Starting Your Own Fashion Business

Nuova Accademia di Belle Arti Milano BA Fashion Design 2016-17 Project Title Strating Your Own Fashion Business

Project Advisor Nicoletta Morozzi

MAKE IT HAPPEN STARTING YOUR OWN FASHION BUSINESS

SIMAY

Contents Business Plan

About me Executive Summary

Strategy

Introduction

Finance Plan Cash Book Expenses & Income

Fashion Entrepreneurship Pros and Cons of Starting Your Own Business

Profit and Loss Statement

6 Stage

Costing

Market Research & Strategy

Product Sheets

E-commerce Market in Turkey

Social Media Marketing

Target Market

Mobile Marketing Blog

Branding Brand Name& Logo

Online Marketing

Brand Strategy

Shipping Strategy

Marketing Kit & Timetable

Lara Simay Collection SS17-18

Business Card

Designer Collaborations

SWOT Analysis

Selling Other Designer’s Collections

Sales and Negotiation Strategy

Nicola Bacchilega Collection SS17-18

Design and Production

Online Store – larasimay.com

Brand Style Inspiration

December Agency London

Sampling & Manufacturers

Conclusion

Case Study- Superdry Design Style Sheets

Bibliography Appendix – Business Plan of SIMAY

DESIGNER

LARA FOUNDER

I was born in 1995 in Istanbul. I studied BA Fashion Design at Nuova Accademia di Belle Arti, Milano.

During my time as a student, I learned how design and production works and I have realized how important it is to be open and versatile, in order to learn and explore as much as possible. Now I am interested in the business side of the field as a fashion designer and I’ve been inspired to start my own clothing label.

Simay, is a clothing brand that represents not only fashion but a source of art and personality.

SIMAY

Summary

The purpose of this thesis is to understand the first steps when creating a fashion label. It concentrates on tools and theoretical frameworks that are used in branding and marketing when creating a successful brand.

With the combination of theory and practise, the first part of the thesis will go through the main branding components, giving examples of how and why to brand and make your label stand out from the crowd.

The core of the thesis will concentrate on fashion marketing. This includes: choosing the right target group for your brand, identifying the competitors, understanding the external impacts on fashion labels by analysing the modern world.

The last part will show the first collection of the brand, the collection of Nicola Bacchilega and the website.

Topics used in this thesis are important to any new or old fashion label, as it guides through the main aspects which turn a label into a brand.

Introduction So I’ve been inspired to start my own clothing label. Creating a clothing brand has always been something that I have wanted to accomplish.

Statistically, fashion designers are five times more likely to start their own business compared to those in other professions. This is because they have the ability to design, make and sell their products and offer a product or service within their specialist field.

Therefore, as a fashion designer entrepreneur, ‘starting your own business’ is a realistic career path.

What is an entrepreneur?

An entrepreneur is someone who decides to take control of his or her future and become self-employed by creating a unique business.

Fashion entrepreneurs recognize an opportunity. They size its value as well as the resources necessary to make that opportunity a success. They are visionaries.

A great idea is not an end in itself, it takes the co-ordination of resources and the implementation of plans to facilitate change and start new ventures. Fashion entrepreneurs need passion, enthusiasm, determination and persistence, together with project management skills to make it happen. Entrepreneurship is a discipline like no other. It is an opportunity to act on dreams, become one’s own boss, secure financial freedom, and share a passion with others.

In this context, a successful fashion brand does not mean the amount of sales or amount of people who recognise the brand, instead the success comes from being found, worn and talked about by only those, who matter the most to the business - the real, loyal customers.

To build a successful brand, it is important to understand that branding and marketing are two concepts that are linked and need each other's support. Brand for a fashion label brings out its certain types of characters and marketing is its voice.

Businesses fail, when they don’t tie these two together, as you can create an amazing brand, but what is the point, if you cannot reach the audience?

While reading this final project, it will guide you through the reasons and components on how brands are created, and how I started to create my brand, using the most common theories and frameworks. As soon as the brand is created, we move to the second part of the thesis, which helps us understand the meaning of marketing research and strategies, which are applied to the brand and marketing plan.

Finally, the used tools and theoretical frameworks will be put into practise to the label this project was conducted for, for further understanding on how branding and marketing are tied and used in real life. This will clarify which components are important for a fashion label and help anyone from a start-up or established brand to write a marketing plan using all the information gathered from topics mentioned above.

Pros and Cons of Starting Your Own Business I know that I should appreciate that the small business environment is highly competitive and ruthless. Therefore, it is important to consider the pros and cons.

Advantages

Disadvantages

Own Boss

Lose Investment

Passion

Uncertain Income

Achievement

Tight Budget

Recognition

Long Hours

Responsibility

Stress

Freedom

Problem Solving

Financial Leverage

Perform Every Job

Business Growth Income Security Gain Experience Employment Block

BUSINESS PLAN Producing a business plan is the BUDGETS

natural starting point because it

1.Setup Costs

confirms the proposed business is feasÄąble and should make the best

2. Production Costs

use of your resources

3. Overhead Costs

1

STA GE

2

STA GE

COMPANY REGISTRATION All companies need to register and obtain licences to comply with local rules and regulations.

This might include registration for personal tax, company tax and VAT.

3

STA GE

SETTING UP YOUR PREMISES Business premises are where you condact your work and depending

DESIGNAND

on your product and service and

PRODUCTION CYCYLE

your type of business, this will

You will be looking for new

influence the type of facilities

suppliers, manufacturers,

required and the location.

new retails.

4

STA GE

5

STA GE

BUYING EQUIPMENT Fashion entrepreneurs are in the fortunate position that they can start small and build up a business slowly as their sales increase

6

STA GE

Market Research Behind every successful fashion story is an innovative product and behind every successful product is market research. The key is to have customers in mind when developing new products.

Market research is an organized effort to find out information about an industry, the market and it’s customers. Through market research, I can identify more ways of communicating with the target market. Understanding customer’s buying and spending habits can aid in the development of marketing campaigns designed to meet the specific interest and needs of the intended market.

Popular methods used within marketing research in fashion industry is like-for-like (LFL) product comparison, that is detailed investigation into specific product. For example, if your collection contains basic product such as t-shirt, after identifying your competitors, you compare your product, in this case the t-shirt, with theirs. Research will include comparison of the price, fabrics, make quality, design details, fit, wash care, performance, colour options and amount of sizes and products in total. (Posner 2015, 81).

Market research investigates what products the target market/ target customer wants and how to make the crucial link between the product and the market.

Market Research The luxury industry makes clothing for occasions that are special, not for a woman’s everyday life. Designer collections and Haute Couture lines are great, but trendy women with a little less money to burn needed an alternative. Contemporary apparel is clothing that is accessible, in price and in terms of the way people wear it.

The contemporary category often contains more modern-style clothes compared to the higher end luxury market. The voice of the contemporary industry is a bit more modern and a tad younger (not always, but often).

Fashion editors and industry insiders agree that contemporary brands have stolen the limelight and are helping to bridge the gap between luxury brands and main street.

Marketing Strategy Many labels offer a strong brand aesthetic and, in some cases, are almost contenders to leading luxury brands. Contemporary brands need to go beyond simply offering trendy fashion items. This is what Simay is going to do. Quality fabrics and trimming on all products are important for the brand.

In today’s world many consumers are shopping across categories. The contemporary shopper and the luxury shopper may actually be the same person. Affluent consumers are shopping across categories, and less affluent consumers are shopping up levels as far as they can comfortably reach. As the turnaround of catwalk trends on the high street becomes even quicker, with new items dropping in-store every week, people are turning to these labels for individuality.

E-commerce Market in Turkey Turkey's B2C E-Commerce market is the second largest in Eastern Europe, and is also among the fastest growing. Internet penetration in the country was barely at 50% of the population last year, and just a third of Internet users made purchases online, so increased connectivity and online shopping engagement will boost B2C E-Commerce sales further.

The recent history of rapid growth in B2C E-Commerce in Turkey, along with its remaining potential for continued expansion make this market attractive for foreign as well as domestic investors. The report reveals that Hepsiburada.com, Turkey's largest online retailer, got an infusion of 100 million USD in investment last year.

The most popular product category for B2C E-Commerce in Turkey is clothing. Both male and female shoppers make fashion purchases online, according to the report. The websites of online clothing retailers, such as Trendyol.com and Markafoni.com, are among the most visited online shopping destinations.

Another distinguishing characteristic of the B2C E-Commerce market in Turkey is the use of mobile shopping and social media. The report divulges that over half of online shoppers say that their online buying behavior is influenced by social media. Major online shopping platforms, such as online marketplaces GittiGidiyor and n11.com report rapid growth rates in mobile traffic and sales.

TARGET

To be able to reach my customers in a targeted way, I need to know who my customer is.

I want to offer a shopping environment that is clean and minimal and not a lot of product. I want to create something everyday.

From what we have learned, a brand should appeal to certain type of people,

Simay target are urban women, aged from

encouraging them to engage.

20 to 40 years old, with high income.

For a brand such as Simay, finding its

These women have a gloomy and strong

niche would not be hard, because it has

personality, hidden by a certain innocence.

already chosen what type of clothing it

They appreciate freedom and a lifestyle

will produce, and who they will target, but

fulfilled with cultural and intellectual

from marketing point of view, the label is

events. They love art, art exhibitions.

missing a plan on how the brand is going

These women really appreciate what is new

to communicate with the target group,

and unusual but at the same time they want

and how many people there are, or how

to be discreet, opting always for sober

they fit into that particular segment.

colours. They care about the products design as well as the quality of finishings and materials.

Market Research Strategy MARKET RESEARCH BRIEF

DETERMINE THE TARGET MARKET

The brief initiates the market research process by outlining the scope

Who are my potential customers? Why will they buy my products?

of what you want to achieve. As the company grows the brief will

BECOME A CUSTOMER FOR A DAY

become my instruction document with responsibility, scope, budget and report back dates to integrate with the production schecule.

Are customers buying on features, the latest fashion, the price; or are they buying on quality and service?

IDENTIFY SOURCES OF INFORMATION TREND RESEARCH Customers-Existing and potential customers Awareness- Awareness of the latest silhouettes, textiles, colours, latest Fashion Industry-Retail buyers and sales stuff

trends in stores, youth style leaders, art, architecture, photography, film,

Sales Data-Identify the sales trends

music, historical and cultural fashion, technical developments…

MARKET RESEARCH INFORMATION

Trend Forecasting

People

Trend Resources- Forecastiong publications/WGSN, trade shows,

Product Place

magazines…

Faster Communication- Runways in London, Paris, Milan and New York

Identifying the competitors TREND RESEARCH Awareness-Trend Forecasting-Trend Resources-

Try to identify from five to seven new

Faster Communication

competitors, that have similar products and same target group (image 23), and name at least

KNOW THE COMPETITION

three big competitors, that are well-known in

Size of the Market- How many other companies

the current market. Find out for how long they

are offering the same or similar products?

have existed, and what were their sales. Where

Is the market trend growing, steady or declining?

PRICING STRATEGYHow much it costs to make the product?

How much the customer is willing to pay?

How much is the competition’s product?

Right Price-Value-Profit-Low Price SPEED TO MARKET

they sell, who represents them and how they market themselves. Com- pare the products, designs, prices and quality, and what are their strengths and weak- nesses. (Gehlar 2005, 12).

Searching for your competitors can be challenging. One suggestion is, not to rely only on search engines such as Google, because your competitors websites might not be up and running, or can be hard to find. Best way is by asking your potential customers where they shop and what brands they wear. Going to

Analysis-When will the customers buy my

forums and e.g. Facebook groups you can learn

product? Is there a particular time of the day,

about small and new labels that are up and

week, year or season?

running and share similar characteristics

When do I need to promote the product?

and/or designs like your brand.

Marketing and Branding

SS II M M A A Y Y --

•

As a designer I must make something that is both creative and sellable. To achieve this my collection needs to be commercially viable.

•

But branding is not only the name and logo, or the clothes designed for the label in particular style - it holds much more deeper meaning and content behind it.

•

“Great brands don’t let you down; they are part of your life and are more than just functional products” (Hall 2012, 49).

“Why to brand?

Fashion is fast-paced concept, when on day you’re in and another day out. With our globalised world and many new opportunities, young entrepreneurs and fashion graduates rush to establish new labels without market research and development of a brand identity.

Therefore, only one out of ten new fashion start-ups survive, leaving them on shaky grounds, and eventually, they get crushed by much stronger and bigger brands. Clothing labels need to deliver more than just the products, and this is where branding steps in. (Heyden 2014; Meadows 2009).

Branding will help the label to differentiate itself from other labels alike and make it easier for a customer to recognise what is the brand message, values and to whom it should appeal. Branded products and services have added value, which have been deliberately designed for customers for recognition, association, opportunities and meaningfulness (Baines, Fill & Page. 2013, 219).

When shopping and wearing branded products, they not only fit differently, but they make the entire experience unique from the very moment you think about the brand and deciding what type of garment you might considering of buying and why.

How to Brand?

Start-ups and small fashion labels have an advantage to offer more experience through the label than big corporate businesses, since they can have more contact with the clients and suppliers.

(Craven 2005, 98).

List of brand ingredients by Richard Hall (2012, 48): A unique name A personality A logo A designed identity A potential reputation A provenance Emotional meaning to the owner and customer Consistency Producer pride Availability Value greater than an unbranded product.

Brand Name The first item of action was determining a

A good name is memorable, easy to pronounce,

brand name and logo. Deciding what name

simple yet clever and unique, and should be

will represent the clothing line is a crucial

available for registration and protection. It is most

key to success. A brand name should be

visible attribute to any fashion label (Meadows

something that embodies the individual

2009, 39). Particularly in fashion industry, it is

who is creating the product. It should be a

almost obvious to use your own name as the brand

recognizable and original name that can be

name, because you are the creator and you make

easily distinguished from competitors. The

the style, for example Michael Kors or Minna

goal was to have a name that was simple to

Parikka, but the problem is, that YOU LOSE your

say, but also have underlying complexity.

name to the brand and your name starts to belong

Your own name reinforces and associates

to the brand. Another problem might occur, when

the person, the product and the company

creating a trademark. Do you want your name

name. So I have decided to use my second

trade- marked? Is it even possible to trademark?

name.

There are clever ways to create a trademark from your name, for example DKNY that stands for

Simay.

Donna Karan New York, but even Donna has faced challenges regarding her name, since the name is used to refer to the label and people working for the label, and not actually her (Bobila 2015).

•

Brand Strategy•

Brand at its core should include clear name/word identity

•

But creating a persona is not the only brand strategy to

that’s unique and distinctive, clear visual/design identity,

consider. Another factor and competitive platform is to

strong, focused and clear messaging for creating

include sustainability into the brand strategy. Even

engagement and loyalty, and finally continuous

though sustainable production can be expensive, demand

reinforcement through messaging (Chasser & Wolfe

is growing for ethically sourced fashion and production

2010, 46).

methods (Posner 2015, 61). Label Simay will continue in

To support above aspects and to get started, brand should create a human version of the brand, that will help the label to make unified image of the brand. By creating a persona, brand will have a certain type of approach, tone and type of communication.

the same footsteps as Decent Hardware in sense of sustainability, but is going to apply few changes into the brand strategy, with making everything as locally as possible, and encourage on new types of delivery/pick-up options to the market.

Marketing Kit The marketing kit develops the promotional tools you need to promote and advertise your business. Promoting your product can take a lot of time, resources and finance, therefore I need to consider the best and most effective marketing and branding methods.

Business cards Garment labels/Packaging Brochures Look books Line sheets Website/Blogs

larasimay.com

LARA SIMAY OGUZHAN Fashion Designer larasimayoguzhan@gmail.com +447932447225

Business Card

Marketing Timetable Scope of Work

Aug

Market and trend research

A/W

Sep

Oct

Nov

Marketing kit, website Sales and Marketing PreProduction , Production Shipping, deliver to store

A/W Collection S/S Collection

Dec

Jan

Feb S/S

Ma

Apr

May

Jun

July

Aug

Sep

SWOT

SWOT

Posisitive

Negative

Now

Strengths

Weaknesses

Trend Awarenedd

Lacking business skills

Creative design concepts

Limited fashion business

Dynamic illustration skills

contacts

Expert pattern making skills

Lack of finance , cash flow

Expert sewing skills

Lack of equipment

Local competitor have poor

Unknown label

products and lack the skills Future

Opportunities

Threats

Platform to supply another

Competition undercutting prices

market Outsource manufacturing to reduce capital expenditure costs Develop new products and services

Sales and Negotiation Strategy Sales Brief Initiates the sales process and determines the sales target Customer List Direct sales to the end customers Sales to businesses, independent retailers, large retail stores.

Preparing to Sell Product Range Product Knowledge Appearance Contacting Your Potential Customers Selling Your Products Negotiating and Closing the Deal After Sales

This process follows my market research and marketing and branding. Statistically fashion entrepreneurs start and grow their businesses by selling to independent stores and frequently directly to the public through designer markets or through their friends and family.

Advertising & Sales Advertising & promotional strategy is going to be mainly collaborating with bloggers and influencers on social media. I also plan to promote my brand with an ambitious, targeted marketing campaign, which will include a grand opening event and a fashion show.

Social influencers play a big role in the fashion segment. Fashion blogs or social media platforms like Instagram reach a huge audience. Using these, influencers can directly advertise certain brands and products or indirectly through paid subtle product placement.

This social media presence will allow us to interact with brand advocates directly and develop a clear ‘voice’ for the clothing line.

Visual and image-based sites like Instagram and Pinterest are excellent options for free marketing; amassing a collection of professional, well-taken images involving your clothes can communicate the appeal of the brand instantly and generate interest amongst potential customers.

Bloggers, in particular, carry a lot of influence in the fashion world, so I will try to identify the high-profile bloggers in the sector and work with them to promote and feature my products. I have few blogger friends in Istanbul and London. I will start working with them, while contacting other bloggers. This needs to be more involved than simply sending them free samples, as they will receive hundreds of these; so I will try to cultivate a relationship with them and work out how you I can stand out from the crowd.

Design and Production

Research and Sourcing Fabric Sourcing Design Development Pattern Making Producing the collection Minimums, Sample costs, Production costs Specification Sheets Sell Collection

Brand Style Inspiration

Zimmermann

For Love and Lemons

When the design process is over and the collection is ready with all the technical drawings and fabric samples, sampling process will start. My pattern maker will be working on patterns and my tailor in Istanbul will be making the first samples of every garment. This way I can work with them closely and make sure every garment is right and fit properly.

The final step is the manufacturing process and produce your garments. The manufacturer we will work with is based in Istanbul. Istanbul is my hometown so I can negotiate and be cost effective. This way the production will cost less.

Sampling and Manufacturers

Case Study Superdry This case study is based on Superdry brand.

Supergroup owes its existence to two men – Julian Dunkerton and James Holder who merged their skills and experience to launch a unique and dynamic brand.

SuperGroup has been one of the best performing UK fashion firms in recent years.

The strength of its relationship with suppliers is a fundamental factor contributing to its competitive advantage. In particular, it cites one supplier in Turkey which account for a third of its total purchases. This policy of souring from Turkey helped build the brands quality reputation.

Business Plan After the idea and inspiration comes business plan. This section covers key parts of planning, finance and manufacturing.

I am a clothing designer who is primarily focused on the creative side of fashion, so the business plan seems boring and mundane but I know that a good business plan puts the exciting ideas into perspective and draws my attention to the critical things that I will need to do. So it is very useful.

I need to calculate my finances for the first year of operation. I will also calculate finances for three to five years to get a more realistic picture of the costs required to get my business off the ground.

Business Plan Summary The goal of this project is to create an online clothing brand that portrays distinctive designs to go along with an effective business plan and a financial plan.

Simay is going to be an e-commerce women’s wear clothing store that represents not only fashion but a source of Art and Personality. The brand intends to create a unique concept, making the customers see fashion with a different perspective and as a way of being. Key elements of the company will be great unique and sophisticated style, customer service, fast delivery time and a good price – quality ratio. And creating quality products while being as cost effective as possible is vital to be successful in the fashion industry.

Business structure: Simay is an independent contemporary fashion brand with a unique look and feel, offering ranges of lines with a modern graphic elegance and a comfortable sophisticated style. The brand is selling through their own website larasimay.com Products/services: While apparel, such as ready to wear and contemporary special occasion lines will be the main staple, there will also be some accessories such as jewellery, belts.

Garments and accessories will have interesting construction details and a good-quality finish. The collections are going to be in line with seasonal trends but also incorporate signature items that consumers immediately recognize and associate with the designer brand.

Simay will sell other independent designer collections as well.

It is going to be all about quality. Even the most basic item will feel luxurious and finely crafted. Customers want to feel like they own something special and unique. They want exclusive quality labels that are not mass produced, yet are still affordable. It is important to keep in mind that this category is less expensive then higher tiers such as Haute Couture, but the prices are clearly higher than budget collections.

There will be a personal stylist option for customers where the consumer can get inspired through different means such as personalization and recommendations (based on personal taste or previous purchases).

BUSINESS

Business Plan Structure

Sales and Marketing Plan Customer profiles/targeted customer

Executive Summary Outlines the field of business and the products

Target market size Identifies the niche market

The type of business and its strengths

Identifies the competitors

Identifies market and competition

How the products will be sold and distributed

The business potential and sales forecast

Promotions, advertising

Who and how of manufacturing products

Name, logo

How much money needs to be raised and when.

Location of business

Product and Service Plan Describes what the products or services offer Outlines the competition’s products Explains how the products will be developed Organization Plan Presents an organization structure of the business and its associates Key team members and management

Production and Distribution Plan List of equipment, manufacturing and retail facilities required List of suppliers of materials Financial Plan Estimates the set up costs Estimates the manufacturing costs Forecasts sales Determines the payback period Risk Management Plan

Date

Purchase Order

Supplier

Descriptio n

Amount Payable

Date Paid

1 Jan 2018

P1008

The Hire Shop

Equipmen t

EUR 1.000.

1 Mar 2018

2 Jan 2018

P1009

The Fabric Shop

Material

EUR 5.000

2 Mar 2018

3 Jan 2018

P1010

Best Make

CMT(labo ur)

EUR 2.000

3 Mar 2018

Cash Book Income

Cash Book Expenses

Date

Invoice Number

Customer

Invoice Amount

Amount Received

Date Received

1 Feb 2018

02-1001

Mary

EUR 500.00

EUR 500.00

5 Feb 2018

1 Feb 2018

02-1002

Kate

EUR 250.00

EUR 250.00

7 Feb 2018

1 Feb 2018

02-1003

Harrods

EUR 5.000

EUR 5.000

15 Feb 2018

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Brought Forward

Seed 10,00 0

8,500

7,500

7,000

6,00 0

5,000

3,000

-2,000

500

5,500

10,50 0

14,50 0

16,50 0

17,50 0

Income

0

0

0

0

0

0

0

3,000

4,000

6,000

4,000

2,000

1,000

3,000

Funds Available

10,00 0

8,500

7,500

7,000

6,00 0

5,000

3,000

1,000

4,500

10,500

14,50 0

16,50 0

17,50 0

20,50 0

1,000 A/W

1,000 A/W

S/S

S/S

S/S

S/S

S/S

S/S

Expenses Setup your business

1,000 Setup

Source fabric

5,000 A/W

Sales and marketing

1,000 A/W

Production

S/S 1,00 0 A/W

2,000 A/W

5,000 A/W

Deliver to store

500 A/W

Total expenses

1,500

1,000

500

1,000

1,00 0

2,000

5,000

500

Closing statement

8,500

7,500

7,000

6,000

5,00 0

3,000

2,000

500

S/S

4,500

10,500

14,50 0

16,50 0

Profit and Loss Statement

17,50 0

20,50 0

Costing

Calculate the labor cost for cutting:

Calculate your marginal cost of production:

Multiply the hours it took to cut the fabric (and

“Costing” is the economic value placed on resources to make a fashion product Fashion designers must know how to accurately

someone to cut 1 hour to cut x $8.00 an hour wage = $8.00 $33.84 + 8.00 = $41.84

“cost” an item Accurate “costing” will ensure the designer is

Calculate labor cost for sewing:

percentage

(and possibly lining) by the amount you are willing to

Single Garment Costing

$7.99/yard x 3 yards used = $23.97 Calculate lining and interfacing: $2.99/yard x 3 yards used = $8.97

41.84 (cutting labor) + 48.00 (sewing labor) = $89.84 Calculate labor cost for sewing: Multiply the hours it took to sew the fabric (and possibly lining) by the amount you are willing to pay someone to sew 4 hours to sew x $12.00 an hour wage = $48.00

Calculate notions: Add cost of notions to previous total

to make just one piece instead of multiples at once.

Example: 100.62 x .20 = $20.12 (margin) Add 20.12 to 100.62 = $120.74

pay someone to sew 4 hours to sew x $12.00 an hour wage = $48.00

Calculate Fabric:

This cost is added for the extra time it takes

Multiply the hours it took to sew the fabric

paid for all the materials used to make the garment, including shipping and a profit

Add 20% of the subtotal to your cost.

possibly lining) by the amount you are willing to pay

41.84 (cutting labor) + 48.00 (sewing labor) = $89.84

This is the total cost to make your single garment Calculate your profit: Now you get to get paid!

Multiply total cost by 2.2.

This is the industry-standard calculation, which determines how much the designer should be paid.

Example: 120.74 x 2.2 = $265.63

Example: 32.94 (fabric and lining) + .75 (1

Final sell price of garment

zipper) + .15 (1 button) = $33.84

The garment cost $120.74,

375 + 6.75 + 22.50 + 52.50 + 18.75 + 11.25 + 11.25 + 7.50 + 90 + 300 + 20 + 10 = $925.50 total cost Overhead cost is typically 12% Calculate what 12% of your total cost is and add it to your total cost 925.50 * .12 = $111.06 overhead cost 925.50 + 111.06 = $1036.56 total with overhead FOB cost is the amount you would have to pay to get the garments shipped to you, either by flight or sea.

Sea freight is calculated based on your garments’ volume Airfreight is based on your garments’ weight You should research to decide what freight works best for your garments based on your timeline and price before you start production of garments. Ask your manufacturer for an approximation of volume and weight to get an estimate for your FOB cost. Once you have your total cost, overhead and FOB, you will need to determine your mark-up. Mark-up is the increase you add, after all the expenses, to profit from your garments.

Add your total cost, overhead and FOB 925.50 + 111.06 + 32 = 1068.56 Multiply this total by 2.2 to get your mark-up 1068.56 * 2.2 = $2350.83 Your cost with mark-up is what you would sell your garments for at wholesale.

Wholesale is what you, the designer, would sell your item, such as shorts, to the retailer that will then sell them to the customer.

Example: $2350.83 / 75 (number of shorts made) = $31.34 price per unit(shorts) The retailer will then mark-up the cost of the shorts so that the store can also profit from each sale.

For example, if the store paid $31.34 per shorts, they may mark up the price 50%. This would make the shorts $47.01 to the customer.

31.34 * .5 = 15.67 15.67 + 31.34 = $47.01

Designers use apparel production cost sheets to analyze their expenses in making garments and to analyze profit margins.

In a professional cost sheet, you will need to know how many garments you will order, the season they are to be sold in retail, seam allowance to be used in construction, a diagram of the garment, sizes and colors you would like it made in, quantity, and price of fabrics and trimmings needed.

The Finances Key objectives & financial review Personal funds are going to be the source of start up expenses. We are currently seeking additional funding from outside angel investors and business loans from Kosgep-start up business investment centre in Turkey .

Financial objectives Simay will earn profits by selling it’s merchandise. Our business will collect online payment from customers, so our cash flow statement won’t be similar to our income statement.

Finance required Simay requires around €15,000 to launch successfully. Start-up funds will be used for fabrics, production, inventory and operating expenses such as website building, utilities, equipment and payroll.

Simay is new brand, completely unknown. In order to improve the brand awareness and consequently increment sales, I will focus on building a strong promotion strategy, in terms of image and communication.

Designing and developing a creative range of products is only half the story – the other half is marketing and branding. Marketing get your product out there by promoting and advertising my products, capturing new customers and just as importantly maintaining existing customers. Branding communicates an identifiable signature and image which links my product to my company ‘brand identity’ Simay will be launched when every aspect of the branding and marketing has been strategically planned and tested.

The idea is to have Simay as an ecommerce (online) store.

The production will be in Istanbul but the online store will have international shipping option.

S I M AY

Designers

NB 021 Jumpsuit

ÂŁ150.00

The NB 021 Jumpsuit comes in pink velvet and features a one-leg silhouette, V-neckline with gold chain detail Design Nicola Bacchilega

S I M AY Designer - Nicola Bacchilega

Size Chart US Euro UK

5 36 3

6 37 4

SIMAY larasimay.com

7 38 5

8 39 6

9 40 7

10 41 8

11 42 9

Material Fabric: 95% Polyester, 5% Elastane. Machine Wash. Model Wears Size S.

S I M AY

Lingerie

£ 89.00

Lena Lace Bodysuit Sultry and daring, the Evie Lace Bodysuit is a soft and stretchy lace bodysuit you’ll never want to take off.

Design Lara Oguzhan

S I M AY Designer - Lara Oguzhan

Size Chart US Euro UK

5 36 3

6 37 4

SIMAY larasimay.com

7 38 5

8 39 6

9 40 7

10 41 8

11 42 9

Material 75% Nylon/19% Elastane/6% Viscose

Building online identity and gaining popularity takes years, but can be easily achieved with the help of social media.

Social Media Marketing

Don’t expect to get hundreds of followers quickly, as only a celebrity can gather thousands of followers when entering a new social media channel (Aalto 2012, 114).

Pick the social media platforms depending on your target group. Which ones they use, how often, and what they do there. Concentrate on one of them the most, and don’t waste time to make them all equally perfect.

For a brand, such as Simay, Facebook and Instagram are the most relevant. @simay @larasimay

Instagram @nicolabacchilega

Brands are competing with hottest trends. Currently, most innovative labels offer apps and game-like experiences.

Mobile Marketing

Other stick to the basics and send simple text messages with offers. Whichever works for your brand and to the target group, should be the way the label utilizes mobile marketing.

For an e-commerce store, having an app would be a smart choice. Also considering placing products into games can help gain visibility, if that is an objective.

Blog

•

•

Since marketing tactics have changed from ‘trying-to-sell’

•

to ‘giving useful information’ (inbound marketing), blogs

about the products on how to wear them, how to care them

have become a part of marketing practises. There are many

and how to match them. Good blogs have thousands of

reasons why any organisation and especially fashion brand

followers and big names hire influencers to write about

should write their own blog, and main reasons are:

their styles, likes and dislikes. The importance of a blog, is not to sell, but tell about everything that might be related

People constantly search for information and answers

with the brand.

online. If your blog writes about something target group is searching for online, it is more likely that your blog post will appear on the first page of google.

•

Blog can give a personality to your website and tell more

Having a blog helps you to create followers and engage with your customers. It makes the discussion between the brand and the consumer more realistic.

•

Having one writer and one blog is good, but allowing influencers to write a post on your blog, and have the brand write on popular blogs (guest blogging) is even better. This is a great way to get people interested in your content and gain visibility across world wide web.

Not having a company website is almost like not having a product. The main information people seek for is address, phone number, opening hours and products. Consumers like to compare the findings and then make their purchasing decision based on the facts found online.

Therefore it is crucial to have a website up and running.

Simay is going to be an e-commerce store, and therefore it should provide unique shopping experience to the customer. Online shopping is becoming even more related to the brand identification and what the brand does to connect to the consumer. It’s as important as the in-store experience. (Chasser & Wolfe, 68).

Online marketing also includes posting ads and banners throughout different websites and search engines. This type of online advertising is much cheaper than traditional advertising, because you can choose who sees the ad (by age, demographics, cookies, ect.) and pay when they actually click on the ad.

Online Marketing

The Online Fashion Retail Industry, particularly at the luxury end, seems to

The key to building successful e-commerce businesses lies in creating a life

be doing well. Over the past few years, lot of money has been invested into

time customer value so that customers not only come back for more but

fashion retail businesses like Moda Operandi ($46 million), Nasty Gal ($49

also share their experience with their friends and family on Social Media. In

million), ShoeDazzle ($66 million), BeachMint ($75 million) and Gilt Group

Fashion retail industry, brands set the foundation to build lifetime customer

(whopping $236 million). Valuations of these companies might seem inflated,

value on the things such as:

but these companies are growing fast with the help of clear revenue stream and a value proposition that’s beyond price advantage. But while some compa-

Perceived value

nies in Fashion technology are successfully raising more money and growing,

Personalized Shopping Experience

there is another segment that’s struggling to survive. These businesses are stall-

Honest, Openness & Realness

ing because of their inability to adapt to the shift in the media consumption

Fashion Supply Management

behavior of the consumer.

Involving their customers - Crowd-sourcing Perceived Value Perceived value is what a customer believes merchandise to be worth, when he or she agrees to pay (or not to pay) for ownership of the product. Com-

“eBay taught me a lot about perceived value, and how to make things look

pared to the real value of the product, perceived value is more difficult to

their best, because that’s really the difference between literally putting a plus-

measure directly; yet it has a greater impact on its value to the customer.

size ladies anorak on a hanger and taking a picture of it, and putting it on a

Having said that, perceived value of products offered by a brand is also

cool girl and making it look like something beyond your wildest dreams that

measured by the brand loyalty, awareness and positive associations which

you can snag for way less than Comme Des Garçons.” - SOPHIA AMORUSO

the brand has engendered in its target market.

- Founder, Nasty Gal

While building a brand or learning more about digital marketing & optimization and strategy, I need more customizable options. When setting up my clothing store, I’ve tried to use different site builders such as Wix, SiteBuilder, Shopify. I want to take my brand into consideration and make use of all my brand visuals.

Implement my color pallet, use my logo, take effective product and lifestyle photos of my clothes and create a glowing “About Page” so my customers can learn more about who my brand is and what it stands for. I think these are the types of things that will make my clothing store stand out to my customers, and they’ll be more trusting when it comes time for them to make a purchase. I want my website to install confidence into customers. Another aspect for my online clothing/apparel store to take into serious consideration is my store’s theme. For now I’m working on the layout and the design of the website. In the future I would like to work with a Website Director. I haven’t launched the website yet, I’ll launch and get my domain when I have the second collection ready to sell.

Until then, I will keep working on the website.

Shipping Strategy I will handle the shipping and fulfillment process myself. This gives me the chance to learn the best practices for shipping your own products, I can put your own personal touch on each package and I can use your own branded packaging materials. In the beginning, it will be just sending out a few parcels a day, it won’t take up too much of time to send them through post offices or couriers. But in the future if I anticipate having a large customer base to start off with and predict that I may not be able to keep up with orders packing and shipping them myself, I will have a look into shipping and fulfillment warehouses to see what your options are.

Shipping and fulfillment warehouses may be a convenient service to use as they handle the entire picking, packing and shipping service for you, there can be some drawbacks, including: inability to use your own branded packaging: Some warehouses require that you use their own shipping packaging.

We will charge a flat shipping fee: This means that I will instate a flat shipping fee such as EUR 6 for domestic orders and EUR 12 for international orders, no matter how many items each customer orders and no matter where they’re located domestically or internationally.

We willl offer free shipping over a certain threshold: For example, we could offer all customers free shipping if they spend over $100. We will also offer customers free shipping based on their location.

NABA Fashion Show 2017

Selling Other Designer’s Collections On Your Website Selling different designers products through your own site eliminates the pitfalls of selling through an existing platform, but it also eliminates some advantages. You escape listing fees and can develop a customer list, as well as maintain total control over your website’s look and feel.

The products should all seem to belong to the same family. That is why collaborating with Nicola is a great oportunity.

In Online fashion retail, it’s important that the product selection is in-sync with brand’s own aesthetics, theme & values. Bigger fashion retailers usually have style director who oversee and edit the upload of new products (in case of start-ups, this role is played by the company owner). They ensure that the selected products are not only sophisticated, high-end, creative and editorial but the products are also in-sync with the brand itself. Not only all the new products belong to same family but also the product presentation (which at times includes the type of models who pose wearing it).

It’s common to see retailers selling brands other than their house brand, showing their brand logo identity prominently on the website as ‘featured brands’ or designers. Although, it does makes it easy for visitors to find their favorite brands quickly and the retailer gets passive trust benefit from the featured brand for their own retail brand; but it also gives customer a sense of what the store owner puts first - their own brand or the brand they sell. The new age content driven fashion stores show others’ brand names or logos on their homepage. For them, their own brand is bigger than the brands they sell.

Designer Collaborations

Nicola Bacchilega

Nicola Bacchilega

Online Store Store E-commerce larasimay.com

PR

December Agency London

Conclusion •

/

SIMAY

•

Brand building and getting noticed

•

Every step taken should be planned

by your potential customers takes a

and tested before applying them into

lot of time and a well-planned

the actual brand strategy. For brand

strategy. For a start-up, ability to

to succeed, it should come out right

learn and shape the brand is

the first time, to gain positive brand

something label might do for even

image, reputation and reach overall

several years, before becoming a

goals. Constantly changing strategies

recognisable brand.

and brand identity, will message of

Regarding fashion and large amount of brands and options, people have brand new clothes in their wardrobes that remain unworn - that after some time end up into the landfill. Fashion brands are doing little to end this cycle, because they need to compete for best design and price. So most of them don’t think about taking the responsibility of the sustainability within the industry. (Posner 2015, 119).

unorganised and poor brand, who can easily lose the connection with the consumers. Applying the 11 brand ingredients, can help to shape the label into a brand, and gain the differentiation in the cluttered fashion world.

Simay is not going to launch until every step of the brand strategy has been tested.

Even though it is tempting to launch the brand, open the store and hope for the sales, it is more likely, that with such hassle, the label will fail and brand will die before making it to the second year.

Every business, not only fashion, needs to have clear business and marketing plan, to work as a guideline towards business success. After every applied strategy, it is important to analyse if the brand is meeting planned goals and if the strategy is working in favour of the brand.

Understanding the concept of marketing plan and parts of the marketing mix can help any business to understand how to be different, powerful and/or better than the competitors. It is up to the owner to decide what will make the label unique, and this is where the marketing plan comes in handy.

This final work has taught me that there are many small elements that have a big impact on a fashion label. Many of these elements stay ignored by many entrepreneurs and start-ups, or they don’t invest their time and recourses on branding or marketing, as they hope, that their designs will speak for themselves.

With high interest of understanding how to brand and market a fashion label, this thesis has definitely opened new opportunities to continue learning, understanding and gaining new expertise within fashion industry, because trends and market habits are constantly changing and evolve as the world progresses with new technologies and consumer demands.

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Baines, Paul, Fill, Chris & Page, Kelly 2013. Essentials of marketing. Oxford: Oxford University Press.

Agins, Teri 1999. The end of Fashion. Quill.

Bobila, Maria 2015. Should fashion designers name labels after themselves? Fashion- ista [online]. <http://fashionista.com/2015/12/designernamesake-label> Viewed: 2.2.2017 Burke, Sandra 2013. Fashion Entrepreneur Craven, Robert 2002. Customer is king. London: Virgin Publishing Craven, Robert 2005. Kick-start your business. London: Virgin Publishing DK 2014. The Business Book. London: Dorling Kindersley Limited.

Gebert, Kat 2015. The Secret to Brand Growth? Mental and Physical Availability. Per- colate [online] <https://blog.percolate.com/2015/10/the-secret-to-brand-growth-mental- and-physical-availability/> Viewed: 9.3.2017 Gehlhar, Mary 2005. The Fashion Designer survival guide. Deadborn Hall, Richard 2012. Brilliant Marketing. Pearson.

Heyden, Karine 2014. Why do so many fashion startups fail? LinkedIn [online]. <https://www.linkedin.com/pulse/20140710111946259300410-why-do-so-many- fashion-startups-fail> Viewed: 2.2.2017 Hubspot 2017. What is inbound marketing? Hubspot [online]. <https://www.hubspot.com/inbound-marketing> Viewed: 26.3.2017 Juholin, Elisa 2009. Communicate! Porvoo: WS Bookwell Oy. Lorette, Kristie 2017. A Situational Analysis of a Strategic Marketing Plan. Chron [online]. <http://smallbusiness.chron.com/situationalanalysis-strategic-marketing-plan- 1474.html> Viewed: 14.3.2017

Meadows, Toby 2009. How to set up and run fashion label. London: Laurence King Publishing How to set up and run fashion label, Toby Meadows, Laurence King, 2009, s. 7) Moose, A. & Nyholm, S. 2009. A visual toolkit. Zola Ltd MSG 2017. What is Brand Personality? Management Study Guide [online]. <http://www.managementstudyguide.com/brandpersonality.htm> Viewed: 2.2.2017 Mortimer, R., Brooks, G., Smith, C. & Hiam, A. 2009. Marketing for dummies. Wiley.

Posner, Harriet 2015. Marketing Fashion, second edition. Strategy, Branding and Pro- motion. London: Laurance King Publishing Pyle, Lesley 2010. How to Do Market Research--The Basics. Entrepreneur. [online] <https://www.entrepreneur.com/article/217345> Viewed: 9.3.2017 Reilly, Andrew 2014. Key concepts for the fashion industry. Bloomsbury, 2014 Voughan, Pamela 2015. How to Create Detailed Buyer Personas for Your Business. Hubspot [online]. <https://blog.hubspot.com/blog/tabid/6307/bid/33491/everything- marketers-need-to-research-create-detailed-buyer-personastemplate.aspx#sm.0000th50mlnmgetk10j5adkh4177b> Viewed: 25.3.2017 Wolbers, Marian 2009. Uncovering fashion. Fairchild books.

Yurchisin, Jennifer & Johnson, Kim 2010. Fashion and the consumer. Oxford: Berg