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Fashion Designers Apply Now to Fund Your Next Collection!

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We are so excited to have seen a wonderful 2014/2015 season with so many amazing collections being funded on our platform!

Here is a short list of FAQs to prepare you for the application process:

Q1. I am fresh out of school can I still apply?

A1. Yes. Your acceptance depends on a combination of  factors: experience, education, skills, awards received, uniqueness of products. We are looking for talented individuals  that have the potential to grow when using our service.

Q2. I am a somewhat established independent fashion designer, what can I get from your service?

A2. As an established designer  you can use the Luevo platform to test the market desirability of  your new products. Better yet, you gain more followers, pre-sell your collections and further strengthen your brand!

Q3. Can I just post my design drawings?

A3. Unfortunately, no. Our customers want to see exactly the final product they will be buying. You will have to produce a sample and post high-resolution images that show the details of your product.

Q4. Is Luevo manufacturing my products once they are successfully funded?

A4. NO. You as a designer are in charge of your own production.

Q5. Do my products have to be handmade?

A5. NO. This is not a site for handmade products only. You can choose to make your own production or outsource. We encourage using local manufacturers and suppliers.

Q6.What happens with the returns?

A6. You are responsible for accepting returns and refund the customer.

Q7. Do I have to compromise on price because I am pre-selling my products?

A7.  You are responsible for determining the appropriate price for your products, based on your costs and required profit margins. If your minimums are high then it makes business sense to reduce pricing accordingly.

Q8. Does Luevo own the rights over my designs?

A8. NOPE. You own full rights over your designs, products and brand.

Q9. Do I have to be based in North America to post my products on Luevo?

A9. YES. Currently we can only launch US and Canada based designers.

Q10. Do I have to pay to have my products on Luevo?

A10. NO. It is free to post products and request pre-orders. We only make money if you do, after you successfully fund your products.

If you are a fashion designer ready to crowdfund your next collection, please use our online application HERE. And if you’d like to learn more, don’t forget to check out our free tips and sign-up for courses and webinars.

 

3 Tips for the Emerging Fashion Designer

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Yet another week of fashion extravaganza stormed through our city, and many emerging fashion designers have had the opportunity to mingle, network or even launch their collections.

I am a big follower of everything that moves in the fashion industry: bloggers, stylists, designers, fashionistas and pretty much anyone that cares and is involved in the local fashion scene. I lived every moment of the fashion week by digesting Twitter feeds , Instagram pictures and Facebook posts.

And here is tip #1: If you are an aspiring or emerging fashion designer – you must stay connected to your local fashion influencers! Twitter is a good place to “stalk” them and stay up-to-date with latest news and events in the fashion industry. Find bloggers, stylists, fashion publications and organizations that will surely overload you with the latest fashion news.

Indeed, during fashion week it can be a little overwhelming with all the media hype around the big established designers and the runway shows. But learn to listen and filter to what is of real value to you
FashionWeek

Tip #2: Attend smaller events where you can get valuable networking done.

Best part of fashion week is the high concentration of fashion influencers, but you will have to find the appropriate event to network with them. One of these opportunities was the speed-networking event organized by Fashion Group international and Fashion Takes Action. This event is typically sold-out, and you can meet with potential clients, HR recruiting firms specializing in fashion, bloggers, boutique owners and mentors. I recommend these types of events to anyone starting up in any kind of industry, and make sure you bring tons of business cards!
speed_networking

Tip #3: Enroll in industry specific organizations before the fashion week.

You are very lucky to be able to start a fashion business in a city like Toronto. Bigger metropolitan cities typically have fashion hubs that come with non-for-profit organizations, incubators, and an abundance of mentors. Being part of these will give you access to latest news, reduced ticket prices to fashion events and more networking opportunities.
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Here is a short list of organizations that as an aspiring or emerging fashion designer in Toronto you should seriously consider:

Toronto Fashion Incubator – an innovative and highly respected non-profit organization dedicated to supporting and nurturing small business entrepreneurs in the fashion industry.

Fashion Group International – global non-profit organization of executives, designers and entrepreneurs in more than 30 chapters around the world. Toronto is their only Canadian chapter.

Fashion Takes Action – Canada’s premier non-profit organization that focuses on sustainability in the fashion industry.

pre-ordering retail fashion for independent fashion designers

Crowdfunding and Crowdsourcing Fashion

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In one of our previous posts we highlighted some of the challenges that aspiring fashion designers encounter when starting up their businesses (you can find the full article here). To sum up, here are the top three problems:
INITIAL FUNDING – FORECASTING DEMAND – GETTING PRE-ORDERS

Let’s be honest, the fashion industry does not take full advantage of the advancements in IT, and the designers have to be very creative to overcome their challenges. Many resort to major online marketplaces to sell their creations. These work for designers offering custom made products – and they can sell one item at a time based on customer’s requirements. On the downside, the designers can’t source materials in large quantities because of the unpredictability in demand and they end up sourcing expensive supplies and pass that cost to the buyer. Furthermore, it is very difficult for the buyer to find a particular designer as these marketplaces become more like a universe of everything for everyone (For example, Etsy reportedly has over 800,000 active shops).

What we’ve recently noticed is that independent fashion designers are now appealing to the public to support their businesses and they do it on crowdfunding websites. Still, the fashion category on Kickstarter has the lowest success rate. We believe this is because the existing crowdfunding platforms don’t make for an elegant e-commerce solution. Consumers can’t really shop the designers’ products, but rather “donate” in return for different types of rewards. Crowdfunding works for fashion retailers that sell single products (such as the super-famous pebble watch); however, they don’t work as well for fashion designers that sell multiple products. crowdfunding fashion

Finally, a lot of new designers try crowdsourcing their designs, which takes care of the second obstacle they encounter – forecasting demand. By using a voting, liking and sharing system you can learn from your potential buyers more than if you were to investigate yourself. You can choose to produce only the most popular products or modify your collection based on consumer’s feedback. Still – desirability doesn’t necessarily translate into orders, as the potential buyers are not required to commit to a purchase.

At Luevo, we are working hard to develop a new kind of crowdfunding solution specifically targeted at aspiring and emerging independent fashion designers. We will use a combination of best practices from existing crowdfunding and crowdsourcing business models to create one solution to a designer’s top three challenges. We understand that as independent fashion designers you have certain production requirements. On our platform you will be able to obtain the pre-orders you need by crowdsourcing your demand.

You can find out more on how our fashion crowdfunding platform works here.

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!