How to open a clothing store in 2021? See 8 steps!
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The clothing market is one of the most profitable in the commercial sector. Buying clothes is not just a need to keep yourself dressed. Clothes, in addition to conveying your personality, are also a way of expression and social presentation.
Therefore, the clothing and apparel market is one of the strongest in the fashion industry. But to undertake in this competitive market it is necessary to have in mind and on paper, a detailed and realistic planning. Let’s go to the steps.
The first steps in opening a clothing store are:
- Conduct market research;
- Get formalized;
- Define the target audience;
- Observe the region where the store will be;
- Have a business and management plan;
- Pay attention to staff recruitment;
- And specify the ideal marketing for the store.
are you thinking about how to open a clothing store? Do you have many questions about how to start this process? We will answer all your questions regarding opening a clothing store here!
1. Market study
Before opening any type of business, it is necessary to do a good market research. In this way, it is possible to understand the gain percentages and understand the “animals” of the sector.
Many businesses close even before they make a profit for the simple fact of starting without first building a solid planning basis. Therefore, it is of fundamental importance to carry out a good market study.
From this research, it is possible to understand how the market, both its competitors and its customers, behaves. Thus, it is possible to define everything from seed capital to marketing strategies.
2. Formalization
You, as a partner-owner of a clothing store, can register in the Individual Microentrepreneur category, the MEI. This type of business requires much lower start-up fees compared to registering as a business. In case you register as MEI, the maximum annual turnover of your clothing store must be up to R$ 81,000.00.
If this is not the case, you can choose from the other types of companies that exist. Between them:
- ME: The Micro Company cannot have revenues exceeding R$360 thousand per year. There is only one holder and he is responsible for the company’s debts.
- EPP: The Small Business must have revenues between R$360 thousand and R$4.8 million per year.
- EI: The Individual Entrepreneur is a natural person who carries out a business activity. He may earn between R$360 thousand and R$3.6 million and the businessman is responsible for the company’s debts.
- EIRELI: At EIRELI, entrepreneurs differentiate their personal assets from those of the company and have a minimum capital of R$ 104.5 thousand.
3. Define your target audience
To start a business, it is important to define a target audience, that is, define what kind of audience your clothing store will serve. You therefore need to do research on your future customers.
This type of research includes questions such as what is the biotype, what brands this audience is looking for, what style, what references this group has in terms of clothing and finally, to which age group its future clients belong.
Among the types of clothing you can choose to sell in a specific way in your store are:
- Exclusively for women, men or children.
- Varied audience and accessories of different brands and types.
- Of sporting goods.
- From famous brands.
- Underwear.
- Beach clothes.
- Plus size fashion.
- Baby clothes.
The plus size fashion branch can be a great option if you want to look for a differential and also make a profit. According to data from sebrae, the plus size fashion sector generates revenues of R$ 5 billion per year. What drives this business is the fact that 60% of the Brazilian population is currently considered overweight.
However, only 18% of clothing stores throughout Brazil cater to this audience and only 3.5% of these stores are specialized in plus size, indicating that there is no great competition in this market niche and there is a good possibility to differentiate.
4. Observe the region where you want to open your clothing store
Analyzing the competition is also an important step. After all, in addition to giving you a dimension about the products, a sales flow map is also offered.
Choosing an area where large department stores or department stores rule may not be a good choice. They work with another business stream that is much broader. And they automatically generate the kind of competition your store won’t need at first. The best option are areas where demand is greater than demand.
Choosing the location where the physical space of your clothing store will be installed is absolutely crucial for the success of the business. It is essential that, based on the study of who your target audience is, that your clothing store is located in the vicinity of this target audience.
It’s no use, for example, having a sporting goods store in a space that is not close to gyms, sports courts, hiking trails and so on.
It is important to study in detail the business of competing stores that operate close to your commercial point and thus seek differentials to stand out in the location in question. What are the main strengths and aspects that competing stores leave something to be desired? What is the number of competing stores in the region where you will be operating?
Easy accessibility can make all the difference when a potential customer opts for your clothing store or not. Also make sure you choose a safe place. Another absolutely important factor when choosing the commercial point of your clothing store is the location’s logistics. Is the location easily accessible? Is vehicle traffic troubled?
Internal space
The decoration of all areas of the internal structure of your clothing store is essential to keep it attractive and make your establishment inviting to customers.
Its physical structure should also be sufficient to store a space for a box, dressing rooms, a management office and a bathroom.
5. A good business plan and management in your store
It is the business plan that will provide you with a dimension about expenses, profits and possible losses; the initial investment that will be needed to open the clothing store and the capital of cash flow in the initial months.
It is through the business plan that you will decide the size of your store, the materials needed for any store (panels, mannequins, mirrors, computers, furniture, etc.) and how you will control the most varied management processes in your company.
There are three options. These are: manual control by notebooks, spreadsheets and a management system. But we know that keeping track of a store by notebook is not a good idea.
So you can use spreadsheets for clothing stores or an automated management system.
eGestor is a management program that helps you control your company’s important data, such as sales and purchase control, issuing of bills and others. The interesting thing about eManager is that it combines the functions of financial control, cash flow, inventory control, control of products and services and issuance of invoices.
In eManager you will find easy ways to manage your store. This detailing and management are extremely important for the maintenance of your store.
The business plan will also tell you how many months it will take to generate the financial return on your investment. It is a panorama that looks to the future, but with full attention to the current situation, because it is based on the definitions of investment, product prices, expenses, legal aspects and eventual financing.
Without this type of administration your store will not be able to sustain itself for long.
6. Recruitment of staff
To open a clothing store, you will need qualified and, above all, empathetic salespeople. In the beginning, it is normal for the staff to be smaller, but never less qualified.
It is the sellers and attendants who are on the front lines. It is them and the physical environment of your store that will create an inviting space in which customers can feel comfortable and encouraged to buy. Therefore, maintaining a good relationship with your employees and customers makes all the difference in a store environment.
It is of fundamental importance that there is a balance on the part of sellers, that is, they must persuade the customer to buy, but in a way that is not invasive.
It is necessary to respect the customer’s freedom of choice and not insist on offering a product that is not exactly what he is looking for. A good salesperson must help and convince the customer to buy exactly what they need.
Customize your store space. Spaces that create dynamic environments tend to influence shoppers. But you must be meeting the needs of your target audience. It is necessary to be in tune with them. Therefore, market and customer relationship research are always important.
7. Build the ideal marketing to open your clothing store.
The promotion of your store must be based on the precepts that govern it, that is, it must be linked to its style. In the digital age, marketing has become a broader tool. Social networks are a great option because they have a greater circulation and reach a greater number of people.
Investing in your store’s marketing is as important as your management plan. Opening a clothing store without visibility is an idea doomed to failure. Therefore, bet on digital marketing, advertising and content analysis tools that project your store to the competition’s universe.
Understanding your target audience’s needs is an effective way to stay ahead of your competition. This is a strategy that should always be in the management plan from your store. Constantly researching technological innovations in fabrics, colors, prints and production is also important, as it keeps you up to date with the latest trends in the fashion market.
Customers will always be looking for the latest on the market. So, being aware of the collections of renowned designers and their productions for each season is always a point that differentiates your store from the others.
How much does it cost to open a clothing store?
What comes first to mind when thinking about starting a business is how much will be spent. First of all, it’s important to keep in mind that your business is unlikely to make a profit for the first few months. This is because it is necessary to make a profit to supply the amount invested in the beginning.
We cannot estimate an exact value because these values differ according to the store’s needs. What we can do is specify possible expenses:
- Opening of CNPJ;
- Fixed expenses (rent, internet, telephone and others);
- Initial purchase of clothing.
These values can differ a lot because you can set up your store in some space available in your home, for example. In this way, expenses with rent can already be discarded.
Is investing in a franchise a good alternative?
According to information from the survey carried out by Brazilian Franchising Association (ABF), 7 of the 50 largest franchises in the country, belong to the fashion sector. Therefore, opening a clothing store franchise can certainly turn out to be a good business idea.
One of the advantages of the franchise model is the fact that you don’t have to worry about choosing the model of clothes that will be sold or choosing suppliers, which makes it much easier to…
Find more articles in our categories Fashion & Looks & Luxe et 90s Outfits.
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