If you want to know how companies satisfy your craving for a commodity, then you need to look at the advertising data. Take, for example, the clothing and accessories business. In 2018, companies spent more than $1.04 billion on advertising so that they could introduce you to the latest summer line of clothing or so that you could accessorize your look with a necklace that goes well with your fashionable stackable rings.
Advertising remains to be a powerful force within the supply and demand concept. Fashion accessory items are part of the handbag, luggage and accessory industry, which raked in a total of $17 billion in revenue as of October 2019. Of course, the billion-dollar spending would come from famous big brands.
But what if you’re a mere starting entrepreneur with some $2,000 to spare and you want to start a fashion accessories business? Can you make it? The answer is yes.
An Overview of the Accessory Industry
All the figures seem to paint a favorable economic condition. The 3.5% five-year growth rate certainly bodes well for budding entrepreneurs. One consumer report indicated that in the past couple of years, consumers had shown a preference for both function and luxury. Customers are buying functional but fashionable backpacks. But designer brands continue to drive sales in the industry with its 12% share in 2017, which is two points up from the previous year.
Your Next Steps
While you might not be able to put something on the shelf that could compete with designer bags or fashionable backpacks, there are plenty of items to choose from, from hats to scarves to fashion jewelry.
- As little as $2000. Yes. You might be able to launch something with merely $2,000 as initial funds. Tanya Yan, a Canadian entrepreneur, started her eCommerce accessories business with this amount. Her advantage was that she had a good grasp of online marketing and logistics. She didn’t spend much on paid advertising or a web developer. Free online social media advertising platforms already helped. The money was spent on inventory.
- Decide on your business model. You can retail items by buying in bulk from manufacturers. This is one option, where you scout for the best suppliers, develop your relationship with them, negotiate for a reasonable price, and become part of the wholesaler’s primary supply chain. Another route is to be the designer yourself, and you can either build your production capability in-house or outsourced it to a third-party service provider or manufacturer. This option gives you greater creative control, better management of inventory, and the ability to provide a higher price point that can still attract consumers.
- Study and understand the market. Women are almost automatically one specific segment. A report says that the average woman would cough up a total of $125,000 in a lifetime for clothes and other accessories. This will comprise roughly 3,100 items. Of course, shoes would be the majority of these items. But consider what the rest might be? Understanding these shopping habits will be critical to your business. Build an operation that’s distinct from your competition. It doesn’t need to be a product; it could be your service and how you take care of your customers.
Your business plan should outline other aspects of starting your business, including your funding sources, if you’re thinking of a brick-and-mortar operation. Marketing will be a crucial aspect as well. But these key points will set you in the right direction.