Challenges of an Aspiring Independent Fashion Designer

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As an aspiring fashion designer, creating patterns and designs is fun, creative and for some – a relatively easy process. But, consistency of sales and strong demand forecasts is the most difficult aspect of starting up a fashion business. Here are some obstacles that you will have to overcome in order to achieve a sustainable business model.

You will need an initial capital investment to produce your first collections. You will either outsource your production or open your own studio and you will require funding. But, the fashion industry is high-risk, capital intensive and highly seasonal. This is one of the main reasons why banks don’t easily hand out loans or lines of credits to support independent fashion start-ups. You will have to rely on your personal savings and assets or borrow money from friends and family.
Fashion business funding

Then, you need to decide on the production method that works best for you. If you are outsourcing, consider the shipping costs, lead times and the minimum requirements for each order. Unless you have paid in advance pre-orders that can secure a large production batch, it is best if you start with smaller quantities to avoid holding a large inventory. Also, the location of your manufacturing facility is important; closer to home means quality control trips are easier and more affordable.

Fashion design is fun and creative.

Forecasting your demand is a daunting task. Big retail chains and established fashion businesses can easily forecast their demand by using historical data and predictive algorithms. However, when you are just starting up in the industry, you don’t have the historical data you need to build such forecasts, nor do you have a known brand that will guarantee you the traction of sales. So, the biggest question remains: how do you know exactly which products are going to sell and in what variations (sizes, colors)?

woman shopping for fashion

There are several steps you can take at any stage of your business to better understand your demand. First, determine who your customers are and get to know them by asking questions. Go beyond your close friends and family, as you are most likely to get positive reinforcement anyway. Start with your professors, peers and go to local meet-up groups – you will receive criticism and unbiased opinions. Then, generate a conversation on forums and on your Twitter and Facebook pages. Grow a customer following that will provide you with real-time feedback.

independent fashion designer

In a way, you are “Crowd-sourcing” your designs, by learning what your ideal customer is most likely to buy. Always network with your peers, search for support from your local fashion incubator and don’t sign away rights over your designs. The fashion industry is not very regulated when it comes to design protection; you want to ensure that when selling on a third party’s website, you retain rights over your designs.

Our mission at Luevo is to change how aspiring independent fashion designers do business. We want to help independent fashion designers streamline their production processes, minimize financial risks and increase the success rate of fashion start-ups. Click here to learn how we plan on achieving this!

Emerging Fashion Designers Launched at the Oscars

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The Academy Awards are known for launching emerging fashion designers. A relatively unknown designer is introduced to millions of people at one single event. Some of the world’s most recognized starlets will be photographed wearing an independent label and we wonder who is going to be the next Elie Saab?
The Beirut-born emerging fashion designer Elie Saab, became a household name when Halle Berry walked out on the Oscar’s red-carpet in the now world-famous maroon dress, in 2002. It is estimated that Saab received the equivalent of  $25 million worth of publicity. She soon after joined the ranks of Chanel and Dior (read full article from Business Mirror here).


But what if you are an accessories designer? Even better! You have the opportunity to give a taste of your products to tens of A-listers in their “freebie” gifts. And that is exactly what Ms. Lauren Merkin a handbag designer from New York did. She spent more than $30,000 to have her handbags showcased in the “freebies” lounge at the Independent Spirit Awards the day before the Oscars. She also created a special red-carpet collection, hoping that some starlets will pick her handbags for the actual Awards ceremony. This is a high price to pay for a small business owner however the exposure is definitely worth it. Now Ms. Merkin’s handbags are sold internationally and have been favored by comedian Sarah Silverman, “Desperate Housewives” star Nicollette Sheridan and Jessica Simpson.

A story that recently drew my attention came from emerging Canadian jewelry designer Tiffany Haziza of Buddha & the Raven Studios. In 2011 she had the opportunity of having one of her products (a pearl and Swarovski crystals necklace) offered in the gift bags at the Academy Awards in 2011. Now she is running a successful business, receives custom orders from TV stars and sales internationally.


Indeed, the Academy Awards and other red carpet events are the catalyst that many emerging designers need to take their businesses further. Of course, you need a bit of good luck and a couple of connections to get you in, so start networking early. Build strong relationships with publicists and celebrity stylists and get to know the stars and what they are likely to wear at a red carpet event. Also, make sure you budget accordingly, you need to create a special collection just for that event and consider that a marketing expense.

Halle Berry at the Academy Awards, 2002.

Halle Berry at the Academy Awards, 2002.

Lauren Merkin Clutch emerging designer

Lauren Merkin Clutch

Tiffany from Buddha & The Raven Studio, emerging designer

Tiffany from Buddha & The Raven Studio

 

 

Luevo – A Tech Startup With A Passion For Fashion

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It seems that in today’s society it is becoming increasingly hard to start something new, may it be in our personal lives or in our professional careers.  Most likely, it is the fear of failure that impedes us from trying new things.

While enrolled in my MBA program I lost my comfy marketing  job. That was my cue to follow my passion and I started my own company, an online fashion boutique. I knew there was a high risk of failure, but I was happy to be taking that risk. After one year of operations I learned more than in 5 years of corporate experience and 2 years spent in graduate studies. Nothing had prepared me for the life of an entrepreneur and the challenges that came with it.

Ana Caracaleanu - CEO

Ana Caracaleanu launches Luevo, a tech fashion startup.

As a fresh entrepreneur I was continuously learning and building personal relationships with my customers – my designers. I learned the difficulties they face when they want to start or expand their online businesses. The fashion industry is highly volatile, seasonal and risky. Independent fashion designers carry the financial burden when they need to source supplies and while holding inventory. Banks are less likely to give loans to any retail businesses, and it has become increasingly difficult to secure pre-orders with buyers.

Knowing that the fashion industry is facing a major problem, I worked hard at finding the solution to the designers’ problem. I wanted to help the aspiring and emerging independent fashion designers get a head start in the toughest industry.

I met many people from different countries, all having the same qualities and aspirations: they were all amazingly talented designers of clothing, jewelry or accessories. Their passion and attention to detail translates into extraordinary craftsmanship and their vision is reflected in unique pieces – the envy of a Burberry purse or Armani jacket. And that is why I came up with the Luevo concept: to give great talent the opportunity to start up, without the risk of failure and because we all LOVE fashion. For the first time, aspiring and emerging fashion designers can obtain the pre-orders they need before they have to go to production and avoid start-up financial burdens.

Continue to follow our story – we are here to change how independent fashion designers do business.

Ana Caracaleanu, Founder  & CEO – Luevo