”. We want to get away from the term influencer as much as possible because partnering with influencers will lose a great deal of respect from our audience. However, people who have real, influential power will be sources of collaboration for our brand and we will call on them to publicly support us. Through muse marketing we will develop brand advocates that lead people to live a more positive, happy and healthy life, by standing up Sample Clothing Line’s values.