A fashion business plan is an essential tool, not just for raising investment, but also for clarifying your goals and objectives, and communicating them to your wider team of employees, business partners and clients.
The fashion industry encompass many different smaller and more niche industries. Often people think of it as just retail/online stores, design houses and brands, and fashion magazines. However, there are other craftspeople and industries in the manufacturing of clothes. Most obviously, there are those that make and sell fabric and notions, but there are also flower makers, embroiders, seamstresses, and many others. When it comes to fashion shows and fashion marketing there are models, stylists, hair stylists, make-up artists, model agents, photographers, and a host of other non-fashion business that all make up a larger fashion eco-system.
Like a lot of industries particularly those that are consumer focused, change happens fast and constantly. The industry and the consumer is constantly evolving. Fashion retailing is no longer just large fashion houses, fashion magazines, and retail stores/catalogs but evolved first with TV channels that sold many goods including fashion, and then with the Internet and online retailing.
The rise of the Internet has impacted all parts of the fashion industry, not just the selling end of the industry. It has a role in supply chains, advertising, communications, brand awareness and blurred the line between business and consumer. Social media channels have become important to the selling of fashion but also as part of forecasting and determining future trends. Bloggers and other influencers may help sell products, but can also be used by “Fashion Forecasters” looking for what’s next by looking at Instagram, other social media channels, and street-style blogs.
Highlights of the Fashion Industry are:
•Revenue in the Fashion segment is projected to reach US$1,274.00m in 2023.
•Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 14.80%, resulting in a projected market volume of US$2,213.00m by 2027.
•With a projected market volume of US$310.00bn in 2023, most revenue is generated in China.
•In the Fashion segment, the number of users is expected to amount to 21.8m users by 2027.
•User penetration will be 24.1% in 2023 and is expected to hit 33.9% by 2027.
•The average revenue per user (ARPU) is expected to amount to US$86.19.
Elements of a comprehensive Fashion Business Plan include:
•Executive summary- It encapsulates all the key points, ideas, and objectives of your business. The amount and purpose of the requested grant or funding is also stipulated.
•Market and competitive landscape- Answers the following questions; How big is the market? How fast is it growing? what evidence do you have that this part of the market is a viable opportunity? You also need to identify competitors in the market and what you are going to do that is different.
•Company and management summary- This section describes the current management team and future additions to it. Provide an overview of your legal structure, business premises, and history if the business is already operating.
•Implementation plan- This section identifies the specific actions that your business plan will take to go after the market opportunity that you have identified. Ideally, it should cover three years of activity, on a seasonal basis, and should include everything from how you communicate as a business and the staff you will hire, to the space you will need, and the outside expertise you will require, in terms of marketing, communication, and PR.
•Financial plan- Your financial plan shows how your business will grow in terms of both profit and revenue, and what financing you will need to make it happen.
•Financial projections- Comprise of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule. Ratios, graphs, and calculations are inserted.
•Annexures- include informative documents that funders require in an application (contact us for the list).
At DTC…
We understand the intricacies of the requirements and criteria for an accurate and tailour-made business plan. If using the development to raise funding and/or non-repayable business grants, we guide you through the process and provide access to our funding network.
Contact us for more information & assistance with your Fashion Business Plan today!