business plan children's clothing

Baby Clothing Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Fashion Industry » Boutique (Clothing Store)

Are you about starting a baby boutique? If YES, here is a complete sample baby clothing retail store business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a baby clothing retail store. We also took it further by analyzing and drafting a sample baby clothing retail store marketing plan template backed up by actionable guerrilla marketing ideas for baby clothing retail stores. So let’s proceed to the business planning section.

We all understand without doubt that the general market for baby products might seem relatively recession-proof. After all, the business keeps bringing new customers no matter what’s happening with the economy in the country. When planning to start up a business just like this, it is advisable that you examine every part of the venture before you even open up your doors.

It simply means that you need to write an expressive business plan. A business plan is also important in terms of getting finances for a business and serves as a guide when changes need to be made or when preparing for future growth and expansion of the business. Below is a sample business plan for your use;

A Sample Baby Clothing Retail Store Business Plan Template

1. industry overview.

Businesses in this industry specializes in clothing retailers that sell a wide range of infant and children’s wear, such as dresses, jackets, jumpsuits, sleepwear and more. Supplementary services include basic alterations like hemming, taking in or letting out seams and lengthening or shortening sleeves.

It is believed that the baby’s and children’s Clothing Stores industry is made up of businesses that specialize in retailing apparel for children under the age of 17. We believe that over the years, a rise in the number of births had a positive impact on industry revenue.

But a reduction in the number of adolescents alters some of the gains made from the rising number of infants and toddlers in the industry. While rising consumer confidence index and strong gains in per capita income had a positive impact on demand for industry products, reducing prices are expected to reduce revenue in the overall industry.

This gigantic industry spends about 11.8% of revenue on labour costs. We also believe that this is very customer service oriented. We believe that retailers need to sustain high levels of customer service to aid customers with their purchasing decisions.

We believe that a large portion of labour in this industry is employed on a part-time or casual basis, and employment fluctuates throughout the year.

Also, in addition to customer relations, employees perform restocking, maintenance and inventory. Capital expenditure comes in the form of cash registers, computers and software and physical apparatuses such as shelves and displays.

2. Executive Summary

Our world has changed due to modernization. The advent of cable television, syndicated radio programs, and the Internet has created a world where a clothing statement in Milano will be on the streets of Gotham in few days.

We believe that the speed of telecommunication system has increased young customers’ expectations and demands for products that represent their own cultural statement. This actually means that this field will keep booming as youths and parents are eager to make their kids look good.

This accurate business plan for Pocoyo Inc. offers young customers the youth-oriented products and clothing that are popular in large urban areas but not available locally. We plan to build a business that will accurately offer our customers distinctive products that will attract them and keep the looking good.

Our target customers at Pocoyo Incorporated will be kids within the age of03-18, who listens to alternative music, participates in youth sports like skateboarding and snowboarding, and looks toward alternative clothing trends in large urban areas for inspiration.

We will provide the distinctive clothing, shoes and products that are just ahead of the fashion curve for them. This Business will be established in Evansville. Evansville is a city in and the county seat of Vanderburgh County, Indiana, united states. This Scituate meets that standard we want to build around our business.

3. Our Products and Services

We at Pocoyo Inc. Specialize in the selling of baby and youth oriented apparel, furniture, and accessories to the general public. We at Pocoyo Inc plan to make available a large line of baby and youth clothes and footwear from a number of brand name suppliers.

We at Pocoyo Inc will also carry a full line of products from varying baby furniture manufactures. These products include changing tables, cribs, and special beds for young children.

In addition to maintain a traditional retail store, we will also launch an e-commerce based website once retail operations have commenced. This we believe will allow us at Pocoyo Inc. to rapidly turnover our inventory on a month to month basis. We will also offer young customers the following youth-oriented products and clothing:

• Dresses and skirts

4. Our Mission and Vision Statement

• Our mission at Pocoyo Inc. is to offer distinctive baby and youth-oriented fashion and products to our target customers.
• Our vision at Pocoyo Incorporated is to provide customers with an expansive inventory of clothing , furniture, and accessories for all of their infant, baby’s and children’s needs.

Our Business Structure

Kieran Johnson, the founder of Pocoyo Incorporated will manage the daily operations of the business. Kieran Johnson has seven years of experience in the retail clothing industry and everything about it. After graduation with a B.A. in Sociology from the University of Washington, Kieran started as a sales associate with Angelo Litrico clothing, one of the greatest clothing lines in the world.

In just four years, Kieran was promoted to a regional sales manager for the southern United States. She has been praised as an excellent manager who is particularly good with the youngest staff members.

Kieran is also a member of the popular alternative band, Infantile Syndrome. We at Pocoyo Incorporated believe that the combination of these two professional experiences makes Kieran Johnson uniquely qualified to understand the demands of our target customers and how to reach them. Below are the structures we hope to start Pocoyo Inc.

• Chief Executive Officer (Owner)

Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO

• In charge of providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• In charge of fixing prices and signing business deals
• In charge of recruitment
• In charge of payment of salaries
• In charge of signing checks and documents on behalf of the company
• Evaluates the success of the organization
• In charge of managing the daily activities in the ship
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Takes care of vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• In charge of the purchase of goods and products for the organizations
• In charge of planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Takes care of external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyse the volumes of transactional data generated by customer purchases
• Takes care of the organization website
• Handles ecommerce aspect of the business
• In charge of installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Takes care of the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• In charge of payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• In charge of cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager

6. SWOT Analysis

The business plan of Pocoyo Incorporated will tell us what to do and how to manage our business and all other activities. This is the reason why we were very careful to conduct a SWOT Analysis. We at Pocoyo Incorporated are very much aware of the large quantity of retail stores in Evansville even in the same location as us.

It is the reason why we are leaving no stone unturned to make sure that we establish a business that will take over the Industry.

We at Pocoyo Incorporated also know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

The SWOT Analysis for our business was conducted by Leather Business Consult. This firm is known to be the leading figure in business improvement and consulting. They did their job judiciously and they also worked with the available workforce we have at Pocoyo Inc, before coming up with the SWOT Analysis that is summarized below;

• Our founder and managers have extensive clothing product development and marketing experience from previous work
• Our owner and managers have a good understanding of and a good network in the market
• Non-existent ‘brand’ of new children’s clothing retail shop
• Untested end-to-end process from product development to delivery of products to customers

Opportunities

• High quality children’s clothing becoming increasingly expensive with brand as key factor driving up the prices
• Increased mortality rate
• Current credit crunch experienced by the financial markets coupled with the increasing oil prices have impacted on discretionary consumer spending
• Time it will take us to gather the exact workforce that we need

7. MARKET ANALYSIS

• Market Trend

It is important to note that the world children’s clothing market is expected to exceed $201 billion by 2016, representing 19% market expansion since 2009. The Americas have a regional stake of over 38% in the global market.

Just in the G8 countries alone, the children’s clothing market is expected to exceed $120 billion in 2016, representing almost 2% yearly growth over a five-year period. It has been noted that the US leads the G8 with a 45% market share.

Also, the US children’s clothing market generates sales of more than $48 billion a year. The US market is expected to reach almost $67 billion in 2017. We believe that the children and infant clothing industry is made up of the design, manufacture and retail of children’s clothes, which are made in a large range of materials including cotton, wool, and linen and may others.

We at Pocoyo have also noted that clothing styles and types change from one country to the next, depending on culture and temperature. We also understand the fact that clothing protects children from various potentially harmful threats such as the elements.

But Western clothing styles keeps being seen in increasing numbers of other countries outside of the West. It is without doubt that the children clothing represents the most rapidly growing sector in the clothing market, accounting for almost 11% of EU spending on clothing.

Increase birth rates and greater spending on clothing per child are driving demand in the industry. The industry is constantly becoming increasingly competitive, and retailers other than those involved strictly in children’s wear are dedicating more and more space to promotional activities for children’s wear. It is also a known fact that retailers are also offering their branded products at stores carrying multiple brands.

8. Our Target Market

Just like we have stated, the children clothes and products is a billion dollar niche in the clothing industry. It has been estimated that over the past ten years, there has been a notable change in population dynamics in the U.S.

It is important to note that the non-metropolitan population has been increasing at the almost the same rate as the urban population. Evansville’s current population is over 117,000 residents. The city is 250 miles from the closest urban centre.

Without doubt Evansville’s young people don’t live near a large urban centre that offers the diversity in clothing products that the youth culture demands. We believe that this have created a small market niche for businesses to sell clothing and products.

We have also noted our target market and the best way to reach them. Listed below are the market group we hope to attract:

• Kids within the age of 03-18
• Skateboarders
• Alternateen
• College students
• High school students

Our competitive advantage

Our competitive advantage at Pocoyo Incorporated is to offer product lines will make a pronounced statement but won’t leave us broke.

We understand that the major brands are costly and not distinctive enough to satisfy the ever changing taste of our target customers. We at Pocoyo Incorporated offer products that are just ahead of the curve and very easy to buy so that our customers will come back to the store often to check out what’s new and patronise our business.

We understand that the products for our targeted market are seen as part of a lifestyle statement. We’re so focused on serving the Evansville youth while earning substantial income.

We also want to represent their style and life choices. We also believe that we will create a loyal customer base that will see us take over the industry. We also believe that we have the required experience and workforce to take over the said industry.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Our major source of revenue is the sale of clothing and footwear for children between 3-18 years old. We plan to carry an expansive inventory of products from many brand name merchandisers. We all know that major branded label apparel manufacturers such as Nike, Reebok, Polo, J. Crew, and Anne Geddes have all launched lines specifically geared for children and kids.

Another source of revenue for us at Pocoyo Incorporated is the sale of furniture for kids. Much like apparel inventories, we at Pocoyo Incorporated will stock a large selection of cribs, changing tables, dressers, and beds for children between new-borns, toddlers and teenagers.

Also in addition to furniture, apparel, and footwear, we will also carry a line of diaper bags, strollers, and other items normally associated with managing the needs of young infants and toddlers. Other products we will be selling that will cover the need of growing kids between 3 to 10 yet as include;

• skirts and dresses
• trousers and jogging pants
• underwear, socks and tights
• accessories
• baby clothing
• unisex clothes
• school wear

10. Sales Forecast

It is very important to note that the lack of information on the market size of our target segment in our business location, it would be difficult to provide a figure for the market share. But our plan at Pocoyo Incorporated is to be able to capture 0.5% of the market by year 3 of the segment in the target area of Evansville. Listed below is an accurate sales forecast for Pocoyo Inc.

• First Year-: $900,000
• Second Year-: $1,600,000
• Third Year-: $2,500, 000
• Marketing Strategy and Sales strategy

We believe that as a firm, we will establish our own line of products, and we will need to apply for intellectual properties, patents, trademarks, design registration, and copyrights to make sure that you’re able to keep these intangibles as part of our business and leverage these at a later time when the brand of the firm has grown and there is demand for its products already.

Our major supplier will be the tailors providing the fabrics and also other suppliers providing key materials and equipment for the firm to complete the creation of the children’s clothes.

• We will follow up our marketing consultant and always bring options to the table
• We plan to Introduce the new range of high quality affordable clothing to the market
• We want to Utilise current network of owners and introduce the product to the market
• We will Position our product as high quality but at affordable prices
• We will define efficient operations for the business from concept of children’s clothing to delivery of services
• We will establish image of good corporate citizen providing excellent customer service as a retail shop
• Work closely with the local government
• Hire only people passionate in improving the industry
• Hire people with a passion for the local area community to ensure delivery of good customer services in retail store
• Liaise with local government to build ways to expose the retail store

11. Publicity and Advertising Strategy

• Build up the brand and the new children’s clothing product range to the target market
• Place adverts on national TV stations, Radio Stations and Newspapers / Magazines
• Run our own special TV program
• Sponsor relevant community programs
• Leverage the internet and social media platforms like; Instagram, Facebook , Badoo, YouTube, Twitter et al
• Install our Bill Boards on strategic locations
• Engage in road show from time to time
• Distribute our fliers and handbills to targeted areas from time to time
• Send out introductory letters to households in and around our location
• Work locally to promote products including in local newspapers
• Encourage word-of-mouth build-up of the brand and products through the initial customers
• Utilise website to increase exposure to the target market
• Link with local entities such as the sports club to build image and brand, which is consistent with the overall objective of the new firm.

12. Our Pricing Strategy

We very much understand how important pricing can be for us at Pocoyo Inc.  We also know that the success we hope to achieve in terms of pricing rests on our bargaining power. Which is why our merchandise Manager will have to come together with the Chief Executive Officer to ascertain the price of our goods, and also the price of the inventories we purchase.

We also plan to inculcate all our expenses in our pricing in other maximize profits that will helps manage our business successfully. We hope to inculcate the following into the business price wise;

• Introduce the children’s clothing at above the low-priced products to reflect the high quality value of the products
• Provide pricing range that high quality clothing seekers will find affordable and attractive
• Potentially, price the products at lower than planned margins in order to encourage the purchase of the products as it increases exposure in the market
• Provide discounts to large buyers (i.e. several items)

Payment Options

Pocoyo Inc.  Is a business that is very much aware that the payment options we provide will serves as a factor that brings our business closer to the heart of the people, and we are very much prepared to make use of that extensively. Pocoyo Inc. will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.

We also hope to provide these services by partnering with a renowned bank in the country. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.

• Payment by via bank transfer
• Payment by POS
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

13. Startup Expenditure (Budget)

We at Pocoyo Incorporated understand that it isn’t an easy task to start a retail business and can be dictated by a lot of facts. Factors like the location of the business, business niche, the size of the business, and of course the state of the economy.

We at Pocoyo Incorporated believe will be the forerunner of the industry, which is why we are very careful to note all important facts. We hope to spend our start up capital in the following way;

• Office equipment and furniture – $18,000
• Cost for store equipment (cash register, security, ventilation, signage) – $19,000
• The cost for Start-up inventory – $800,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $49,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits – ( $2,500 ).
• Cost for Shop remodelling – $5,000.
• Cost for payment of rent for a shop for 12 month at $1.76 per square feet in the total amount of – $52,800.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,000
• Cost for hiring Business consultant – $2,500
• Marketing promotion and grand opening expenses – $94,000
• Legal expenses for obtaining licenses and permits as well as the accounting services totalling – $1,300.
• The Total Fee for Registering the Business in the United States of America – $750.
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• Additional Expenditure (Business cards, Signage et al): $5,000

From our Analysis above, we need $1,084,450 to start Pocoyo Inc.  We are very much prepared to organise and manage our business to maximize profits and become the lead figure in the industry.

• Generating Funding / Start up

Pocoyo Inc. is a standard kids clothing retail shop that will be located in the heart of Evansville. This business was founded and will be managed by Kieran Johnson, an experienced individual in the field. The business will be financed by Kieran Johnson and his immediate family members. Which is why the generating of start up capital has been restricted to just Kieran Johnson.

We at Pocoyo Incorporated will utilise the start-up capital in building the business and will not tap any additional sources of funds in the first year of the business. Our start up capital just like we stated above will be sourced from the owner, there has not been any security guaranteed to other capital providers, since these have not been tapped.

We at Pocoyo Incorporated plan to utilise internal cash generated to provide for the funding requirements of the business. Our key performance metric to be used as the business is grown is the sales growth over the first few years.

14. Sustainability and Expansion Strategy

Our major aim is to establish a high quality children’s clothing offering targeting the market in the United States. Our advantage at Pocoyo will be the offering (high quality children’s clothing at affordable prices since brand premium is minimised) and customer service (personal touch given in the retail store unlike versus competitors).

Our focus in the first year is in building the brand of Pocoyo and increase exposure among the target market. We also hope to ensure efficient operations from concept to product development to creation of the children’s clothes. We also hope to provide Customised customer service providing opinions when asked for and allowing for customisation of clothes to ensure fit of clothes with children.

We at Pocoyo sees the key breakdown of the our product line in terms of product and age We have made sure to inculcate the needs of our customers and employees into our long term plan. Our core objectives at Pocoyo are to develop product and brand awareness of our business among the target market identified for the products.

We also want to create a strong demand from the ‘niche’ market through targeted marketing initiatives and word-of-mouth build-up, and achieve profitability within two years. Our plan is to also capture enough share of the market to be recognised as a competitor among the competitors in the high quality children’s clothing sector.

Checklist/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Leasing, renovating and equipping our facility: Completed
• Generating part of the start – up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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How To Write a Business Plan for Kids Clothing Store in 9 Steps: Checklist

By henry sheykin, resources on kids clothing store.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you considering starting a kids clothing store? With the growing demand for trendy and fashionable clothing for children, it is a lucrative business opportunity. According to the latest statistics, the kids clothing industry in the US is thriving, with an estimated market value of $34.3 billion in 2020. This number is expected to grow at a CAGR of 6.8% from 2021 to 2028 .

To help you get started on the path to success, we have created a checklist of 9 essential steps to write a business plan for your kids clothing store. By following these steps, you can ensure that your store stands out in the competitive market and attracts a loyal customer base .

The first step is to conduct market research . This will help you gain valuable insights into the current trends, customer preferences, and competition in the industry. By understanding the market dynamics, you can make informed decisions regarding product selection and pricing .

Next, you need to identify your target market and demographics . Determine the age groups you will be catering to and their specific clothing needs. This will enable you to curate a collection that meets the demands of your customers .

Assessing the local competition and market demand is crucial . Research the existing kids clothing stores in your area and analyze their offerings and pricing. This will help you identify gaps in the market and position your store uniquely .

Your unique selling proposition is what sets you apart from your competitors . It could be offering personalized styling and fitting services, hosting events, or stocking a curated collection of private label products. Determine what makes your store special and use it to attract customers .

Determining the funding and financials required for your business is essential . Calculate the initial investment needed, including expenses for inventory, store setup, marketing, and staff. Explore funding options such as loans or partnerships to secure the necessary capital .

Creating a business model and operational plan will provide you with a roadmap for success . Define your store's structure, staffing requirements, and supply chain management . This will help you ensure smooth operations and efficient customer service .

An effective pricing strategy is crucial for a profitable business . Consider factors such as your target market's price sensitivity, product costs, and profit margins . Price your products competitively without compromising on quality .

To attract customers and create brand awareness, develop a marketing and advertising strategy . Leverage social media platforms, local advertising, and partnerships with complementary businesses to promote your store .

Finally, outline a comprehensive sales and growth plan to fuel the success of your kids clothing store . Set realistic sales targets and develop strategies to achieve them . Regularly evaluate your progress and make necessary adjustments to stay ahead in the market .

By following this step-by-step checklist, you will be well-prepared to write a business plan for your kids clothing store and embark on a successful entrepreneurial journey . Remember, a well-planned and executed business plan is the foundation for a thriving business .

Conduct Market Research

Market research is an essential step in the process of starting a kids clothing store. It allows you to gather important information about your target market, understand the current trends and demands, and identify any gaps or opportunities in the market.

Here are some key steps to conduct effective market research:

• Identify your target market and demographics: Determine the age groups, preferences, and buying habits of your potential customers. This will help you tailor your offerings and marketing strategies accordingly.
• Assess local competition and market demand: Research and analyze the existing kids clothing stores in your area. Look for gaps in the market or areas where you can offer a unique value proposition. Additionally, understand the current demand for children's clothing to ensure there is a viable market for your business.
• Collect data through surveys and interviews: Reach out to parents, caregivers, and potential customers to gather insights about their preferences, needs, and expectations. This will provide valuable information to guide your product selection and pricing.
• Analyze industry reports and trends: Stay updated with industry reports, fashion trends, and market forecasts to understand the overall landscape and potential opportunities in the kids clothing market. This will help you make informed decisions and stay ahead of the competition.
• Utilize online survey tools and social media platforms to reach a larger audience and collect valuable data.
• Visit local malls, shopping centers, and children's clothing stores to observe the customer flow, product offerings, and pricing strategies.
• Consider attending trade shows, conferences, and networking events related to children's fashion to gain insights and connect with potential suppliers and industry professionals.

Identify Target Market And Demographics

Identifying your target market and understanding their demographics is crucial for the success of your kids clothing store. By knowing who your ideal customers are, you can tailor your products, marketing strategies, and customer service to meet their needs and preferences. Here are some important steps to help you identify your target market and demographics:

• Research the age groups: Determine the age groups you want to target, such as infants, toddlers, or school-aged children. Different age groups have different clothing needs and preferences, so it's essential to focus on a specific segment.
• Consider gender: Decide whether you want to cater to both boys and girls or specialize in clothing for a specific gender. This will impact your product selection and marketing strategies.
• Understand income levels: Analyze the purchasing power of the target market and determine the price range of your clothing items accordingly. This will help you position your store in the market and attract the right customers.
• Explore location-specific factors: Take into account geographical factors that may affect your target market, such as climate, cultural preferences, and local trends. Adapting to these factors will make your clothing store more appealing to the local community.
• Conduct surveys or interviews with parents to gather insights about their clothing preferences for their children.
• Visit local schools, daycare centers, and children's clubs to observe the clothing styles and trends among your target market.
• Stay updated on the latest fashion trends and preferences of children by following relevant industry publications and blogs.

By carefully identifying your target market and understanding their demographics, you can effectively tailor your kids clothing store to meet their needs and stand out from the competition.

Assess Local Competition And Market Demand

Assessing local competition and market demand is a crucial step in creating a successful kids clothing store business plan. By understanding the existing competition and the demand for children's clothing in your target market, you can make informed decisions and develop strategies to stand out from the competition.

Start by researching other kids clothing stores in your local area. Visit their stores, browse their websites, and analyze their product offerings, pricing, and customer service. This will give you an understanding of what your potential competitors are offering and how you can differentiate your store.

Additionally, gauge the market demand for children's clothing in your area. Look for trends and popular styles among parents and children. Consider factors such as the average income level of your target market, the number of families with young children, and any seasonal or cultural influences that might affect the demand for kids clothing.

• Visit local shopping centers and malls to observe foot traffic and customer preferences.
• Conduct surveys or interviews with parents and guardians to gather insights on their shopping habits and preferences.
• Consider partnering with local schools or community organizations to understand their clothing needs and preferences.

Based on your research, identify any gaps or opportunities in the local market that you can capitalize on. This could include offering unique clothing styles, targeting underserved age groups, or providing exceptional customer service.

By assessing local competition and market demand, you can position your kids clothing store to meet the needs of your target market and differentiate yourself from competitors. This will increase your chances of success and attract a loyal customer base.

Develop A Unique Selling Proposition

When starting a kids clothing store, it is crucial to develop a unique selling proposition (USP) that sets your business apart from competitors. Your USP is what will attract customers and give them a reason to choose your store over others.

Here are some important points to consider when crafting your USP:

• Identify your target market: Understanding the specific needs and preferences of your target market will help you determine what sets your store apart. Are you catering to eco-conscious parents who prioritize sustainable clothing? Or perhaps you're focused on offering a wide range of sizes for children with special needs. Clarifying your target market will guide your USP development.
• Highlight your unique offering: Think about what makes your kids clothing store stand out. Is it the extensive selection of trendy and fashionable clothing items and accessories? Or maybe it's your personalized styling and fitting services that give customers a unique shopping experience. Identify the key features of your store that differentiate it from others.
• Emphasize quality and affordability: Parents want to provide their children with high-quality clothing without breaking the bank. If your store offers a combination of leading brand products and affordable private label items, make sure to highlight this in your USP. Let customers know that they can find both trendy, fashionable options and reliable, budget-friendly choices at your store.
• Create a memorable brand image: Your USP should align with your branding strategy to create a cohesive and memorable brand image. Whether it's through your store's name, logo, or overall aesthetic, make sure your USP is effectively communicated to customers.
• Deliver exceptional customer service: Providing excellent customer service that goes above and beyond will help set your store apart. Consider offering personalized assistance, expert advice, and a friendly and welcoming atmosphere. Focus on building lasting relationships with your customers.
• Conduct a competitor analysis to see what unique selling propositions other kids clothing stores are offering and find ways to differentiate yourself.
• Regularly survey your customers to gain insights into their needs and preferences, and use this information to refine and enhance your USP.

Determine Funding And Financials

One of the crucial steps in starting a kids clothing store is to determine the funding and financials required for the business. It is important to have a clear understanding of the financial aspects to ensure the smooth functioning and growth of the store.

Here are some important considerations when determining the funding and financials for your kids clothing store:

• Estimate startup costs: Begin by estimating the initial costs required to establish your store. This may include costs for leasing a retail space, purchasing inventory, setting up the store layout, obtaining necessary licenses and permits, and hiring staff. Ensure to account for both one-time expenses and ongoing operational costs.
• Identify potential funding sources: Explore various funding options such as personal savings, loans from financial institutions, investment from family and friends, or seeking out potential business partners or investors. Evaluate the pros and cons of each option and determine which is the most suitable for your situation.
• Create a detailed financial plan: Develop a comprehensive financial plan that outlines your projected revenue, expenses, and profitability. This should include forecasts for the first few years of your business, taking into account factors such as sales projections, operating costs, and profit margins. The financial plan will serve as a roadmap for your business and assist in making informed financial decisions.
• Consider seeking professional guidance from a financial advisor or accountant to help with financial planning and budgeting.
• Keep a buffer for unexpected expenses or contingencies to avoid any financial strain on your business.
• Regularly monitor and review your financials to track the progress of your store and make any necessary adjustments to your budget or operational plan.

By determining your funding and financials accurately, you will have a solid foundation for your kids clothing store. This will not only help you in securing the necessary funds but also allow you to make informed decisions and manage your finances effectively for long-term success.

Create A Business Model And Operational Plan

An effective business model and operational plan are essential for the success of your kids clothing store. This step involves outlining the key aspects of how your business will operate and serve its customers.

Firstly, consider the layout and design of your store. Make sure it is visually appealing and conducive to shopping for parents and children alike. Create dedicated sections for different age groups, genders, and types of clothing items. This will make it easier for customers to navigate and find what they are looking for.

Establish relationships with leading brands to ensure that your store offers a wide range of high-quality clothing items and accessories. Additionally, consider developing your own private label products to provide affordable and reliable options for customers.

Implement strategic merchandising to maximize sales and customer satisfaction. Place popular and trendy items at eye level to attract attention, and strategically position complementary products together to encourage additional purchases. Regularly update your inventory to keep up with the latest fashion trends and ensure a fresh and appealing selection for your customers.

In terms of customer service , prioritize an engaging and personalized experience. Offer services such as personalized styling and fitting, and train your staff to provide exceptional customer service that goes above and beyond customer expectations.

Consider organizing events, promotions, and collaborations with local schools or children's organizations to build brand awareness and attract new customers . Additionally, establish an online presence through a website and active social media accounts to enhance your store's visibility and reach a wider audience.

Tips for creating an effective business model and operational plan:

• Research successful kids clothing stores to get inspiration for your business model.
• Keep your target market and the latest fashion trends in mind when selecting clothing items and accessories for your store.
• Regularly assess your inventory to identify slow-selling items and make strategic purchasing decisions.
• Invest in technology and an efficient point-of-sale system to streamline operations and track sales.
• Seek feedback from customers and make necessary adjustments to your business model to meet their needs and preferences.

Establish A Pricing Strategy

When it comes to running a kids clothing store, establishing a pricing strategy is crucial to ensure profitability and competitiveness in the market. Here are some important considerations to keep in mind:

• Research and analyze the market: Conduct thorough research to understand the pricing trends and range in the kids clothing market. Analyze the pricing strategies of your competitors to determine how you can position your store in terms of pricing.
• Determine your target customer: Consider the demographics of your target market and their purchasing power. This will help you set prices that are attractive to your customers while still generating adequate profit margins.
• Factor in costs: Calculate all costs associated with running your business, including inventory, rent, utilities, staff salaries, and marketing expenses. Determine the desired profit margin and adjust your prices accordingly to cover these costs.
• Offer competitive pricing: Your pricing strategy should aim to be competitive in the market while still ensuring profitability. Compare your prices to those of similar stores in your area and adjust accordingly to attract customers.
• Consider offering bundled pricing or discounts for multiple purchases to encourage customers to buy more.
• Regularly review and update your pricing strategy based on market conditions and customer feedback.
• Consider offering different price points to cater to various customer segments.

Develop A Marketing And Advertising Strategy

Once you have identified your target market and assessed the local competition, it's time to develop a comprehensive marketing and advertising strategy for your kids clothing store. This strategy will help you effectively reach your target audience, build brand awareness, and drive customer engagement.

To begin, define your brand identity and positioning in the market. Determine what sets your kids clothing store apart from the competition and how you want to be perceived by your customers. This will guide your marketing messaging and help you create a unique selling proposition.

Next, identify the most effective marketing channels to reach your target audience. Consider both online and offline channels such as social media, email marketing, print advertisements, local community events, and partnerships with other businesses. Utilize a mix of channels to maximize your reach and exposure.

• Engage with influencers and mommy bloggers in your target market to create buzz and generate word-of-mouth referrals.
• Invest in search engine optimization (SEO) to improve your website's visibility on search engines and drive organic traffic.
• Create eye-catching visuals and product displays in your store to attract customers and encourage them to make purchases.
• Offer promotions and discounts periodically to incentivize new and repeat purchases.

Furthermore, develop a content marketing strategy to provide valuable information and resources to your target audience. This can include creating blog posts, videos, or social media content that educates and engages parents about kids' fashion trends, tips for dressing their children, or advice on sustainable clothing choices.

• Collaborate with local schools or community organizations to host workshops or fashion shows that showcase your store's clothing and accessories.
• Utilize targeted online advertisements to reach parents who are actively searching for kids clothing.
• Personalize your email marketing campaigns by segmenting your audience based on factors such as age, gender, and purchasing history.
• Monitor and analyze the performance of your marketing efforts regularly to identify areas for improvement and make data-driven decisions.

Remember, consistency and repetition are key in marketing and advertising. Maintain a strong presence both online and offline to build brand recognition and attract customers to your kids clothing store. Continuously evaluate and adjust your strategies as needed to stay relevant and meet the evolving needs of your target market.

Outline A Comprehensive Sales And Growth Plan

Once you have established your kids clothing store and have a clear understanding of your target market, competition, and finances, it is essential to create a comprehensive sales and growth plan to ensure the success and sustainability of your business. A well-defined plan will help you set realistic goals, identify potential growth opportunities, and outline the strategies and tactics necessary to achieve them. Here are some key considerations to include in your sales and growth plan:

• Set sales goals: Start by setting specific and measurable sales goals for your kids clothing store. Consider factors such as revenue targets, average transaction value, and customer satisfaction metrics. These goals will serve as a benchmark for your sales performance and provide a clear direction for your growth plan.
• Identify growth opportunities: Conduct a thorough analysis of your market and target audience to identify potential areas for growth. This could include expanding your product offerings, targeting new customer segments, exploring online sales channels, or partnering with complementary businesses.
• Define sales strategies: Determine the most effective strategies to reach and engage your target customers. This may involve implementing online marketing tactics, leveraging social media platforms, hosting promotional events, or partnering with influencers or mommy bloggers to increase brand visibility and drive traffic to your store.
• Develop a customer retention plan: It is crucial to focus not only on acquiring new customers but also on retaining existing ones. Implement strategies such as loyalty programs, personalized marketing campaigns, and exceptional customer service to build customer loyalty and encourage repeat purchases.
• Establish a budget: Allocate a budget for sales and marketing activities to ensure you have the necessary resources to execute your growth plan. This will include expenses for advertising, promotions, events, and any other initiatives aimed at increasing sales and expanding your customer base.
• Regularly review and evaluate your sales and growth plan to track progress towards your goals and make adjustments as needed.
• Stay updated on industry trends and changes in consumer behavior to tailor your strategies and offerings accordingly.
• Continuously monitor your competitors to identify potential opportunities and stay ahead in the market.
• Seek feedback from your customers to gain insights into their preferences and expectations, allowing you to adapt and enhance your sales and growth plan.

By outlining a comprehensive sales and growth plan, you will be equipped with a roadmap to guide your kids clothing store towards long-term success. Remember to stay adaptable, monitor your progress, and continuously refine and optimize your strategies to stay ahead in the competitive market.

In conclusion, starting a kids clothing store requires careful planning and consideration. By following the 9-step checklist outlined above, you can ensure that your business plan is comprehensive and well-structured. Conducting market research, identifying your target market, assessing competition, and developing a unique selling proposition are all vital to the success of your store. Additionally, understanding your financials, creating a business model and operational plan, establishing a pricing strategy, and developing a marketing and advertising strategy are essential for long-term growth and profitability. With a comprehensive business plan in place, you can confidently move forward in opening and running a successful kids clothing store.

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How to Start Your Own Children's Wear Fashion Business

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Requirements to Open a Clothing Store

How to start your own medical scrubs clothing line, things to know when starting a fashion company.

• How to Start an Accessories Company
• How to Start a Clothes Brand

Starting a kids' clothing business can be an exciting venture for creative designers who want to have control over their designs and fill a space in the market. The process encompasses designing and establishing your demographic, sourcing manufacturers and creating a business plan.

Research the Kids' Clothing Business

The first step to establishing a kids' clothing business is to conduct extensive research. When starting a business, especially one that caters to children, there is much to consider. Parents are often more careful when shopping for their children than they are for themselves. According to the writers at Startup Fashion , you should focus your research on clothing safety, comfort and durability.

Children's clothing must be safe and not pose a hazard. Safety precautions must ensure the clothing is flame retardant, especially pajamas. Pajamas may need to have a close fit so that children don't get tangled as they sleep. Keep these things, as well as other safety precautions, in mind when considering materials and fit.

Comfort and durability are also essential to your research. While designers must consider these aspects regardless of the type of clothing, adult clothing tends to have a bit more wiggle room in these categories than children's clothing.

Create a Business and Marketing Plan

Before diving deep into your children's clothing business ideas, you must create a business plan. A well-thought-out business plan provides the structure necessary to get your business off the ground. This document is vital to running your business and will provide the overall backbone of your company. The more detailed it is, the easier time you may have navigating certain situations and predicting future hurdles.

According to the experts at Sewport , the business plan should include initial ideas about your clothing line and the products you will produce, the target demographic, competitor analysis and budget guidelines. You should also establish your marketing strategy, production and operations, and forecasted financials, such as manufacturing, distribution and operation costs.

It will help your company's long-term success if you consider your marketing strategy. Establish how you will reach your target demographic and the time and financial costs necessary to enact the strategy. Will you need to hire a social media manager or marketer? Will you need to pay for ad space? All of this should factor into your business plan.

Design and Find Resources

To design and sell baby clothes or children's clothes, you need to design with a target demographic in mind. Consider whether the clothes are casual or formal and the age demographic of the parents who will purchase the clothing. This demographic can influence not only your designs but your marketing strategy.

Keep your demographic and designs in mind when shopping for suppliers and companies to manufacture the clothing. You want to produce and mark up your clothing at a price that is profitable for your business and reasonable for your demographic.

You also need to find sources for the fabric for your designs and a manufacturer. Consider the comfort and feel of the fabric, in addition to breathability, ease of wear, washability, durability, color and pattern. Also, consider the cost of shipping the clothing from the manufacturer to you. Purchasing items in bulk may be more cost-effective, but it will likely leave you with an inventory. If you sell online, you also have to consider how shipping costs could affect your demographic's decision to purchase.

• Startup Fashion: How to Start a Kids Clothing Line
• Sewport: Ultimate Guide to Starting a Children's Clothing Line (in Just 5 Easy Steps)

Danielle Smyth is a writer and content marketer from upstate New York. She has been writing on business-related topics for nearly 10 years. She owns her own content marketing agency, Wordsmyth Creative Content Marketing, and she works with a number of small businesses to develop B2B content for their websites, social media accounts, and marketing materials. In addition to this content, she has written business-related articles for sites like Sweet Frivolity, Alliance Worldwide Investigative Group, Bloom Co and Spent.

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Sales & Marketing Plan for a Kid’s Clothing Store (Example)

• May 16, 2024
• Business Plan , Sales & Marketing Strategy

Establishing and operating a successful kid’s clothing store goes beyond offering a wide selection of quality apparel; it requires a strategic and well-rounded approach to marketing and sales. This guide will help you craft a tailored sales and marketing plan for the business plan of a kid’s clothing store.

We’ll begin with the importance of a thorough market analysis to understand competitors and customer needs. Next, we’ll focus on building your store’s brand identity and strategic market positioning.

Finally, we’ll explore diverse marketing channels to connect with potential customers and examine sales strategies for revenue enhancement.

Kid’s Clothing Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Market Analysis

A thorough market analysis forms the foundation of a successful sales and marketing plan for your kid’s clothing store.

Competitive Analysis

• Identify Competitors: Conduct extensive research on other kid’s clothing stores in your local and online market. Analyze their product range, pricing strategies , customer feedback, and marketing initiatives to discern strengths and weaknesses.
• SWOT Analysis : Perform a comprehensive SWOT analysis to identify your store’s Strengths, Weaknesses, Opportunities, and Threats in relation to competitors. Use this analysis to leverage your strengths and address weaknesses, thereby enhancing your store’s competitive edge.

Target Audience Profiling

• Demographics and Psychographics: Define the demographics, including the age, gender, income level, and location of your target customers , such as parents, guardians, or caregivers. Additionally, delve into psychographic details like interests, values, and lifestyle choices to understand their buying behavior.
• Customer Needs and Expectations: Identify what your target audience seeks in children’s clothing, whether it’s trendy designs, durable and comfortable fabrics, eco-friendly options, or affordable yet stylish choices.

Branding and Positioning

Establishing a robust brand and effectively positioning your kid’s clothing store is crucial to standing out in a crowded market.

Brand Identity Development

• Crafting Your Story: Develop a compelling brand narrative that resonates with families. Highlight the inspiration behind your store, your commitment to quality, ethical sourcing, or any unique aspects of your collection that set you apart.
• Visual Elements: Create a consistent and visually appealing brand identity, encompassing a distinctive logo, a cohesive color palette, and a store layout or design that reflects the essence of your brand and appeals to your target audience.

Market Positioning Strategy

• Define Your Unique Value Proposition (UVP): Clearly articulate what sets your kid’s clothing store apart. Whether it’s exclusive designs, sustainably sourced materials, personalized shopping experiences, or budget-friendly options, ensure this differentiation is communicated consistently across all marketing platforms.
• Positioning Statement: Craft a succinct statement that encapsulates your store’s mission, values, and the promise you offer to customers. This statement should guide all marketing and operational decisions to maintain brand consistency.

Marketing Channels

Utilize a blend of marketing channels to effectively reach your audience and build brand awareness for your kid’s clothing store.

Digital Marketing

• Social Media Engagement: Utilize platforms like Instagram, Facebook, and Pinterest to showcase your clothing range. Share engaging content such as styling tips, behind-the-scenes glimpses, and user-generated content. Collaborate with influencers or parent bloggers to widen your reach and engage with your audience authentically.
• Email Marketing Campaigns: Build an email subscriber list and send newsletters featuring new arrivals, promotions, and helpful parenting tips. Offer exclusive discounts or early access to sales for subscribers to encourage repeat visits.
• Website and SEO: Develop a user-friendly website showcasing your products with high-quality images, detailed descriptions, size guides, and customer reviews. Implement SEO strategies to improve your website’s visibility in online searches related to children’s clothing in your area or niche.

Local Advertising

• Community Engagement: Participate in local events, school fairs, or parenting workshops to connect with families in the community. Consider setting up pop-up stores or stalls to showcase your offerings and interact with potential customers.
• Collaborations: Forge partnerships with family-oriented businesses like toy stores, children’s activity centers, or parenting groups for cross-promotional opportunities and joint events.

Promotional Activities

Attract potential customers and encourage engagement with your kid’s clothing range through enticing offers and interactive experiences.

• Special Deals: Launch seasonal promotions like ‘Back-to-School Wardrobe Essentials’ or ‘Holiday Party Outfits’ to attract families during peak shopping periods. Offer bundled discounts on clothing sets or accessories.
• Loyalty Programs: Implement a tiered loyalty program where frequent buyers earn points for each purchase, redeemable for discounts or freebies. Provide exclusive benefits for top-tier members to incentivize increased spending and brand advocacy.
• Referral Incentives: Offer discounts or incentives to customers who refer friends or family to your store. Encourage word-of-mouth marketing by rewarding both the referrer and the new customer.

Sales Channels

Maximize sales opportunities by offering various channels while ensuring customer satisfaction and encouraging repeat business.

In-Store Experience

• Upselling Strategies: Train staff to provide personalized assistance and suggest complementary items or outfit combinations, enhancing the shopping experience for customers. Offer a loyalty program or exclusive discounts for in-store purchases to incentivize repeat visits.
• Exclusive In-Store Events: Host themed events or styling sessions within the store, allowing customers to engage with your brand in a memorable and interactive way. Collaborate with local child-centric organizations or parenting groups to host educational workshops or fun activities.

Online Sales

• E-Commerce Platform: Develop a robust and user-friendly online store that provides a seamless shopping experience. Offer flexible shipping and return policies to encourage online purchases. Implement live chat support or virtual assistants to aid customers during their shopping journey.
• Virtual Styling Consultations: Provide online consultations to assist parents in selecting the right clothing for their children. Offer personalized recommendations and styling tips based on individual preferences and needs, leading to increased customer satisfaction and sales.

Membership and Loyalty Programs

• Membership Benefits : Create exclusive membership options with perks such as early access to new collections, birthday rewards, or members-only sales. Offer tiered benefits, unlocking more rewards with increased spending, to foster long-term customer loyalty.
• Personalized Rewards: Implement a personalized rewards system where customers receive tailored offers based on their previous purchases or preferences. Send personalized emails or notifications showcasing items they might be interested in, encouraging repeat purchases.

Privacy Overview

Ultimate Guide to Starting a Children's Clothing Line (In Just 5 Easy Steps)

by Sewport Support Team  • May 18, 2024 • 7 min read

Table of contents

Determine the target audience, create a business plan, create your brand and designs, sourcing fabric, working with a clothing manufacturer, the next steps….

One sector that is flourishing in the fashion market is childrenswear. As consumers grow conscious of their garment choices, this is also making waves in how they dress children and babies. Research conducted by Euromonitor explained that the children clothing industry is booming. One of the reasons - celebrity tots such as Harper Beckham, Prince George and North West are boosting the status of fashionable kids garments across the globe.

The increase of teenagers and the Gen Z age group taking style into their own hands is also a prime niche for aspiring brands. Social media especially Instagram is creating an influential platform that children look up to, to buy the latest trends. So what does this mean for fashion companies?

The childrenswear niche is becoming a lucrative avenue for both large and small business. However, entering this market does have a slightly different approach. There are some extra considerations to make during the planning and production phases. Plus, looking at the target market is a significant factor in how well you could perform in this sector.

To help you start a clothing business in the childrenswear and baby clothing niche. Check out this handy guide to get your ideas in front of the right people.

This is by far one of the most critical aspects when starting a children’s clothing line. Although you are designing for small kids and babies, these are not the people handing over their hard-earned cash.

To determine the type of people you want to buy your clothing, you will need to drill down into the niche. Looking at aspects such as:

• cheap baby clothing
• designer children's clothing
• trend-led designs

Considering these things will help break them down further.

Each of the consumers in these niches has a very different attitude to buying clothing. Parents looking for affordable clothing aren’t too fussed about style. They want durable clothing that will last until the child grows out of it. However, people looking for designer clothing want the latest fashion and don’t worry too much about price.

It’s also not just about price either, as kids are becoming more fashion aware. Not only do you have to satisfy what mum or dad want to put them in. You have to consider whether the child will want to wear it too.

By looking at the detail behind each target audience, you can determine your place in the market. Many people that start children's clothing lines have real passion and experience in this sector. However, this experience doesn’t always come from a professional fashion industry background.

Several childrenswear entrepreneurs discovered a gap in the market, as their own needs were not met. This intuition has led to some of the best kiddies clothing lines in the market. So honing in on your own experiences is a great place to start.

image: creating childrens wear business plan

A business plan is the backbone of your brand creation. This essential strategy will help you get started with your ideas and guide you through the entire process. You don’t have to have grand plans at this stage either, as smaller ideas can be less overwhelming to get off the ground.

There are many things to include in your business plan including:

• Initial ideas and how your products meet customer needs
• Identify the target market
• Competitor analysis
• Budget guidelines
• Marketing strategy
• Production and operations
• Forecasted financials

Although the above information sounds a lot to think about before you start your clothing line. You will probably have a pretty good idea of what you want to achieve and how to get there. This document will just help detail these ideas and give you a realistic outlook on how to accomplish them.

Ultimately, your brand and the products you create will be your selling points. At this stage, it is essential to get your branding right to appeal to your potential customers. This step will also be heavily influenced by your target audience.

You will need to capture the right message that ensures consumers remember who you are and what’s makes you different from the rest. Much like the big clothing brands you see on the high street, you need to make an impact in a positive way.

Designs for your clothing are another vital aspect, as this is the basis of your product line. As mentioned above, this will feed straight from your target audience information. You will need to draw up sketches and digitised designs for production.

You can use CAD (computer-aided design) software such as Adobe Illustrator to assist the process. From this, you will need to get down to specifics with the creation of a tech pack.

A tech pack is an essential tool that fashion manufacturers use to produce your designs. It displays the specifications and provides accurate guidelines for your products. Everything from accurate measurements to fabric and seams is included here, to take your idea to the first fit stage.

If you don’t have experience in creating a tech pack. Check out our article - How To Make a Tech Pack for more information. You can also sign up to Sewport to use our free resources to make the process really easy.

Child-friendly fabric is vital when producing children’s and baby clothing. There isn’t a magic formula for this niche. However, it is essential to make clothing comfortable and durable for the age group.

Cotton is often used for children’s clothing due to its breathability and comfort levels. Other popular choices include cotton and polyester blends and fleece material for warmth.

Sourcing fabric for little ones should include the following considerations:

• Comfort and feel against the skin
• Breathability
• Ease of wear - i.e. stretchy fabrics
• Washability
• Durability for age group

Colour is also a significant factor. In current trends, separating boys and girls with pink and blue clothing is outdated. Ensuring you adapt your children’s line to fulfil an open-minded and creative product for consumers will help define your niche.

Choosing a clothing manufacturer

After you’ve completed the initial steps, taking your products to production is the next stage. Selecting a suitable clothing factory can be overwhelming. However, Sewport has made it super simple with our platform of reputable clothing manufacturers. If you’re stuck on where to look, we provide a helpful filter to hone in on the services you require.

The platform has many specialist factories and experts that provide both Full Package Production (FPP) and Cut, Make, Trim (CMT) manufacturing. For new brands just starting out, FPP is a great option. This type of production enables you to partner with a factory that helps with the whole process from start to finish. It’s great for those that have little experience of the full process. However, it can be more expensive than CMT manufacturing, which just involves the end production aspect.

To find out more about which option is best for your children’s clothing line. Take a look at Cut and sew manufacturers (CMT or full package (FPP) manufacturing - Choosing what’s right for you.

Communicating with your clothing manufacturer is an important element for getting the desired result. One area of this will come from the information displayed in your tech pack. The other comes down to understanding terminology and potential compromises in the process. A clothing factory will do its best to accommodate your requirements. However, you will need to do a little research to ensure you have some knowledge of the entire process.

Some key points to consider when talking to children’s clothing manufacturers is:

• Understanding minimums
• Getting samples to check the quality
• Discussing production timeframes
• Understanding basic terminology

For more information on the manufacturing process. Take a look at our article: A Guide To Working With Clothing Manufacturers.

Start selling your clothing line

Once you have your finished product, it’s now time to start selling. As part of your business plan, you will have some idea of the type of sales funnel you want to use. Setting up an online store with e-commerce platforms such as Shopify is a great way to reach people. With the right platform and marketing strategy, this could see your brand grow quickly.

Other options include targeting local sectors with a bricks and mortar shop. This is an excellent outlet if your target market are people that like to peruse what they are buying. Having an e-commerce shop will also complement this avenue. The costs involved in selling your products should also have formed part of the business plan. It is also good to bear in mind that showcasing your line at specialised trade shows can also help boost your identity in the market.

When you have everything up and running, it’s vital to look ahead to forecast business productivity and potential hurdles. You could also start planning further marketing efforts to expand. Or perhaps search for more competitive suppliers for future lines.

Take a look at some of the main areas to plan for the months and years ahead:

• Re-evaluating pricing
• Marketing strategies - what’s working and what’s not!
• Create deals and promotions
• Look at internal operations such as customer service and logistics to strengthen your brand
• Plan new children’s clothing lines for upcoming seasons

The childrenswear niche is an exciting and diverse niche in the fashion sector. By taking the above steps into consideration, you could start your dream business in this lucrative area.

About the author:

Sewport Support Team is the founder and CEO of Sewport - an online marketplace connecting brands and manufacturers, former founder of various clothing manufacturing services. He is passionate about e-commerce, marketing and production digitisation. Connect with Boris on LinkedIn .

The Role of Computer-aided Design (CAD) in the Tech Pack Template

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Family Clothing Business Plan

Start your own family clothing business plan

ReHabiliments

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

ReHabiliments, established as a Limited Liability Corporation, is a clothing and apparel business with principal offices located in Sandybar Harbour.  The company sells trendy clothing and apparel, such as casual and active wear, head gear, work-out gear, leather coats, and baseball jackets to an international market consisting of individuals of all ages, from all walks of life.  ReHabiliments markets its product line as “ReHab Your Wardrobe – ReHab Your World,” and commits a portion of the company’s sales revenues to programs that transform the lives of the less fortunate and abolish the exploitation of children forced into activities such as scavenging, rag-picking or marginal economic activities in the streets, drug trafficking, criminal activities, physical and sexual abuse, forced labor, debt bondage, and prostitution.

“ReHabiliments,” is the brainchild of L. Owerd Emlynes, the company’s founder.  While managing musical performance group, Mr. Emlynes developed the idea of promoting the group and increasing revenue by selling tee shirts and sweat shirts bearing the group’s name, logo, and slogan – “There is Strength in Harmony.”

After purchasing $500 in clothing (e.g., tee shirts and sweat shirts), Mr. Emlynes had the apparel designed and silk-screened and then negotiated with two clothing stores in the Sandybar Harbour area to carry the clothing.  In less than one week, both stores were sold out of the apparel.

Mr. Emlynes conceived the idea of carrying the music group’s marketing strategy one step further and developing an entire clothing line around the concept of “harmony.”  After brief negotiations with the group, it was mutually agreed that since Mr. Emlynes was the brainchild behind the idea, the clothing line known as “ReHabiliments,” and the company (e.g., ReHabiliments), would belong solely to Mr. Emlynes.

The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  When people are of one mind, they are supported in their purpose and are accepted despite their weaknesses.  By purchasing “ReHabiliments,” consumers make a conscientious decision to become an integral member of a community dedicated to the greater good of humanity.

Lately, Mr. Emlynes has explored the potential of the “ReHabiliments” concept, expanding the line to include a variety of apparel and, built upon personal marketing efforts and out-of-pocket funds, has sold over $6,000 in products to various venues such as the New York City Jacob Javits Convention Center; the “Black Expo” in Atlanta, GA; multicultural expositions at the Anaheim Convention Center, CA; at street fairs in Englewood, NJ; and through various online, e-commerce sales.

We are seeking funding to expand ReHabiliments’ operations, establish a reputable storefront, and to further develop the business, business infrastructure, internal systems, product and service development, and extensive marketing and geographic positioning.  Based upon conservative market growth projections, once start-up funding is secured, the company expects to generate very healthy sales revenues in Fiscal Years 1, 2 and 3.

1.1 Mission

ReHabiliments, (ReHabiliments) is a clothing and apparel business with principal offices located in Sandybar Harbour.  The company sells trendy clothing and apparel, such as casual and active wear, head gear, work-out gear, leather coats, and baseball jackets to an international market consisting of individuals of all ages, from all walks of life.  ReHabiliments markets its product line as, “ReHab Your Wardrobe-ReHab Your World,” and commits itself to programs that transform the lives of the less fortunate.

The company’s first responsibility is to the men, women, and children who use its products.  As a customer oriented business, ReHabiliments recognizes that customer satisfaction is the key to success and strives to deliver the highest quality customer service and superior products.  ReHabiliments supports the success of its employees, community, and investors, and will conduct its operations prudently to ensure adequate financing and resources necessary to achieve business objectives for future growth.  The company promotes a spirit of sharing and caring, where people eagerly contribute their time, knowledge, and experience towards a successful community.  As a socially responsible company, ReHabiliments contributes to the world’s obligation for the protection of the environment, contributes to the economic strength of society, and functions as a good corporate citizen on a local, regional, national, and global basis.

1.2 Objectives

ReHabiliments’ management recognizes that the company must establish concrete goals that assist management in determining whether or not the company is achieving corporate objectives.  ReHabiliments’ chance of implementing those goals depends upon management’s ability to track progress toward goals and to measure results in conjunction with those goals.  To ensure implementation of the company’s goals, management has established the following corporate objectives:

• Securing start-up funding and subsequent funding through a combination of investment and debt strategies.
• Establishing marketing and sales initiatives to expand the company’s clothing line and capture 10% of the branded urban apparel industry.
• Based upon market growth projections, generating very healthy sales revenues in Years 1, 2 and 3.
• Reinvesting corporate profits for market share growth in the international apparel industry.

1.3 Keys to Success

ReHabiliments recognizes that the idea of keys to success is based upon the need for focus.  To establish itself as a global leader, the company must display extraordinary competence and intelligent foresight.  By making the company’s keys to success the corporate vision, management can ensure the success of ReHabiliments.

To ensure the success of the company, management will:

• Become the industry leader in the branded urban apparel industry.
• Build a brand as “American” as Wrangler or Levis.
• Offer clothing suitable for sizes from toddler to 5XL.
• Establish and commit to “best practices” in all significant business processes, including ethical production practices (no child labor), through extensive training programs, tools, measurement, and sophisticated self-assessment reporting systems.
• Create, nurture, and enhance customer relationships through problem and opportunity awareness, assessment of desired goals and results, and through routines and communications that constantly reinforce target relationships.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

ReHabiliments, established as a Limited Liability Corporation, is a start-up clothing and apparel business with principal offices located in Sandybar Harbour.

ReHabiliments’ roots can be traced back to 1994, when Mr. Emlynes managed an up-and-coming, music performance group.  To promote the group and increase revenues, Mr. Emlynes developed a clothing line bearing the group’s name, logo, and slogan, “There is Strength in Harmony.”  While the group performed, T-shirts and sweat shirts were sold to the public.  In addition, Mr. Emlynes negotiated an agreement with two local clothing stores to carry this unique line of clothing, and within one week, $500 worth of T-shirts and sweat shirts were completely sold out in both stores.  Unfortunately, shortly after implementing this marketing strategy, Mr. Emlynes resigned his position as their manager; however, he continued to maintain a strong relationship with the group.

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The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  When people are of one mind, they are supported in their purpose and are accepted despite their weaknesses.  By purchasing “ReHabiliments,” consumers make a conscientious decision to become an integral member of a community dedicated to the greater good of humanity.

This principle has deep-seated meaning to Mr. Emlynes, who serves as a worldwide advocate for the weakest members of society – children.  He represents an ongoing mission to abolish the exploitation of children forced into activities such as scavenging, rag-picking or marginal economic activities in the streets, drug trafficking, criminal activities, physical and sexual abuse, forced labor, debt bondage, and prostitution.

In fighting this exploitation, Mr. Emlynes donates a portion of the company’s proceeds to programs that transform the lives of the less fortunate, such as “Feed the Children” and UNICEF.  Additional donations are given to other causes that support child education and the eradication of life-threatening diseases.  These donations foster social responsibility within the company and represent the company’s commitment to its vision of harmony.  In addition, ReHabiliments is committed to sourcing its original inventory (sweatshirts, T-shirts, pants, etc.) only from manufacturers who can demonstrate use of ethical production practices, with no child labor or forced labor. 

2.1 Company Ownership

ReHabiliments, is a privately held corporation that is solely owned by its founder, Mr. L. Owerd Emlynes.  The company was incorporated as a Limited Liability Corporation.

2.2 Start-up Summary

Total start-up expenses for ReHabiliments are estimated in the tables below.  To date, the majority of these expenses have been financed by direct owner investment; however, ReHabiliments is seeking to secure additional first round funding through a combination of investment and debt strategies that will cover the majority of the company’s start-up expenses.  In addition, the founder, Mr. Emlynes, is working with the Social Security Administration to qualify for the Plan for Achieving Self-Support (PASS) Program, which will provide the company with additional funding.

Most expenses are typical start-up expenses and include, but are not limited to, the following items:

• Legal (Business Incorporation Filing and Taxes)
• Business Planning/Development
• Consulting Fees
• Advertising/Marketing
• Research and Development
• Business Cards, Letterhead
• Telephone/Internet Expense
• Postage/Shipping
• Business Insurance (Initial Policy)
• Initial Rent
• Decorating/Remodeling/Repairing
• Office Equipment
• Office Setup/Vehicles
• Manufacturing/Distribution
• Reference Materials
• Business Travel
• Expensed Equipment

To date, Mr. Emlynes, the founder, has received $10,000 through grant monies (e.g., DVR), plus an additional $7,000 from other investors to assist with start-up expenses.  Total Capital and Liabilities after start-up costs amount to $580.

Assets to be purchased during start-up include:

Inventory:  $50,000

• Miscellaneous Apparel Accessories:  $900
• Embroidery Supplies/Assorted Threads:  $2,000)

Current Assets: $24,950

• Used, 1999 Chevrolet Step Van w/Shelves and Racks:  $15,000
• Two Garment Racks:  $200
• A Dell Computer System with Digitizing Software:  $2,500
• Three Power Spec, 1 Gigabit Computer Systems w/Software:  $4,000
• Telephone/FAX Machines:  $500
• Five Display Mannequins:  $1,250 (e.g., $250 each)
• Office Furniture:  $1,500

Long-term Assets: $34,485

• A Digital Embroidery Station (Model TEHVC-1501):  $22,000
• Five Industrial Sewing Machines (RX-9803A-UTC):  $5,000 (e.g., $1,000 each)
• An Industrial Steam Press (SP643-A):  $6,000
• A Mighty Press (MP#1):  $635
• A Mighty Cap Press (MCP#3):  $450
• Two Cash Registers:  $400 (e.g., $200 each)

2.3 Company Locations and Facilities

ReHabiliments is currently operating as a home-based business located in Sandybar Harbour.  Once the company acquires start-up funding, ReHabiliments’ headquarters will be moved to a facility capable of accommodating both administrative activities as well as apparel warehousing/inventory and production.  We have located three suitable sites in Sandybar Harbour, and will enter lease negotiations once start-up funding is confirmed.  Ideally, the corporate facility will be jointly inhabited by other tenants and/or small businesses, which will enable ReHabiliments to draw additional revenue from leasing.

ReHabiliments offers a full collection of apparel that is classy, upscale, and versatile.  This apparel line includes casual and active wear, headgear, workout gear, leather coats, and baseball jackets.  Clothing sizes range from toddler to 5XL (in most items).

ReHabiliments will start out by adding logos and branding to pre-made items selected from ethically-sound producers abroad, and gradually shift to producing more whole items in-house, using our team of designers. 

3.1 Product Description

Casual Wear

“Casual wear” is only one of the phrases used to describe the trend away from pin stripes and high heels.  Other terms include “business casual” (usually means the Dockers-khakis-polo shirt look), “business appropriate” (a step-up from casual), “business ready” (meaning that a “traditional” suit must be ready to wear at all times), “corporate casual,” “clearly casual,” “resort casual” (definitely not allowed in the office), “refined casual wear” (acceptable provided that you understand what it is), and, perhaps most appropriately, “casual confusion.” 

–CNet News.com, “Casual Wear:  Dressing for Success or For Stress?” June 10, 2000

ReHabiliments carries a variety of products to suit the needs of every individual, whether they are dressing for success or for an afternoon of leisure.  Some of the company’s products include:

• Jerseys (50/50 Weight Ultra Blend)
• Men’s Pullover, Long Sleeve, Small to 5XL:  $65.00
• Men’s/Women’s Pullover, Short Sleeve, Small to 5XL:  $55.00
• T-Shirts (100% Cotton)
• Men’s, Long Sleeve, Small to 5XL:  $60.00
• Men’s, Short Sleeve, Small to 5XL:  $35.00
• Women’s, Long Sleeve, Small to 5XL:  $30.00 (100% Ladies Cotton)
• Women’s, Short Sleeve, Small to 5XL:  $25.00 (100% Ladies Cotton)
• Denim Jackets (100% Cotton Denim)
• Men’s, Small to 5XL:  $65.00
• Women’s, Small to 5XL:  $60.00
• Denim Pants (100% Cotton Denim)
• Men’s/Women’s:  $50.00

In 2004, staying at home to relax will become an important lifestyle choice that will continue throughout the decade.  As dress becomes less formal and more casual most of the time, even at work, so does the desire for differentiation between leisure wear and casual wear.  Consumers will require clothes to “cocoon” in.  These clothes will be soft and comfortable, stretching and retaining shape.  Today, over 50% of consumers require comfort over other qualities in their clothing, as well as wear-easy care. 

Activewear/Sportswear

Athleisure lifestyle apparel, from yoga pants to terry track suits, is on the rise, and ReHabiliments offers a range of high-performance clothing for active sport, trekking, climbing, and travel that is suitable for the street, and practical for the gym.  The collection is characterized by modern, comfortable, high-tech fabrics and functional, ergonomic designs.  The company’s active wear products include:

• Sweatshirts (100% Cotton)
• Men’s/Women’s, Long Sleeve, Small to 5XL:  $70.00
• Men’s/Women’s, Short Sleeve, Small to 5XL:  $60.00
• Sweatsuits (Velour)
• Men’s/Women’s, Small to 5XL:  $100.00

Sports styling will continue to dictate many casual designs throughout 2004, although natural looks where the fabric makes the statement will also be important.  Sportswear and sports styling will continue to grip consumers who desire comfort in everyday wear, yet, as couch potatoes, hardly ever indulge in the activities for which the clothes were originally designed.  (Source:  “Fashion Trends 2004:  Part 1 – General Changes Affecting Textiles,” by Pauline Weston Thomas)

Workout Gear

The return of the Olympic Games will help maintain strong sports fashion influences in city wear for both sexes.  This will be more and more popular as the 2004 Olympic fever gains a grip on individuals globally.  Colorful fashion trainers, rather than traditional running trainers, will accommodate the massive shift in shoe buying habits.  Keyholes, zip inserts, and satin contrast strips and bindings will continue to feature in mass casual wear emphasizing the sporty feel.(Source: “Fashion Trends 2004:  Part 1 – General Changes Affecting Textiles,” by Pauline Weston Thomas)

ReHabiliments offers a line of workout gear that brings together a combination of high-end, high-tech, and unique fabrics with today’s hot fashion trends.  The company’s workout gear includes:

• Workout Tops (100% Spandex)
• Women’s, Small to 3XL:  $25.00
• Workout Bottoms (Coordinating) (100% Spandex)
• Women’s, Small to 3XL:  $35.00
• Socks (100% Cotton)
• Women’s, Fits Up to Shoe Size 15:  $15.00
• Jacket (Cotton/Polyester Blend)
• Women’s, Small to 3XL:  $45.00

Smart consumers are driving the performance fabrics of today.  They want products with more comfort, more durability, and more fashion, which in turn will make their lives easier.  In answer to the consumers’ needs, companies such as DuPont, Milliken & Co., and Mylstar, Inc.  are developing techniques that manage moisture better, so it dries faster; improving dye-techniques to enhance color-fastness; and designing garments that keep people warm without weighing them down.  (Source:  “Arresting Odor and Moisture,” by Michael Fickes, SportsEdge, December 2002)

Leather Garments

The leather motorcycle jacket is much more than a coat – it’s a mentality.  From the early twentieth century, airplanes, automobiles, and motorcycles redefined freedom, idealized speed, and captured the hearts of men and women alike.  The leather jackets developed to protect pilots, racers, and motorists from the elements came to symbolize a romantic sense of rugged adventure.  In particular, motorcycle jackets maintained this ideal for decades to come.  ReHabiliments carries on this American-made tradition of the classic, leather, motorcycle jacket.

• Motorcycle Jackets (100% Black Leather)
• Men’s/Women’s, Small to 4XL:  $300.00
• Leather Pants (100% Black Leather)
• Men’s/Women’s, Small to 4XL:  $175.00

Leather jackets are the most versatile and classic article of clothing the consumer can own.  They may be extremely stylish and popular, following fashion trends from year to year, but the truth is that they are never out of style.

Consumers can find leather jackets in various shapes and sizes or different lengths (e.g., such as trench coat, knee, three quarter, and hip), depending upon the consumer’s body type, height, style, and taste.  Even square-shaped, leather bomber jackets have made their return and continue to be popular.  All leather jackets are stylish.  (Source:  “The Look of Leather,” by Karin Eldor, AskMen.com)

Baseball Jackets

Ever since hip-hop innovators and style aviators Outkast appeared on MTV sporting old school Houston Astros jerseys with rainbow colors and 70s flavor, the rap world has seen a trend toward old school/vintage sports apparel.  Since then, others have been seen in videos “discovering” forgotten logos and athletes.  Retail stores’ shop windows of showcase styles that, by today’s standards, would be considered out of place for men playing on the field.  Vibrant colors and rainbow designs that were once the norm in the seventies and eighties have been replaced with more conservative color schemes, or with shades of gray and black.

ReHabiliments carries a line of new, satin baseball jackets that mimic those worn by teams of the past.  They are made of thick, lined satin with attention to the finest details.

• Baseball Jackets (Satin and 100% Cotton)
• Men’s/Women’s, Small to 5XL:  $75.00

The love affair with the retired logo is merely another trend in hip hop’s long evolution.  A sports symbol can symbolize far more than one might expect.  While wearing the traditional, current logo of a local team can still symbolize an artist’s claims of his/her roots, recent styles of sporting wear attest to more than locality, signifying pure fashion for fashion’s sake in an ever-changing culture.

During the summer, fedoras and mesh caps made of natural grasses found favor among both men and women.  Another common sight was unlikely combinations of feminine clothes and baseball caps, while, as an extension of the layered look, turbans were also a hit.  This fall has witnessed the renewed popularity of the rounded, visored berets known as “caskets” that have been a conspicuous presence since last year.  Hats and caps are coming out in a variety of materials, colors, and shapes, including woolen caps with designs knitted in and hats made of furry materials like angora.

As to why hats have become entrenched as a fashion accessory over the past few years, we believe that headwear offers the easiest means of self-expression in the context of a general trend for casual fashion.  Even a person dressed in a simple outfit like pants and a T-shirt can instantly express his or her personal style just by putting on a hat.

Hats are becoming as much an integral part of young people’s wardrobes as other fashion items, and ReHabiliments carries a variety of hats to suit everyone’s taste.  These include:

• Ski Hat (Wool)
• Men’s/Women’s, One-Size-Fits-All:  $15.00
• Beanie (Polyester/Cotton)
• Men’s/Women’s, One-Size-Fits-All:  $12.00
• Fitted Baseball Cap (Cotton)
• Men’s/Women’s, One-Size-Fits-All:  $25.00

Hats have always combined fashion with practicality, offering protection from both the summer sun and the winter cold.  Right now, hats are experiencing a boom in popularity that has made them an essential item regardless of the season.  More and more people are wearing hats of distinctive designs that, unlike the past hat booms, are not constrained by fashion trends.  Rather than famous brand boutiques, it is specialty shops stocking hats created by daring young designers that are the forefront of the current craze.

3.2 Sourcing

Few countries today have lower labor costs than major apparel manufacturers, such as Bangladesh or India; however, this low cost labor is obtained at the expense of children.  The U.S.  Department of Labor’s 1994 international child labor study, By the Sweat and Toil of Children (Volume I): The Use of Child Labor in U.S.  Manufactured and Mined Imports, catalogued existing information on child labor in the garment industries of Bangladesh, Brazil, China, Guatemala, India, Indonesia, Lesotho, Morocco, the Philippines, Portugal and Thailand.  While the report noted that more research was necessary to confirm the extent and working conditions of child workers, in some cases it stated that children were involved in the production of garments for export to the United States. 

With the exception of Bangladesh, where children regularly worked in large-scale, formal factories, the report found that children were more likely to work in small subcontracting shops or homework situations.  In some cases, children were found to work in locked shops, with armed guards preventing entrance and exit during work hours.  Children worked on tasks such as sewing buttons, cutting and trimming threads, folding, and moving and packing garments.  In small shops and homesites in the Philippines, children were also found embroidering and smocking (making pleats).  In some cases, children worked long hours sometimes six or seven days a week.  Some children received less than the minimum wage and were not paid for overtime work. 

The recent proliferation of codes of conduct can be attributed to several factors.  With media reports and exposés on child labor becoming more frequent, consumers – and therefore companies – are becoming increasingly concerned about the conditions under which the garments they purchase are made.  Companies’ adoptions of codes of conduct serve to ease consumer concerns – and their own – that they may be contributing to the exploitation of child labor.  Often companies adopt codes to project a positive image and protect their brand-name or quality reputation.  Some are motivated by good intentions; some by bottom-line considerations – many by both.

As a proponent for the rights of children, ReHabiliments is extremely sensitive to obtaining goods from manufacturers that use children as their main source of labor.  As a result, management thoroughly researches its suppliers and will continue to do so until such time as the company establishes its own U.S.-based manufacturing operation.  In addition, ReHabiliments operates on codes of conduct and model business principles that ensure the safety and welfare of children, demonstrating the company’s social responsibility.

ReHabiliments currently obtains its garments from three factories, as follows:

• T-Shirt Manufacturing

226, Gokule Street Ram Nagar, Coimbatore -641009 Tamil Nadu, India Phone:  91-422-5584843 FAX:  91-422-4378459

• Garment Labels

Mr. Supot Sanganunt, Managing Director Samchai Label Industrial Co., Ltd. Phone:  (662) 8978090-9 FAX:  (662) 8978100

• Miscellaneous Garments

Winsor Manufacturing Co., Ltd. No.  14, Shilan Road, Xinqiao, Panyu Guanzhou, China

Costs for clothing articles are as follows:

• Denim Pants:  $5.00 per garment
• Jackets:  $5.00 per garment
• Sweatsuits:  $7.00 per garment
• Hats:  $150 per hat
• Long Sleeve T-Shirts:  $1.50
• Short Sleeve T-Shirts:  $1.00 per shirt
• Jerseys:  $6.00 per jersey

Costs per garment vary depending upon the number of garments ordered at any given time.  Bulk shipments cost less than items ordered piecemeal.

3.3 Technology

As in other industries, technological advances, globalization, and changing business practices are affecting the apparel industry.  One significant change is the increased emphasis on quick response to customer demand.  This ability is vital in an industry that sells its products in an ever-changing, fashion-conscious market.  Quick response capability links apparel producers more closely to related firms in the textile and retail sectors of the economy.  Aided by communications technology, such as electronic data interchange, point of sale terminals, and bar codes, information is instantaneously communicated to and received from firms in these industries. 

Other technologies affecting the apparel industry include computerized equipment and material transport systems.  Computers and computer-controlled equipment aid in many functions, such as design, marking, and cutting.  Overhead conveyor systems transport material between sewing machine operators and between processes.  Despite these changes, however, the apparel industry – especially its sewing function – has remained significantly less automated than many other manufacturing industries. 

Computer aided design (CAD) is used to design anything from an aircraft to knitware.  Originally, CAD was used in designing high-precision machinery; however, in the 1970s, the technology made its entry into the textile and apparel industry.  Today, most companies abroad have integrated some form of CAD into their design and production process. 

According to the National Knitwear Association of the United States, of 228 apparel manufacturers:

• 65% use CAD to create colorways.
• 60% use CAD to create printed fabric design.
• 48% use CAD to create merchandising presentations.
• 41% use CAD to create knitwear designs.

The apparel industry traditionally has consisted of production workers who perform a specific function in an assembly line.  Increasingly, this organizational philosophy is being replaced by a team concept, in which garments are made by a group of sewing machine operators organized into production “modules.”  Each operator in a module is trained to perform nearly all of the functions required to assemble a garment.  Each team is responsible for its own performance, and individuals usually receive compensation based on the team’s performance.   These changes have greatly altered the atmosphere and responsibilities from those of the traditional assembly line. 

Fierce competition from abroad has prompted these changes in work structure and technology.  Apparel firms have also responded to growing competition by merging and employing workers in other countries to perform some production functions.  Workers in lower-wage countries are increasingly being hired to assemble garments—the most labor-intensive step in the production process—whereas U.S.  workers now perform a greater share of the pre-assembly functions and coordinate the process.  Such changes in the nature of the domestic apparel industry will certainly continue as globalization proceeds. 

(Source:  U.S.  Department of Commerce, August 2000)

3.4 Future Products

ReHabiliments’ long-range objectives include venturing into an apparel line for college graduates and professionals, with further opportunities in licensed and branded cologne and perfume, bedding, underwear, small leather goods, jewelry, and eyewear.  Beginning in Fall 2004, ReHabiliments will offer a line of clothing marketed as apparel to “Clothe Tomorrow’s Professionals.”

Market Analysis Summary how to do a market analysis for your business plan.">

The recent economic slowdown, combined with the tragic events of September 11, 2001, reduced consumer confidence, which led to declining sales in the apparel industry as a whole.  The impact of the economic slowdown is felt differently by various sub-sectors of the fashion industry, with some being more greatly affected than others, such as the men’s wear industry, in which the demand is more elastic than in the women’s wear industry.

In general, the apparel market is positive due to the immensity and strength of the industry.  However, manufacturers who want to enter the market, will have to be extra-prudent and prepared to make greater investments in promotions and resources to do observation visits, conduct preliminary market tests, and increase their visibility by taking part in trade shows and other activities.  Industry specialists strongly advise using specialized brokers to increase one’s chances of success.

4.1 Market Segmentation

ReHabiliments intends to target men, women, and children in the Tri-State Area who require competitively priced, branded clothing.  Within all groups, there are no color barriers and customers have diverse backgrounds.  Briefly stated, these consumers range between one year and 59 years of age.

According to the NPD, women spend about 80% of all money that goes for sportswear.  They control 96% of the dollars spent on their own clothes, 93% of those spent on children’s, and 60% of those spent for men’s sports apparel.

During 1999, the women’s consumer segment, a constant consumer group, dominated the U.S.  apparel sales market.  Women’s apparel sales growth was 3.7% and represented 52% of all apparel sales, whereas men’s apparel growth was 4.1% and accounted for 31% of total apparel sales.  Women tend to buy at a constant rate, whereas men’s apparel sales have been growing.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45 and older accounted for 25% of the market in 1999.  Girl’s and boy’s apparel rose 0.5% and 3.8%, respectively.

The Market Analysis table and chart, below, show potential customers in the Tri-State Area by gender and age groups, as well as potential Internet sales.

4.2 Target Market Segment Strategy

According to the Yale School of Management (November 6, 2002), larger branded apparel manufacturers with diversified product lines and self-owned outlets report revenue growth of between 2% and 9%.  Mass manufacturing and rapid creative copying of fashion catwalk designs means that many of us can afford innovative looks at high street prices without the couture price tag.  Age is no barrier to following a fashion trend or making a fashion statement, as 10 becomes the new 18 and 50 the new 35.  Consumers are craving new and different products, actively seeking new fashion-forward items on each shopping expedition.

Current opportunities in the Tri-State apparel industry include:

• Adult Apparel (Men/Women, Ages 20 to 49 Years)
• Sportswear (Men/Women, Ages 20 to 49; Boys/Girls, Ages 5 to 19)
• Junior Clothing (Boys/Girls, Ages 5 to 19)
• Children’s Wear (Infants/Toddlers, Ages 0 to 4 Years)

Adult Apparel

The production of adult apparel, particularly women’s clothing, occupies the largest sector of the apparel industry.  In 1990, over 1,000,000 workers were employed to produce an almost infinite variety of dresses, suits, coats, and sportswear.

Traditionally, the women’s apparel business has operated on a five-season basis:  fall line merchandise is usually offered to retail store buyers in April; holiday collections in June; early spring, resort, and cruise wear in October; spring and summer clothes in January; summer and early fall fashions in March and April.

Men’s clothing design and sales are in a state of upheaval.  In the past, manufacturers presented two new lines of classic clothing each year, changing fabrics for seasons.  Today, many firms produce highly styled clothes for department store boutiques and small specialty shops which cater to the fashion-conscious man.  Their problems with seasons, lines and style acceptance parallel those of women’s wear producers.

Other than children’s wear, the market for men’s clothing has grown faster than any other sales category in the industry.  The introduction of state of the art permanent-press fabrics probably initiated this sales increase, but the acceptance of casual fashion in men’s wear, spurred by the growing youth market, has been the main factor.

Although the larger firms are continuing to gain ground compared to smaller firms, and brand-name merchandise already has a large share of the market, the preference for major brands is not longer unanimous.  Retailers are now much more open to adding new product lines.  The current interest in personalized trends, which more closely reflect the consumer’s identity, provides an opening for small and lesser-known collections.

The “cheap chic” trend is also spurring consumers to expect more at a lower cost, seeing little difference in style from one brand to another.

Individuals under the age of 20 wear about 43% of sports apparel, but individuals aged 45 and older accounted for 25% of the market in 1999.  The widening age gap between youthful and not-so-youthful wearers represents a multitude of challenges in designing, marketing, and branding for sportswear manufacturers.

The growth of the sportswear industry is particularly marked among female consumers, who now see themselves as more athletic and have begin to wear these collections as street clothes.  Since women are more “outfit-oriented” than men when it comes to exercise clothing, they represent a target clientele for this industry.  The junior market segment is also of primary important in this industry, as sportswear is often tied in to fashion.

A product’s technical characteristics are also very important in this industry, competing with the “sport-fashion” factor in the final buying decision.  Technical consumers are much more consistent in their buying habits and provide stability during economic slow downs.  Technical fabrications, whether relating to textiles or processes (e.g., sneakers) are therefore popular.

Junior Clothing

The strong growth in demand in the junior clothing industry has, so far, been able to minimize the unfortunate effects of the economic slowdown, but heavy competition in the market makes retailers very conscious of fluctuations in demand.  Competition in the junior market segment has shot up in recent years, with a twofold increase in the number of junior clothing chains.

Popularity and brand visibility are very important factors in buying decisions made by this market segment; this reduces the maneuverability of small manufacturers who want to position themselves in the market.  It is crucial to follow trends because this segment follows fashion cycles closely.  It is possible to position one’s self with very up-to-date collections at lower prices than well-known collections; however, this means following the market closely and providing the resources necessary for product visibility.

Children’s Wear

Manufacturers of children’s clothing produce large lines from which the store buyer makes purchases three times a year to cover the main selling seasons of spring and summer, back-to-school and holidays.  Although children’s apparel is a basic family requirement, the fashion revolution is affecting even these styles.  Mothers (controlling 93% of all apparel dollars spent on children’s wear) want their children to have the latest “look.” Children’s wear manufacturers are becoming highly skilled at producing high fashion apparel.  Kid’s fashions have been one of the the fastest growing category of apparel.  To keep pace with this trend, manufacturers have adopted the production and sales techniques used in women’s apparel.  This has led to enormous numbers of children’s wear departments and specialty stores throughout the nation.

The children’s wear industry has grown considerably in recent years, but still remains a small market segment and can be difficult for small manufacturers to enter.  Since children’s wear trends increasingly mirror those of adult apparel, children’s collections must not only please children, but also be very similar to current trends in the adult market.  This calls for constant monitoring of the market and a high degree of flexibility and quick adaptation.  Major firms that market adult collections at the same time as children’s copies have a head start in this regard.  Price, nonetheless, remains a decisive factor in making purchases, given the speed at which children outgrow their clothes.  Manufacturers who are competitive in this regard and have the flexibility to adapt their products to fashion trends can find worthwhile niches.

4.2.1 Market Trends

The Marketplace & Consumer Shopping

Interest in apparel remains high even though there are a number of discouraging factors.  It is the number one choice of items for which to shop, beating out groceries in second place – 34% to 32%.

• In general, women 45 to 64 spend more on clothing per capita than any other group.  The 50+ market spends $26.6 billion a year on women’s apparel and $27 million per day on personal care products.
• The so-called beauty and fashion industry has traditionally focused on white America; however, the new “multi-cultural” math is leading experts to re-think based on these statistics:  35 million African-Americans spend $646 billion a year; 35 million Hispanic-Americans spend $581 billion; 10 million Asian-Americans spend $297 billion.  These individuals currently make up 35% of America.  By 2050, it is estimated that these individuals will make up 50% of America.  This audience is basically untapped when it comes to hair care, skin care, nail care, and cosmetics.
• By 2010, the teen population is expected to grow to 34 million; however, recent recession has put a strain on that spending pattern.  The industry is not sure whether teens are poorer than in previous years or if their parents are forcing them to spend on more practical items in line with the family budget.  Total teen spending in 2002 dropped 3.7% to $20.9 billion.  “Tween” shoppers spent $10.1 billion.
• More and more clothing purchases are planned rather than being impulse/spur-of-the-moment purchases.  A survey conducted in the spring of 2003 revealed that 60% of the respondents say purchases are planned.  This compares to 55% in 2002; in the mid-1990s it was at 53%.
• Shopping trips are getting shorter.  Women are said to spend 88 minutes today (2003) compared with 95 minutes in 2000.  The number of times to shop for clothing per month is holding steady at approximately 1.7 times per month.
• In response to increased competition from new market participants, retailers are exercising a variety of strategies, including downsizing and restructuring, changing their merchandise mix, adding services, and adapting the quick response system for controlling inventory management costs.
• The Internet has become another tremendous advantage to the industry.  With the Internet, consumers can get updated and almost instantaneous information.  The great e-commerce websites of many retailers are helping to ensure global business.  Internet sales are guiding retailers into just the right international and domestic cities in which to build stores, and allowing apparel companies to make their brands known internationally even before they have any physical presence in the international market.

Apparel Selection, Fashion, Personal Appearance, and Image

• Comfort continues to be a very important element when purchasing clothing.  Many consumers elect to wear casual apparel because it feels more comfortable.  In a 2002 survey, 51% of the respondents said they choose comfort over “better looking” clothing items for a night out on the town.  In 1994, 59% opted for the “better looking” clothing items.
• Women have a great deal of “casual” clothing in their wardrobes.  According to Cotton, Inc.’s Lifestyle Monitor, 56% say they own more casual clothing than work clothing, while 35% say the reverse.
• Accessories have gained fashion status during the past couple of years.  Consumers unwilling to purchase big-ticket items to update their wardrobes have seen and used accessories as an inexpensive way to achieve a new, updated appearance.
• Sixty percent of American women are full-figured (size 14 and above).  Expenditures on apparel by plus-sized consumers grew 8% from 1998 to 2001, while those by regular-sized women grew 3%.
• Many manufacturers and retail stores are leveraging their products by licensing their brands for accessories such as sunglasses, watches, fragrances, wallets, and footwear.  This strategy is increasing exposure for well-known brands and building consumer confidence in a specific brand.
• The challenge for many apparel retailers continues to be anticipating the coming trends and deciding how those trends will or won’t fit into the company’s image.  Companies in the apparel industry are becoming more tuned in to what their customers want and giving them what they want.

Textiles (Fibers, Fabrics, Finishes, etc.), Care, and Maintenance

• Stretch continues to be extremely big (1 to 5% Lycra® spandex added to many fabrics).
• Wrinkle-resistant garments are much improved thanks to recent technology; however, consumers must pay more for the product.  Lifestyle Monitor (Article 301) confirms that when given a choice, 53% of the women surveyed said they would pay $35 for 100% cotton wrinkle-resistant slacks versus $30 for a pair of cotton/polyester slacks (July 2003).
• Performance fabrics are not new, but continue to get better and more sophisticated.  New developments are emerging in moisture management and climate control.
• In fashion, novelty prints are on the rise.  Some specifics include abstracts, graffiti, photo prints and Asian-inspired looks.  Textures continue to be extremely good with such looks as crinkled suedes, stretch combinations, etc.  Embellishing will continue with embroidery, lace, and like items.

Apparel Production/Sewing

• The ready-to-wear apparel industry is suffering from cheaper imports and heavy discounting.  According to several experts, “there are too many stores and too much stuff, driving competitor’s use of lower prices as a primary weapon for growth.”  Although consumers benefit initially from this situation, retailers are facing the worst of both worlds – deflation on the revenue side, and inflation on the cost side.  Ultimately, the consumer is hurt when a trusted retailer must sell or go out of business.  Quality is frequently sacrificed in the end.
• A critical element for long-term success in the apparel industry is global expansion.  Companies have to be deliberate in international expansion and expand into countries where the greatest potential exists, as the international sector of the industry becomes more important.

Sources:  

“Apparel and Textile Trends,” compiled by Linda Heaton, Extension Professor Textiles & Clothing, Cooperative Extensive Service, University of Kentucky – College of Agriculture, November 2003

“Apparel Industry,” WowEssays.com

4.2.2 Market Growth

The apparel market, as a whole, has been suffering from a deflationary trend in prices as manufacturers move to independent contract manufacturing overseas.  Another reason for price weakness is the casual trend in clothing – casual is less expensive and generally lasts longer than dressier clothing.  These factors set retailers on something of a promotional spree. 

The U.S.  fashion industry had a modest 2% increase in apparel sales for 2000.  According to leading market information provider NPD Group, Inc., total apparel sales reached $182 billion last year, compared to $180 billion the previous year.  While still a small percentage of total apparel sales, online/Internet sales showed double-digit growth in 2000.

Across all channels of distribution, sales of women’s apparel outpaced total market growth, driven by strong sales in both the large size and petite markets. In contrast, men’s apparel, the industry winner in 1999, lagged in 2000, decreasing in both dollar volume and market share. The infants’ and toddlers’ business experienced record-breaking growth from 1999 to 2000.

In 2003, the market showed some signs of recovery, and at least a little evidence that dressier clothing is selling again. However, the long-term deflationary trend in clothing will continue to challenge the men’s outwear market.

In the challenging U.S.  retail environment, casual sportswear, one of the top categories of the past few years, has been steadily narrowing its appeal, not least for its lack of imagination in attracting youth. 

However, women and men over the age of 35 renewed their allegiance to sports and active lifestyles by buying up to 24% and 19% more, respectively, in 2002 than in the previous year, according to U.S.  analyst STS Market Research. 

Women’s casual sportswear in the U.S.  in 2002 registered a slight contraction compared to 2001, falling to US $38.8 billion from $39.6 billion, while men’s sportswear showed less dramatic growth than in past years, rising to US $26.8 billion. 

The most significant gains were made with consumers over 35 years of age, with men’s shopping at specialty stores up 6% to US $1.7 billion and purchases by women over 35 up 14%, to more than US $4.7 billion, compared to 2001. 

Junior’s Clothing

Marketers are competing to provide these age segments desired products.  Unfortunately, less of teens’ and tweens’ money is being spent on clothing than manufacturers and retailers would like.  From 2001 to 2002, teen and tween apparel purchases fell 3.7% and 4.6%, respectively. 

When looking at clothing purchase drivers for consumers aged 13 to 17, price is a highly ranking attribute for jeans purchases, with 40% of dollar share in 2002, up almost 10% versus 2001. 

The $28 billion children’s apparel market experienced continuous growth from 1998 to 2003, with the exception of the key 2001 holiday season, which was depressed due to the 9/11 terrorist attacks.  This performance stands in contrast to the overall clothing market, which has been noticeably weak in this period.  However, even within children’s clothing, sales of infant and toddler clothing have grown while those for older kids have declined.

There has been further change in the American consumer’s profile during 1998-2003, which began in the early 1990s: a majority of consumers shop at a small number of mass merchandise or national department stores, in which they expect to find a combination of trendy products and value prices.  Leading brand manufacturers are able to retain market share only through alliances with the increasingly dominant clothing retail stores, such as Wal-Mart, Target, Sears, and J.C.  Penney’s.  To follow the trend of consumer traffic, even premier brands in the children’s apparel market are approaching the discount channel, while specialty stores are competing by launching less expensive concept stores.  Yet, demonstrating that children’s clothing is a complex market with a large and distinct group of consumers outside the typical consumer profile, specialty clothing stores gained significant market share in 2001 to 2003.

4.2.3 Market Needs

Men (Age 20 to 49 Years)

• Branded Products:   Men are more up front about their desire for branded goods, while women are more subtle.  Men’s sportswear, for example, often carries enormous logos, while the logo on the expensive lipstick worn by many a woman remains at the bottom of the handbag, to be flashed only discreetly, in the powder room.

In a survey, “Brand New On Thursday,” conducted by Victoria and Albert Museum, nearly half of all male respondents claimed that, “you can learn a lot about a person from the brands they buy.”  In addition, when the research is broken down into 16 to 34-year-olds and those 35 or older, there is a marked difference in responses.  Among the younger age group, 35% admit that they are influenced by brand image, while only 13% of the over-35s claim susceptibility.

• Comfort/Easy-Care:   Men want comfort and easy-care apparel, and the sportswear world provides this through high-tech fabrics.  According to Bill Ghitis, president of global marketing for DuPont Textiles & Interiors (DTI), “Performance fabrics have been a niche for the athlete, but, based on our research, we believe that all men, particularly smart men, want much more out of their clothes.”

Many apparel brands, including proprietary retail brands, see performance as the future too, and they’re going forward with more apparel that’s comfortable and easy to care for.  This includes the older, wrinkle-resistant or wrinkle-free technology, along with newer technologies, such as stain resistance, stretch, moisture management, and UV protection.  (Source:  “Getting Technical” by Brenda Lloyd, DNR , August 2003)

Women (Age 20 to 49 Years)

• Comfort/Easy-Care:   Women avoid wrinkles on their skin, and they don’t want them on their clothes either.  While the Fountain of Youth may be elusive, in the ongoing quest for comfortable cotton clothing that won’t wrinkle, women (and men) are winning the battle.  Technological advances have ushered in a new generation of wrinkle-resistant, 100% cotton garments that deliver on comfort, style, and wear, while retaining a crisp appearance throughout the day.  (Source:  “A Pressing Matter,” in Lifestyle Monitor , Fall 2003)
• Apparel Sizing:   The discrepancy in the actual size of women who may all – accurately – claim to wear the “same” size is one of the many fit anomalies that is a reality today for the U.S.  clothing industry.  Little analysis of body shapes and sizes has been conducted since the 1940s for women, and since the Civil War for men.

This lack of research, along with a lack of sizing standards, added to the growing practice of vanity sizing – adding inches to clothing to make it appear that a woman wears a size smaller than she actually does – has created a disparity between the clothes available to the consumer and their actual body shapes and sizes.  (Source:  “A Fitting Solution,” by Terri Ross, Apparel , August 2003)

• Sportswear:   Until very recently, even if you got women into the stores looking for sporting goods and apparel, there was nothing for them to buy.  There is a definite void in the market for women’s related merchandise, such as feminine looking garments rather than unisex.

Female athletes and enthusiasts in a number of sports have complained about a lack of selection.  For example, Kate Gengo, a professional inline skater, finds apparel offerings for aggressive inline skating to be very slim.  “There is never any selection for women.  Cool clothes are available from small manufacturers.  Buyers aren’t putting it in their stores or defining their customer needs,” say Kate. Women are the primary sporting goods buyers, responsible for four-fifths of all athletic apparel purchases.  As clothing options for the female athlete become more targeted, women looking for athletic clothing and shoes will patronize those shopping environments that understand the apparel requirements specific to their sport.  The woman’s sportswear market raked in nearly $25 billion in 2000 and is expected to top $38 billion by 2005.  (Source:  “Girl Power Boosts Female Sportswear Industry to $25 Billion in 2000,” PR Newswire, New York, January 10, 2004)

• Senior Clothing:   Fitness-oriented boomers and Title IX generation athletes are teaming up to give women’s athletic apparel, a market estimated at $23 billion in 2000, strong growth potential within an otherwise flat sporting goods arena.

Mature consumers are increasing their spending on apparel, as baby boomers reach peak earnings levels and their household expenses decrease, with children beginning to support themselves.  Women aged 50 to 64 surpassed female teens between 13 and 18 as the largest spenders on casual sportswear in 2002.

Children (Boys/Girls, Age 5 to 19 Years)

• Fashion:   With fashion continuing to drive the children’s apparel market, industry players are attempting to work more quickly and efficiently to make sure they have the right looks on the floor at the right time.  According to Robert K.  Futterman, CEO of Robert K Futterman & Associates, “Junior’s clothing – young, urban, and hip fashion retailers – like Forever 21, Wet Seal, Arden B, and H&M are poised for growth.”

Children’s and parents’ ever-louder cries for kids’ apparel with looks that mirror juniors, young men’s, and even adult clothing is also inducing retailers to commit to pint-sized incarnations of older styles, without waiting to see how the latter fares with customers.  Tops with spaghetti straps and multicolored shimmering or sequined borders are gaining ground with girls.  Boys are gravitating toward athletic silhouettes:  brightly colored, printed camp shirts worn over muscle T-shirts, zip-off pants and shorts that extend several inches beyond the knee./FONT> Style is important to these young adults, but style comes in many different packages – cellular phones, cars, and vacation destinations are among them.  In addition, the teen and tween segments appear to find individuality appealing.

Infants/Toddlers (Boys/Girls, Age 0 to 4 Years)

• Ethnic Designs/Colors:   By 2005, at least 40% of the designs and colors seen on children’s clothing will be tailored to appeal to African Americans and Hispanics.  According to The U.S.  Market for Infant, Toddler, and Preschool Clothing, a newly published Packaged Facts report available at MarketResearch.com, children’s clothing companies have identified ethnic markets, and specifically African American and Hispanic segments of the population, as their most important audience.

According to Don Montuori, Acquisitions Editor for Packaged Facts, “Hispanics and African Americans are already making a vast percentage of children’s clothing purchases.  We have found that these ethnic demographics are more than twice as likely to purchase infant, toddler, and preschool clothing.  When you consider this finding in tandem with demographic growth trends of recent years, there can be little doubt that success in the kid’s clothing market rests upon a company’s ability to market effectively to a diverse population.”

4.3 Industry Analysis

The apparel and fabricated textile products industry is a mature, slow growing industry.  Intense competition characterizes this industry and drives its ever-changing structure and operations.  The market is highly fragmented, particularly in the Tri-State Area.  The complexity of this market calls for a high level of research and specialization prior to any attempt at market penetration.

The fashion industry in the Tri-State Area mainly looks to New York City, with its multiple opportunities, in particular the famous Garment District, an area of the city between 35th and 42nd Street and 5th and 9th Avenue.  This district is the main gathering point for buyers and designers in the United States and is beginning to rival the major international fashion capitals of Paris and Milan.  In addition, many firms place their head offices and/or buying offices in New York City.

The rest of the Tri-State Area follows fashion, but in longer cycles, and can serve as the springboard for manufacturers who don’t feel ready for the major challenge represented by the New York City market.

Overall, the U.S.  apparel industry is large, mature, and highly fragmented.  Apparel sold in the United States is produced both domestically and in foreign locations.  According to estimates from the American Apparel Manufacturers Association (AAMA), an industry trade group based in Arlington, Virginia, the dollar value of domestic apparel production was $39 billion at the wholesale level in 1997 (latest available), which was less than the $46 billion (U.S.  wholesale value) of goods imported into the United States.  In addition, $15 billion of goods were produced in both the United States and another country. 

In 1998, Americans purchased approximately $215 billion of apparel and footwear.  According to NPD Group, Inc., approximately $177 billion was spent on clothing in 1998.  The remaining $38 billion was used to purchase more than 1.1 billion pairs of shoes.  With the U.S.  population at 270 million, this accounts for roughly $800 a year per capita spent on apparel and footwear.

4.3.1 Distribution Patterns

In addition to the traditional channels, New York has a unique trade structure that enhances business opportunities.  In addition to having six to eight market weeks each year during which buyers can place their orders, several showroom representatives offer opportunities for placing orders throughout the year.  This market characteristic creates openings for designers who want to enter the market and want good visibility for their products.

In general, traditional distribution channels are followed.  The products are bought from distributors and/or direct from the manufacturers, who have little say in how products are marketed.  Since competition in the apparel industry is extremely intense, the use of a sales representative is strongly recommended to facilitate entry into the market.  Direct distribution in this market can require a very extensive investment of time and money with no assurance of positive results.

4.3.2 Competition and Buying Patterns

Competition in this industry currently turns on prices.  The first two quarters of 2001 were particularly difficult for U.S. textile manufacturers, leading them to shift to a push strategy.  After two years of rising prices, pressure from foreign competition, and shaky economic conditions, leading textile manufacturers are being forced to lower their prices.

In a broad view, the retail apparel industry competes with all other sectors in the retail industry.  These different sectors include electronic retailers, wholesalers, other discount stores, shoe stores, convenience stores, and others.  Many of these different sectors have combined together, and often, a company may operate in various divisions to increase profitability. 

1999 Data indicate that the largest retailers in the apparel industry were:

• Wal-Mart:  $166,809,000
• Sears, Roebuck, and company:  $41,071,000
• K-Mart company:  $35,925,000
• Target Corporation:  $33,702,000
• J.C.  Penny:  $32,510,000

The top retailers in the Apparel Stores category included:

• The Gap:  $11,635,398
• The Limited:  $9,723,334
• TJX:  $8,795,347
• Intimate Brands:  $4,510,836
• Spiegel/Eddie Bauer:  $3,210,225

Many experts point to changes in consumer attitudes as a driving force behind the restructuring that is occurring in the retail apparel industry.  Not only have consumers become more cautious in their buying habits, but they have been reducing the portion of disposable income that they spend on apparel.  In addition, consumers are increasingly demanding quality goods at low prices, which forces retailers to permanently sell merchandise at “sale” prices, with promotions occurring throughout the year.  Economists and sociologists have attributed increasingly volatile consumer demand to growing numbers of new products, the rise of fashion-consciousness for even the lowest-cost apparel, and more selling seasons.  (Source:  “Codes of Conduct in the U.S.  Apparel Industry,” U.S.  Department of Labor, Bureau of Internal Labor Affairs)

4.3.3 Main Competitors

Although the apparel industry is mature and slow growing, it exists in a dynamic and competitive environment.  Many companies are restructuring to create leaner organizations and adopt new technologies, with consolidation prevalent as larger companies gain leverage in market position and cost cutting measures.

ReHabiliments’ competition in the apparel industry is widely varied and comes from a variety of sources, including Tommy Hilfiger, Inc.; The Gap, Inc.; Abercrombie & Fitch; the Jones Apparel Group, Inc.; Polo Ralph Lauren Corp.; Liz Claiborne, Inc.; and Nautica Enterprises, Inc.  The closest competitor in terms of popularity, growth, and product line is the FUBU Corporation.

Tommy Hilfiger, Inc.  ( www.tommy.com )

Tommy Hilfiger Corporation, through its subsidiaries, designs, and sources, markets men’s and women’s sportswear, jeanswear, and children’s wear under the Tommy Hilfiger trademarks.  Through a range of strategic licensing arrangements (almost 40 product lines), the company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings.  The company’s products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, and other countries in the Far East, as well as the company’s own network of specialty and outlet stores in the United States, Canada, and Europe.

Tommy Hilfiger’s clothing company, TOM Inc., is among the leading exponents in the intensified process of mass customization over the last few years.  Beginning with a line of preppy looking, clean-cut, and conservative sportswear –  similar to that offered by The Gap, Inc., but somewhat more expensive – Hilfiger set out in the early 1990s to compete against department store staple lines like Ralph Lauren and Liz Claiborne, who were essentially Young Republican clothing.  In the course of only a few years, this basically khaki, crew and button-down WASP style, while remaining a constant theme in Hilfiger collections, has been submitted to variations which are intended to bring the product closer to Hip-Hop style – bolder colors, bigger and baggier styles, more hoods and cords, and more prominent logos and the Hilfiger name.  TOM’s corporate strategies have been ahead of those of many of its competitors and have always stressed the acceleration of product delivery, new forms of retailing partnership, innovative EDI usage for inventories and customer tracking, and speedy and timely introduction of new lines and redesigned goods, assuring consumers a wide range of product choices.  (Source:  “Tommy Hilfiger in the Age of Mass Customization,” in No Sweat by Paul Smith, edited by Andrew Ross)

For the nine months ended 12/31/03, Tommy Hilfiger’s net revenues fell 2% to $1.37 billion.  Net income before accounting change rose from $30.2 million to $105.3M.  Revenues reflect fewer Wholesale segment sales in the men’s, women’s, and children’s product categories.  Net income reflects the absence of $84.9 million in store closure-related special charges.

The Gap, Inc.  ( www.gap.com )

The Gap, Inc.  is a global specialty retailer operating stores selling casual apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic and Old Navy brands.  The company operates stores in the United States, Canada, the United Kingdom, France, Germany and Japan.  As of February 1, 2003, the company operated a total of 4,252 store concepts at 3,117 locations.  The company’s stores aim to offer a shopper-friendly environment with an assortment of casual apparel and accessories that emphasize style, quality and good value.  Gap stores are generally open seven days per week (where permitted by law) and most holidays.  All sales are tendered for cash, personal checks, debit cards or credit cards, including Gap, Banana Republic, and Old Navy private label credit cards, which are issued by a third party.  Gap designs virtually all of its products, which in turn are manufactured by independent sources, and sold under the company’s brands.

Since The Gap’s founding in 1969, the company has been built upon a culture of passion, creativity, energy, and entrepreneurial flexibility.  These characteristics have helped The Gap continually evolve, to learn from its challenges, and to make the changes necessary to create long-term, quality growth.  The Gap, Old Navy, and Banana Republic are three exceptional brands with strong emotional appeal.  These clothing lines provide customers with clothes and accessories that enhance personal style – clothes that are simple, sexy, and cool.  The power of these brands and the important place they hold in the everyday life of people around the world provide the company with tremendous opportunities to maximize this unique brand affinity.

For the fiscal year ended 1/31/04, The Gap’s net sales rose 10% to $15.85 billion.  Net income totaled $1.03 billion, up from $477.5 million.  Results reflect an increase in comparable store sales, improved merchandise margins and lower occupancy expenses.

Abercrombie & Fitch ( www.abercrombie.com )

Abercrombie & Fitch Co.  is a specialty retailer that operates stores selling casual apparel, personal care, and other accessories for men, women, and kids under the Abercrombie & Fitch, Abercrombie and Hollister Co.  brands.  As of February 1, 2003, the company operated 602 stores in the United States.  The company’s stores and point-of-sale marketing are designed to convey the principal elements and personality of each brand.  The store design, furniture, fixtures and music are all carefully planned and coordinated to create a shopping experience that is consistent with the Abercrombie & Fitch lifestyle.

The company has become the clothier of choice for the young and fashionable, and is no longer “your father’s Abercrombie & Fitch.” The music alone does as much to repel undesirables – say, anyone over 25 – as attract target customers.  Once a respected retailer, the company has attracted controversy with these objectives.  Issues of A&F Quarterly read like a cross between a catalog and hustler magazine.  Featuring nude models in suggestive poses, A&F Quarterly has carried reviews of erotic books and an interview with a porn star, complete with professional tips.  The catalog comes enclosed in shrink-wrap and stamped “XXX,” you must be 18 to buy a copy.  Recently, the company’s bottom line was hit hard by a nationwide boycott and bad press generated by the pornographic catalog, A&F Quarterly.

For the fiscal year ended 1/31/04, Abercrombie and Fitch’s net sales rose 7% to $1.71 billion.  Net income rose 5% to $205.1 million.  Revenues reflects the addition of new stores and continued increases in the women’s market.  Net income was partially offset by higher general, administrative and store operating expenses.

Jones Apparel Group, Inc.  ( www.jny.com )

Jones Apparel Group, Inc.  designs and markets branded apparel, footwear and accessories.  The company’s brands include Jones New York, Lauren by Ralph Lauren, Ralph by Ralph Lauren and Polo Jeans company licensed from Polo Ralph Lauren Corporation, Evan-Picone, Rena Rowan, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Todd Oldham, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Napier and Judith Jack.  Jones Apparel also markets costume jewelry under the Tommy Hilfiger brand licensed from Tommy Hilfiger Corporation and the Givenchy brand licensed from Givenchy Corporation, as well as footwear and accessories under the Espirit brand licensed from Esprit Europe, B.V.  Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer.  Jones Apparel operates four segments: wholesale better apparel, wholesale moderate apparel, wholesale footwear and accessories and retail.

Jones aims to gain stability in the apparel industry as well as retail markets through building “complete lifestyle brands serving a wide breadth of consumers in a wide range of income levels and shopping destination preferences.”  (Source:  PR Newswire, 2/7/01.)  The company has a multi-brand, multi-distribution business strategy.

For the fiscal year ending 12/31/03, Jones’ net sales rose 1% to $4.38 billion.  Net income before accounting change decreased 1% to $328.6 million.  Revenues reflect the acquisition of Gloria Vanderbilt which provided healthy sales.  Earnings were offset by a decrease in gross margin and a decrease in operating margin.

Polo Ralph Lauren Corp.  ( www.polo.com )

Polo Ralph Lauren Corporation designs, licenses, contracts for the manufacture of, markets and distributes men’s and women’s apparel, accessories, fragrances, skin care products and home furnishings.  The company’s sales are principally to major department and specialty stores located throughout the United States and Europe.  It also sells directly to consumers through full-price and outlet Polo Ralph Lauren and Club Monaco stores located throughout the United States, Canada, Europe and Asia.  Polo is also a party to licensing agreements, which grant the licensee exclusive rights to use its various trademarks in connection with the manufacture and sale of designated products in specified geographical areas.

The Polo Ralph Lauren company was established in 1967 with a line of men’s ties.  From the onset, founder Ralph Lauren believed in defying convention to bring about unique, yet timeless styles that decades later have become the company’s trademark.  What began with a tie 33 years ago has grown into an entire world and lifestyle that has redefined how American style and quality are perceived.  Polo Ralph Lauren has built an international mega brand by selling fashions and fragrances to the well heeled through department stores.

In 1999, the company acquired Toronto-based Club Monaco after learning that “something is considered in vogue when it reflects a prevailing social mood – these days, ‘corporate’ is definitely not cool.”  The acquisition of Club Monaco, a much smaller business, was the door to the younger consumers’ market and presented an effective way for the company to capture customers not normally attracted to the clean all-American look of the Ralph Lauren line, without alienating its loyal base of supporters.  The Club Monaco chain offers fashion basics with a European flair at prices well below name designer wear.

For the 39 weeks ending 12/27/03, Polo Ralph Lauren revenues rose 5% to $1.83 billion.  Net income decreased 7% to $94.4 million.  Revenues reflect an increase in retail net sales.  Net income was offset by higher S/G/A expenses due to increased selling salaries and related costs and higher restructuring charges.

Liz Claiborne, Inc.  ( www.lizclaiborne.com )

Liz Claiborne, Inc.  designs and markets an extensive range of branded women’s and men’s apparel, accessories and fragrance products appropriate to wearing occasions ranging from casual to dressy.  The company operates the Wholesale Apparel, Wholesale Non-Apparel and Retail business segments.  Wholesale Apparel consists of businesses that design, manufacture and market to the company’s wholesale customers women’s and men’s apparel.  Wholesale Non-Apparel designs, manufactures and markets accessories, cosmetics and jewelry products.  Retail consists of businesses that sell merchandise designed and manufactured by the Wholesale Apparel and Wholesale Non-Apparel segments to the public through company-operated specialty retail and outlet stores, and concession stores where its products are sold in third-party-owned locations.

The company, founded by Elizabeth Claiborne Ortenberg in 1976, designed and produced moderately priced sportswear for women.  The company’s aim was to provide clothes appropriate for either work or leisure, and Elizabeth’s designs were marked by cleanly sculptured silhouettes and splashes of color; these quickly supplanted the dark, tailored suits then popular.  In 1980, Claiborne was named the fashion industry’s first Entrepreneurial Woman of the Year.  A year later, her firm made a public stock offering, after which the company began to diversify, adding petite, dress, and shoe divisions.  In 1986, the company was listed among the Fortune 500 for the first time.

For the 40 weeks ended 10/4/03, Liz Claiborne net sales rose 18% to $3.21 billion.  Net income increased 19% to $206.6 million.  Revenues reflect the addition of stores and the acquisition of MEXX.  Net income also reflects an increased gross profit margin due to improved company-wide inventory management and improved product performance. 

Nautica Enterprises, Inc.  ( www.nautica.com ) ( www.vfc.com )

Nautica Enterprises sails the deep blue seas of men’s apparel.  The upscale clothier designs and markets sportswear, outerwear, and sleepwear for men, as well as jeans, and childrenswear.  Nautica also globally licenses products such as fragrances, watches, dinnerware, eyewear, rainwear, swimwear, and home furnishings.  The company’s brands include Nautica, Earl Jean (women’s denim), John Varvatos (men’s sportswear), and E.  Magrath and Byron Nelson (golf apparel).  Nautica sells through some 2,300 retailers in the US, 1,500 in-store shops, its flagship store in New York, a handful of direct retail stores, and over 100 of its own outlet stores.  On August 28, 2003, a merger between Nautica Enterprises, Inc.  and VF Corporation (NYSE: VFC) was completed.  As a result of the merger, Nautica is now a wholly-owned subsidiary of VF Corporation.

Since its founding, Nautica has taken pride in an authentic American heritage that draws people together.  The foundation for the connectedness is rooted in the company’s core values – classic, confident, adventurous, approachable.  Nautica, a modern American classic, offers quality, design and value while capturing the essence of an active, adventurous and spirited lifestyle.  Earl Jean offers uniquely styled women’s denim and apparel collections with particular appeal to fit-conscious, fashion-savvy teens and urban professionals.  The John Varvatos Collection of apparel and accessories for men reflects a modern attitude.  Combining the highest-quality European fabrications and design details, this collection redefines American style.

V.F.  Corporation, the parent corporation for Nautica Enterprises, Inc., through its operating subsidiaries, designs, manufactures and markets branded jeanswear, intimate apparel, occupational apparel, knitwear, outdoor apparel and equipment, children’s playwear and other apparel.  The consumer apparel segment includes jeanswear and related products, women’s intimate apparel and children’s apparel, all having similar characteristics of economic performance, product type, production process, method of distribution and class of customer.  The occupational apparel segment is distinguished from the other segments because of a different class of customer.  The outdoor apparel and equipment segment consists of the company’s outerwear and adventure apparel, plus daypacks and technical equipment, and is therefore distinguished from the other segments by type of products.  The all other segment consists primarily of the company’s licensed sports apparel and distributor knitwear operations.

For the fiscal year ended 1/3/04, Nautica’s sales rose 2% to $5.21 billion.  Net income from continued operations before accounting change rose 9% to $397.9 million.  Revenues reflect higher Outdoor Apparel and Equipment segment sales.  Earnings also reflect lower interest expense.

FUBU Corporation ( www.fubu.com )

FUBU took the fashion industry by storm when its label, specializing in urban gear, helped define the look of young America.  FUBU – “For Us, By Us” – is considered one of the hottest urban clothing lines in the fashion industry.  Its owners are neighborhood friends Daymond John, Carl Brown, J.  Alexander Martin and Keith Perrin.  The FUBU label was established in 1992 when John, the company’s CEO, began working out of his mother’s home in Queens to make tie-top hats embroidered with the FUBU logo.  John later recruited Brown, Martin and Perrin, took out a $100,000 mortgage on his mother’s house and moved his operation into the basement.  The partners gradually expanded their line to include hockey jerseys, T-shirts and baseball caps.  After finding it difficult to market their clothing through traditional advertising channels, the foursome succeeded in promoting its line by using celebrities and hip hop artists.

The company’s newest licensed lines include Platinum FUBU; FUBU Footwear for Ladies; Intimate Apparel & Activewear; Swimwear; Watches; the FUBU suit, shirt, and tie collection; and for those special occasions, the FUBU tuxedo.  FUBU has received several honors for their entrepreneurial achievements, including two Congressional Awards, two NAACP Awards, Pratt Institute Award, Christopher Wallace Award, Online Hip Hop Award, and a Citation of Honor from the Queens Borough President.

FUBU’s headquarters are now in New York’s Empire State Building, and the company has added womenswear, footwear, suits, and accessories.  The label is carried in more than 5,000 retail stores in 26 countries.  In 1999, FUBU reported an annual sales volume of $200 million from its menswear business and $150 million from its licenses.

4.3.4 Financial Risks and Contingencies

As with any start-up business, ReHabiliments is subject to certain risks, both known and unknown, including changes to general economic conditions, changes in the level of consumer spending on or preferences in apparel, the company’s ability to successfully implement various new supply chain and merchandising systems in a timely and cost effective manner, unseasonable weather trends, and greater than planned operating expenses.  Some of the more predominant risks include:

Style Piracy:   Because design and styling ideas are such important competitive weapons, they are often stolen.  Fashion piracy is so common that it is considered an integral part of the garment trade.  While trademarks and names can be registered, laws against style piracy are of little practical value.

Copying creative work is standard practice for some firms, especially the smaller and budget houses.  A style produced by many manufacturers and “knocked-off” at successively lower price levels is often referred to as a “ford.”  This term is often applied to runaway best-sellers as well.

To mitigate risk from style piracy, ReHabiliments will ensure that all of its designs are copyright protected.  To date, this is the best solution to design piracy because the application process is cheap and expeditious, and the copyright protects the creative works of fashion designers for a limited term under copyright law.  Due to the short life span of apparel designs, patent protection is neither available nor appropriate.

Market Risk:   Market risk is the risk of loss due to adverse changes in investment from market fluctuations directly related to ReHabiliments’ products, services, and market segments.  As the complexity of the business increases, risk management becomes increasingly important and difficult.  Market fluctuations could aversely affect the results of ReHabiliments’ operations and financial conditions.  To mitigate exposure to market risk, ReHabiliments will use various econometric and statistical analysis tools to monitor the movement of the market interest, perform analyses on the current trends, and forecast results.  In this manner, management can make the necessary adjustments in the asset and liability structure of the company.

Economic Stability Risk:   Changes in the economy will require that the company adjust its operations to account for financial and economical fluctuations.  ReHabiliments will pursue various business strategies, including horizontal integration and economies of scale, geared toward reducing economic risk.  To ensure continued profits during economic instability, the company will control the environment in which it operates by reducing uncertainty, minimizing expensive competition, and capturing a larger share of the market.

Operational Risk:   ReHabiliments, like all large companies is exposed to many types of operational risks, including the risk of fraud by employees or outsiders, unauthorized transactions, and errors relating to computer or telecommunications systems.  To mitigate operational risks, ReHabiliments will maintain a system of controls that is designed to keep operating risk at a minimum, such as limiting authority to conduct business activities to the appropriate functional departments/branches .

Supply Chain/Merchandising Risk:   Due to recent events, such as terrorist attacks and political instability in third world countries, supply chain risks have been introduced or heightened, with pressure to enhance productivity, eliminate waste, remove supply chain duplication, and drive for cost improvement.  To mitigate supply chain risk, management will construct and optimize “what if” scenarios about the company’s future.  These “what if” scenarios will serve as models by which ReHabiliments can refine and extend managerial intuition about major strategic decisions.  Statistical models and methods for developing long-term, supply chain forecasts will support these scenarios.

Early Stage Business:   As a start-up company, ReHabiliments has limited operating history beyond the industry experience gained by the founder.  To mitigate risks relating to inexperience, the company will leverage the experience of external advisors to provide support for management decisions, as well as industry expertise and day-to-day operations.

Brand Identity:   Since brands do not live in vaults without time or threat, brand risk is threatened by the loss of value due to a change in consumers’ perceptions of the company.  Establishing, building, strengthening, and maintaining ReHabiliments’ brand, regardless of product or service, is important to its ability to attract and retain customers.  Brand recognition is key to the success of ReHabiliments in local, regional, national, and international markets.  To mitigate the risk associated with brand, ReHabiliments will ensure that the company’s brand is clear, specific, and unique to its product and service offerings, and will build brand strength through leadership, stability, market, geography, trend, support, and protection.

Intellectual Property:   ReHabiliments’ copyrights, trade-marks, trade secrets, methodologies, practices, tools, and other intellectual property rights are critical to success.  The company relies on a combination of trademark and copyright laws, trade secret protection, nondisclosure agreements, and other contractual agreements with its employees, affiliates, clients, strategic partners, acquisition targets, and others.  ReHabiliments’ management will prudently monitor the company’s intellectual property and ensure that adequate measures are taken to protect intellectual property belonging to the company.

4.3.5 Industry Participants

The Apparel Industry is made up of small firms.  The average number of employees in an apparel business is 38, and two-thirds of all establishments employ fewer than 20 workers.  The average establishment size, however, varies considerable across product sectors.  With 109 employees, the average men’s wear establishment is more than three times the size of the average women’s wear establishment.  Establishment size had been growing until the early 1980s, when this trend reversed across all product categories.  Firms with fewer than 20 employees now account for less than 10% of the industry’s workforce, while 37% of the workforce is employed in establishments with 250 or more employees.  (Source:  “U.S.  Industry in 2000:  Studies in Competitive Performance (1999),” Peter Doeringer and Audrew Watson, Boston University)

The U.S.  apparel market can be divided into two tiers: national brands and other apparel.  National brands are produced by approximately 20 sizable companies and currently account for some 30% of all U.S.  wholesale apparel sales.  The second tier, accounting for 70% of all apparel distributed, comprises small brands and store (or private-label) goods.

Apparel is sold at a variety of retail outlets.  Based on data from NPD Group, discount stores, off-price retailers, and factory outlets accounted for 30% of 1998 apparel sales, while specialty stores and department stores accounted for 22% and 18%, respectively.  Another 17% were sold at major chains, and direct mail/catalogs accounted for 6%.  The remaining 7% of apparel sales occurred through other means of distribution. 

The major players in the apparel industry are the large manufacturers headquartered in the U.S.  There are also many local manufacturers that are much smaller and who usually specialize in a particular area of apparel.  Sports wear, active wear, and other related products are offered for sale at specialty outlets as well as in retail stores nationwide.  Such outlets are able to cut one-third off the garment price at a retail store.  Apparel is available to consumers through multiple avenues: e-commerce, retail stores, outlets, and wholesale through the manufacturer for mail order catalogues and smaller boutique style outlets.

Strategy and Implementation Summary

The company has developed a strategy that will ensure the long-term growth and success of ReHabiliments in the apparel industry.  This strategy will continue to evolve and initially includes:

• Focusing on target markets and aggressively marketing the full-range apparel collection as an alternative to existing clothing lines.
• Differentiating the company’s products through exclusiveness and brand awareness, thereby fulfilling the promise of “ReHab Your Wardrobe-ReHab Your World.”
• Developing partnerships with both industry leaders and competitors.  In this manner, the company can neutralize its competitors by treating them as allies.
• Building a relationship-oriented business that fosters long-term seller/customer relationships, not “single-transaction” deals.
• Fostering social responsibility within the company through commitment to programs that transform the lives of the less fortunate.  In support of this strategy, ReHabiliments donates 5% of all proceeds towards “Feed the Children” and other charities.

5.1 Competitive Edge

The debut of the FUBU Corporation in 1992 was based upon the a slogan, “For Us, By Us” (FUBU), that expressed the founder’s purpose of creating a line of popular clothing designed for African-Americans, by African-Americans.  At the time of FUBU’s inauguration, numerous clothiers were targeting black consumers for their urban wear; however, none of these companies was black-owned or operated.  The company’s earliest collection consisted of T-shirts, rugby shirts, hockey jerseys, and baseball caps, all embroidered with the FUBU logo.  By 1999, the company reported an annual sales volume of $200 million from its menswear business and $150 million from its licenses.  What had originally begun as a clothing line for African Americans had developed into a multi-cultural base of customers, all wearing FUBU’s clothing.

The underlying foundation of ReHabiliments, and its clothing line is based upon the principle of harmony – harmony of thought, harmony of purpose, and harmony in humility.  The company’s name, ReHabiliments, and its clothing line, ReHabiliments Apparel, are competitive advantages in themselves.  The name is not attached to any particular group of customers, which allows the company entry into different segments of the apparel industry.  Another competitive advantage stems from ReHabiliments’ partnership with the entertainment industry and the use of mainstream celebrities in advertising and promoting the company.

In a market where consumers are barraged by advertising and marketing campaigns delivering an onslaught of lifestyle and fashion messages, a brand name is a powerful weapon.  Established brand names, with a quality image, make the consumer’s shopping experience easier and faster.  For manufacturers, brands build consumer loyalty, which translates into repeat business.

5.2 Marketing Strategy

People want to think of themselves as belonging to a group that they admire or respect, and will dress as they think a member of that group would dress.  Although they may believe their object is to reflect their individuality, the differences they stress in choosing a clothing style are really between their own chosen group, and all others.

The “message” of clothing is therefore directed primarily to its wearer.  People associate the way they dress with the way they feel.  For many individuals, their choice of clothing may not be the most becoming outfit they could wear; however, they are expressing their membership in a class of other people with whom they feel a connection, expressing it to themselves and to whomever may be looking. 

ReHabiliments’ marketing strategy is based on the following:

• Product differentiation based upon “ReHab Your Wardrobe-ReHab Your World.”
• Building a relationship-oriented business.
• Fostering corporate social responsibility.
• Focusing on the diversified “communities” as the company’s target markets.

ReHabiliments’ brand and marketing message are not directly attached to any particular group of customers, but rather to a diversified community of consumers who believe in humanitarianism and equal opportunities and choices for everyone.  The company does not simply offer products that clothe the body, but rather products that clothe the soul – clothing that supports people, either directly or indirectly, through difficult situations.

The company’s primary marketing strategy is to establish itself as the “Apparel Company of the Future.” With management’s deep roots in humanitarianism coupled with a firm belief in harmony and honesty in business and advertising, ReHabiliments will greatly increase the marketability of its apparel line.

5.2.1 Pricing Strategy

ReHabiliments’ pricing strategy remains competitive with all other high quality apparel companies , but offers much more in terms of meeting the company’s mission and purpose for existing.  As a general rule of thumb, 50% of each garment’s cost is consumed in actual manufacturing, divided among labor and materials.  The other 50% is allocated overhead and shipping expenses.*  Average mark-up is 40% of cost.

Currently, all of the company’s products are on target in price, as compared to other similar branded apparel.  ReHabiliments with regularly monitor its operating expenses, delivery costs, cost of sales, trade discounts offered, damage allowance, hazards, and other variables to ensure that the company’s pricing strategy remains competitive with industry standards and expectations.

*Note: overhead includes non-payroll operating expenses as well as purchase and replacement of production equipment, included here as part of start-up assets.

5.2.2 Promotion Strategy

ReHabiliments’ brand is a competitive advantage in itself, as it is not directly attached to any particular group of customers and allows entry into different segments of the apparel industry.  In addition, the company has an established marketing strategy that relies upon celebrities, market specific advertising, product promotion, and “giveaways” that have established ReHabiliments’ presence in the apparel industry.

ReHabiliments will depend upon several promotion strategies to reach new customers.  These strategies include:

• Advertising – ReHabiliments will utilize industry-wide apparel magazines and newsletters as primary sources of advertising.
• Magazines/Newsletters:   Industry magazines and newsletters are considered to be effective advertising media because they consistently reach the company’s target markets.  Because magazines and newsletters are tangible media, they help advertisers relate intangibles, such as believability, quality, and prestige.  These types of media are non-intrusive, quiet, personal vehicles that usually have a long life.  Their primary audiences pass them along to secondary readers, so that their reach builds over long periods of time, making them a long-term investment.
• Direct Mail – ReHabiliments will explore the benefits of incremental, coordinated, direct mail campaigns which ensure that the company’s advertising is:
• Targetable:   When using direct mail, each customer is carefully selected.  This enables ReHabiliments to “speak” to the customer in their own language and about their individual needs.  In addition, the company can time its direct mail efforts to coincide with critical points in the customer’s buying cycle.
• Efficient:   Direct mail ensures that ReHabiliments knows that every dollar spent is being directed at people who are genuine prospects for the company’s services.
• Flexible:   Direct mail is capable of handling a variety of advertising or marketing tasks.  In addition to being able to sell directly, it is a medium that can deliver a sample right to the customer regardless of whether the sample is an actual product or a demonstration of a product.
• Measurable:   With a direct mail campaign, there is no guesswork when it comes to the results and virtually no waiting – when ReHabiliments has a winning product, management will know immediately!
• Accountable:   As responses pour in, the value of the direct mail campaign speaks for itself.
• E-Mail – ReHabiliments’ e-mail campaign will extend the company’s marketing reach and visibility with minimal resource allocation.  As ReHabiliments builds its customer database, it will gather e-mail addresses with opt-in permission to contact current customers and prospective customers via e-mail and other electronic means.  Many of the benefits of a direct e-mail advertising campaign include:
• Great Direct Response Vehicle:   If the customer is receiving the e-mail, the customer has already demonstrated his/her interest in the content they are receiving.
• Timely:   E-Mail is the perfect tool for targeting specific dates.
• Placement:   ReHabiliments’ advertising will have little competition.
• Media – ReHabiliments will initially develop a local media campaign, including radio and television, built around service innovation.  This campaign will begin with a “Who We Are” statement and be supported by other advertisements that reinforce the company’s marketing message to consumers of casual, active, and sports apparel.
• Radio:   One of radio’s greatest strengths is its ability to deliver a marketing message to a selective audience.  The media is portable, free, and very accessible – at least one radio exists in most American homes.  ReHabiliments’ radio campaigns include advertising with WMCA 570 and WWDJ 970, which are two of the largest radio stations.
• Television:   Nearly 31% of total TV households watch prime-time television (ABC/NBC/CBS affiliates), a share change of 38.8% since 1985-1986.  People spend more time with TV than with any other medium, which due to its sight and sound uniqueness, creates awareness, interest, and desire.  Executed properly, ReHabiliments’ TV campaign will lend prestige and glamor to the company’s marketing message.
• Cable Television:   Cable television service is available to 95% of all television households in the United States, and about two-thirds of all television households subscribe to it.  Most of those systems offer at least 30 channels (57% have between 30-53 channels and 13% have 54 of more channels).
• Trade Shows/Trade Fairs  – ReHabiliments will actively participate in industry and Chamber of Commerce trade shows to promote the company’s products.  By taking advantage of trade show participation, the company enhances its opportunities to learn, grow, and connect with potential clients and other businesses in the apparel industry.  Trade Shows/Fairs are a marketing tool for communication promoting dialogue between retailers and manufacturers and will allow the company to exploit its unique clothing line to a concentrated group of buyers.

5.2.3 Distribution Strategy

The primary distribution channel in the apparel industry is still the bricks and mortar store, augmented by catalogues and direct selling.  The incredible success realized by other industries in Internet e-commerce has not followed into apparel.  Existing limitations from product licensing and distribution agreements to fit and trial issues have stunted the growth of the industry in the Internet space.  The most successful players tend to be those with a ‘click and mortar’ strategy such as The Gap, or those companies with a strong background in catalogues and direct selling such as Lands’ End.  The fit and trial issues and difficulties with color and texture perception on computer monitors, however, continue to be issues that keep Internet sales relatively low compared to the total market for companies.  Another area to see some success is that of off-price and discount clearing houses like Bluefly.  This is an example of how the inefficiencies of the existing industry model for apparel has spawned a whole new category of retail both on-line and off-line in factory outlets and clearing houses. 

ReHabiliments has several potential methods of penetrating the Tri-State Area market.  They are, from least resource-intensive to most resource intensive:

• Sell directly to stores or contact buying offices to be placed on their lists.
• Present the company’s merchandise at trade shows or hire a sales representative.
• Open a store.

ReHabiliments will begin with options 1 and 2, above, and open a store when we have the available resources and growth to warrant it.  For now, the company plans to use a direct sales force, the entertainment industry, retailers, and the Internet to reach its target markets.  These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.

5.2.4 Positioning Statement

For men, women, and children seeking clothing with style, selection, differentiation, and “substance,” ReHabiliments offers a unique clothing line that is affordable, trendy, exclusive, and fashionable while meeting both the physical and emotional needs of the consumer.  Unlike ReHabiliments’ largest competitor, FUBU Corporation, the company offers affordable, trendy “ReHab Your Wardrobe-ReHab Your World” clothing that promotes the principle of harmony and dedicates a portion of the company’s clothing proceeds towards ongoing humanitarian efforts.

5.3 Sales Strategy

ReHabiliments’ sales team will be tasked with generating sales leads on a local, regional, and national basis.  They will also be responsible for establishing connections with other wholesaler and retail outlets.

A key factor in the success of ReHabiliments will be its distribution.  The company plans to use the following retail distribution channels:

• Supercenters, such as Wal-Mart
• Department Stores, such as Dillards and Foley’s
• Apparel Specialty Stores, such as The Gap
• Boutique Clothing Stores
• Internet Store

Consumers buy apparel from a variety of retail outlets.  In 1998, discount, off-price, and factory outlet stores accounted for 30% of apparel sales, specialty stores accounted for roughly 22%, department stores for 18%, and major chains for 17%, according to data from NPD Group Inc.  The remaining 13% was sold through mail order and other means.

Differences exist in the distribution mix for men’s, women’s, and children’s items.  For example, more women’s apparel is purchased in specialty and department stores than is the case for men’s apparel.  Men’s apparel is more prevalent in discount stores and general merchandise chains.  In the children’s segment, a considerably higher portion of apparel is purchased in discount stores.

Catalogues are another important method of distribution.  Consumers have less time to shop, and for some, catalogue shopping offers a more convenient and pleasant alternative.  In 1996 (latest available) an estimated 13.3 billion direct mail catalogs were printed in the United States – more than 50 for every man, woman, and child in the nation.  According to NPD Group, approximately 6% of apparel retail sales were through direct mail/catalogs in 1998, representing a 29% decline from 1997.

The distribution channel that has received the most attention recently is the Internet.  Although it now represents only a small portion of apparel sales, this distribution channel has the most potential for growth.  Consumers like the convenience of being able to shop from anywhere and at anytime they wish.  Manufacturers with websites use them for marketing and informational purposes.  With expected technological advances in hardware, software, and data pipelines in the future, shopping for apparel should gain popularity.

Currently, however, due to technological and infrastructure limitations, consumers are not fully satisfied with the speed, quality, security, and cost of Internet shopping.  Another hindrance to wider acceptance is the fact that consumers cannot see and touch the product.  Although some manufacturers have started to sell directly to consumers on the Internet, many of them are being cautious not to alienate their retail (brick-and-mortar) customers.  ReHabiliments expects these issues will be resolved eventually, which will make the Internet an important method of distribution in the future.

5.3.1 Sales Forecast

The following table shows our projected yearly Sales revenues.  Cost of Sales here represents only inventory purchases (including shipment of inventory from abroad); totals for labor, shipping, and overhead can be found in the Profit and Loss statement.

We anticipate moving a higher number of products through wholesale contracts with retailers, but the higher price we can charge with direct sales (Internet and, eventually, retail) means the revenue streams from these lines will be roughly equal.  We are forecasting 50% of sales values on a cash basis, and 50% as accounts receivable.

5.4 Strategic Alliances

ReHabiliments currently has strategic alliances with both Music Records and the Entertainment Group.  These alliances are critical to the company’s marketing strategy, as they provide the exposure for the company’s apparel line and associate ReHabiliments’ products with celebrities.  Celebrities are valuable strategic allies, as they receive free apparel for their participation in interviews, concerts, and music videos.

Current and potential product line representation and advertising contracts are as follows:

• Infinity Broadcasting
• WMCA 570 & 970 DJ
• Crystal Blue Media
• BulkWorks.com
• K’s Corporation, Japan
• Shop America Network, Inc.

In addition, ReHabiliments has a promotional collaboration with one of the hottest disc jockeys in America, “Degas VanGO.”  He travels throughout the world entertaining listeners, aged 13 to 40, on New York Radio 107.5 WBLC, FM.  Degas VanGO has his own radio show and is very well known.  He is well connected in the music industry, which is one of ReHabiliments’ primary target market areas, and has used his connections to forge a relationship between ReHabiliments and Virgin Records America, Inc.

Through our affiliation with Degas VanGO, Virgin Records has allowed ReHabiliments to use their famous logo on promotional items, such as leather jackets, hats, and T-shirts.  This affiliation sends a very powerful message to investors and customers alike.

ReHabiliments has the earning potential to become the fastest growing, most universally accepted clothing line since FUBU.  The partnership with Degas VanGO is the golden key to countless hundreds of thousands of dollars in sales, as well as a direct promotional channel.

5.5 Milestones

The following table lists important program milestones, with projected start and finish dates, the names of the individuals in charge of completing each milestone, and budgets for each milestone.  The milestone schedule indicates the company’s emphasis on planning and implementation of the business.

What the table doesn’t show is the commitment behind each milestone.  ReHabiliments’ business plan includes complete provisions for plan-versus-actual analysis, and the company will hold monthly follow-up meetings with key management to discuss any variances and to plan a course of action to resolve those variances.

Web Plan Summary

Clearly defining the goals and plans for ReHabiliments’ website are important steps toward the company’s success.  Implementing a web presence as part of the company’s active marketing plan is critical to the visibility of the company in its local, regional, national, and global markets, and allows the company to inexpensively advertise its products and promote sales to a variety of “virtual” customers. 

The company’s corporate objectives for its website are:

• To provide current and potential customers, public relations, and media entities with an efficient, secure, interactive means by which to communicate with ReHabiliments and obtain relevant information about the Company, its mission, and its products.
• To provide customers with efficient, user-friendly, automated processes that allow them to easily browse the company’s products and to place orders for products through the website, thereby effectively reducing administrative costs associated with mailing product information.

ReHabiliments foresees its Internet presence as a tool that will allow the company to effectively manage its customers and their buying patterns and to track and manage corporate activities as they relate to different market opportunities.  Through the company’s website, ReHabiliments will be able to swiftly respond to sudden shifts in demand, new market trends, and changes in customer needs and demands.

6.1 Website Marketing Strategy

It is not enough for ReHabiliments to build a website and then expect customers to flood to the company’s new online presence.  Since the Internet is growing exponentially, ReHabiliments’ direct competitors are also vying for pole positions in their respective markets and doing their utmost to advertise and promote their sites to the Internet’s global audience.

ReHabiliments’ business strategy will lead the way in determining the company’s online objectives for promotion and development of the website.  The Internet and the technology behind it will provide business opportunities to create customer services and develop promotional opportunities that would be impossible in the “physical world.”

The company will rely upon a combination of offline and online methods to promote its website.  Offline methods include:

• Business Cards
• Printed company Materials
• Local Newspapers
• Presentations
• Conferences/Events/Seminars
• Radio/Television/Press/Cinema
• Internet/Web Journals

Online marketing methods include:

• Usenet Groups
• Reciprocal Links
• E-Mail Signatures
• Search Engines
• Web Directories
• company Specific Domain Name
• Portal Sites
• Banner Advertising
• E-Mail Marketing
• Online Competitions
• Affiliate Partnerships

ReHabiliments will ensure that the company’s website carries masses of useful product and company information that is not only interesting, but informative.  This will contribute to the customer’s overall experience of the website, as well as internally promote other sections of the site through relevant links that are strategically placed on the page and allow customers to “chase up” information.  For example, if ReHabiliments provides a series of web pages that describe the company’s products in detail, at the bottom of each page will be included a standard set of useful, follow-through hyperlinks, such as:

• Place an order with us now!
• Need detailed product information?
• Want to contact a salesperson?
• Read customer reviews on our products!

By investing time, effort, and money to maximize ReHabiliments’ business presence on the Internet, management can ensure that the company’s website effectively promotes its products and positively contributes towards the success of the company.  Build it, market it, and they will come.

6.2 Development Requirements

Realizing that every business is different, with different e-commerce needs, ReHabiliments has opted to contract out its web development services to ensure that the company’s final website meets specific e-commerce needs.  Once completed, the website will include:

• A Web hosting account.
• A registered domain name
• A secure SSL Certificate that allows the browser to create an encrypted connection to ReHabiliments’ website and the shopping system.
• The shopping cart system.
• A merchant account that is tied to ReHabiliments’ checking account and allows the company to accept credit card payments.
• Terminal software that allows ReHabiliments to process credit cards.
• A payment gateway account that allows ReHabiliments to take credit cards using automated processing and approval with the shopping cart.

Final development costs for the entire e-commerce website will range between $5,000 and $8,000 for a fully enabled, e-commerce website.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

ReHabiliments’ management philosophy is based upon responsibility, mutual respect, and profitability, and the founder believes that the company’s present and future growth are based upon:

• Exceptional People
• Social Responsibility
• Uncompromising Commitment to Customer Service
• Commitment to Core Values

7.1 Management Team

Mr. L. Owerd Emlynes – Chief Executive Officer (CEO).  As the CEO, Mr. Emlynes will report to the Board of Directors and/or be assisted by a Board of Advisors.  He will have overall responsibility for all aspects of the company, including operations, marketing, strategy, financing, company culture, human resources, compliance regulations, sales, and public relations.  Mr.  Emlynes’s most important role is in setting the strategy and vision for ReHabiliments.  In addition, he will be responsible for steering the organization in budgets, partnerships, making final decisions on product/service lines, and industries.  Mr.  Emlynes has over thirteen years in the music and production industry in capacities ranging from bass guitarist musical director to choreographer and production manager.  In addition, he has extensive experience in fashion and design, working for Bonds Men’s Clothing Store for a number of years.  Although paralyzed from the chest down, L. Owerd is a motivational speaker, a professional racecar driver, a professional musician, an amateur body builder, a teen mentor, and an entrepreneur.

Ms. Ravel d’Eddge – Vice President of Business Development/Strategic Alliances.  The VP of Business Development/Strategic Alliances identifies, evaluates, and pursues the strategic and financial prospects of new market opportunities.  Ms. d’Eddge will direct the assessment of future markets and be responsible for coordinating commercial input to specific programs as necessary.  She will establish new strategic partnerships, joint ventures, and alliances, and follow through on all partnership activity, including the tracking, documenting, and status reporting of all collaboration along the business development pipeline.  Ms. d’Eddge will establish and implement appropriate development strategies, interact with existing corporate contacts, facilitate communication, track milestones, and identify opportunities for enhancing these relationships.  In addition, she will oversee the planning and execution of a comprehensive marketing strategy, including responsibility for the preparation of presentation and marketing materials for professional meetings, seminars, and conferences.  Ms. d’Eddge has a Master of Arts in Computer Resources and Information Management and a Master of Business Administration.  She has over eighteen years of experience in information management/technology and business, systems management and administration, business procedures documentation, business planning/development, and currently owns a business planning and development consulting business. 

Unfilled positions Other management positions have not yet been filled.  We are currently talent scouting, and will begin the hiring process in April, 2004.  All management positions will be filled by June 1st, 2004.

7.2 Management Team Gaps

ReHabiliments lacks “seasoned” professional management (e.g., what investors call the “gray haired factor”) with experience in the retail apparel industry.  The company will require a strong finance manager to closely guard cash flow to ensure potential partners and investors that ReHabiliments’ finances are strong and support future growth.  As the company matures, it will actively pursue adding more experienced individuals to the team that meet “gray haired factor” requirements.

Additional, senior level positions that are currently open and have yet to be filled include: 

Chief Financial Officer (CFO).  This position is currently open within ReHabiliments.  As the CFO, the potential candidate will be responsible for day-to-day operations, including development of guidelines, distribution of resources authority consistent with planning, continuous review, and evaluation of performance, as well company overview of commitments against available financial resources and established schedules.  He will direct the development of and implement changes to financial reporting and management systems that are subject to frequent and major modifications, as well as recommend financial policies and procedures.  This individual will provide professional consultation to management regarding financial matters and in the application of information technology to support the operation of various accounting, auditing, or budgeting reporting systems and requirements.  In addition, he will serve as the primary contact for investors and investor-related issues.

Vice President of Product Management (VP/PM).  This position is currently open within ReHabiliments.  As the VP/PM, the potential candidate will establish current and long range objectives, plans, and policies, subject to approval by the Board of Directors, to create a technical vision for ReHabiliments.  This individual will plan for implementation of new products and/or product lines, dispense advice, guidance, direction, and authorization to carry out major plans and procedures consistent with established policies.  He will work with product/service development, sales, and marketing to discern competitiveness of new products, review operating results of ReHabiliments, and compare them with established objectives, create technical budgets, allocate resources, and determine schedules.

Vice President of Marketing.  This position is currently open within ReHabiliments.  As the VP of Marketing, this individual will be responsible for developing and implementing marketing programs to drive sales and raise community awareness.  The person in this position will define, analyze, and implement print and media programs and monitor the results of such programs; mentor and train operations personnel on marketing terms, rationales, and strategies with emphasis on the operations role in effective marketing execution; and support new product/service rollouts with strong unit communications and public relations activities.  This individual will develop and implement new unit opening programs and grand re-openings, as well as be aware of new industry trends, economic factors, new marketing programs/strategies, and media tools.  The VP of Marketing will provide assistance with new sites, relations, and closings, as well as develop subordinates such as Marketing Supervisors/Assistants.  This individual will be a brand and position expert and manage both internal and external public relations.  In addition, he will possess relevant marketing emphasis and Internet experience including sponsorships, affiliate programs, search engine optimization, e-mail, and electronic newsletters.

Vice President of Sales.  This position is currently open within ReHabiliments.  As the VP of Sales, the potential candidate will be responsible for developing the company’s sales strategy, acquiring of customers, planning sales compensation, and building the sales organization and infrastructure to support the sales strategy.  This candidate must have experience executing the entire sales cycle, from generating prospects, to closing the sale, and must have the ability to sell strategically to key decision makers (CFO, CTO, CIO, VP IT) as well as tactically at the operational level.

Additional positions will be identified as necessary.  As necessary, ReHabiliments will rely on external advisors and consultants to provide support for management and financial decisions, as well as provide industry expertise for day-to-day operations.

7.3 Personnel Plan

The following table summarizes the company’s personnel expenditures for the first three years.  The company believes this plan is a compromise between fairness and expedience, and meets the commitment of the company’s mission statement.

Financial Plan investor-ready personnel plan .">

ReHabiliments’ Financial Plan has the potential of providing expansion of the business, paving the way for new investments or loans, or changing the way in which the company conducts business.

ReHabiliments’ financial objectives are:

• To secure financing from an SBA lender.
• To reinvest profits for market share growth in the restaurant industry.
• Based upon market growth projections, to generate very healthy sales revenues in Years 2005, 2006, and 2007.

Financial projections are based upon sales volume at the levels detailed in the sales forecast and represent, to the best of management’s knowledge and belief, the company’s expected assets, liabilities, capital, revenues, and expenses.  Furthermore, these projections reflect management’s judgment of the expected conditions and the company’s expected course of action, given the financial assumptions.

8.1 Key Financial Indicators

The following chart shows some key benchmarks for the business.  We anticipate gross margin remaining relatively steady, despite increasing sales, because of our commitment to secure raw materials from ethically sound producers.

8.2 Break-even Analysis

The company’s break-even analysis is based on the first year of operation, from April 1, 2004 through March 31, 2005.

ReHabiliments’ estimated fixed costs include, but are not limited to, the following items:

• Insurance (Vehicle and Business)
• Depreciation on Equipment
• Meetings/Dues
• Advertising/Business Promotion
• Office Supplies
• Miscellaneous Repairs
• Legal/Professional Fees

Average percent variable cost takes into consideration variable costs of inventory that will fluctuate with the products provided to the customer.

8.3 Projected Cash Flow

The Projected Cash Flow table represents ReHabiliments’ cash flow for the next four years (e.g., 2004, 2005, 2006, and 2007).  The related bar chart illustrates monthly cash flow in the first year, with one bar representing cash flow per month and the other representing the monthly balance.  Annual cash flow figures are included in the Projected Cash Flow table, with monthly cash flow projections included in the appendices.

8.4 Projected Profit and Loss

ReHabiliments is in its early stages of development.  Therefore, initial projections are based upon industry statistics, demographics in the Tri-State Area, and on the most important market segments believed to drive the income statement.  As the company matures and gains operational history, management will track planned versus actual financial figures.

The following table and associated charts illustrate ReHabiliments’ projected profit and loss.  Monthly projections are included in the appendices.

8.5 Important Assumptions

ReHabiliments’ main assumptions and projected forecasts are based upon similar products and on the operational history of its competitors.  Interest rates, tax rates, and personnel burden are based on conservative assumptions.

The more important underlying assumptions are:

• A strong economy, without major recession.
• That there are no unforeseen changes in the apparel industry that would make the company’s products immediately obsolete or uneconomical to produce.
• Access to equity capital and financing options sufficient to maintain the company’s financial plan as outlined in this Business Plan.
• That first round funding will be obtained through a combination of equity, debt, and investment strategies.

All assumptions made about the company’s market are supported by industry standards, relevant market research, market trends, surveys, and personal interviews.

8.6 Projected Balance Sheet

The Projected Balance Sheet shows healthy growth of ReHabiliments’ net worth and strong financial position.  Monthly projections are included in the appendices.

8.7 Business Ratios

Standard business ratios for ReHabiliments are included in the following table, along with ratios for the Women’s and Children’s Clothing Industry (SIC Code 5137) for comparison.  ReHabiliments differs from these industry standard ratios in a number of ways, since no industry code exactly matches our business type. 

These ratios show a plan for balanced, healthy growth.  One of the more important indicators is the increase in working capital, which is critical to the growth and financial health of the company.  Although there are significant differences between ReHabiliments’ ratios and the standard industry ratios, these differences reflect our mixed business type.  We manufacture, distribute (wholesale) and sell our products directly to consumers (retail).  Our asset structure, in particular, reflects that of a manufacturer rather than a retailer or distributor, since we need both inventory (raw materials) and production equipment. 

ReHabiliments’ competition in the apparel industry is widely varied.  Direct competitors are other established brand manufacturers, such as Tommy Hilfiger, Inc.; The Gap, Inc.; Abercrombie & Fitch; the Jones Apparel Group, Inc.; Polo Ralph Lauren Corp.; Liz Claiborne, Inc.; and Nautica Enterprises, Inc.  The closest competitor in terms of popularity, growth, and product line is the FUBU Corporation.

In such a climate, the best investment opportunities will be awarded to companies that have the ingenuity and creativity to meet the customers’ demands for fashion in an industry driven by economic conditions, demographic trends, and pricing.  The industry has moved from a “buy now, wear later” consumer to a “buy now, wear now” consumer.

The company’s management is confident that the ReHabiliments can achieve its aggressive sales forecasts, generating total sales of approximately $5.5 million $9.9 million and $10.6 million in years, 2005, 2006, and 2007, respectively.  In addition, ReHabiliments’ management has carefully considered its market, potential customer base, and its ability to grow its sales average to capture 10% of the branded urban apparel industry.

ReHabiliments has the potential to become a highly regarded resource in local, regional, national, and international markets.  Due to the company’s aggressive marketing strategy, establishment of the company as a “unique” entity in its industry, careful development of its products coupled with strategic partnerships with some of the industry’s retail clothing outlets, and the company’s profitable revenue model, ReHabiliments has the potential to provide lucrative returns to potential investors.

For ReHabiliments to achieve status as an industry leader, it must secure initial capital.  This capital will be used for start-up costs, to establish a reputable storefront, and to further develop the business, business infrastructure, internal systems, product development, and extensive marketing and geographic positioning.  Providing that the company is able to acquire its funding requirements, ReHabiliments should be able to achieve operational success for many years to come.

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Clothing Store Business Plan Template

Written by Dave Lavinsky

Clothing Store Business Plan

Over the past 20+ years, we have helped over 15,000 entrepreneurs and business owners create business plans to start and grow their clothing stores. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a clothing store business plan template step-by-step so you can create your plan today. It can be used to create a business plan for any type of clothing store- a women’s clothing boutique, men’s clothing store, family clothing store, children’s clothing store and more.

Download our Ultimate Clothing Store Business Plan Template here >

What Is a Clothing Store Business Plan?

A business plan provides a snapshot of your clothing store as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for your Clothing Store

If you’re looking to start a clothing store business or grow your existing clothing store you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your clothing store in order to improve your chances of success. Your clothing store business plan is a living document that should be updated annually as your company grows and changes.

Funding for Clothing Store Businesses

With regards to funding, the main sources of funding for a clothing store are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a clothing store is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Clothing Store Business Plan Template and complete your plan and financial model in hours.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of clothing store you are operating and the status; for example, are you a startup, do you have a clothing store business that you would like to grow, or are you operating a chain of clothing stores.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the clothing store industry. Discuss the type of clothing store store you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of clothing store business you are operating.

For example, you might operate a clothing store focused on:

• High-End Fashion
• Sports/Athletic Clothing
• Kids Clothing
• Wedding Dresses
• Hip Hop Clothing

In addition to explaining the type of clothing store business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the clothing store business. While this may seem unnecessary, it serves multiple purposes.

First, researching the clothing store industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards local clothing store businesses with online counterparts, it would be helpful to ensure your plan calls for a significant online presence.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your clothing store business plan:

• How big is the clothing store business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in your local market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your clothing store. You can extrapolate such a figure by assessing the size of your niche’s market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your clothing store business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of clothing store business you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most clothing store businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other clothing store businesses. They are most likely local businesses who sell similar items to you.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. You most likely will have online competitors; companies that sell the same or similar items to you, but which operate online.

For each direct competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. Look at review websites to gain this information.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products or services?
• Will you provide products that your competitors don’t?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a clothing store business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of clothing store you documented in your Company Analysis. Then, detail the specific products you will be offering.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your clothing store business. Document your location and mention how the location will impact your success. For example, is your clothing store business located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate kiosks, detail the locations where the kiosks will be placed.

Promotions : the final part of your clothing store business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your storefront extra appealing to attract passing customers
• Social media marketing
• Search engine optimization
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your clothing store business such as serving customers, procuring inventory, keeping the clothing store clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your clothing store business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the clothing store business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in clothing store businesses and/or successfully running clothing store and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $200,000 on building out your clothing store business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, you may need to purchase inventories now that you can’t sell (and get paid for) for several months. During those months, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a clothing store business:

• Location build-out including design fees, construction, etc.
• Cost of fixtures
• Cost of initial inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your clothing store’s design blueprint or location lease.

  Summary Putting together a business plan for your clothing store business is a worthwhile endeavor. If you follow the sample template above, by the time you are done, you will truly be an expert. You will really understand the clothing store business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful clothing store store.

Clothing Store Business Plan PDF

You can download our clothing store business plan PDF here. This is a business plan template you can use in PDF format.

Clothing Store Business Plan FAQs

What is the easiest way to complete my clothing store business plan.

Growthink's Ultimate Clothing Store Business Plan Template allows you to quickly and easily complete your Clothing Store Business Plan.

Where Can I Download a Free Clothing Store Business Plan PDF?

You can download our clothing store business plan PDF template here . This is a business plan template you can use in PDF format.

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Click here to see how our professional business plan writers can create your business plan for you.   Other Helpful Business Plan Articles & Templates

Baby Clothing Business Plan Template & Guidebook

The plan for your business is the roadmap your business will follow to reach success. You can use a baby clothing business plan template to plan a path that leads you step by step through the process. Remember that this is not just an investment in your future; it's an investment in your present as well.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Baby Clothing Business [11 Steps]
• 25 Catchy Baby Clothing Business Names:
• List of the Best Marketing Ideas For Your Baby Clothing Business:

How to Write a Baby Clothing Business Plan in 7 Steps:

1. describe the purpose of your baby clothing business..

The first step to writing your business plan is to describe the purpose of your baby clothing business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a baby clothing business:

At Baby Chic, our mission is to provide our customers with a wide selection of high-quality, stylish, and comfortable baby clothing at affordable prices. We strive to offer the latest trends and designs, as well as classic and timeless styles, and to use only the finest materials and manufacturing techniques. We are committed to providing exceptional customer service, and to helping our customers find the perfect outfits for their little ones. We aim to be the premier destination for baby clothing, and to help our customers dress their babies in style.

2. Products & Services Offered by Your Baby Clothing Business.

The next step is to outline your products and services for your baby clothing business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your baby clothing business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your baby clothing business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your baby clothing business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a baby clothing business?

To start a Baby Clothing business, you will need the following equipment and supplies:

• A selection of baby clothing in various styles, colors, and sizes
• A display rack or other means of displaying the clothing
• A cash register or other means of processing payments
• A website or online store, if you plan to sell baby clothing online

You will also need to obtain the necessary permits and licenses to operate your business. This may include a business license and any other permits required by your city or state. It's important to research the specific requirements in your area before starting your business.

Additionally, if you plan to make the baby clothing yourself, you will need additional equipment and supplies, such as fabric, sewing machines, and other tools. You may also need to obtain certification in fashion design or sewing, if required in your area.

5. Management & Organization of Your Baby Clothing Business.

The second part of your baby clothing business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your baby clothing business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Baby Clothing Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a baby clothing business varies based on many different variables, but below are a few different types of startup costs for a baby clothing business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your baby clothing business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your baby clothing business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your baby clothing business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Baby Clothing Business Plans:

Why do you need a business plan for a baby clothing business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your baby clothing business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your baby clothing business?)

To build a business plan for your baby clothing business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written baby clothing business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a baby clothing business plan yourself?

Yes, you can write a baby clothing business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Kidswear Business Ideas: 10 Profitable Baby Clothing Business in 2024

Planning to dive into the world of fashion for kids? Want to explore the most trending and profitable ideas in the kidswear industry? Curious about how to make your mark in this lucrative market?

The answer is right here!…

You need to discover the best profitable kidswear business ideas that can set you apart from the competition and make your brand a household name.

But before you embark on this exciting journey, would you like to understand why kidswear is such a booming industry and how you can capitalize on it?

You’re eager to know, aren’t you? Dive in and uncover the secrets of succeeding in the kidswear business.

Kidswear Business: Is it Profitable?

Starting a kidswear business can be a profitable venture, as the children’s clothing market is a thriving industry. Parents are constantly in search of stylish and affordable clothing options for their children, making it a lucrative market to tap into. Additionally, children quickly outgrow their clothes, creating a constant demand for new clothing items.

According to a report by Statista,The global children’s apparel market is indeed experiencing significant growth. According to a report by Statista, the revenue in the Children’s Apparel segment amounts to US$267.50 billion in 2023 .

The market is expected to grow annually by 2.46% (CAGR 2023-2027) , resulting in a market volume of US$294.80 billion in 2027 . This indeed indicates a substantial growth opportunity for entrepreneurs in the kidswear industry.

Why Start a Kidswear Business?

• Growing Market: The children’s clothing market is continuously expanding, driven by factors such as population growth, increasing disposable income, and changing fashion trends. This provides ample opportunities for entrepreneurs to establish successful kidswear brands.
• Low Entry Barriers : Unlike other industries, you don’t need a massive investment to start. With a solid business plan and a dash of creativity, you’re good to go.
• Repeat Customers: Children outgrow their clothes quickly, leading to frequent purchases. By offering quality and trendy clothing options, you can build a loyal customer base that keeps coming back to your brand for their children’s clothing needs.
• High Profit Margins: Kidswear has high-profit margins, as the cost of production is relatively low compared to adult clothing.
• Niche Target Audience: The kidswear market allows you to target a specific audience segment, namely parents and caregivers. This focus enables you to tailor your products and marketing efforts to meet the unique needs and preferences of this customer base.
• Brand Loyalty: Parents tend to be loyal to brands that provide quality and comfortable clothing for their children.
• Online Business Opportunities : E-commerce is the future, folks. You can easily set up an online store and reach a global audience.

How to Start a Successful Kidswear Brand

Starting a successful kidswear brand requires careful planning and execution. Here are some essential steps to consider:

• Research and Identify Your Target Market : Understand the preferences, needs, and purchasing behavior of your target audience. This will help you develop products that resonate with parents and caregivers.
• Create a Unique Brand : Differentiate your kidswear brand by developing a unique brand identity, including a memorable brand name, logo, and brand story. Consider the values and image you want to convey through your brand to attract customers.
• Design and Source Products : Develop a range of trendy and age-appropriate clothing items for children. Focus on quality, comfort, and durability. Consider working with manufacturers or suppliers who specialize in children’s clothing.
• Set Up an Online Store : Establish an online presence by creating an e-commerce website for your kidswear brand. Ensure that your website is user-friendly, visually appealing, and optimized for mobile devices.
• Build an Engaged Online Community : Utilize social media platforms like Instagram, Facebook, and Pinterest to showcase your products, engage with potential customers, and build a community around your brand. Share captivating content, including lifestyle images, outfit inspirations, and customer testimonials.
• Market and Promote Your Brand : Implement a comprehensive marketing strategy to increase brand awareness and attract customers. Consider utilizing influencer collaborations, targeted online advertising, email marketing, and search engine optimization (SEO) techniques to reach your target audience effectively.
• Provide Excellent Customer Service : Focus on delivering exceptional customer service to build trust and loyalty. Respond promptly to customer inquiries, offer hassle-free returns, and provide personalized shopping experiences.
• Monitor Trends and Stay Relevant : Stay updated with the latest kidswear trends, fashion preferences, and industry developments. Continuously innovate your product range and marketing strategies to remain competitive in the market.

By following these steps and consistently delivering high-quality products and excellent customer service, you can increase the chances of starting a successful kidswear brand.

Note : Starting any business involves risks, and success depends on various factors such as market conditions, competition, and effective execution of business strategies. It is essential to conduct thorough market research and seek professional advice before venturing into the kidswear industry or any other business.

10 Best Potential Baby & Kidswear Business Ideas in 2024

1. Organic Baby Clothing Line

In today’s eco-conscious world, an organic baby clothing line is more than a trend; it’s a necessity. Parents are increasingly seeking out organic options to ensure their kids are not exposed to harmful chemicals. This business idea not only taps into a growing market but also aligns with sustainable practices. You can source organic cotton and other natural fibers to create a line that stands for both quality and responsibility.

Why It’s Profitable : High demand for eco-friendly products and the ability to charge premium prices.

How to Start : Source organic fabrics, collaborate with eco-friendly suppliers, and get the necessary certifications to prove your organic status.

2. Personalized Baby Apparel

Personalization is a powerful tool in any business, and in the kidswear industry, it’s a game-changer. Imagine offering onesies, t-shirts, or baby blankets with the child’s name or a special message. This adds an emotional touch to your products, making them not just another item in the closet but a keepsake.

Why It’s Profitable : Personalization offers a unique selling proposition (USP) that can set you apart from competitors.

How to Start : Invest in a good quality printing machine and offer a wide range of customization options online.

3. Baby Accessories Store

Clothing is just the tip of the iceberg when it comes to baby products. Accessories like hats, mittens, and booties are not only adorable but also practical. Parents are always in need of these small items, especially for newborns. By specializing in baby accessories, you can offer a wide range of options that can be perfect add-ons to any outfit.

Why It’s Profitable : Lower production costs and high demand, especially as gift items.

How to Start : Identify popular accessory items and offer them both online and in a physical retail location if possible.

4. Seasonal Kidswear

Holidays and seasons offer a unique opportunity for themed clothing. Whether it’s a cute bunny outfit for Easter or spooky costumes for Halloween, parents love to dress their kids in special attire for occasions. Seasonal kidswear can be a lucrative venture if you plan well and offer unique, high-quality items.

Why It’s Profitable : Urgency and seasonality drive quick sales, and these items often come with higher profit margins.

How to Start : Plan your inventory well in advance and start marketing at least a month before the holiday season kicks in.

5. Baby Boutique

A high-end baby boutique is not just another clothing store; it’s an experience. By offering exclusive designs, premium materials, and personalized customer service, you can attract a clientele that is willing to spend more for exceptional quality. This business idea is perfect for those who have a keen eye for fashion and a knack for luxury.

Why It’s Profitable : Higher profit margins and customer loyalty.

How to Start : Choose a posh location and offer personalized services like styling advice and gift wrapping.

6. Subscription Boxes

Subscription boxes are the gifts that keep on giving. Imagine a monthly box filled with handpicked clothing and accessories arriving at your doorstep. For busy parents, this is a godsend. It also ensures a steady, recurring revenue stream for your business, making it a win-win for everyone involved.

Why It’s Profitable : Recurring revenue and customer retention.

How to Start : Partner with various kidswear suppliers and baby product brands to offer a diverse range of items in your subscription box.

7. Gender-Neutral Clothing

The conversation around gender has evolved, and so has fashion. Gender-neutral clothing offers an inclusive alternative to traditional boys’ and girls’ sections. By creating a line that is free from gender stereotypes, you can appeal to a broader audience and make a strong social statement.

Why It’s Profitable : Fills a gap in the market and caters to a growing demand for inclusivity.

How to Start : Focus on designs that are versatile and colors that are universally appealing. Market your brand as a pioneer in inclusive kidswear.

8. Themed Kidswear

Themes can add a fun twist to everyday clothing. Whether it’s superhero capes or princess tiaras, themed kidswear is always a hit. It allows kids to express their personalities and interests, making the clothing more than just functional but also a form of self-expression.

Why It’s Profitable : High consumer engagement and the potential for viral marketing.

How to Start : Keep an eye on popular culture trends and design your clothing line accordingly.

9. Online Resale Store

The concept of an online resale store is both eco-friendly and economical. Parents can sell their gently used clothing, and other parents can buy them at a fraction of the cost. This business model not only promotes sustainability but also offers a practical solution for fast-growing kids.

Why It’s Profitable : That capitalizes on the circular economy, encouraging repeat business from both buyers and sellers.

How to Start : Create a user-friendly platform where parents can list their items. Ensure quality control by inspecting items before they’re listed.

10. Baby and Kid’s Footwear

Last but not least, never underestimate the power of a good pair of shoes. Footwear is an essential part of any outfit, and when it comes to kids, comfort is as crucial as style. Specializing in baby and kids’ footwear can be a fantastic way to round out your kidswear business.

Why It’s Profitable : Footwear is a necessity, and parents often seek quality and comfort, allowing for higher pricing strategies.

How to Start : Offer a range of sizes and styles. Make sure to include options for different stages of a child’s development, from crawling to walking.

Starting a kids’ clothing business is an exciting adventure. This industry is brimming with potential, offering a wide range of opportunities, from eco-friendly outfits to tech-infused wearables.

With some creativity and a grasp of the market, your business could become a major player in the world of kids’ fashion.

So, let your entrepreneurial spirit soar, and who knows, you could be the next big thing in this industry!

Keep in mind that success comes from delivering quality, understanding your customers, and having a unique selling proposition.

So, take the plunge and leave your mark in the lively realm of kids’ clothing!

Ready to turn these ideas into reality? Click here to book a consultation and start building your dream kidswear store today!

FAQ’s ON Unique Kidswear Business Ideas

1. how do i market my kidswear business ideas.

To market your kidswear business effectively, start by identifying your target audience. Utilize social media platforms like Instagram and Facebook to showcase your products through visually appealing posts. Don’t underestimate the power of email marketing; it’s a great way to keep your customers engaged. Collaborate with mommy bloggers or influencers in the parenting niche to reach a broader audience. Lastly, consider running seasonal promotions and offering loyalty programs to encourage repeat business.

2. What are the most profitable baby clothes?

The most profitable baby clothes are often those that cater to specific needs or niches. Organic baby clothes, personalized items, and seasonal or themed outfits tend to have higher profit margins. Additionally, sets or bundles (like a onesie, hat, and booties set) can also be more profitable than selling individual items.

3. Is dropshipping baby clothes worth it?

Dropshipping can be a viable option for those who want to start a kidswear business without a significant upfront investment in inventory. However, it comes with its own set of challenges like lower profit margins and less control over stock and shipping times. It’s crucial to choose reliable suppliers and to offer products that align with your brand’s values and quality standards.

4. How do you market children’s clothes?

Marketing children’s clothes is similar to marketing kidswear but with a focus on a slightly older demographic. Utilize social media platforms that are popular with parents of older kids, such as Pinterest and YouTube. Educational content, like “how-to-style” videos or blogs, can also be effective. Don’t forget to engage with your audience through interactive posts or contests. Consider collaborating with kid influencers to showcase your products in a relatable and authentic manner.

5: How can I start a baby clothing business?

A: To start a baby clothing business, you will need to:

Create a business plan.

Decide on the type of kidswear clothing you want to sell.

Find reliable suppliers for your products.

Set up an online or physical store.

Market your business to attract customers.

6: What are some small business ideas to start in the kidswear industry?

A: Here are 6 small business ideas to start in the kidswear industry:

Baby clothing boutique.

Personalized clothing for kids.

Designer kidswear line.

Baby nursery decor business.

Online kidswear store.

Manufacturing kidswear products.

7: How can I make my kidswear business profitable?

A: To make your kidswear business profitable, you can:

Offer unique and high-quality kidswear products.

Implement effective marketing strategies.

Provide excellent customer service.

Stay updated with the latest kidswear fashion trends.

Offer competitive prices.

8: What is a good business plan for a kidswear business?

A: A good business plan for a kidswear business should include:

Market research and analysis.

Products and services offered.

Target market and customer demographics.

Marketing and sales strategies.

Financial projections and budget.

9: How can I start a profitable online kidswear business?

A: To start a profitable online kidswear business, you will need to:

Choose a reliable e-commerce platform.

Create an attractive and user-friendly website.

Showcase your kidswear products with high-quality images.

Implement effective online marketing strategies.

Provide excellent customer service and fast shipping options.

10: What are some marketing strategies to promote my kidswear business?

A: Here are some marketing strategies to promote your kidswear business:

Utilize social media platforms to showcase your products.

Collaborate with mommy influencers or parent bloggers.

Participate in local baby and kid expos or trade shows.

Offer discounts or promotions to attract new customers.

Create compelling content through blogs or videos related to kidswear fashion.

11: What are the advantages of starting a kidswear business?

A: Some advantages of starting a kidswear business include:

High demand for kidswear products.

Opportunities for creativity and design.

Potential for repeat customers as kids grow.

Ability to cater to various age groups and styles.

Flexibility in choosing your business model (online or physical store).

12: What are some essential qualities of a successful kidswear business owner?

A: Some essential qualities of a successful kidswear business owner include:

Passion for kidswear fashion and trends.

Strong marketing and sales skills.

Creativity in designing and selecting kidswear products.

Excellent communication and customer service skills.

Ability to adapt to changing market demands.

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7 Small Business Ideas in Kidswear Industry in 2024

Since the mid-2000s , the textile and apparel industries have grown rapidly. Increasing raw material costs and innovative designers are expected to drive growth in the industry.

7 Best Kidswear Business Ideas

1. clothing for newborn baby, 2. clothing for infants baby, 3. clothing for toddler baby, 4. clothing for preschool kids, 5. clothing for gradeschooler kids, 6. preteens wear, 7. customized kidswear, explore more business ideas.

When it comes to the kidswear business, it totally depends on fashion and age period. As a result, consumer needs vary considerably from newborns to toddlers to preteens. Passion, dedication, and hard work are essential to starting a kids clothing business.

We have categorized kidswear business ideas on the basis of kids’ age periods such as:

• Newborn baby (0-4 weeks)
• Infants (1 month-1 year)
• Toddlers (1-3 years)
• Preschoolers (3-5 years)
• Gradeschooler (5-9 years)
• Preteens (9-12 years)

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In this article, we will explore fashion and style in kidswear business ideas:

Parents celebrate the moment, as the baby leaves the hospital cocoon and enters the real world.  Planning your newborn’s coming home outfit can be challenging. 

Choosing a baby’s outfit requires consideration of comfort and weather conditions. If you plan to start a newborn baby wear business, you should offer products such as:

• Gender neutral outfit
• Classically sweets
• Warm/Cold Weather Winners

To capture the market across the country, you can also create an ecommerce website, such as Minimysa did. 

Warm clothing is ideal for infants. Comfort should be key. The garment should be easy to clean. It should be able to evaporate moisture. The clothing should be soft. Babies don’t like clothes pulled over their heads, so zippers, snap fasteners, or buttons are best.

In this age group, children learn such skills as taking their first step, smiling for the first time, and waving goodbye.

Baby’s first year is filled with learning about themselves, exploring their surroundings, and focusing on their vision. As part of their social and emotional development, babies also develop bonds of love and trust with their parents.

All parents want infant baby clothes that look stylish socially and emotionally. You should make sure to include these products in your clothing collection in accordance with their compatibility.

During a toddler’s development, he or she learns to crawl, walk, and jump. A toddler is more aware of his or her surroundings during the second year of life and moves around more.

Additionally, they become more interested in exploring various objects and people. A baby at this age can move from one place to another, so parents try to provide plenty of clothing for the little one.

It is advantageous to provide toddlers with clothing when they are at this age.

This segment consists of clothing for children between the ages of one and three. At this stage, children are attracted to bright colors, especially RED. Pull-on pants with elasticized waists and adjustable buttons are best.

Early childhood (preschoolers) is a time when children begin to experience the wonders of the world. Their independence will grow, and they will become more interested in other children outside their families. Parents always want their children to look more adorable and charming than other children.

Their interactions with stylish clothing will contribute to the development of their personalities. It is important to have plenty of clothing that is in keeping with the current fashion trends.

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This segment includes apparel for kids aged 3 to 5. Kids and parents want easy wearability. A long shirt allows for torso growth. Kids of this age group love bright colors and cartoon characters.

Independent living becomes more imperative at this age group. As children reach this age, they become more familiar with the larger world through events such as starting school.

There is a growing importance to friendships. It is at this time that a child’s physical, social, and mental skills develop rapidly. Developing confidence in the areas of friendship, schoolwork, and sports is an important part of a child’s development during this period.

The kidswear industry considers this age group to be one of the most lucrative for doing business. You can have a vide variety for types of clothes at this age like:

• School Uniform
• Casual dress
• Special Event Dressing (Wedding, Birthday parties)

A child’s life changes dramatically during middle childhood. The child can now dress himself or herself.

A variety of changes are occurring in a person’s physical, psychological, emotional, and social lives at this moment. There is a possibility that they are worried about these changes, and how others perceive them.

In terms of body image, appearance, and clothing, they are more concerned. It is imperative that you take advantage of the preteen kidswear business by offering different kinds of clothing like:

• Swimming wear
• Traditional costumes (Halloween, New years)
• Dance dresses

Teenagers at this age have more freedom to make their own decisions when it comes to friends, sports, studying, and schooling. Their personalities and interests develop, making them more independent.

Recommended: Visit our page for more business ideas for teens

Uniform sellers have an excellent opportunity since most schools enlist uniforms not only for their classes but also for extracurricular activities.

Regardless of the kid’s age, the most important thing is that the garment should be comfortable and fit well.

There is a variety of kidswear clothing available for different occasions or fashion trends. It is possible for you to take advantage of the sports events that are taking place in your area. 

Suppose a football tournament is being held in your state or city. You can customize t-shirts to meet the needs of the kids. 

You can offer different deals to parents who have more than two children in order to increase the sales of shirts, such as buy two get one free.

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How to Start a Kids Clothing Line

04.19.2021 | Fashion Marketing + PR

Launching a kids’ clothing line is a great way to let your creativity shine. Kids’ clothes come in a variety of patterns and designs that you might not have in adult clothing–not to mention the fact that kids’ clothes often allow for different types of creative expression and style.

In order to start a kids’ clothing line, however, it’s important that you take a few things under consideration that you might not have to include in the launch of an adult line of clothing.

1. Do Your Research

Kids’ clothes have unique requirements. Before you even start designing, you will need to know about those requirements so that you can incorporate them into your designs.

Kids’ clothes must be safe and not pose a hazard to their wearers. Kids’ pajamas, for example, should be made out of flame-retardant material. Pajamas may also need to fit closer to the child’s body than other types of clothing. Carefully evaluate those standards and other safety standards before creating your designs.

Not all children’s clothing is perfectly comfortable–including items like pageant dresses, for example. If you want to create kids’ clothes that kids will enjoy wearing–and that, therefore, parents will be more likely to buy–you’ll find that comfort is critical. Check your designs for uncomfortable, scratchy braid, tight spots, or features that will make kids want to get out of the clothing sooner rather than later.

Parents quickly grow frustrated with clothing that gets torn up, falls apart, or gets stained after just a couple of wear sessions. All too often, however, children’s clothing does exactly that. Make durability a priority in your designs. Strong stitching, durable fabrics, and stain resistance–including fabrics that are less likely to stain–can all help your clothing line withstand the “kid test.”

2. Know Your Target Audience for YoUr Kids’ Clothing Line

When selling kids’ clothes, you will often have two key audiences: kids and their parents. Parents are the ones who ultimately make the buying decisions for most children’s clothing purchases. Kids, on the other hand, often have a say in the clothing their parents purchase–either as they show their dislike for particular items of clothing and refuse to wear them (or, conversely, wear the same pieces of clothing over and over again) or as they specifically ask for the brands, characters, or types of clothing they like to wear.

Knowing your target audience can help you create high-quality clothing that your audience will appreciate as well as informing your advertising. A great deal of your marketing, for example, many need to focus on parents: drawing them to your brand and letting them see what you have to offer.

At the same time, you may want some marketing geared toward kids, including displays that will help catch their attention or marketing that appears on the channels kids are most likely to see, including YouTube videos. Consider the average age of the kids you’re marketing toward, too: younger kids will consume very different types of content than preteens or teens.

3. Find Your Kids’ Clothing Line Niche

What is it that sets your clothing brand apart from others on the market? Who, specifically, are you marketing to? Some brands offer luxury clothing appropriate for special events. Others may focus on offering clothing that children can wear to school or at home. Are you creating clothing primarily for boys, girls, or both?

Get to know your niche in the market. Check out your competitors and see what they’re offering and how your product compares. The better you know your niche, the more you can target your marketing and your clothing to exactly the consumers you have in mind.

For example, if you’re marketing to parents in the 25-35 range with plenty of disposable income, you may have a dramatically different plan than if you want to launch a budget clothing line for parents who need their kids’ clothes to last long-term.

There are also many niche clothing brands within the kids’ clothing industry, from companies that focus on comfortable dress-ups that kids will fall in love with because they represent their favorite characters to character-free lines that focus on solid colors and comfortable fit.

4. Design and Source Your Clothes

Once you have an idea of what you’re creating and who you need to market it to, start designing! Find a source for your clothing, including who will produce your designs. Get an idea of what it is going to cost to produce your designs, including the cost of shipping your product to you. Keep in mind that often, bulk costs will be less than producing just a few items of clothing–but you may also end up with more inventory as a result.

5. Create a Kids’ Clothing Line Business and Marketing Plan

How do you plan to distribute your kids’ clothing line to your target audience? Do you want to open your own store, either in a physical location or online? Are there stores that you think would be a great fit for your clothing line? What about marketing : how do you want to handle it? What channels do you want to use for your marketing? Are you focused on social media, display ads, or physical marketing opportunities? Create a business plan that includes the costs you will face as you start distributing your clothing, the niche you want to target, and the different ways you will distribute your clothing.

Your business plan is your guide to launching your kids’ clothing line and will include all the key details of your strategy for getting your business off the ground. That doesn’t mean that you won’t ever alter your business plan, since your needs can change as you move further with your clothing line. However, it can help you monitor progress toward your goals.

Are you ready to launch your kids’ clothing line? Do you need help getting started? We can help you find the tools you need to launch your business and learn more about the strategies you’ll need to start moving forward with your new line.

24 comments

I’d love guidance to be able to start this for my little boy

Nicole Giordano

Hi Kerry, I’m not sure I understand your question. The blog post offer guidance for launching a kidswear line. IS there something specific you’re asking for more clarity on?

Mary Pat Gallivan

I have a very unique coat/jacket for infant and toddler unisex. I am looking to find out where i can get polartec 300 and I need a manufacturer as well.

Gajendra Sah

Hello I am going to start the online kids fashion dress age between 6 months to 10 years apprx, I want to know what I need to keep in mind in respect of statutories activities or Government policies can you help me to figure out the issues.

Hi Gajendra, congrats! I don’t have the details for this as it changes depending on location and age group. You’ll need to research the requirements based on your location and then zero in on requirements for infants as well as toddlers and then children up to age 10.

There will likely be textile requirements, notions requirements, and testing requirements.

Hi I’m interested to join.

That’s great, Nomsa! Are you on our email list? We’ll let you know the next time we open membership.

Ammazing addvice Thank you very mach

You’re welcome, Betty! Are you launching a kidswear collection?

I just signed up for your webinar! So excited! Do you cover where to buy fabrics for kids’ clothing?

Yodit Aberra

Interested in launching a kids fashion business in Addis Abeba Ethiopia.

That’s exciting! Congrats.

Lianne keynes

Wanting to start a new clothing label aimed at toddlers to teens.

My business name is Candy Cane Kids.

I am wanting swimwear and active wear in the custom pink and white with my logo.

Any help would be appreciated.

Have you watched our free webinar about launching a fashion business? You can register here: https://startupfashion.com/registration-page-launch-your-fashion-business-webinar/

Demetria Hewlett

I’m so ready to learn and get started. Thanks for giving your information.

Chinwe Umeh

I would like suggestions on tools and strategies needed to launch a clothing line business.

Hi Terry, I would suggest starting here: https://startupfashion.com/registration-page-launch-your-fashion-business-webinar/

frazestore.com

Irresistible! Thank you so much for this kind and good service.your services is better than better.

Frances Jones Angels & Company LLC

I have a start up company and desperately need advice on manufacturing. I have used three in a five year period and have had awful experiences with each. Can anyone help?

Sylvia Danso-Abeam

I want to be part of this

This is beautiful, I want to be part of this community.

Quinn Kaelyn

Comments are closed.

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How to Start a Baby Clothing Business in 14 Steps (In-Depth Guide)

Updated:   January 22, 2024

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The baby clothing market is projected to reach $98.54 billion globally by 2030, according to a report by Verified Market Research . With such immense growth potential, launching your baby clothing line can be a lucrative business endeavor.

This comprehensive guide will walk you through everything you need to know to start a successful baby clothing business, from conducting market research and designing cute, comfy clothes to sourcing quality materials, and promoting your brand.

Follow our advice to turn your passion for fashion into a thriving company as you learn how to start a baby clothing business.

1. Conduct Baby Clothing Market Research

Market research helps you determine which services to offer, the most competitive pricing, and your target market. There are two types of market research to undertake as you determine how to start a baby clothing business. These are primary and secondary research.

Primary research is research you do yourself. It involves things like:

• Visiting local baby clothing stores
• Creating online polls for parents
• Talking to parents and parents to be in your neighborhood

Secondary research is performed by a third party and made available to you. It might include internet statistics on baby clothing trends, or information from government websites on how many babies are in your area.

Some areas to observe within your market research are the needs of your target customer. In the babywear industry, this includes:

• Stylish designs using natural fabrics: Parents seek aesthetically pleasing, and comfortable clothes.
• Affordable pricing: Millennials love boutique styles but want value. Pricing at fast fashion retailers like Zara and H&M sets expectations.
• Multipacks and sets: Parents prefer bundled outfits over individual pieces for ease and convenience. Consider including additional clothing such as socks or beanies.
• Size range: Designing sizes preemie through 24 months captures the full target market.
• Gender-neutral options: More parents today embrace non-gendered colors and prints.

Another avenue worth exploring is growth opportunities. Some places you can earn extra income on your baby products include:

• Organic fabrics: Sales of organic cotton baby clothes has an estimated compound annual growth rate of 6.6%. According to Global News Wire , the global market will be worth $2.6 billion by 2031.
• Personalization: Parents enjoy adding names, monograms, and custom designs.
• Inclusive sizing: Only a few baby brands offer extended sizing for early growth spurts.
• Collaborations: Partnering with parenting bloggers and influencers builds hype.

The booming baby clothing industry presents a lucrative opportunity for a maker of affordable, stylish designs. By continually tracking trends and innovating to meet market needs, a new entrant will find success.

2. Analyze the Competition

Thoroughly analyzing your competition ensures your clothing business stands out and captures market share.

Identify clothing boutique stores in your geographic area that sell baby apparel. Visit them to evaluate their product selection, quality, pricing, store aesthetics, and customer service. Take note of what they do well and where there are opportunities to differentiate. Observe their foot traffic and sales volumes when possible to gauge market viability in your location.

Research major baby clothing retailers like Carter’s , Gap , and Old Navy to understand the competitive landscape online. Evaluate the website design, product photography, website speed, and navigation of your online competitors. Sign up for their email lists to analyze their promotions and campaigns.

Search for newly launched baby clothing brands on Google and Instagram to find direct competitors. Analyze their website traffic and engagement metrics using tools like SimilarWeb . Subscribe to their emails and follow their social channels to track growth.

3. Costs to Start a Baby Clothing Business

Starting a baby clothing business will require significant upfront investment to get up and running, followed by ongoing expenses to sustain daily operations. Here is a comprehensive look at expected costs:

Business Formation

Running a clothing line in the U.S. requires you to register your business name. You do this through the Small Business Administration . The process is fast and easily processed online. Expect to pay around $300 to register the business name and up to $500 more for permit registration.

Startup Costs

Starting a business comes with a wide range of startup costs and fees. From materials to permits and beyond, here are some of the common costs you’ll encounter.

• Research & Planning: $500 to 2,000 (Market research, competitor analysis, business plan development)
• Legal & Accounting: $1,000 to 5,000 (Forming a business entity, permits/licenses, legal services, accounting software)
• Website & Branding: $6,000 to 15,000 (E-commerce platform, web design, logo design, product photography)
• Product Development: $15,000 to 30,000 (Designer fees, prototype samples, sourcing materials, manufacturing minimums)
• Inventory: $10,000 to 50,000 (Initial order of product samples and first production run)
• Warehouse: $5,000 to 15,000 (Racks, boxes, tagging supplies, office supplies)
• Storefront (optional): $5,000 to 100,000 (Lease deposit, build-out, fixtures, decor, signage)

The total estimated costs to startup are between $50,000 to $200,000.

Ongoing Costs

Cost of Goods Sold – Variable Wholesale clothing purchase costs

• Hosting & Software Subscriptions: $200 to 500/month (Website hosting, email services, accounting systems)
• Marketing: $500 to 5,000/month (Paid ads, influencer collaborations, email services, social media management tools)
• Salaries: $3,000 to $15,000/month (Owners’ salaries, wages for warehouse staff, designers, customer service reps)
• Insurance: $150 to $500/month (Product liability insurance, business property coverage)
• Rent & Utilities: $1,500 to $5,000/month (Warehouse space, retail location, office space)

The total estimated ongoing costs are between $5,000 to $25,000/month.

Starting a baby clothing line requires major upfront investment and ongoing costs. With proper planning and budgeting, a new business can sustainable growth and success in this lucrative market.

4. Form a Legal Business Entity

When starting a baby clothing business, one of the first legal steps is choosing a business structure. There are four entities to choose from, including Sole Proprietorship, Partnership, Limited Liability Company, and Corporation.

Sole Proprietorship

A Sole Proprietorship is simple and inexpensive to form, requiring only a business license. However, the owner is personally liable for all debts and lawsuits against the business. Income and losses are reported on the owner’s tax return. Best for very small, low-risk businesses.

Partnership

A Partnership is a relatively easy formation between two or more co-owners. Partners share control and personal liability, as well as profits, losses, and debts. A partnership agreement should outline each partner’s rights and responsibilities. While less risky than a sole proprietorship, personal assets are still vulnerable.

A Limited Liability Company (LLC) limits personal liability while allowing pass-through income tax treatment. LLCs require more record-keeping and paperwork but provide flexibility for growth. Owners (called members) enjoy liability protection that may attract investors more easily. Your personal assets are protected and separate from company assets under your baby clothing brand.

Corporation

Forming a corporation provides the highest level of protection for owners’ assets. It also leads to double taxation. Corporations require substantial record-keeping and must follow strict regulations. The complex formation process involves articles of incorporation, company bylaws, business licenses, and permits.

The optimal legal entity for a baby clothing business is an LLC. An LLC strikes the right balance of liability protection, tax flexibility, and ease of management. As the business pursues growth after establishing operations, transitioning to an LLC limits risk exposure while allowing for additional investment and expansion down the road.

5. Register Your Business For Taxes

One of the first steps in forming your baby clothing business is obtaining an Employer Identification Number (EIN). Also known as a Federal Tax ID, your EIN comes from the IRS. It’s used to pay your employees, pay taxes, and even open a business bank account. It’s an important step in any business plan.

Applying for an EIN is free and can be done online via the IRS website in just a few quick steps:

• Go to IRS.gov and search “Apply for an EIN Online”.
• Select the option to “Apply Online Now” and answer the eligibility questions.
• Choose the legal structure for your baby clothing business.
• Provide basic information about your business such as name and address.
• Submit your application and receive your EIN immediately.

The entire process can be completed in under 15 minutes. After obtaining your EIN, make sure to also register for state taxes by contacting your Secretary of State’s office. This will provide you with a state tax ID to collect and remit sales tax. The registration fee is usually under $100 and can be done online.

6. Setup Your Accounting

Proper accounting practices are crucial from day one. When starting a baby clothing business, tracking incoming and outgoing funds ensures you turn a profit. Your business plan and budget require dedicated bookkeeping to make a baby clothing business profitable.

Here are some of the ways to manage your accounting as a clothing manufacturer.

Accounting Software

Accounting software like QuickBooks automates a variety of processes, including the reporting of:

You can link your business bank accounts and credit cards to QuickBooks seamlessly. This lets you import transactions for simplified bookkeeping and financial oversight. Expect to budget $10 to 50 per month for a QuickBooks subscription.

Hire an Accountant

Hiring an accountant as a clothing manufacturer provides expert guidance. An accountant can help you build a realistic business plan budget, calculate your income compared to other clothing manufacturers, and keep you compliant.

Accountants are especially beneficial during tax season. They provide services like monthly reconciliation, sales tax filings, and compiling fiscal year reports. Expect to pay $200 to 500 per month for an accountant in addition to approximately $1,000 to 2,000 for annual tax preparation.

Open a Business Bank Account and Credit Card

Maintaining completely separate finances for your baby clothing business is critical. Open a dedicated business checking account before launching your own business. Expect to need 2 to 3 months of operating expenses to meet minimum balance requirements.

Apply for a business credit card as well so you can keep expenses separate.

With organized accounting practices, you’ll avoid common pitfalls like underpaying estimated taxes or taking inadequate deductions. This provides peace of mind that your finances are audit-proof and support the growth of your baby clothing business.

7. Obtain Licenses and Permits

Before opening your baby clothing business, it is crucial to have all the required licenses and permits in place. Operating without these can lead to hefty fines or even force you to shut down. The U.S. Small Business Association lists all federal requirements for various industry permits.

Here are some of the most common credentials needed:

Business License

Nearly all municipalities require a general business license to legally operate within their jurisdiction. Fees are typically based on your expected sales revenue and renew annually for $50 to $100 on average. The application process ensures your business complies with zoning, building codes, and other local regulations. Use the SBA website to search for local licenses and permits.

Sales Tax Permit

If selling products in person or online across state lines, you must obtain a sales tax permit. This allows you to legally collect and remit sales tax in every state where you have a sales presence. The process and fees vary by state but expect an average cost of $20 per permit.

Seller’s Permit

A seller’s permit or resale certificate allows you to purchase wholesale inventory without paying sales tax, provided you collect and remit tax on the final sale. Wholesale suppliers will require this before extending you wholesale pricing. Seller’s permits are obtained through your state revenue department for little to no cost.

Fictitious Name Registration

If using a business name other than your full legal name, register it with your state and county to obtain a DBA (“doing business as”). This protects your business name from being used by competitors within your state. Expect costs of $50+ depending on location.

Having these licenses and permits displayed provides customers assurance that you are operating legally. It also streamlines wholesale purchasing and interstate sales tax compliance. Don’t put yourself at risk for avoidable violations and penalties. Complete all required registrations before launching your baby clothing line.

8. Get Business Insurance

Purchasing adequate business insurance is crucial to protect your children’s clothing brand. Unexpected catastrophes strike without notice. Without coverage, a single incident could destroy everything you’ve built.

Insurance protects in case:

• A fire breaks out and destroys the entire inventory in your clothing line.
• You face a lawsuit from a customer whose baby was injured by a defective product.
• A supplier sues you for failing to pay invoices.

Without insurance, you could lose hundreds of thousands in assets and legal fees. The right insurance policies safeguard against scenarios like these that could tank your business.

Common types of insurance to consider include:

• General liability: Covers injury and property damage claims
• Product liability: Protects against losses from defective products
• Business property: Reimburses stolen, or damaged inventory and equipment
• Business interruption: Provides income if forced to temporarily close

Expect costs to start around $500 annually for basic liability coverage and up to several thousand for robust protection. Outline your risks and ideal coverage levels before contacting agents.

The application process will require detailed information about your business operations and inventory. Policy terms generally last 12 months and must be actively renewed.

9. Create an Office Space

Securing office space provides a central hub for daily operations, meetings, product design, and administrative tasks. These are all crucial when launching a baby clothing business. The ideal option depends on your budget, location needs, and stage of growth. Here are some office spaces to consider.

Home Office

Converting a spare room into a home office is the most affordable option starting around $100 to 500 to set up a basic workspace. While convenient, conducting client meetings or filming content can be awkward from a personal residence. Best for solo entrepreneurs just getting started.

As a bonus benefit, the IRS allows for deductions of up to $1,500 annually for home offices.

Coworking Space

Shared offices like WeWork provide an upscale, professional environment for around $300 to 800 per month. Networking is easier by being surrounded by other entrepreneurs and amenities like meeting rooms, events, and coffee bars add value. Downsides include noise and distractions.

WeWork offers different plans for different budgets and workstyles. Your children’s clothing line office can be private, semi-private, or shared.

Retail Storefront

For primarily e-commerce businesses, a small storefront mainly functions as a stylish office. Product photoshoots and customer appointments also work well. Expect to invest $2,000 to 5,000 per month for lease payments, utilities, and build-out. Dedicating space to a minimally-trafficked store can be an expensive risk.

Commercial Office

Leasing an entire office suite in a business complex provides room for major growth at around $3,000 to 10,000 per month. Office build-outs, parking, furnishing, and utilities add costs but allow customization of your workspace. More space than needed can lead to wasted overhead.

Evaluate your budget, location needs, and growth plans when choosing office space. Beginning in an affordable coworking environment or home office keeps costs low.

10. Source Your Equipment

Children’s clothing manufacturers use specialty equipment for designing, manufacturing, and fulfillment. There are a few ways to get the tools and equipment needed to make a profitable baby clothing business. Consider the following methods when planning the equipment for your baby clothing line.

Investing in brand-new equipment from retailers allows you to select higher-end or commercial-grade items. Expect to pay premium prices, but need far less maintenance and a longer life span. Shop baby clothing patterns at Violette Field Threads . You can purchase material and sewing accessories from Pac Cana . Buy sewing machines and tools through Quality Sewing .

Major savings can be found purchasing gently used equipment on sites like Craigslist, Facebook Marketplace, and eBay. Search for terms like “sewing machine,” “mannequin,” and “fabric cutter.” Meet locally to inspect the condition before purchasing.

Owning a children’s clothing line requires dome photography for marketing and signage. Renting equipment periodically provides access to pro gear like photography lighting and backdrops without the cost of buying. Photography studios rent by the day. Purchase only versatile, everyday items and rent specialized equipment as needed.

Leasing sets up monthly payments to use equipment, then return after the lease period rather than buying outright. This preserves capital for other startup costs. Expect to pay 10-20% more overall versus purchasing equipment.

11. Establish Your Brand

Creating a strong brand identity is crucial for making your baby clothing business recognizable, professional, and memorable.

Follow these tips to put the key branding assets in place.

Get a Business Phone Number

A dedicated business phone number lends legitimacy versus using a personal cell. Services like RingCentral provide toll-free and local numbers with professional call routing starting around $30/month. Custom greetings and extensions project an established brand image to customers. You can also go with Google Voice for around $10 a month per new line.

Create a Logo

A polished logo encapsulates your brand personality and helps build instant recognition. Services like Looka make it easy to create a custom logo for around $20 to 200. Complement it with branded fonts, colors, and graphics to maintain visual consistency across assets. Choose a friendly, playful logo style appealing to parents.

Print Business Cards

Business Cards and signage sets you apart from competitors and reminds customers of who you are. A top retailer for business cards, signs, marketing decals, and merchandise is Vistaprint . Business cards make introductions easy. Match your cards and signs to your logo for cohesive branding.

Get a Domain Name

Purchasing a Domain Name for your children’s clothing line builds brand authority. Secure a domain name that matches your baby clothing business name and company culture. Short, memorable domains from sites like Namecheap convey professionalism and improve discoverability. Expect costs of around $15/year for a .com domain.

Build a Website

Building a Website An informational website is table stakes for e-commerce businesses today. Use DIY site-builders like Wix , or be cost-efficient and hire a web developer from a freelance site like Fiverr . Showcase products, founder bios, press coverage, and brand storytelling on your website to drive sales.

Investing in core brand assets creates an identifiable, visual identity to connect with parents and stand out from competitors. Maintain brand consistency across touchpoints to drive awareness and trust at every customer interaction.

12. Join Associations and Groups

Tapping into communities and associations provides invaluable connections and insights into the baby clothing industry. Linking up with networks like The National Retail Federation (NRF) and International Apparel Federation are good places to start.

Here are some other networking resources to leverage for your children’s clothing line.

Local Associations

Local associations bring you closer to your customers and help build networks within your community. Look for local groups through your community center, or by talking to other members of your industry. Annual dues start around $100. Local chapters create opportunities to regularly engage in person.

Local Meetups Attending local meetups and trade shows allows you to connect face-to-face with fellow entrepreneurs and brands. Sites like Meetup make it easy to find relevant events in your area such as craft fairs, small business mixers, and fashion industry meetups.

Meetup lets you search for events by location and event type. If you don’t see one in your city or zip code, make your own Meetup.

Facebook Groups

Facebook Groups is an amazing free resource for connecting with like-minded individuals. Join groups like the Small Business Owners/Entrepreneurs and Small Business Boutique And Clothing Store Owners Secrets And Tips . These groups provide a forum to ask questions, share advice, and collaborate.

13. How to Market a Baby Clothing Business

Implementing an effective marketing strategy is imperative for raising awareness and driving sales. Leverage these key tactics to build a successful baby clothing line:

Digital Marketing

Digital marketing is an important feature of clothing line advertising. According to Oberlo , 1 in 3 people shop online worldwide. In fact, in 2023, statistics showed 2.64 billion online shoppers. Some ways to expand digital outreach for your children’s clothing line include:

• Search ads – Target local parents searching for baby clothes on Google.
• Social media ads – Place highly targeted Facebook/Instagram ads.
• Email marketing – Send promos and build loyalty with a mailing list.
• Influencer marketing – Pay micro-influencers to showcase products.
• SEO – Optimize site content to rank highly in search engines.
• Social media – Share teasers, launches, and styling tips daily.

Traditional Marketing

Digital marketing is important, but traditional marketing still has its place in the children’s clothing industry. Parents pass billboards, read magazines, and see ads in the newspaper all the time. Investing in traditional marketing for your own baby clothing business is wise. Here are some ways to take the traditional marketing route:

• Print ads – Place local newspaper and magazine ads focused on new parents and kids.
• Flyers – Distribute eye-catching flyers at local parks, schools, and daycares.
• Direct mail – Send postcards and catalogs showcasing new collections.
• Radio ads – Use morning drive time and family programming to reach parents.
• Billboards – Place outdoor ads along commuter routes and high-traffic areas.

Start with digital tactics to build brand awareness online and drive visitors to your e-commerce store. As your budget expands, layer in targeted traditional advertising to reach local parents through both online and offline channels. Test different strategies and double down on what delivers the highest return on investment.

With robust digital marketing and select traditional ads tailored to your audience, you can cost-effectively generate interest and sales for your new baby clothing designs.

14. Focus on the Customer

Providing exceptional customer service is a top priority when starting a baby clothes brand. It drives referrals and repeat sales, increasing your overall return on investment (ROI).

Some ways to improve customer engagement as a marketing strategy include:

• Responding to customer inquiries within 24 hours.
• Being readily available during standard business hours.
• Sending a personalized thank you note with each order.
• Checking in on fit and quality once customers receive items.
• Handling returns and exchanges swiftly and pleasantly.
• Empathizing with frustrations but calmly guiding solutions.
• Refunding orders if you are unable to satisfy.
• Incentivizing referrals by offering $20 off their next order for every new customer they bring.
• Providing sizing guidance, styling recommendations, and exclusive early access to sales.
• Gifting a special baby onesie with purchases over $100.

Delivering exceptional service in your baby clothing line earns loyal, vocal fans. Loyal customers will boost your brand through reviews, referrals, and repeat purchases.

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April 9, 2024

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How To Start A Children's Clothing Business

If you ask any entrepreneur, starting a business comes with its fair share of challenges.

Starting a children's clothing business requires a great deal of effort, dedication and most importantly passion .

If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.

We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.

Start A Children's Clothing Business ➜ avg revenue (monthly) $165K see all children's clothing businesses ➜ starting costs $13.7K see all costs ➜ gross margin 47% time to build 300 days growth channels Email marketing business model Subscriptions best tools Shopify, Google Drive, Instagram time investment Full time pros & cons 35 Pros & Cons see all ➜ tips 8 Tips see all ➜

💡 Introduction To Starting A Children's Clothing Business

Is the children's clothing business for you.

Let's look at the pros and cons of starting your own children's clothing business

• Flexibility: One of the biggest advantages of starting a children's clothing business is that you can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Ability to start your business from home: It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
• Little startup costs required: The cost to start a children's clothing business costs significantly less money than most businesses, ranging anywhere from 12 to 27,209.
• Rewarding work: Starting a children's clothing business can be really rewarding and fun work. After all, you're bringing joy and excitement into peoples lives.
• Crowded space: Competition is high when it comes to your children's clothing business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
• Finding the right supplier: Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Creating a successful children's clothing business means that you will have the ability to sell, provide stellar customer service, communicate with vendors and motivate your team (even if it's down the road)!

Brick & Mortar vs eCommerce Business Model

When deciding whether or not to start a children's clothing business, it's important to first decide what type of business model you want (brick and mortar, eCommerce, or both)!

Here are a few things to keep in mind when considering a Brick & Mortar store:

Brick & Mortar Model

If you do plan to open a physical store, it's important that you find a spot in a high-traffic area. This is a great way to gain exposure for your business and also get new customers.

It's also important to consider the higher costs associated with operating a physical store (ie - employees, rent, utilities, etc) and the long days/hours associated with running a store.

The main benefit, however, is that customers love being able to see products in person. It's important to recognize that although some people enjoy shopping online, there will always be the shopper persona that likes to touch, feel, and see the product they're buying.

eCommerce Business

One of the main benefits of operating online is that you are exposed to the entire world, versus just one local area. Rather than depending on foot traffic, you have all the tools at your disposal to create exposure for your store online.

Additionally, there are much lower costs to operate an online store - fewer employees, you can operate from your home, and you get to create your own schedules (yes, holidays included!)

Although you are operating online and have the ability to connect with people all over the world, it's important to consider that you will need to invest marketing money upfront in order to promote your store to the right audience.

So, which business model should you go with?

Each model has their benefits, however, the consumer trends for children's clothing business are shifting towards e-commerce businesses.

Big Players

• Children Salon (2.06K Alexa Ranking)
• Patpat US (3.22K Alexa Ranking)
• J.Crew (3.79K Alexa Ranking)
• Carter's (6.87K Alexa Ranking)
• Children's designer clothing (11.7K Alexa Ranking)

Small Players

• NG Apparels - Revenue $1.33M/month
• Bailey's Blossoms - Revenue $750K/month
• zapato FEROZ - Revenue $500K/month
• Parker Baby Co. - Revenue $500K/month
• Stonz - Revenue $250K/month
• Buckle Me Baby Coats - Revenue $200K/month
• Bambox - Revenue $60K/month
• Joah Love - Revenue $39K/month
• CoziGo - Revenue $26K/month
• Baby Wit LLC - Revenue $1K/month
• Sat Nam babe - Revenue $500/month
• Sawyer - Revenue $0/month

How To Name Your Children's Clothing Business

It's important to find a catchy name for your children's clothing business so that you can stand out in your space.

Here are some general tips to consider when naming your children's clothing business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your children's clothing business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your children's clothing business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your children's clothing business:

• Tiny Town check availability
• Lovey Dovey check availability
• BabyPlace check availability
• Tiny Treasures check availability
• Teddy Bear Products check availability
• Kiddle Place check availability
• BearyBaby check availability
• BabyLove check availability
• Tiny Crews check availability
• Toys And Tots check availability
• Baby Paradise check availability
• Giggles spot check availability
• Cottage County check availability
• Perfect Playtime check availability
• KidSwing check availability
• Baby Boutique check availability
• Baby Mall check availability
• Cuddles n’ Chuckles check availability
• Baby Couture check availability
• Mommy & Baby check availability
• Childsplay check availability
• FunWood check availability
• Brand New Baby check availability
• Itty Bitty Baby check availability
• Bratatatmania. check availability
• Little Adventurers check availability
• Small Town Baby check availability
• Euro Ess Childrens Clothing check availability
• Nex Babies check availability
• Little Misses check availability
• Happy littles clothing outlet check availability
• Adorned check availability
• Little People check availability
• Baby Born check availability
• Silly Baby check availability
• Bebe’s Palace check availability
• Top Notch Toys check availability
• Unbelievable Babies check availability
• Baby Life check availability
• BaBaBaby check availability
• Better Baby check availability
• Little One Stop check availability
• CelebU check availability
• Tiny Tycoons check availability
• Soft Sleep check availability
• FashionTotz check availability
• Peas in a Pod check availability
• Baby Motif check availability
• Leaps Inc check availability
• Uluru kids check availability
• MommyClub check availability
• Tummy Time check availability
• 4kidsOnly check availability
• Child Chic check availability
• Baby Wishes check availability
• PlayFactory check availability
• Lullaby’s check availability
• Baby Boo check availability
• Star Babies check availability
• Kid Clouds check availability
• Toys Republic check availability
• Blooming Babies check availability
• Current Kids check availability
• The Charming Baby check availability
• Toys N’ Dolls check availability
• Curly Winds check availability
• Kidcelence check availability
• Kid Care check availability
• Bountiful Blessings check availability
• Pint-Sized check availability
• Carousel Clothing Co. check availability
• Little Beauties check availability
• PLay Degree check availability
• Baby + Me check availability
• WeLoveBabies check availability
• City Baby check availability
• Sunshine Cuties check availability
• Blessed Babies check availability
• Rock-a-Bye Baby check availability
• Plush Play check availability
• Baby & I check availability
• EuroDudz check availability
• Kids Kupboard check availability
• Perfect Babies check availability
• Not a Grown Up check availability
• Wonderland Kidswear check availability
• Bouncing Babies check availability
• Kid Mart check availability
• Beautiful Bundle check availability
• Lovely Newborns check availability
• ‘Bout the Baby check availability
• Mom & Babes check availability
• Child City check availability
• Teeny-Weeny Babies check availability
• Elle’s Babies check availability
• Sunny Baby check availability
• Criss Cross check availability
• Baby Story check availability
• La La Buys check availability
• Sprouting Beauties check availability
• Fabustars check availability
• FunTime check availability
• Stuff 4 Baby check availability
• Charming Softies check availability
• Baby Happy check availability
• SvelteKids check availability
• Kiddies County check availability
• Little Monkeys check availability
• Boy Wonder check availability

Read our full guide on naming your children's clothing business ➜

Gia Paddock, founder of Boutique Rye explains how they came up with the name of their business:

What took the longest was deciding on a name and our logo; I wanted it to be meaningful, and I cared so much about what people thought.

Looking back, my advice would be to quit thinking about other people. This is my business, and all that matters is if I am happy the name and logo.

A popular national brick & mortar women’s boutique that many may have heard of is called Francesca’s… How original, right? So we came up with Boutique Rye named after our son, Riley. We put "boutique" in front to be a little different.

Now came the logo… Oh man, was this a task. We hired a graphic designer that we went to high school with, and went back and forth with him for about a month and a half. I wanted something that really described my style which is kind of “boho chic” and decided on a dreamcatcher. The dreamcatcher is also what our son’s nursery was decorated in, so it truly felt like a family business.

Search Interest

Let's take a look at the search trends for childrens clothing over the last year:

Learn more about starting a children's clothing business :

Where to start?

-> How much does it cost to start a children's clothing business? -> Pros and cons of a children's clothing business

Need inspiration?

-> Other children's clothing business success stories -> Examples of established children's clothing business -> Marketing ideas for a children's clothing business -> Children's clothing business slogans -> Children's clothing business names -> Children's clothing business Instagram bios

Other resources

-> Profitability of a children's clothing business -> Children's clothing business tips -> Children's clothing business manufacturers

🎬 How To Start A Children's Clothing Business

Identify Target Customer

A very critical piece in building children's clothing business is to identify your ideal target customer.

• Develop a niche and create a consistent brand that reflects your target customer.
• The colors, logo, content, and overall website should resonate with your target customer and should draw them in by helping them solve their specific "need".

Identifying Customers: Sat Nam Babe Example

I launched Sat Nam babe in Spring 2017, a mindfully made line of yoga-inspired clothing for kids under six and babies (think ethical supply chain, pants made out of recycled plastic bottles, fun prints and an overall uplifting message).

Early on, I thought my main customer would be Lululemon wearing, organic produce buying, millennial age yoga moms.

While they may be my end customer, my direct customer is many times the woman looking for a unique baby or kid’s birthday, Christmas, etc type gift for the special kid in their life or the hip Grandma who has a disposable income and wants to spend it on her precious grandkids!

Write a Business Plan

Writing a business plan from the start is critical for the success of your children's clothing business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Setting Up Your Children's Clothing Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

Purchasing Inventory For Your Children's Clothing Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

• Identify your target audience : Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
• Research your competition : Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
• Create an inventory wishlist : Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
• Find a supplier Make sure to first compare prices and analyze different options.
• Delivery timing : Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog. .

How Much Does It Cost To Start A Children's Clothing Business

If you are planning to start a children's clothing business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a children's clothing business and outline the costs you should expect for each:

• The estimated minimum starting cost = $12
• The estimated maximum starting cost = $27,209

Emily Casseday, founder of Blush Boutique Co describes how she was able to stay under $10K to get off the ground:

Because we were starting small, we didn’t have a lot of overhead. One of the biggest downfalls of starting a business is having too much to carry without a lot of income, which is why we decided to start in my basement instead of fully going brick and mortar.

We wanted to test the waters first to see if we had a viable business for our community. In order to finance the beginning of our shop, we used some savings and one credit card. Our goal was to never outspend what we made, so we started with a limit of $10,000 on the card and paid it off as we went. That first year, we didn’t take a paycheck so that we could completely get out of debt.

Raising Money

Since the startup costs to start children's clothing business range between $12 - $27,209, there are ways you can raise money to cover these costs.

Here are a few ways you can secure additional funding:

• Launch your product on Kickstarter
• Raise capital by asking friends and family
• Apply for a loan
• Find an investor!

Crowdfunding Campaign Example: Sat Nam Babe

I used iFundWomen to launch my company with a crowdfunding campaign, raising approximately 70% of what I needed to launch my business.

Crowdfunding is an excellent way to raise capital and test your market in a controlled and safe environment (aka friends and family) without draining your savings.

I raised about 40% of my goal within the first 48 hours because I was prepared, promoted heavily and had 100% of my energy in the game.

I can’t recommend this avenue enough because since most companies fail, why would you want to drain your savings or take out a bank loan when you can get early buy-in, early-stage customers and early feedback through crowdfunding?

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

• Draw Your Initial Design on Paper
• Form pieces of fabric together
• Consider Taking A Generic Product And Putting Your Own Brand On It
• Try Making the Product Yourself
• Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here .

Krystian Frencel, founder of Two Bunch Animals created a paper form of two pieces of fabric that made up their product:

There are other creative methods of "sketching" out your design, and it doesn't always have to be with a pen and paper.

I started by deconstructing, AKA pulling out the stitches from a pair of the Stonemen briefs. Created a paper form of the two pieces that made up the brief, and had it digitized.

I also connected with a graphic designer who helped set artwork into the digitized template and made it match at the edges for a beautiful seamless print.

I searched for local sewing classes first, thinking I was going to learn to sew myself. I don’t know what I was thinking.

I was eventually recommended a sewing shop by one of the sewing classes/workshop places I contacted. This is where I met the owner of the shop, a masterful older German lady. She reminded me of my father a bit, an old soul with an immense amount of knowledge and experience.

She was an expert at her craft. She talked me through the manufacturing process and taught me a lot about it.

She connected me with a fabric supplier, a waistband supplier and set out a timeline to create prototypes. All I had to do was provide the printed templates of the underwear on a roll of fabric.

Revenue Expectations

We've interviewed several different founders in the children's clothing business and asked them how much $ they're making today.

• $0/year in revenue
• Sells kids clothing.
• 3 employees
• $312K/year in revenue
• Sells baby strollers
• Solo founder
• 2 employees
• $468K/year in revenue
• Sells premium children's clothing
• 7 employees

Sat Nam babe

• $6K/year in revenue
• Sells yogi children's clothing
• 0 employees
• $720K/year in revenue
• Sells baby products subscription box

Buckle Me Baby Coats

• $2.4M/year in revenue
• Sells car seat friendly coats

How To Price Your Childrens Clothing

One of the most challenging aspects to starting a children's clothing business is determining how much to charge for your childrens clothing.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your childrens clothing, it's critical that you first identify all of your costs and consequently mark up your childrens clothing so you can factor in a profit.

The actual cost of your childrens clothing may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your childrens clothing, you'll want to create goals for revenue + how much profit you want your children's clothing business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your childrens clothing is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your childrens clothing fits best in the marketplace.

All of these factors play an equal part in pricing your childrens clothing, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:

I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.

The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.

How To Find A Supplier For Your Children's Clothing Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

• Are you looking for a manufacturer to produce your product idea ?
• Do you want to find a supplier that can simply purchase existing products for you ?
• Do you want a drop-shipper to supply and fulfill orders?
• Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Manufacturing Example

The next step was to look for manufacturing partners, but funnily enough, we didn’t even know what we were looking for. Are we looking for the fabric itself, or a company that produces dress shirts?

We knew the properties that we wanted, so looking through online directories we set up a spreadsheet with possible companies and started emailing them with our requests to "make dress shirts from sports materials".

At the end, we emailed all the companies that had a website, as well as an email address (you’d be surprised how many didn’t) and started setting up meetings in a span of a week that we can take off from our jobs and travel back to Bulgaria to meet with all of them.

At first, most of them didn’t know what we were talking about and looked a bit confused, but after a week of meetings and discussions, there was one company that said they could be able to create such a product, so we decided to shake hands and proceed to make samples.

Alibaba Tips From Founders

I did not have expensive prototyping design software, so my “designs” were free-hand drawings I created with colored pencils. It didn’t cost thousands of dollars and it was efficient.

The next process was to packaging my product. I knew I wanted elevated packaging because I thought of my product as an affordable, luxury product ($29.99 per pair). For this box, I went straight to the source: Alibaba.

If you’re not familiar, Alibaba is a site where you can access factories (mostly in China) and get almost anything made. It’s an inventor’s playground. I posted my box design specifications, and within 24 hours, I had selected a factory that could make my boxes for about $1.10 each.

When you look for a factory on Alibaba, make sure they are a “Gold Supplier” with “Trade Assurance”.

Alibaba validates and scores its factories though a badge/award system, so make sure you check these qualifications carefully. I have been lucky and had no issues so far.

🚀 How To Launch Your Children's Clothing Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Children's Clothing Business:

There are various different ways you can launch your children's clothing business successfully.

Here are a few different strategies to get customers excited about your children's clothing business:

• Set up a Facebook page for your business. This is a great way to establish an online presence
• Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
• Get Press! Pitch your story to the media and you may just land in an amazing publication
• Live sales to get customers excited
• Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

Traditional Launch Strategies Example

Collaboration is key. We worked together a lot with like-minded emerging brands, local artists, and events.

One of the first sales we made was actually at a local weekend market in Crows Nest. Dealing with mostly online transactions, the experience to meet our very own customers in person is actually amazing.

The biggest lesson is probably to reach out, work with people, and support each other.

For example, we were able to have our pop-up space by sharing the cost with fellow independent brands. We’re stronger together.

Gia Paddock discusses how live sales on Facebook was KEY to her launch success:

Our official launch happened the day after my birthday, July 26, 2017.

I decided to get the word out by going “live” on Facebook. When you have a personal profile, Facebook will allow you to record yourself in real time, and they allow any of your friends to click on the video and watch if they want. I told everyone our background story and that we would have our first live sale that next night, which was a Thursday. Little did we know Thursdays would be “our day”!

Live sales were something that I wanted to do, and it was different than other online boutiques I had seen. Basically, I would go “live” on our boutique’s Facebook page with our new inventory and show each item, give a little description on it, how it fits, price, sizing, etc. It really feels like I am everyone’s own personal shopper, which is amazing!

Our first live sale was pretty successful. Most of our first customers were my friends or acquaintances from school. We decided to start right away and do a giveaway if they shared the live sale video. We gave away a $100 gift card raffle as an incentive to anyone that shared the video.

This would prove to be by far our best strategy to grow the boutique without spending a dime on traditional advertising.

Marketplaces

There are various different marketplaces that you can effectively sell and promote your children's clothing business, whether that's local or online!

Here are some of the most common ones:

• Your own website! Shopify is known to be the best for e-commerce stores
• Local places! Gift shops, farmers markets, festivals, grocery stores etc
• Etsy - E-commerce website for craft supplies
• Craft is Art Marketplace to buy and sell handmade crafts & fine art
• Aftcra Online marketplace where you can buy and sell handmade products
• Storenvy Marketplace for authentic brands

Etsy Tips From Founders

Etsy is one of the most common marketplaces for this business type, however, there are some tips and tricks from other founders you'll want to consider prior to listing:

Financially speaking, Etsy is a really great way to start a business because it’s essentially free until you start selling. It cost nothing to launch besides my 20 cent listing fees.

Etsy has been encouraging free shipping with a lot of pushback from sellers, but I built everything into our prices about a month ago and introduced free shipping shopwide , which seems to have improved conversion rates and search visibility already.

I honestly attribute the bulk of my success to photography. I was a photographer first so obviously very lucky to have no issues launching with great images and it’s something I consistently produce.

With Etsy especially, there are a ton of mediocre amateur photos so it was an easy way to set myself apart from the start, and I don’t think Etsy themselves would feature my products and market them so often otherwise. We’re also able to compete fairly well on price because 80% of customers are American, and our dollar is much weaker.

One big mistake I’m seeing from other people selling handcrafted items is regarding Etsy. I’m seeing people do one of two things:

• Under-utilize the platform
• They are solely using the platform

What I mean by this is that I’m seeing a whole lot of handcrafters that only use Etsy because it’s easy. But referring people to an Etsy page as your webpage isn’t as professional as a dot com webpage, plus, Etsy’s fees are much higher than Shopify. Also, when Etsy makes changes to its marketing structure, I’ve seen people who have no other website get absolutely screwed and their shops go under.

The other camp is those that refuse to use Etsy at all. Etsy is a marketplace, with a built-in audience that is often searching for exactly the product you make! Both camps are making the mistake of not diversifying their markets. Use Etsy, it’s an amazing sales tool, but don’t rely on it solely.

Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

• Easy and seamless process to get your product listed on Amazon
• There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
• Can help grow your business exponentially and reach new audiences
• You may encounter some "copycats" and counterfeit products
• Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
• If you already have a low-markup, amazon may not wrth your while and you could end up losing money
• Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

🌱 How To Grow Your Children's Clothing Business

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your children's clothing business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to children's clothing business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Host A Social Media Giveaway

People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.

If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.

One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.

This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.

🏃🏼‍♀️ How To Run Your Children's Clothing Business

How To Retain Customers For Your Children's Clothing Business

Retaining customers is one of the most effective ways to grow your children's clothing business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your children's clothing business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Erin Hooley, founder of Bailey's Blossoms discusses the key to retaining customers:

A product without a person is just a product. If you can manage to connect with people on a personal level, you will have a fan for life. And a fan is a thousand times more valuable than simply another customer.

My customers have always been my top priority. I can never get enough of their feedback! It was those willing to speak up and provide constructive criticism that I credit my success to. In an effort to constantly progress we chose to get up more times then we fell and it ultimately paid off!

With a total customer base of around 750,000, we hope to pass 1 million by the end of 2020.

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Diversifying Product Example: Joah Love

The future for JOAH LOVE is bright! Customers have been telling us that they’ve been coveting their kids’ wardrobes for years, and this season, we’re going to make a collection just for them with the launch of a new line for adults.

It will include Mommy + Me and Daddy + Me collections, complementary clothing for parents and their kids.

We’re also in the early stages of exploring clothing options for children with special needs. There’s growing demand for sensory-sensitive apparel to help outfit these children and support their parents, and we’re excited to reenvision how our incredibly soft materials can help these families.

We put together the best resources on the internet to help you start your children's clothing business.

• Platform tools such as Shopify , WooCommerce , Amazon , Etsy , eBay , Google Shopping , BigCommerce , Adobe Creative Cloud or Amazon Web Services
• Email tools such as MailChimp , Klaviyo , SendinBlue , ActiveCampaign , Omnisend , Planoly , G Suite , Whatsapp or WeChat
• Social media tools such as Facebook , Instagram , Twitter , YouTube , Pinterest , Sprout Social , Vimeo or Later.com
• Advertising tools such as Facebook Ads , Instagram Ads , Google Adwords , Google AdSense , Amazon Ads or Google ads
• Reviews tools such as YotPo , Stamped.io or Google My Business
• Design tools such as Canva or Adobe Suite
• Shipping tools such as ShipStation , ShippingEasy , Stamps.com , EasyPost , Shippo , USPS , UPS WorldShip , FedEx , Royal Mail , Amazon FBA , DHL , Return Magic , UPS , Canada Post or 2ship
• Analytics tools such as Google Analytics
• Productivity tools such as Google Suite , Dropbox , Slack , Microsoft Office 365 , Notion , NetSuite , Redbooth , ClickUp , Stickermule or Box
• Payments tools such as Paypal , Shopify Payments , Amazon Payments , Apple Pay , Venmo , Afterpay or Braintree
• Customer service tools such as Zendesk , Intercom or Gorgias
• Blog tools such as WordPress
• Accounting tools such as Quickbooks , Xero , Wave or A2X
• Sales tools such as Ultimate Special Offers
• Freelance tools such as Fiverr or Upwork
• Referral tools such as ReferralCandy
• Education tools such as Udemy or Skillshare
• Stock images tools such as 123rf , Unsplash , Pixabay or Istockphoto
• Affiliate tools such as Skimlinks or ClixGalore
• App tools such as Gravity Forms
• Seo tools such as Screaming Frog or Moz
• Web hosting tools such as GoDaddy
• Podcast tools such as SoundCloud , Spotify or Stitcher
• Payroll tools such as Paychex or Payworks
• Wholesale tools such as repzio or shopzio
• Crm tools such as Zentail
• How Any Kid Can Start A Business: Shaan Patel

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Web Resources

• How To Sell Kids Fashion Online
• Kid's Clothing Store Business Plan Sample - Executive Summary
• How To Start A Children's Clothing Brand
• Starting A Children's Boutique Career Series #2

Case Studies

• Starting a Kids Clothing Brand and Growing to $12k/mo
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• How We Grew Our Baby Subscription Box To $60K MRR
• How A Single Mom Designed A $50,000/Month Car Seat-Friendly Kids Coat
• Lessons Learned From 20 Years In E-Commerce
• How I Started A $750K/Month Infant And Toddler Clothing Brand
• How We Started A $325K/Month Practical Baby Products Brand
• How I Started A $185K/Month Baby And Children Vegan Footwear Brand
• 35 Pros & Cons Of Starting A Children's Clothing Business (2024) 1 of 11
• 90 Best Wholesale Children's Clothing Suppliers [2024 Edition] 2 of 11
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• 298+ Best Instagram Bios For Your Children's Clothing Brand [2024] 4 of 11
• 300+ Clever Children's Clothing Business Slogans 5 of 11
• 8 Tips For Starting A Successful Children's Clothing Business (2024) 6 of 11
• 43 Trending Children's Clothing Businesses [2024] 7 of 11
• 80 Marketing Ideas For A Children's Clothing Business (2024) 8 of 11
• 400+ Cute Children's Clothing Line Names 9 of 11
• How Profitable Is A Children's Clothing Business? (Updated for 2024) 10 of 11
• How Much Does It Cost To Start A Children's Clothing Business? (In 2024) 11 of 11

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11-year-old girl opens clothing store, inspiring young entrepreneurs

At just 10 years old, Audrina Nguyen-Oerzen already had her future mapped out when Scripps News Phoenix met her in March of 2023 . Drawing and painting is her escape and passion, and she’s been doing it for years.

Now, at just 11 years old, her artwork and designs will be available for purchase at her very own Arizona store.

“At first, she was telling me it was an idea and then all of a sudden, I received a phone call from one of her friend’s mom saying she wanted to place an order, and I was like, ‘What are you talking about?’ The next thing you know, I was like, wow, she was really serious about this,” Jillian Nguyen, Audrina’s mom said.

That call happened in 2020.

California lawmakers block effort to ban skin care products for young children

In 2021, they started printing her designs on shirts and since then, Audrina’s Amazing Designs has grown. The two sell their clothes, plush toys, and other accessories online and at farmers' markets and now have their own brick-and-mortar store.

“It’s a dream come true, really. I’m so happy to have it and keep on going with my dream of drawing and just being an artist in general. Little me would be really proud now,” Audrina said.

Jillian says the way they print their clothes, it’s meant to last longer than just a picture that’s ironed on a shirt. She said the way they print it, the designs are woven into the fabric of the clothes. She said she’s done a lot of research into helping her daughter thrive and grow in her business. To help her daughter and see her grow, and not just in her business, makes her proud.

View this post on Instagram A post shared by Chandler Fashion Center (@chandlerfashioncenter)

“Anything I can do as a parent to support her and guide her and build that confidence as well as the resiliency with that,” Jillian said.

Audrina’s designs also capture her culture, being half Vietnamese. She’s created artwork that showcases her heritage, with the help of her family.

“Sometimes, I see my grandma eating something so I’m like, 'Oh, that’s so cool, I’m going to make that into a character,'” she described in 2023.

When you walk into her store in Chandler, sandwiched between Bath and Body Works and Wetzel's Pretzels, you’ll see a lot of Asian culture on display. She has adult clothes and baby clothes in all kinds of designs, including artwork of everything from baos to boba.

“I feel my drawings are little parts of my personality. A big thing I have here, it’s a repeating pattern, is my culture,” she said.

Audrina already has big plans for the future, including growing her store. She hopes to pass down her business and artwork to her own kids someday. But first, she has to finish school, and hopes to go to fashion school. At her age, she feels she’s learned a lot already and is grateful for the people who have supported her.

“Some people are like, ‘Oh, you’re not going to succeed, you’re just a kid.’ But, I’m really thankful for the people that give me good feedback and they support me,” she said of her work, which can be found online on her website .

This story was originally published by Elenee Dao at Scripps News Phoenix .

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Funder of proposed play area at Seattle nude beach revealed, city plan draws ire

After the previously anonymous wealthy donor funding a proposal for a children’s play area at a nude beach park in Seattle was revealed Wednesday, community members voiced their anger at the city as the parks department proposed adding a clothing-recommended part to the beach.

KUOW reported the multimillionaire Stuart Sloan, who owns University Village, was behind the now-scrapped plan to build a playground at Denny Blaine Park, which has been used as an unofficial nude hangout for decades, especially by LGBTQ+ swimmers and sunbathers. Reporting by KUOW showed Sloan, who lives near the park, had a close relationship with the city even before the playground plan.

At a public meeting Thursday, many LGBTQ+ park users expressed anger at the parks department and voiced opposition against a proposed addendum to Seattle Parks and Recreation policy that would designate “zones” in the area. Zone A, closer to the Lake Washington shoreline, would be clothing optional. As park users enter Zone B to the west, which is separated by a parking area, they would be encouraged to wear clothing or a towel.

Community members at the meeting portrayed the zone proposal as caving to the requests of wealthy, contemptuous homeowners. Two parks department rangers were at the meeting, which some attendees said they viewed as an intimidation tactic.

When asked, all but one of the roughly 40 people at Thursday’s meeting said they did not approve of the zone proposal.

The Seattle Parks and Recreation playground project was canceled in December due to opposition from people who viewed the $550,000 plan as a discriminatory attempt to change the way the small, secluded space on Lake Washington has been used for decades, especially by LGBTQ+ people. Thousands of people last year signed a petition against the project, describing the beach as an important space where LGBTQ+ people feel safe, accepted and free.

Sloan’s reported relationship with the city raised eyebrows Thursday, with community members expressing anger about the influence the millionaire appeared to have on city planning due to his seemingly personal qualms about the park.

Sloan’s 31,000-square-foot mansion oversees Lake Washington, and its appraised value is about $21 million. Sloan did not immediately respond to a request for comment Thursday.

“You look at all this stuff that’s happened and it’s hard to have good faith toward neighbors when we’ve seen what they’re willing to do,” park user Milo Kusold said at the Thursday meeting.

Community members also expressed concerns about the city’s lack of protection of park users’ comfort — including allowing fully clothed onlookers who photograph or video people at the park.

“I frankly don’t really care that much that two to three neighbors might see some nudity,” parkgoer Aspen Coyle said. “I don’t think the compromise of having Zone B be a request to not be nude is worth it … that puts limits on us.”

Sloan, who runs Sloan Capital Companies, donated $550 to Mayor Bruce Harrell’s campaign in 2021. In July 2023, Deputy Mayor Adiam Emery met Sloan at a Starbucks near his home before he met Sloan at his home soon after, according to KUOW. There, they went over cost numbers for the park before they were made public.

Sloan texted Harrell’s personal cellphone complaining about the park, and a deputy mayor later met with Sloan several times, including at his home, KUOW reported. Sloan, who previously was QFC chairman in the 1980s and bought University Village in 1993, is a longtime philanthropist.

In a statement, city spokesperson Jamie Housen said “it is not uncommon for the mayor or his staff to visit the home of constituents.” Housen also said “no responsive text messages” from Harrell to Sloan were identified.

“For years, many users of the park and neighbors around Denny Blaine Park reached out to both Seattle Parks and Recreation and the Mayor’s Office regarding conditions of safety and cleanliness of the park — a long-standing area of complaint,” Housen wrote. He wrote Sloan was “one of many voices highlighting these issues.”

The idea for play equipment “originated in community requests,” Housen wrote. Anonymous donations to the city are not uncommon, he said, and Harrell was unaware of Sloan being the potential funder.

Seattle Parks spokesperson Rachel Schulkin has said Sloan did not have a say over what playground option was chosen.

On one instance in 2022, KUOW reported, Sloan rented out Denny Blaine for a dinner party at his home. He told the parks department he wanted a “beautiful serene park as the background.”

Friends of Denny Blaine Park, which comprises neighbors, LGBTQ+ community members and Seattle Parks staff, is working on establishing guidelines for the park by this summer. Next month, the Board of Parks and Recreation Commissioners will vote on whether to separate Denny Blaine into zones.

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Target says Pride collection will appear in 'select' stores, cuts LGBTQ apparel for kids

Target will limit which stores sell LGBTQ-themed products following last year's firestorm over its decision to sell products designed for transgender people.

The retailer said Thursday that it would be selling its Pride merchandise in a select number of its nearly 2,000 stores and on its website this year, citing “historical sales performance.” It added that in addition to selling LGBTQ-themed home and food and beverage items, apparel from its Pride collection this year will be tailored to adults. No Pride apparel for children will be sold.

The latest decision, first reported by Bloomberg News , represents a change from offering the products in all Target stores, as the company has done in previous years .

"Target is committed to supporting the LGBTQIA+ community during Pride Month and year-round," a spokesperson for the company said in an email on Friday. "Most importantly, we want to create a welcoming and supportive environment for our LGBTQIA+ team members, which reflects our culture of care for the over 400,000 people who work at Target."

"We have long offered benefits and resources for the community, and we will have internal programs to celebrate Pride 2024," the spokesperson added.

Last year, Target was the focus of a social media-fueled boycott by some shoppers who disagreed with the retailer's decision to sell swimsuits for trans people , with many individuals falsely accusing the retailer of selling them to children. The retailer's Pride-themed clothing for children included apparel with supportive slogans such as “Just be you” and “Trans people will always exist!”

Target has spent the better part of a decade publicly supporting the LGBTQ movement following a controversy involving its CEO's donation in 2010 to a group that supported a gubernatorial candidate who opposed gay marriage.

But last year's backlash resulted in the company pulling trans-oriented products from its shelves amid scenes of store employees being harassed by customers.

Target was also falsely accused of selling "satanic" children's clothes, further alienating some conservative shoppers.

Some conservatives celebrated the company’s announcement to dial back this year’s collection.

“Target won’t be pumping every store with pride crap this year and that’s a win,” conservative media personality and political commentator Tomi Lahren wrote on X on Friday. “Why do we ALL need to celebrate who you sleep with?!!!”

Target is far from the only company that has come under pressure to pare down its support for the LGBTQ community in recent years. 

In 2022, Florida lawmakers passed legislation to strip Disney of control over Walt Disney World’s self-governing district after the company voiced opposition to Florida’s so-called Don’t Say Gay law. In response, Disney sued Florida Gov. Ron DeSantis and his allies, arguing that the state violated the company’s free speech rights. The two parties reached a settlement over the self-governing district earlier this year.

Bud Light faced a social media firestorm last year after transgender influencer Dylan Mulvaney appeared in an online ad for the company. Sales of the popular American beer brand dipped and calls for boycotts surged after the spot.

Several weeks ago, NBC News was first to report that Best Buy offered to screen LGBTQ nonprofit donations earlier this year following pressure from a conservative nonprofit.

“Nothing has changed in the ways we give to LGBTQIA+ organizations,” Carly Charlson, a spokesperson for Best Buy, said in statement earlier this month. “At Best Buy, we strongly believe in an inclusive work environment with a culture of belonging where everyone feels valued and has the opportunity to thrive.”

Target said in its statement Thursday that it will continue to support LGBTQ organizations, including the nation's largest LGBTQ advocacy group, the Human Rights Campaign, and to spotlight LGBTQ-owned brands throughout the year.

Kelley Robinson, the HRC's president, said in a statement on Friday that "companies need to understand that community members and allies want businesses that express full-hearted support for the community."

“Target’s decision is disappointing and alienates LGBTQ+ individuals and allies at the risk of not only their bottom line but also their values," she said.

Rob Wile is a breaking business news reporter for NBC News Digital.

Reporter, NBC OUT

What does a DC ward manager do? Meet the first one: Ward 8’s Wendy Glenn

Mike Murillo | [email protected]

May 17, 2024, 5:39 AM

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Her team will operate out of the newly-opened Safe Commercial Corridor Hub in the Salvation Army Building. Many of the services that D.C. provides are only steps away, she said, but people might not realize it.

Glenn will lead Ward 8’s team of representatives with the Mayor’s Office of Community Relations and Services. She said nearby residents who come to the hub can connect with the Department of Housing and Community Development and D.C. Health for any sort of assistance they may need.

The hub is staffed by outreach teams from multiple public safety and human services agencies that can respond to challenges in the community, including crime, mental health issues and substance abuse. For people returning to the community after incarceration, they can find help at the Mayor’s Office of Returning Citizens Affairs.

“There’s so many things along this Avenue that you cannot and will not miss a beat as far as getting your city services done,” Glenn said.

With concerns over crime in the city, WTOP heard from residents last year who called for city leaders to be more visible in Ward 8, and Glenn said her hope is the team, along with the other resources provided at the hub, will help show the city is there.

“We walk around the Corridor to make sure that people know that the mayor’s office is here,” she said.

The hub will also be staffed with a D.C. police officer, who Glenn said will not only help residents in times of need but also better relationships between the community and law enforcement.

“Having the police here to just say, ‘Hey, how you doing? How’s your day going? Can I help you with something?’ Just to have them here, to have a presence, is really good for us,” she said.

Additionally, D.C. Police Chief Pamela Smith said the new hub would add law enforcement resources to Anacostia.

“It’ll give our officers the opportunity to be readily accessible,” Smith said. “We will cut down on response time.”

City leaders said the Safe Commercial Corridor Hub that’s already been established in Chinatown has been a success, noting a 78% drop in violent crime within 1,000 feet of the hub since it opened.

Who is Wendy Glenn?

Glenn’s passion for helping her community came from her experience of being someone who needed assistance but didn’t have access to it when she was young, she said.

Glenn was in foster care early in her life in Philadelphia, which she said was difficult because, at the time, the city lacked the services to help her. She later became an emancipated minor at 16.

Her move to D.C. didn’t come for another 13 years. In 1995, the a newly-divorced mom of two decided to move to the nation’s capital after being inspired by the Million Man March where thousands of Black men marched on the National Mall to promote unity and combat negative stereotypes.

“I didn’t really need to stay in Philadelphia, where I felt like it was just too many bad memories,” Glenn said.

After moving to the District, she worked in several federal government roles before starting with the D.C. government. She worked for the city’s Department of Employment Services, Parks and Recreation, and eventually was hired by the mayor’s office.

Beyond all that, she said her children have flourished in the city.

“For me, raising my children here has been the best thing ever,” she said.

Her goal in this position is to see Ward 8 flourish too, and she believes this hub will help it continue to grow, she said.

“I love this role,” Glenn said. “Managing this hub, working in this hub, is the best thing that I could have done in my career.”

WTOP’s Nick Iannelli contributed to this report. 

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© 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

Mike Murillo is a reporter and anchor at WTOP. Before joining WTOP in 2013, he worked in radio in Orlando, New York City and Philadelphia.

• @MikeMurilloWTOP

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Don't call them DINKs. Many childfree adults are ALICEs.

• DINKs are known for having disposable income, but some childfree adults are also struggling.
• In fact, many childfree adults are ALICEs — asset-limited, income-constrained, and employed.
• Without dependents, many low-income workers have a harder time accessing tax credits and government assistance.

America's DINKs — dual-income couples with no children — are known for having disposable income and spending their paychecks on major investments, luxury vacations , and early retirement .

These households have previously told Business Insider that they can spend extra money on their lifestyle because they don't have any child-related costs. By definition, DINKs aren't necessarily rich , but they do have a reputation for living a life of freedom and excess cash.

A growing number of child - free adults , however, are falling through the cracks of the US economy. Many low-income childfree adults fall into the ALICE category — people who are asset-limited, income-constrained, and employed. Twenty-nine percent of US households make too much to qualify for government assistance but not enough to comfortably afford daily life . And ALICEs who aren't parents face unique challenges: it is especially difficult to qualify for financial help or tax credits without young children, even if you need the help.

According to a report published in April by the Brookings Institution, the US doesn't have a strong financial safety net to support childfree ALICEs. This is partly because having financially dependent children is a prerequisite of some government assistance programs .

Poor, non-elderly adults who are not raising children and don't qualify for disability benefits made up nearly 106 million people in 2017, according to a Census analysis . What's more, they have a higher risk of experiencing homelessness and long-term poverty, per the Brookings report.

Low-income adults without children face barriers to government assistance

Low-income, childfree adults have a higher likelihood of falling into poverty, and often stay in poverty long-term because they can't access assistance, wrote Robert Greenstein, the author of the Brookings report.

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"The safety net for these non-elderly childless adults is so limited, those non-elderly adults who are poor tend to be poorer than others living in poverty," wrote Greenstein, who is also a visiting fellow of economic studies for the Brookings Institution, which is affiliated with The Hamilton Project, an economic policy initiative.

The report found that half of the Americans living in "deep poverty" — those with incomes that are at or below 50% of the poverty line, which is $7,290 annually for one person — are childfree adults not receiving disability benefits.

Greenstein wrote that this population is at a disadvantage when applying for government support, especially as it comes to tax credits and housing assistance, even if their household income is low.

For example, they don't qualify for the child tax credit , which allows families with dependents to receive thousands of dollars in tax breaks each year. The Earned Income Tax Credit — which offers refundable tax credits for low- and moderate-income workers — is also very limited for childfree employees, who receive fewer than 4% of the EITC's overall benefits, according to the Brookings report.

Greenstein also wrote that over 7 million low-income adults who are between the ages of 18 to 61 and don't live with minors pay more than 50% of their income on rent — making them severely rent-burdened. The majority of these adults don't receive any state or federal rental assistance.

Additionally, parents can more easily access SNAP food benefits than childfree adults because they are exempt from having to work a required amount of hours each week to receive assistance.

Many Social Security and Medicare programs also primarily offer assistance to older adults, excluding adults under 62.

Although strengthening the US financial safety net for this population is complex, Greenstein offered a few solutions. He suggested expanding the Earned Income Tax Credit to benefit more adults without children, along with removing the extra qualifications childfree adults must meet to access SNAP benefits.

An expansion of Medicaid through the Affordable Care Act would also allow more adults to get the healthcare they need — even if they don't qualify for disability benefits or Social Security, Greenstein said.

Are you making an income above the poverty line but still struggling to afford daily life? Have you faced challenges qualifying for government assistance because you don't have children? Reach out to this reporter at [email protected] .

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Old Navy sets opening date for new Onondaga County store

• Updated: May. 16, 2024, 6:01 p.m. |
• Published: May. 16, 2024, 9:00 a.m.

An interior shot of an Old Navy store. photo: Jay Watson

• Elizabeth Doran | [email protected]

Camillus, NY - The newest Old Navy store in Onondaga County is set to open Saturday morning.

The national clothing retailer will open at 10 a.m. in the former Bed Bath & Beyond space in Fairmount Fair in Camillus. The store has 13,000 square feet of space to sell clothing and accessories for men, women and children.

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