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DeSignCreateS e l l

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DeSignCreateS e l l

a guiDe to Starting anDrunning a SuCCeSSful

fashion business

by Alison Lewy

a Brightword book | www.brightwordpublishing.com

HarriMan HouSe ltD 3a Penns road Petersfield Hampshire gu32 2eW great Britain

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Copyright © 2012 Harriman House ltd. images © iStockphoto.com. Quotes and excerpts remain © respective sources.first published in great Britain in 2012

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the right of alison lewy to be identified as the author has been asserted in accordance with the Copyright, Design andPatents act 1988.

iSBn: 9781908003348

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ContentsAbout the Author ix

Introduction 1Making the dream a reality 1

Contributors 2

Chapter 1. An Overview of the Fashion Business 5The Different Market Segments 7

eco fashion 12

Case Study: tammam 13

Product Categories 16

roles in the fashion industry 17

Chapter 2. Getting Started 21The Business Plan 23

Writing a Business Plan 24

Case Study: upper Street 29

Business Structures 32

Vat 36

Where to Work from 38

Chapter 3. Research 43The importance of research 45

identifying Your target Customer 46

Case Study: land girl 51

Comparative Shopping 55

researching trends 56

Chapter 4. Range Planning 61Planning Your Product range 63

Case Study: Sarah angold Studio 66

Pricing Strategy 69

Chapter 5. Building Your Brand 73The importance of Branding 75

Case Study: Mark Thomas taylor 76

Developing Your unique Selling Point (uSP) 78

Preparing a graphic Design Brief 80

Be Consistent 82

Chapter 6. Getting It Made 85The Production Process 87

Sourcing and Selecting Manufacturers 90

uK vs offshore Production 92

Case Study: redhound for Dogs 95

Sample Management 99

Design or garment Specification 107

Production and Critical Path Management 113

Managing the Production Schedule 115

Creating a Production Docket 119

Chapter 7. Routes to Market 127Wholesale vs retail 129

Case Study: lowie 136

agents and Distributors 145

trade Shows 147

Chapter 8. Plan, Prepare, Pitch 149The Buying Seasons 151

getting a Sales appointment 153

Case Study: Corrie nielsen 157

Preparing Your Pitch 160

negotiation 165

Chapter 9. Telling the World 169an overview of Marketing and Pr 171

Marketing Materials 177

exhibitions and Catwalks 181

Case Study: Hatastic 182

Chapter 10. Finance 187Budgeting for Your Business 189

Profit, loss, and Cash flow forecasts 191

Sources of finance 195

Chapter 11. Protecting Your Brand and Products 199intellectual Property (iP) overview 201

Protecting Your trademark 202

Business name 206

Conclusion 207

useful links 209

glossary of fashion industry terms 211

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about the authoralison lewy ran her own fashion label for 15 years and is founder of fashion angel, afashion business accelerator that offers support to both emerging and established fashionindustry entrepreneurs.

as well as successfully designing and building her own label, alison set up productionagency Skin Solutions and worked with high-end designers including MatthewWilliamson and Preen on product development and manufacturing.

Her extensive industry background resulted in working as a consultant for newhamCollege, managing the Centre of Vocational excellence (CoVe) for textiles,manufacturing and design projects. the results of the research undertaken by alisonwith fashion and textile SMes formed the basis of new vocational curriculum and thedevelopment of innovative business support and mentoring programmes for the fashionsector.

alison went on to run the fashion and textile Museum for six years where the constantdemand from designers lacking the business and entrepreneurial skills they needed toset up their business led her to setting up fashion angel and the fashion angel BusinessClub.

alison was keen that others should have access to the same invaluable support that shehad been lucky enough to receive, having had a business mentor herself for a large partof her professional life.

introduction

Making the dream a reality

the fashion business is an exciting and diverseindustry to be involved with, and the number ofpeople starting up fashion-related businesses is

increasing every year.these new entrepreneurs are coming from many differentbackgrounds, including design graduates looking to start their ownlabel, designers working for other companies that have decided it’stime to be their own boss, and those wanting to utilise their transferable skillsto set up a business that can fit around their family commitments. there are also theinnovators who have invented or identified a new product, such as folding flip-flop brandSalvatos, designed and patented by two sisters looking for a solution to sore feet afternights out dancing.

this book will give you an overview of the fashion industry and what makes it tick. itwill guide you through the issues you need to think about before you start your new

business and take you through the key steps involved in setting up thatbusiness. You will learn how to conduct the research needed for your

business plan and get practical guidance on building your brand,getting your product made, marketing and Pr, as well as how andwhere to sell your products.

You will be inspired by the case studies of entrepreneurs, just like you, who had a dreamand turned it into a reality.

i hope you enjoy the book and do keep me posted on how your new fashion businessdevelops.

Alison Lewy

alison@fashion-angel.co.uk@FashionAngel1

Contributorsi’d like to offer my thanks to the following people who gave me their time and allowedme to include their inspirational stories in the book:

Julia grinham, upper Street

Corrie nielsen, Corrie nielsen

Morag Wood & nina Baxter, land girl

Sarah angold, Sarah angold Studio

Chloe Mostyn, Hatastic

Bronwyn lowenthal, lowie

Mark thomas taylor, Mark thomas taylor

Debbie Humphreys, redhound for Dogs

lucy tammam, tammam

also thanks to emma Jones, louise Hinchen and Suzanne tull and the rest of theBrightword Publishing team and to my fellow fashion angels, Morag Wood and alisonlowe, for their continuing support. and finally thanks to Jako for his creative input,and for being there!

CHAPTER 1

An Overview of the Fashion Business

in the glossary

a number of fashionterms used in this

book are expanded onin a glossary at theback – just look forwords in this font

when used for thefirst time.

THE DIFFERENT MARKET SEGMENTS

Before you start your new business it’s a goodidea to have an understanding of the industry,and then you can decide where your idea or

designs fit within its structure, and what themarket potential is likely to be for them.the fashion industry is broadly split into three market segments . . .

1. Haute Couture and Bespokethe main misconception people have about the term haute couture is that it appliesto all handmade and/or made-to-order garments, whether manufactured byseamstresses at Dior or aspiring fashion design students. Many designers add the term‘couture’ to their collection as they feel it elevates their status. But it can be meaningless.

the term haute couture is protected under french law and defined by the Paris Chamberof Commerce (Chambre de commerce et d’industrie de Paris):

to earn the right to call itself a couture house and to use the term haute couture inits advertising and any other way, a fashion house must follow these rules:

1. Design made-to-order for private clients, with one or more fittings.

2. Have a workshop (atelier) in Paris that employs at least fifteen people full-time.

3. each season (i.e. twice a year) present a collection to the Paris press, comprisingat least thirty-five runs/exits, with outfits for both daytime wear and evening wear.

in reality, very few labels can adhere to the strict criteria, and the costs of producing acollection, as well as the presentations, are so astronomical that the number of brandsshowing couture collections is decreasing.

bespoke is another term that is used by many, much to the chagrin of true bespoke tailors.With respect to clothing, a bespoke suit should be something that is specifically designedand made to order for an individual. Many brands that claim to offer bespoke garmentsare actually offering made to measure – the difference being that, with made to measure,there is a basic block that is amended to fit an individual, whereas with a bespokegarment, the pattern is made from scratch.

the customer may still have the opportunity to choose their material andtrimmings and alter the original design to some extent. But a trulybespoke suit will take much longer to make, and this will be reflectedin the price. there is a movement in the bespoke community to try andget the term protected in much the same way as haute couture has been

in france.

2. Ready to Wear (RTW)ready to wear collections started to appear in the late 50s, when designers startedoffering clothing in standard sizes, rather than everything being made to measure. Mostdesigner fashion today is considered rtW (or pret-a-porter). Designers’ collectionsare presented to buyers during the buying season, and usually showcase their newcollections either in their showrooms, at a static exhibition or by staging a catwalk show.

Major cities host fashion weeks to raise the profile of the industry. the main high-profileones that attract significant international buyers and press are in new York, london,Milan and Paris. these run in sequence during the two main buying seasons in februaryand September. However, the number of fashion weeks is increasing, so now many othercities such as Barcelona, Copenhagen and Sydney host their own weeks. the timingsand seasons referred to throughout this book refer to the uK, europe and northamerica.

During fashion weeks designers will be taking orders from buyers, approximately sixmonths in advance; for example, in february they will be selling their autumn/Wintercollections for august delivery onwards and in September their Spring/Summercollections are being sold for January delivery the following year. the larger brands nowproduce pre-collections in between which gives them the opportunity to trial new looksand sell more products.

advancements in technology are beginning to disrupt the traditionalway of selling the collections to both buyers and the end consumers.

Burberry’s catwalk shows are a clear example of this. each showis streamed live at selected, invitation-only, global events.

these are attended by buyers who are given iPads, fromwhich they can order the pieces as they are seeing them onthe runway. Many catwalk shows are now streamed liveonline, giving fashion-savvy consumers the opportunity tosee the forthcoming trends in advance.

another new development is websites such as Modaoperandi (www.modaoperandi.com) which allow consumers

to place orders for products at the same time as they are being

shown on the catwalk, rather than having to wait until the products are inthe shops. this can be of great help to designers, who will then be able toaggregate orders from buyers with the orders from consumers, andtherefore place larger orders with their suppliers. in general, designersonly produce to order, as trends change quickly and it is not a good idea tohave money tied up in stock; at that level buyers also expect a level ofexclusivity.

Ready to wear – diffusion rangesonce a brand is sufficiently established in terms of reputation and turnover, they willoften choose to produce a diffusion range. this will usually have lower retail price

points, giving the designer a chance to increase sales and appeal to a wider market. toproduce the garments at a lower price the range may be made in cheaper materials andneed less work. it’s also an opportunity to try new design directions or appeal to adifferent age group. examples are Victoria by Victoria Beckham, See by Chloe, McQby McQueen, Marc by Marc Jacobs and Miu Miu by Prada.

3. Mass MarketCurrently, the fashion industry’s largest market segment is the mass market in terms ofvolume of sales. the mass market caters for a wide range of customers, producinggarments or accessories influenced by the designer labels. the latest trends arereinterpreted so they are sufficiently different as not to look like direct copies, andproduced in cheaper materials using simpler manufacturing techniques, so they can besold at a lower cost.

it used to be the case that key trends would lag a season behind the designer labels,however with digital technology and production techniques these can hit the high streetwithin days. retailers that manufacture for themselves such as Zara and H&M canproduce and deliver new product rapidly, and therefore have the ability to react quicklyto consumer demand. Most mass market production is made overseas where cheaperlabour and large volumes mean the items can be made at low cost.

there is an increasing amount of crossover between the market segments as we haveseen the increase of very successful designer collaborations with high street retailers,such as H&M working with Marni, giles Deacon and Karl lagerfeld. Debenhams hasa large stable of designers who it works with as part of its ‘Designers at Debenhams’collective, and top Shop stocks designers who are alumni of its neWgen sponsorshipscheme, including Mary Katrantzou and Christopher Kane.

for some designers, the income they generate from these collaborations is vital insupporting the financial sustainability of their main businesses. generally, the largerluxury brands’ profits come from the mass-produced smaller priced items, such ascosmetics, accessories and sunglasses; either that they make themselves, or under licenceagreements with other manufacturers.

ECO FASHION

Eco fashion, also known as ethical or sustainable fashion, is apart of the growing design philosophy and trendof sustainability, the goal of which is to create a systemwhich can be supported indefinitely, in termsof environmentalism and social responsibility. Designersin this category may use recycled materials or organicfabrics. they may also decide to manufacture their productlocally to reduce their carbon footprint; however this is notalways practical.

there is a growing interest from consumers in the area of eco fashion, and it can be anadded marketing tool to be able to make eco claims about your product. the Britishfashion Council runs estethica, an area dedicated to eco-clothing and accessory labels,alongside its main london fashion Week exhibition. fashion collections that subscribeto this ethos can sit within all the market segments.

More advice and resources on ethical fashion is available at the ethical fashion forum(www.ethicalfashionforum.org) and the Centre for Sustainable fashion (www.sustainable-fashion.com).

CASE STUDYName: Lucy TammamBusiness name: TammamBusiness type: Bridal Eco Couturiere

lucy tammam studied fashion design at Central Saint Martins and trained as a bespoketailor in rome learning hand stitching and pattern cutting. She spent a few yearsfreelancing for high-end couture labels and as a consultant for ethical fashion labels,before setting up the tammam label in 2007, which she positioned as a high-endfashion-focused ethical label.

“i started a specifically ethical business because it was intrinsic to me and at the timethere weren’t any others to work for!”

the brand showed during london, new York and Paris fashion weeks and was stockedboth in the uK and in international stores including new York and Japan.

“My private bespoke client list had also built up over the years and my customersstarted asking me to make their wedding dresses because theywanted to know exactly where their dress came from andthat it would be made in a way that doesn’t harm theplanet or its people. i began to realise there was agap in the market for stylish, well-made, bespokeand couture high-end bridal gowns using ethical

materials and manufacturing processes, so in 2009 i decided torelaunch tammam as a bridal and couture label. We only offer

animal-friendly fabrics and where we do use animal products,such as silk, they are guaranteed to be peace silks, where themoth emerges before the cocoon is processed.”

lucy’s label has built a reputation for its unique pattern cuttingand flattering shapes. their classic styling is enhanced by vintage

detailing and hand embellishment. the unusual business modelinvolves taking the client measurements, making the patterns and toiles in the londonstudio which are then fitted to the client, and these are then sent to india for the garmentto be made up, after which they are sent back for a final fit, where any alterations neededare made by seamstresses in the uK.

“My first bridal customer was my sister-in-law! i then started working with an agencywhere i went to clients’ houses to do fittings, but i found the commission paid wasnot reflecting the work i had put in so i started to market our offer on my own andthe business grew quickly.”

to promote the brand, tammam is listed on online ethical wedding directories such asgreen union (www.greenunion.co.uk) and ethical Weddings (www.ethicalweddings.com), as well as exhibiting at wedding fairs and shows.

Working within such a niche market means they receive regular national andinternational print and online media coverage, however as lucy points out the best

marketing is through word of mouth.

“over 50% of my customers find me through recommendations frompast brides.”

at present they take orders through their studio and are also stocked by a few exclusiveboutiques that are paid a commission on orders taken. Since 2009 the business has morethan have doubled its sales of dresses each season, and they are now are about to take abig step and open their own atelier and showroom in london.

“at the moment we operate out of a small studio, but i realised the only way to takethe business forward was to have our own shop and i am expecting to triple ourturnover in the first year of the shop opening.”

lucy leads a small team, employing a part-time assistant and engaging additionalsupport from interns or students. in india they only work with fairtrade factoriesthrough which they employ a hand embroidery worker and have trained up a team offreelance tailors. all fabrics used are sourced from ethical fabric suppliers. once the shopopens they plan to employ in-house houte couture seamstresses and a marketing/Prmanager that can focus on promoting the brand and increasing their online presence.

once the shop is up and running they plan to introduceready-to-wear collections that they can wholesale toexpand the brand and set up their own training andproduction unit in india.

TIP: “if you decide to start up on your own it’s importantto understand that it takes a long time to make progress.it’s hard work and not glamorous, easy or profitable tostart with, but as long as you love what you do and have a real passion it will be worthit!”

www.tammam.co.uk

@houseoftammam

PRODUCT CATEGORIES

Within each market segment, there are different product categories. these are the mostpopular areas that new businesses tend to fit in to. often larger brands make productsfor multiple product areas, but it is easier to focus on one area to start with, and then asyou get more established and build your brand, you can expand your ranges.

AREA MARKET SEGMENTWomen’s Day wear Haute couture, ready-to-wear, mass market

Women’s Evening wear Haute couture, ready-to-wear, mass market

Women’s Lingerie Haute Couture, ready-to-wear, mass market

Women’s Loungewear Ready-to-wear, mass market

Men’s Day wear Tailoring, ready-to-wear, mass market

Men’s Evening wear Tailoring, ready-to-wear, mass market

Childrens wear Ready-to-wear, mass market

Girls’ Wear / Boys wear Ready-to-wear, mass market

Teen Wear Ready-to-wear, mass market

Sportswear Ready-to-wear, mass market

Knitwear Ready-to-wear, mass market

Outerwear Ready-to-wear, mass market

Bridal wear Haute couture, ready-to-wear, mass market

Accessories – includes handbags &small leathers, shoes, scarves, hats,gloves, belts, sunglasses, umbrellas,hosiery, jewellery

Haute couture, ready-to-wear, mass market

Eco Fashion & Accessories Haute couture, ready-to-wear, mass market

ROLES IN THE FASHION INDUSTRY

the fashion industry comprises of many different roles and functions, all ofwhich you will probably engage with at some level in your journey to get yourproduct to market. they sit under three broad areas: design, production andsales. there is often crossover between roles, and some predominantlyapply to larger organisations but it’s useful to know where they all fitwithin the supply chain cycle.

as a small enterprise you will find that you are wearing a multitude of hats and have todeal with many of the different functions listed below. You will learn more about eachrole as you read this book, and as you start to develop your business strategy you will geta clearer view of what you can do yourself, and in what areas you are going to needadditional assistance. Some roles can be outsourced to external freelance suppliers, andthis is usually the most cost-effective way for small businesses to access extra support.

the tables over the next few pages show how all of the different roles fit within the supply

chain cycle.

Design

ROLE TITLE FUNCTION/DESCRIPTION NOTES

Trend/FashionForecaster

Researches current and future trends, and works with the designer by feeding ininformation on social trends and changes. Large companies pay annual subscriptions tofashion forecast companies.

Designer

Creates the range of products that reflect the brand’s USP, taking into considerationresearch of trends, the market place and target market. Selects the fabric/raw materials.Draws up technical specs, works with garment technical team, and with sample andproduction facilities. Large designer brands such as Mulberry or Louis Vuitton are likelyto be designed by a team of individual designers under the direction of a Creative Director.

ROLE TITLE FUNCTION/DESCRIPTION NOTES

Pattern Cutter Drafts the shapes and sizes of a garment’s pieces. This may be done manually withpaper and measuring tools, or by using a CAD computer software program. Anothermethod is to drape fabric directly onto a dress form. The resulting pattern piecescan be constructed to produce the intended design of the garment/product, andrequired size. Formal training is usually required for working as a pattern cutteras it is very technical.

Garment Technologist

Provides technical support; ensures samples and production adhere to thespecifications supplied to the factory. Works with suppliers to ensure standards aremaintained. Assists with any fit problems and technical issues. Must have goodknowledge of garment construction and production techniques.

Fabric Technologist

Works with designers to ensure fabrics are suitable for their purpose. Responsiblefor carrying out and reporting back on fabric and colour testing.

Textile Designer

Designs fabric weaves and prints for clothes, accessories and furnishings. Mosttextile designers are formally trained or come via a graphic design route.

Buyer Employed by retail stores to plan what to buy, and find suppliers for new rangeseach season. They will be aware of current trends and analyse the store’s sales history.They negotiate prices and terms with the brands they are buying from and set thedelivery requirements. If wholesaling your designs these are the people youneed to reach and convince to buy your product!

Fashion Merchandiser

Employed by larger retail chains. The role is strongly analytical and involvesworking with buyers in analysing past sales and predicting future sales, to ensureprofit margins are met. They know which product areas are the most profitableand therefore can advise the buyer accordingly. They make sure stock is movedamongst outlets where needed, to maximise sell through.

Production

ROLE TITLE FUNCTION/DESCRIPTION NOTES

Production Manager

Usually responsible for the entire sampling and production process. They willsource manufacturers and suppliers, as well as negotiate prices that meet costingtargets.

Quality Control

Oversees quality control procedures and will check and measure productionagainst sealing samples or specifications, before it leaves a factory.

Grader Develops the original pattern into a full size range. The graded patterns areeither produced manually, or more commonly using CAD systems. Specialistsuppliers like Gradeline (www.gradeline.co.uk) offer this service.

Machinist Sews ready to wear or mass produced clothing by hand or with a sewing machine.They may be employed in-house, work independently from home, or within afactory.

Product Developer

Large companies employ dedicated product developers. A product developer liaisesbetween the design, buying, and merchandising departments and themanufacturers to ensure they get the right product, made at the right price andat the right quality. They oversee the progress of the critical path, to ensurethe product is completed and delivered on time.

SalesWhether you are selling your products wholesale or retailing to the end consumer willdetermine how you do this, but these are the roles that will help you reach your targetmarket.

TIP: You’ll see the term ‘lookbook’ throughout the book – this is essentially yourbrochure and one of your main tools to promote your brand to buyers and press (morein Chapter 9).

Hopefully this overview has given you a good insight and understanding of the fashionindustry and the diversity of the products, customers and skills within it and you canstart to identify where your idea might sit.

ROLE TITLE FUNCTION/DESCRIPTION NOTES

Sales Management A sales manager or external sales agency is used to find new, or build on, existingclients, setting seasonal sales targets. Will visit customers and attend trade showsas necessary and manage the customer relationship. If selling to the endconsumer, may work within a store environment or attend consumer fairs etc.

PR/Marketing Manages and promotes brands to journalists, stylists, photographers. Mayorganize events and photo shoots.

Stylist Creates visual looks for catwalk shows, photo shoots, lookbooks, websites andis also key in getting celebrities to wear your products.

Photographer Good images are vital for all marketing purposes including website, pressrelease or lookbook – relationships develop between photographers and stylistsso they often work as a team.

Design Create Sella guide to starting and running a

successful fashion businessalison lewy

www.brightwordpublishing.com/fashion

Paperback: 9781908003348eBook: 9781908003508

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