In the dynamic world of fashion retail, the journey from inception to growth involves more than just perfecting your brand name or logo design. The cornerstone of a thriving online fashion business lies in securing a reliable and consistent supply of products. This blog aims to demystify the stages of supply within the fashion industry, offering genuine insights rather than a mere promotion of our website. We're here to support your growth and help you visualise your business's potential.
Embarking on Your Fashion Venture (Turnover: £0-£100K)
Launching an online fashion store often starts with excitement over branding and social media following. Yet, the real key to success is establishing a steady supply of products. Initially, newcomers may turn to large retailers' sales or capitalize on events like Black Friday, recognising an opportunity to profit. While this can be profitable, it typically offers smaller margins due to the sporadic nature of sales and the limited availability of less popular sizes.
Another common starting point is purchasing from designer outlets. Those fortunate to live near or willing to travel to outlet villages such as Bicester or Cheshire find a viable means to buy and resell products. This approach can sustain a small-scale operation achieving up to £100k annually. However, the limitations on purchase quantities and restrictions against bulk buying and reselling by many outlets pose a challenge for scaling your business.
Scaling Up (Turnover: £100k - £1m)
As your business grows, reliance on retail sales and outlet finds becomes insufficient. This phase requires establishing solid relationships with wholesale suppliers. With some capital or business financing, you might be ready to place orders of £5k to £20k. Wholesalers, closely linked to the brands, offer substantial quantities at more attractive prices. As your relationship with these suppliers strengthens, opportunities for further discounts emerge for those placing larger orders. It's important to note, many wholesale prices exclude VAT, a critical detail for those not VAT-Registered.
Surpassing the Million (Turnover: £1m+)
Reaching over £1 million in turnover signifies a well-established business with diversified sales channels, including social media, online marketplaces like eBay and Amazon, a dedicated website, and possibly a physical store. At this stage, businesses can secure significant discounts through bulk purchases directly from large suppliers or brands themselves. The focus shifts from sourcing products to selecting the best deals from a multitude of offers. Successful businesses at this level might also begin wholesaling items to smaller businesses, offering them alternatives to the traditional outlet and retail avenues.
How We Fit Into Your Growth Story
We present an alternate route to the traditional supply chains for businesses in the £0-£500k turnover range. Understanding the challenges of starting and scaling up, we've tailored our offer to lower the barrier to entry. With a minimum order quantity set at just £400 and five items, we aim to make our comprehensive catalogue of high-demand, high-end fashion products accessible to all, offering a stepping stone to those embarking on or aiming to expand their online fashion venture.
This revised approach aims to capture the essence of navigating the fashion industry's supply chain, providing valuable insights while subtly introducing our services as a viable option for emerging and growing businesses.