Steps to Building a Fashion BRAND - Beyond Simple Logistics

[ALC]

I'm interested in starting a Fashion Brand one day. I have a great market picked out, solid marketing plan, but the process of getting designs and factories is where I fall off - don't know anything about this other than "use alibaba" so I appreciate what you are willing to share on this.

Use alibaba only if your local suppliers can't supply you, if they can you should negociate the margins with them and work with them because once you got sales and you hit the "Sold Out" title, you'll have to wait 1 month to get a new order from China, customers will slowly lose interest as you got no stock for them and won't get back.

In other hand, if you work with your local suppliers, they normally have a constant stock and then you would just have to make a call and make an order in 5 min and it's done.
The margins are taking a 'shot' sure, but you're saving a precious time.

 

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[CPisHere]

Use alibaba only if your local suppliers can't supply you, if they can you should negociate the margins with them and work with them because once you got sales and you hit the "Sold Out" title, you'll have to wait 1 month to get a new order from China, customers will slowly lose interest as you got no stock for them and won't get back.

In other hand, if you work with your local suppliers, they normally have a constant stock and then you would just have to make a call and make an order in 5 min and it's done.
The margins are taking a 'shot' sure, but you're saving a precious time.

Where to find local suppliers? What about designers?

 

[ALC]

Where to find local suppliers? What about designers?

Upwork and all that kind of website is FULL of designers, or like me, if you really want it you learn the basics of Photoshop and try to do something with it, i've made it.

Local suppliers, search on google or look at your yellow pages > Clothes suppliers 'CITY' / clothes wholesalers 'CITY' / Custom clothes supplier...try different thing.
TBH, the one i'm dealing with at the moment is just 1km away from my house and i didn't heard of him before.
Lucky me, they're already profitable and have all the machinery that can be buy so their prices are flexible.

 

[biophase]

I'm a big fan of your stuff here on the forum and appreciate the feedback, however I think you're missing my point.

For all your Amazon businesses, and pretty much every other industry out there, what you are saying is 100% true. However, I intend for this brand to become a 'fast-fashion' company. What good would ZARA be if they only had one thing in their store? Or didn't have new items coming in every day?

If I were to restock, there's no doubt that it would sell out again. However, my Instagram page would be endless shots of the same outfit. There's no variety. How am I supposed to back up my differentiation branding claims of being a fast-fashion company when I only have ever launched one item? Furthermore on your point, if I bump the price up, then I'm no longer affordable, once again losing characteristics of being a 'fast-fashion' brand. I do that and I'm the same as every other brand in the industry - stale, boring.

I understand your need for variety, but I see the opposite in your case. In a perfect world you should do both. Re-stock and launch a new design. But you are in a position that if you miss the mark your company goes under. You need to keep your bread and butter money maker before you expand.

What if your second design doesn't sell well? Then you are left with nothing to sell.

Why can't you do both? If you had the funds to get your first order, I assume that you selling out gave you additional funds to restock the first order and place an additional order?

 

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[Ethanhoward35]

great thread have learned so much from it , I'm glad to see your progress keep it up man.

 

[ChapoJR]

Upwork and all that kind of website is FULL of designers, or like me, if you really want it you learn the basics of Photoshop and try to do something with it, i've made it.

Local suppliers, search on google or look at your yellow pages > Clothes suppliers 'CITY' / clothes wholesalers 'CITY' / Custom clothes supplier...try different thing.
TBH, the one i'm dealing with at the moment is just 1km away from my house and i didn't heard of him before.
Lucky me, they're already profitable and have all the machinery that can be buy so their prices are flexible.

This is terrible advice.

In my experience, 100% of the designers on Upwork are F*cking awful. If you want generic, off-trend designs, sure go to Upwork.

If you want actual good designs, you either need to hire a design team who have went to design school etc by paying them actual salaries. If you can't afford that, you need to do it yourself.

Stay away from outsourcing to designers on Upwork etc., unless you are trying to sell generic menswear goods like suits/tailoring, mountain/sportswear goods etc. If you want on-trend streetwear/designer garments, like Balenciaga, Yeezy, Gucci, Supreme.... begin by copying massively until you can afford to hire actual designers.

Same thing applies again to the advice you've provided on finding local suppliers - this will all be generic shit. Fine for selling suits, sportswear and so on, but pointless if you're trying to sell on-trend FASHION clothing, especially menswear.

 

[ChapoJR]

Where to find local suppliers? What about designers?

If you're asking questions like this, you're jumping into the wrong industry.

 

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[ChapoJR]

UPDATE:

I'm growing increasingly frustrated at my factories lead times. It is not the fault of my factory, as their lead times are some of the lowest in Asia.

I've researched womenswear fast-fashion brands PRETTYLITTLETHING and MISSGUIDED, who I admire massively, and they have stated they are able to develop samples in less than 24 hours, and that once a trend appears, they can have it on their site in less than a week. Less than a F*cking week.

That shit is absolutely crazy.

Upon further research, I found that all of PLT/MISSGUIDED's factories are UK-based, small factories scattered all over England.

I've researched UK-based manufacturing in the past myself and found absolutely zero factories, which makes me wonder how these brands are doing this/have established this incredibly proficient system which can bring in hundreds of new styles & products every single day. I would imagine they began outsourcing abroad and slowly opened their own factories in the UK.

Currently, my factories in Asia take around 7-12 days to develop a sample, then 30-35 days for bulk production. Based on average Asian factory lead times, these are pretty quick.

I fully intend to open my own factories in the future, rather than continue outsourcing. I find having manufacturing times outside of my control is something which is literally driving me crazy. I feel like I'm wasting my life away waiting for products to come in. I know for a fact I can sell out whatever I get in, however these months of waiting are excruciating.

There is another popular womenswear brand called House of CB, which owns their own factories in Asia. They aren't turning over as many designs per day/week as PLT/MISSGUIDED, however I feel they are a further example of how women's brands are head & shoulders ahead of men's brands at the moment in terms of logistics.

They always say revolutionary market leaders suffer at the start, and I am feeling that way currently. I can see the massive gaps which exist in the menswear industry, I know exactly how they need to be improved and how I can get there, however I can not see any way to get there faster.

The most agonising thing about all of this is how long I know it is going to take. All I want is a steady stream of products coming in. At the moment I have nothing to do but wait, and it's slowly killing me.

 

[ALC]

This is terrible advice.

Terrible advice, not really it depend on what you want to create. If it's just selling Hoodies/TShirt/Caps custom printed, you would only need a local supplier and deal with him to get all you need for the price you want.

If you want to create the next BALMAIN - Paris or things like that, of course it's not where you want to look at.

 

[Xeon]

This thread is not just gold, it's F*cking legendary.
I'm in a similar industry as you (fashion) but more towards womenswear.

I'm watching this thread for more goodies! Btw, how much did you pump into the business initially? Could you give a rough estimate?
Like say, 5-digit figure? I was reading the posts and it seems you've got a big setup with celebrities and all lol

i prefer to get thinner margins and have a constant stock (my supplier is in my city and got a software which allow me to order from home any product i want to be build) than having the same problem as yours, waiting for weeks to get your order.
That's the problem that @Walter Hay was talking about.

Do you have a link somewhere where Hay speaks about this? I can foresee this issue once I launched, meaning that my profits will either be i) only enough to restock current inventory OR ii) only enough to buy new inventory.

 

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[ALC]

Do you have a link somewhere where Hay speaks about this? I can foresee this issue once I launched, meaning that my profits will either be i) only enough to restock current inventory OR ii) only enough to buy new inventory.

In several threads he talk about the import/export issue, like many other members who tried to launch a clothing brand / Amazon FBA.
When you buy in China, it takes about 1 month to get home, when you're sold out it's not good for the business, or could be actually, you kind of create a crave feeling to your customers, it depends on what you're selling, a friend is using this technique in France and he's doing great.

Walter say that dealing with China is risky, because most of the time if you got a great idea they will copy your product and will put it on the market before you even got the delivery.

If you think your profit will be too thin, change the price range or the quantity, i would advise you to look at the threads who talk about this, there's one.


Sharing my lifetime experience in export/import. Product sourcing specialist.

 

[Xeon]

In several threads he talk about the import/export issue, like many other members who tried to launch a clothing brand / Amazon FBA.
When you buy in China, it takes about 1 month to get home, when you're sold out it's not good for the business, or could be actually, you kind of create a crave feeling to your customers, it depends on what you're selling, a friend is using this technique in France and he's doing great.

Walter say that dealing with China is risky, because most of the time if you got a great idea they will copy your product and will put it on the market before you even got the delivery.

If you think your profit will be to thin, change the price range or the quantity, i would advise you to look at the threads who talk about this, there's one.


Sharing my lifetime experience in export/import. Product sourcing specialist.

Yup, I totally agree with the china is risky part (cos' I'm chinese myself lol). This is why I don't dare to source in China cos' I've this nagging feeling they're gonna be creating my products and profitting there without me knowing. They've fake eggs, fake milk powder, fake Apple stores selling fake iPhones, anything that exists can be faked

Thanks for the link, gonna check it out!

 

[lucasmello]

Awesome thread, love the energy.

I totally agree with you, building a business is this weird mixture of adrenaline rush and fearful desperation.

I have been helping some clothing brands in Brazil by sourcing materials, and I can say is that people need to stop focusing on China so much unless you are importing polyester. For cotton, which I assume you are using since you are selling high-end, India, Bangladesh and Pakistan are much better, have more experience and faster lead time. 30-35 days for producing 200 pieces is way too much, some of the factories I use take less than 15 days to do a 300 pieces (3 different designs) order.

 

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[ChapoJR]

This thread is not just gold, it's F*cking legendary.
I'm in a similar industry as you (fashion) but more towards womenswear.

I'm watching this thread for more goodies! Btw, how much did you pump into the business initially? Could you give a rough estimate?
Like say, 5-digit figure? I was reading the posts and it seems you've got a big setup with celebrities and all lol

Thank you for the kind words. I'll be doing an in-depth update post soon as the Christmas season approaches.

Like I've mentioned, I started 2 previous businesses, 1 of which was previously clothing and 1 of which was a watch brand. One of the biggest mistakes I made with the watch brand was pumping way too much investment into an assumption. I assumed there was a market for what I had in my mind, which was based on basically no actual evidence. My thesis was that other brands were able to be successful selling a similar product, the market for watches is huge, so why can't I be successful too - there's enough cake for everyone after all. Turns out I lost 5 figures on that mistake.

What I did differently this time was take something I knew could sell, that I knew there was a demand for, basically a very safe product which other companies had already produced something similar to, and ordered small to test the waters. The investment was half of what I invested into the watch brand. I knew that with clothing, there's much less effort required to win over resistance than with a larger value, longer-term item such as a watch.

I think with clothing it's extremely difficult to 'test the market' before investing. With other things such as watches you can order a sample and market it as if you had 1000, and then once you receive good feedback proceed to make your order. With clothing it's a little more difficult, because in the time you've sought out your manufacturer, produced your sample, had it delivered, produced the content to market it, marketed it, and evaluated, then that product is more than likely off-trend by that stage or somebody else has created something similar or better due to having more resources & experience than you, therefore the demand diminishes before you can even begin production on a large order, never mind even receive it to fulfil that initial demand.

It's more-so about knowing the market. I can count on one finger the number of things I know about watches. But with clothes, I know my marketplace and niche inside and out, backwards, sideways and go to sleep dreaming about it. When I wake up, it's the first thing I scroll through on my Instagram, it's the first thing I research on popular blogs, it's the first thing I scroll through on Tumblr. I know every single detail about my niche, so when I say I invested small on something I knew other brands were having success with or I knew would at least be popular enough to sell 50% of the inventory, it's only because I live & breathe my niche that I was able to gauge these sorts of things.

Also, you mention that I have a big setup with celebrities and all, which I need to clarify as perhaps it's been lost in translation somewhere along the thread so far. The company is myself and myself only. I do not send PR or anything like that to celebrities. The reason celebrities (I say celebrities, there has only been 2 so far - and it's not like Kanye West is DM'ing me asking for free shit) have been messaging me is because they've seen my posts on Instagram and liked the clothes, so they've asked for some free stuff. If you produce quality stuff that attracts attention & engagement, you'd be surprised how easy it is to get these sorts of people interested.

 

[ChapoJR]

I have been helping some clothing brands in Brazil by sourcing materials, and I can say is that people need to focusing on China so much unless you are importing polyester. For cotton, which I assume you are using since you are selling high-end, India, Bangladesh and Pakistan are much better, have more experience and faster lead time. 30-35 days for producing 200 pieces is way too much, some of the factories I use take less than 15 days to do a 300 pieces (3 different designs) order.

I've tested the waters with a factory in Pakistan before and have had enough bad experience in quality & communication to deter me away.

I think that it depends on what you need. In my opinion China is unmatched in terms of their organisational skills and understanding of consumer needs. With my factory, I can kind of talk to my contact there and explain to them changes needing to be made to a sample without having to re-do design tech's and they'll understand what I'm getting at very well.

With an Indian, Pakistan factory etc., I've found it difficult to get that same sort of result.

I fully intend to change my manufacturing structure in the future once I have more power to play with, for example going to a factory saying I only want 100 pcs of this or that doesn't give you much room to negotiate. Here in the UK I've mentioned brands like MISSGUIDED & PRETTYLITTLETHING which can churn out 1000's of new products every week by producing in UK-based factories. From what I've seen so far, these factories must be based underground and run by the F*cking ninja turtle's as I have yet to find a single one, however like I said as my company grows so will its power and its ability to force these things to happen rather than negotiate/search.

 

[Xeon]

Thanks for the insight! I read that for the fashion / apparel industry, the return rates of the products are among the highest, anywhere from 15% - 45%+.
What's your take on this, and what's your return rates like if you don't mind sharing.

I'm thinking of setting aside some additional money in case my return rates are high after I launched.

 

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[TheDutch]

Really like your thread, i'm also looking into starting a niche into Man's Fashion right now. Following your thread for sure.

 

[Walter Hay]

I fully intend to change my manufacturing structure in the future once I have more power to play with, for example going to a factory saying I only want 100 pcs of this or that doesn't give you much room to negotiate. Here in the UK I've mentioned brands like MISSGUIDED & PRETTYLITTLETHING which can churn out 1000's of new products every week by producing in UK-based factories. From what I've seen so far, these factories must be based underground and run by the F*cking ninja turtle's as I have yet to find a single one, however like I said as my company grows so will its power and its ability to force these things to happen rather than negotiate/search.

Are you sure they are really producing in the UK? They could be, because there are sweatshops in most Western countries where illegal immigrants are being paid peanuts if anything at all and much of that business is in the garment industry.

Another possibility stems from what I found in checking the suppliers I listed in my labeling book, but with whom I was not personally familiar. I found quite a few that had started off manufacturing in their home country (USA, UK, Australia etc.) and had shifted sometimes most but usually all of their production offshore.

In every case they still advertise their Western address. Only a couple of them clearly disclose that production is now offshore.

Many famous brand names have been sold to Chinese manufacturers and although "Made in China" appears somewhere on the product, most people I have spoken to on the subject were surprised to find that their famous name product is now Chinese owned.

Walter
P.S. I will post on my AMA a comment on sourcing from India and Pakistan.

 

[ChapoJR]

Are you sure they are really producing in the UK? They could be, because there are sweatshops in most Western countries where illegal immigrants are being paid peanuts if anything at all and much of that business is in the garment industry.

Another possibility stems from what I found in checking the suppliers I listed in my labeling book, but with whom I was not personally familiar. I found quite a few that had started off manufacturing in their home country (USA, UK, Australia etc.) and had shifted sometimes most but usually all of their production offshore.

In every case they still advertise their Western address. Only a couple of them clearly disclose that production is now offshore.

Many famous brand names have been sold to Chinese manufacturers and although "Made in China" appears somewhere on the product, most people I have spoken to on the subject were surprised to find that their famous name product is now Chinese owned.

Walter
P.S. I will post on my AMA a comment on sourcing from India and Pakistan.

Yes, you're fully correct in that. There were some news headlines online a few months ago about PLT, BooHoo & MISSGUIDED using factories in the UK which grossly underpaid their workers and operated in very shabby conditions. On looking now, I can no longer find the articles so I guess they've done some extensive PR work to cover those stories up.

I've found the name of 1 or 2 of their factories, but they don't seem to advertise anywhere. Unlike factories in China, which actually want your business and will basically get on their hands & knees for it, the most that UK factories I've found have is a Yell page. I've called these factories and been told they don't want my business. I've sent e-mails without ever receiving a response. It's a strange situation.

 

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[ChapoJR]

I wanted to make a quick point on something I see as one of the most essential ingredients to my success in the future. I'll be expanding on this in more detail as I implement it more & more into the brand.

DISCLAIMER: The video above talks a lot about picking up girls. However, the key points relating to what I'm saying are also mentioned in a sales/business context within the video.

The video makes the point that successful companies market themselves in a way which is similar to attracting women; you need to create your own awesome reality and offer so much value just by being you, that if someone wants to be a part of that, it's cool, and if they don't it's their loss.

I can think of so many of these brands in fashion which have successfully created a culture that people desperately want to be a part of.

One brand in particular, their founders/staff (whether strategically or not I'm unsure) all have their own personal Instagram accounts, regularly posting high-quality, professionally shot content. They're not trying to sell anything doing this, they're simply posting pictures of themselves visiting factories, driving expensive cars, wearing designer clothes, posting insights from their warehouse & offices of them designing clothes etc. They've created a perception of their lives which looks to their followers like a movie - their followers resonate with what they're posting, and would do anything to live a life like that. They buy in more & more to the brand, and the reality/perception the founders have created - their followers buy their clothes and feel like they are getting a little slice of the movie. It gives their clothes and the brand itself a certain 'cool factor'.

Compare this to the millions of fashion brands which come & go on Instagram EVERY DAY. A poorly crafted Instagram ad with a picture of a hoodie on a white background with a few words on maybe the material of the hoodie, maybe listing the price of the hoodie or the fact they offer free worldwide delivery? That's cool, maybe it equates a few small sales, but is it doing anything to build a world the viewer of the ad wants to be a part of? Absolutely not.

This is something I'm going to be focussing on going forwards. I want to create my own personal Instagram, and offer followers of the brand with insights into what's going on behind the scenes. From interacting with my customers via DM's, I find that so many of them are interested in finding out more about the brand, like whether we design the clothes ourselves, where they are made, and so on.

My biggest obstacle here is I don't have any photographers following me around like the brand I've mentioned above. I'm horrendous at taking photos myself - I could take a picture of the Mona Lisa and make it look bad. And also I have no life, all I do is work on this brand and work my weekend 9-5 job to pay my bills. However the world was not build on excuses and this is something I'm going to have to figure out to move ahead of the 99.9% of faceless brands which are out there.

 

[Marc Albert]

Well, I have read many answers here, but let me add up some few important points.

Your business name just as your logo carries so many importance when it comes in contact with your audience. It is the name that firstly gives your audience a warm or cold welcome depending on the kind of name you are using.

A name tells a lot about a brand, a product, a business or a company. Here are few things that you might want to have in in mind when thinking of a name for your business.

1. It should be easy to read and spell
2. It should be attractive both in sight and in sound
3. It needs to be unique and short
4. It needs to portray your business as a professional one.

I have been into brand development for the past couple of years and most times I really find it not all that easy to create names for my clients all by myself.

A really useful and unique place to get these service done is on fiverr and there is this particular service I have been using on there that has really helped me. Maybe you can also check them out.

Here is a link kingwriters : I will create business name, brand name, company name for $25 on www.fiverr.com. They offer really amazing business naming and logo services.

I hope this helps.

 

[Walter Hay]

Well, I have read many answers here, but let me add up some few important points.

Your business name just as your logo carries so many importance when it comes in contact with your audience. It is the name that firstly gives your audience a warm or cold welcome depending on the kind of name you are using.

A name tells a lot about a brand, a product, a business or a company. Here are few things that you might want to have in in mind when thinking of a name for your business.

1. It should be easy to read and spell
2. It should be attractive both in sight and in sound
3. It needs to be unique and short
4. It needs to portray your business as a professional one.

I have been into brand development for the past couple of years and most times I really find it not all that easy to create names for my clients all by myself.

A really useful and unique place to get these service done is on fiverr and there is this particular service I have been using on there that has really helped me. Maybe you can also check them out.

Here is a link kingwriters : I will create business name, brand name, company name for $25 on www.fiverr.com. They offer really amazing business naming and logo services.

I hope this helps.

It is very true that a name should be much more than an identifier. It can tell a story and that story should remain consistent with the logo, the slogan, the label and the packaging, as well as the advertising whether on your own site or on your Amazon listing.

This is all part of a well thought out marketing campaign. Marketing is more than advertising, and more than labeling. In a nutshell it is everything from product concept through to consumer, including after sales. It includes product design, product image, market research, branding, logo design and labeling, among other things.

To do it properly you even need to understand the effect on your target market of color choices in not only the product but in the logo, label etc..

You want the business to be subject to your CONTROL, not others, so I suggest you should not hand over control of your advertising, including designing those items I mentioned above. You might need help, but you can still retain control. It's your concept, your business.

Walter

 

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[ChapoJR]

Well, I have read many answers here, but let me add up some few important points.

Your business name just as your logo carries so many importance when it comes in contact with your audience. It is the name that firstly gives your audience a warm or cold welcome depending on the kind of name you are using.

A name tells a lot about a brand, a product, a business or a company. Here are few things that you might want to have in in mind when thinking of a name for your business.

1. It should be easy to read and spell
2. It should be attractive both in sight and in sound
3. It needs to be unique and short
4. It needs to portray your business as a professional one.

I have been into brand development for the past couple of years and most times I really find it not all that easy to create names for my clients all by myself.

A really useful and unique place to get these service done is on fiverr and there is this particular service I have been using on there that has really helped me. Maybe you can also check them out.

Here is a link kingwriters : I will create business name, brand name, company name for $25 on www.fiverr.com. They offer really amazing business naming and logo services.

I hope this helps.

I don't think you've read any of this thread actually, as nowhere does it mention anything about brand names in this thread.

To be honest judging by your post rate I think you've just signed up & posted here to promote that Fiverr link as you may be in some way affiliated.

 

[Walter Hay]

I don't think you've read any of this thread actually, as nowhere does it mention anything about brand names in this thread.

To be honest judging by your post rate I think you've just signed up & posted here to promote that Fiverr link as you may be in some way affiliated.

I must say I didn't like seeing that live link there. I have now checked it out and find that it appears to be a substantial business operating through Fiverr.

Perhaps the mods might consider deleting the link.

Walter

 

[timmy]

Great story .....Not in the sector but know it's a difficult one to crack ...

 

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[ChapoJR]

Just a quick point I wanted to make on communications with factories.

I've gotten messages and e-mails in the past from people looking to get into clothing who hadn't the slightest clue on how to communicate with a factory on getting stuff made how they like it. They wonder how to get technical drawings made etc. and build it up like it's this monumentally difficult process. I was the same way when I first got into this industry.

The most important thing is to keep it simple.

The majority of what I do is send my factory reference garments similar to what I'm looking to have made. For example, if there is a hoodie which is made from material I like, I will send that to my factory and tell them to source something similar. If there is a style of printing I want to use on a jacket or pair of pants, I send the factory a pair jacket or pair of pants which uses a similar print, and tell them to copy the style of print with a different logo or artwork, etc. Occasionally I do work with technical drawing designers from Upwork etc, but mostly that's only when I want a piece made which is difficult to explain to the factory in words or reference garments. Even then I just have the designer make a drawing of the overall design to elaborate the general concept to the factory.

When a factory sends me a sample which needs changes, I don't need to have a 4 hour long FaceTime session or phonecall with them to discuss adjustments. I don't need to hire another technical designer to map out the changes in Photoshop etc.

Most of my communication with my factory regarding changes to samples etc is communicated via Snapchats taken on my phone with scribbles, lines etc and text on there. It often takes me around 30 seconds to snap a picture of a sample and illustrate on Snapchat the changes that are needed. I then save the picture and send it via message to my factory.

The point I'm trying to make is don't overcomplicate shit. There are much simpler, more cost effective ways to do things if you put your mind to it.

Of course this is all based on the assumption that you have a good understanding and relationship with your factory. Most factories in China will have no problems communicating in this way. If you find your factory is making things difficult or aren't understanding the points you're trying to make despite you making it perfectly clear to them, maybe it's time to find another factory.

 

[ChapoJR]

NOVEMBER UPDATE

OK so I've been holding off on doing an in-depth update for a while... But November is now drawing to a close, and Christmas is upon us.

Firstly, I know it's an ongoing theme in this thread but the lack of stock and stop-start momentum really hit me this month. Seeing other companies in my industry having hugely successfully BFCM campaigns drove me to the point of borderline depression.

I try not to compare myself to them as much as possible and maintain a tunnel vision, taking things one step at a time. These companies were obviously once in the same position I am currently in, however nonetheless I'm a competitive person by nature and it's hard to feel in any way happy watching other companies enjoying the success that should be in your hands.

November 2018 will be a different story. My sales next Black Friday will be in the millions.

My incessant moaning about slow progress aside, let's dig deeper into what I've currently got going on...

So like I mentioned previously, I had been looking into options for financing. I applied for a loan of £15k in mid-October, which has yet to be approved or finalised. I'll get back into that a little bit later...

Also mentioned previously was my tangent about neglecting restocks and focusing on bringing in new products instead. I changed my mind on this, and have placed a large restock order on our previously sold out products due to a very high demand. I have also placed orders on a similar product to our first sold out products, mainly just a change in colourway and a few design changes. I don't think this product will be as popular as the first product, however I myself love it and have shown it to a few of our influencers who love it too - I'm confident it will be a product to distinguish us a little, and it will still likely sell out quite quickly. It's a product too where if it needs restocked, multiple further colourways can be introduced too.

I also have a third product in production, which is completely different to both the products above, but it is something which is hugely on trend currently and something no company outside of designer brands has released. I'm confident it will be a big seller - however it's the type of product which can only be released in a certain season, so restock potential is unlikely.

Regarding the logistics of the order itself, for the restock I'm looking at around 300 pcs, 100 more than the first order. I could have went with more on this, however I wanted to leave some funds over for bringing in new designs too. Compromise, compromise, compromise. The new product which is similar to the first product is coming in around 200 pcs. The third product is 200 pcs also. In total the order then is 700 pcs, something much larger than the initial 200 pcs order. This is progress, and I am happy with it.

Now, the profits of my first order by no means whatsoever will cover a 700 pcs order, which brings me back to the point of my loan funding...

To ensure the factory began production whilst I was awaiting a funding decision, I paid 30% deposits on the full 700 pcs. I didn't want to be waiting around with nothing to do like I have been for the past month, so I thought F*ck it - let's go all out.

If my loan application were to now be rejected for whatever reason, I have enough cash leftover to fulfill the remainder 70% on only the 300 pcs restock.

It's a big risk, however the communications with the loan company have been positive overall. I'd rate it 80/20 in favour that I do get the funds I need, however that 20% risk would leave me rather F*cked.

Also, regarding timelines, I have promised my customer's that I will have the restock in time for Christmas delivery. Production will finish in a few days for the restock items, the new items one will finish in a week or so, and the other towards the end of December.

I could very much do with the loan company hurrying the F*ck up and giving me an answer, but they seem to enjoy taking their sweet time.

Regarding interest on the loan, don't worry it's very low. It's from a government operated company which works with young entrepreneurs with start-up companies who have been denied bank funding.

Either way, I'm gearing up for a very exciting, and hopefully extremely profitable Christmas & New Year period. Roll on Black Friday 2018.

 

[ChapoJR]

DECEMBER UPDATE

Okay so my latest shipment came in a week ago.

To anyone wanting to raise their stress levels to borderline heart failure levels, I strongly suggest you import a shipment from China mid-December.

Similarly to my last import, I used the same Chinese-based forwarder. Upon telling him I needed the shipment in time for Christmas delivery, he suggested we airfreight the goods from China to Heathrow, then load them onto a truck from Heathrow to my base in Ireland.

This seemed like a good idea of course, because he presented it as that it would be 3 days faster than direct air freight, and that it was also cheaper.

The shipment arrived at Heathrow in miraculous timing, considering the time of year. Once it reached Heathrow and was loaded at the freight management warehouse there, we encountered some problems. 2 days passed, and I heard nothing from the freight manager at Heathrow. Luckily, I ran out of patience and decided to call - he told me that it would be another week before the package reached my base, which is literally a 10 hour drive from Heathrow, simply because of the fact he could not organise a ferry across the water.

At this point I had already opened pre-orders for my customers to purchase the goods, ensuring them it would be dispatched 2 days after the timeframe quoted by my Chinese forwarder.

So, I said F*ck that, and rang up DHL for a quote from collecting at the port in Heathrow to my base. It was actually half the price using DHL as it was for the trucking service from LHR to my base, which shocked me - it must just be air freight from China to Europe that DHL is raping. The fact I hold a busy DHL business account helped lower the fees a little too I think.

Nevertheless, DHL arranged to pick the package up the next day.

This next part still angers me, so I'll skim over the details. Basically, despite having all the details arranged perfectly and the fact DHL have scheduled slots collecting from the LHR port my parcels were at multiple times per day, they managed to F*ck up my collection 2 days in a F*cking row. According to their drivers, they could not locate the parcels at the depot, as difficult as it is of course to find 8 parcels weighing a total of 350-400 kg.

The stress of this entire situation taught me a lesson: always expect, and prepare for delays when things are out of your hands. People F*ck up and don't really give a shit unless it affects THEM directly.

Also, I had mentioned previously about my finances, which is another funny & stressful story.

A few days after my last post, my loan was approved. However, at the same time it was approved, my bulk production finished, and upon paying it my bank account was then at 0. The loan funds would take 3-5 days to get into my account, and the shipping fees & customs fees would all be due in that time.

Long story short, I was forced to transfer money via a credit card to my business account using Western Union - some small fees associated with this, however it's a small sacrifice for not making my customer's wait. Had I not done this, it would likely be after Christmas when the majority of my customer's would be receiving their goods.

Last but not least, a point about the new product I am on the verge of introducing. It arrived with my re-order product, however I was forced to cancel the photoshoot I had booked a month in advance for it, due to the DHL delays.

Personally, I am extremely self-critical and feel there were quite a few design flaws in the new product. Everyone of my influencers I've sent it to seem to love it, however I know it's not game-changing level. It's difficult for me, because I am not a designer. I can't afford to hire a full-time, educated & experienced designer I trust, and I can't bring myself to outsource a designer because they are all 10x worse than I am.

It leaves me in a pickle - my methods moving forwards will basically be to use reference products from other brands to send to my factory, rather than working off technical specs, drawings, communication etc.

I feel another mistake I made with the new product is that it was rushed. Speed of reacting to trends is something I want to make a big focal point with my brand, however my factory cannot make bulk production any faster than 20-30 days, with 7-10 days for a sample. This is far too long. My aim, and something I tested with the new product was to skip sampling, and simply have the factory send me pictures of a pre-production sample whilst zippers, buttons etc were being made. This won't work though, because I need to analyse every detail from now on. If the slightest detail is off, the entire product could be a wash-out and I'm then stuck with hundreds of them.

I need to be more patient, and as I expand then look to test out other methods of reducing lead times. I aim in the future to own factories in China or wherever, so that I can have full control of lead times and quality, however this is a long way off and I need to figure out speeding things up as it would offer a huge competitive advantage and point of differentiation. Being first to react to a trend can be the difference between selling 200 pcs and 2000 pcs.

 

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[Xeon]

How's it going? Are you still on this?