How much does it cost to launch a fashion brand?
Launching a fashion brand sounds like it would be loads of fun, right? You’ve got visions of your designs being worn by people in the street, being worn by celebrities, and getting featured in the pages of Vogue.
But let's talk about the slightly less fun side - the part that keeps most aspiring fashion entrepreneurs up at night. I'm talking about the cost. How much does it really cost to launch a fashion brand? This is a critical question for many aspiring designers, and it’s more than just a number. It’s about planning, budgeting, and sometimes, making tough choices.
The Cost Question: A Designer’s Dilemma
Picture this: You’ve got an idea that you’re convinced will take the fashion world by storm. You’ve sketched out designs, maybe even created a few samples. But then reality hits. How much money do you actually need to bring this dream to life? What if you run out of cash halfway? What if you spend too much on one thing and neglect another? These are real concerns.
But don’t panic. We’re going to break it down, piece by piece, and by the end of this article, you’ll have a clearer idea of what you’re in for - and how to prepare.
The Anatomy of Startup Costs
When it comes to launching a fashion brand, the costs can vary wildly. The answer depends on several factors:
Your brand’s vision and positioning: Are you aiming for a luxury market, or do you want to be accessible to the masses?
The scale of your launch: Are you starting small with a capsule collection, or are you going all out with a full range of products?
Your location: Starting a brand in London will likely cost more than setting up shop in a smaller city. Similarly, it’s going to be a lot more effort to launch in multiple countries
Let’s start with the basics.
1. Initial Investment: The Foundation of Your Brand
The first thing you need to think about is your initial investment. This is the money you’ll need upfront before you’ve even sold a single garment.
Product Development and Design:
Garment design: If you are not doing your own designs then you will need to pay for a professional designer which can work out to anywhere from £100-500 per garment depending on both the complexity of the garment (is it a t-shirt or a technical jacket with 7 zips?) and the quality of the designer. Expect to pay a premium for high-quality, sought-after designers.
3D Sampling: This is involves rendering your product in 3D using a programme like CLO to digitally sample it. Think of this as a way of evaluating a design before committing to physical prototypes. This can range from £60-200 per garment depending on complexity.
Prototyping and Samples: Creating your first samples can be expensive, especially if you’re using high-end materials. Expect to pay anywhere from £50 to £300 per sample, depending on complexity. You might need between 1-3 samples until you are happy to greenlight a garment for manufacturing.
Tech Pack: This is your manufacturing blueprint. It’s often not needed during the sampling process, but will certainly be a requirement from your manufacturer. These cost between £100-300 depending on the complexity of the garment and usually include full technical construction details as well as an annotated illustration or 3D render of the product.
Patterns and grading: Your garments will each require a pattern to be made which is how the manufacturers know to correctly cut your fabric. Grading is the process of taking a pattern at an initial size (often Medium or another common size that works for your brand) and adapting this into new patterns covering the different sizes of your garment. Producing a pattern can cost from £50-150 each and grading is usually around £25-50 per size.
Sourcing Materials:
Are you going for organic cotton or something more luxurious like silk? The cost of materials can vary, and this decision will impact your budget significantly. You also need to factor in both customisation and Minimum Order Quantities (MOQ’s). For example, if you need to dye your fabric a specific colour expect to pay a fair bit extra. Fabric dyeing also means you might need to order a minimum weight of fabric to facilitate the dyeing process. Many fabric suppliers can also require a minimum order quantity, for example if you need 20 metres of fabric but your supplier has a minimum order requirement of 50 metres. The important part here is to check first! The same principles apply to suppliers of haberdashery and labelling, so zips, buttons, thread as well as size and washcare labels etc.
Manufacturing Costs:
Domestic vs. Overseas: If you produce domestically, the cost per unit will be higher, but you’ll have more control over quality. If you go overseas, you might save on production costs, but there are risks like delays, quality control and communication issues. Manufacturing costs can range from £5 to £50 per piece depending on where and how you produce.
Business administration:
Intellectual property: You will want to own the intellectual property of your brand. There’s nothing worse than launching your fashion line to then discover that someone else owns the rights to your brand name. If based in the UK, check your brand name is available here and if it is not currently owned you should go through the process of registering it. It’s £170 to register a single trademark in one class. Read more on IP costs.
Accountancy: You may or may not need professional accounting help. If you do, it typically starts from £100/month.
Software: You might need several tools to run your business, from accounting software and project management to graphic design. You could keep everything as cheap as possible and use free tools like spreadsheets and Canva, or you might need paid licences to things like Adobe Illustrator or QuickBooks. Expect to pay around £20/month for a typical piece of software.
A high-quality brand will help you reach the right customers and sell your products
2. Branding and Marketing: Creating Your Identity
Now that you’ve got your product, you need to create a brand around it. Think of this as giving your brand a personality. This is where your branding and marketing budget comes into play.
Brand Identity:
Logo and Packaging Design: Hiring a professional designer for your logo and packaging might set you back anywhere from £300 to £3,000, depending on their experience. Unless you are an experienced designer, we strongly recommend leaving this to a professional. We work with a number of clients where one of the first recommendations we have is basically a complete rebrand. Good branding is never money wasted. Your success will largely depend on having a high quality brand.
Website: Your website is your digital storefront, and it needs to be good. You can use platforms like Shopify, which start at £25 per month, but customisation and design might add another £500 to £2,000. In general, the standard Dawn theme you get with Shopify out of the box is suitable until you’re doing north of £10K/month in sales. Until that point you don’t need anything too bespoke. Quality branding and photography will do the heavy lifting for you.
Marketing and PR:
Paid ads (Meta, Google Ads, Pinterest etc), PR, influencer and User Generated Content (UGC) partnerships, and organic (your own) content creation are key to customer acquisition.Paid Ads: To figure out your budget, estimate your Cost Per Acquisition (CPA), which is effectively the marketing spend you need to get one new customer. For fashion this generally lies between £8-40, depending on the cost of your product. Multiply the units you want to sell by your CPA to estimate your marketing budget. For example, if you have a £100 product, expect a ~£20 CPA. If you have 50 units, then your marketing budget should be your CPA of £20x50 units, so £1,000.
Influencers: The costs for a single post can range from £50-500 depending on the size of their audience. Influencers with up to 30K followers typically charge between £50-300 per post, influencers with over 100K followers can charge £500+ per post. Reels are usually 50% more expensive than single image posts. UGC is usually a lot less expensive but varies wildly in quality. For UGC you are looking for organic content by people who reflect your audience. Their own following size doesn’t really matter. The more authentic the better.
PR Campaigns: Want to be featured in magazines or on popular blogs? PR agencies can help, but their services don’t come cheap - think £1,000 to £5,000 per campaign. Good freelancers aren’t much cheaper. You’re ultimately paying for the quality of their connections and advice. You can write your own press releases if you want, but distribution is the difficult part.
Creative assets:
Photography: You’ll need a range of photography as a minimum. Ecommerce photography comprises shots of your products against neutral backgrounds, both with and without models. The starting range for this is £500-1000, but can increase substantially if you have a lot of products or product variations to shoot. Lifestyle photography is usually more about selling the brand look and feel rather than a single product and this looks amazing in a campaign and across your website and socials to legitimise your brand. It’s not cheap though. Investing in a good photographer can be £1,000 to £1,500 per shoot day. Models, agency licensing fees, styling and studio/equipment/location rental to factor in on top of that.
Videography: Professional videos can be even more expensive to shoot than video, so be prepared to £5,000+ per video. B-roll and behind-the-scenes video of an already ongoing photoshoot is substantially cheaper to arrange though, and starts at around £800.
3. Distribution and Sales Channels: Where Will You Sell?
Next up is figuring out how you’re going to sell your products. Will you go online-only, or do you want a physical presence too? Each option has its own costs.
Online Store:
E-commerce Platforms: As mentioned, platforms like Shopify (for startups and small brands) or WooCommerce (for growing or larger brands that need more customisation) are essential. Factor in additional costs for plugins (these can cost anywhere from free up to £200+ each), payment gateways (these take a percentage of sales, usually 0.5-1.5%, and Search Engine Optimisation (SEO) services (from £500-1,500 per month).
Shipping and Logistics: Partnering with reliable couriers is crucial. Expect to pay around £3 to £10 per shipment, depending on size and destination. As you grow and want to move to a 3PL (third party logistics) firm to handle all this for you, expect them to take a cut of sales, have minimum order expectations and initial set up costs - so this isn’t cheap. They can save you money in the long run though, as I’m sure the idea of paying for your own warehouse doesn’t sound too appealing!
Physical Retail:
Pop-up Shops: Renting a space for a pop-up shop can cost between £500 and £5,000, depending on the location and duration.
Retail Space: If you’re going all out with a physical store, be prepared to shell out a significant amount for rent, utilities, and staff wages. This could range from £2,000 to £10,000+ per month, depending on the location. Set ups costs can be anywhere from £10K-50K.
4. Ongoing Operational Costs: Keeping the Machine Running
Once your brand is up and running, there are ongoing operational costs to consider. Think of these as the expenses you’ll face month after month.
Staffing:
Even if you’re starting solo, you’ll eventually need help. Salaries for a small team could range from £20,000 to £50,000 annually, depending on their roles and contracts (part time vs full time).
Office or Studio Space:
Renting a small office or studio space will add to your monthly overheads. Depending on the location, you might pay anywhere from £500 to £2,000 per month.
Inventory Management:
You’ll need to manage stock, fulfil orders, and handle returns. Investing in inventory management software can cost around £50 to £200 per month. You could do this for free using a spreadsheet or using a platform that has this built in like Shopify or WooCommerce for WordPress.
5. Real-Life Examples: Lessons from Fashion Entrepreneurs
Let’s look at some real-world examples. Tom Ford, for instance, famously invested millions into his brand, leveraging his reputation and connections. On the other hand, Stella McCartney started with a strong backing from her partnership with Kering, which allowed her to scale quickly.
But not all brands start with a fortune. Take Alexandra Shulman, former Editor-in-Chief of British Vogue, who launched her clothing line with a more modest budget. She focused on creating a tight-knit collection with limited pieces, emphasising quality over quantity. Her brand slowly gained traction, proving that starting small and growing organically is a viable path.
6. The Importance of Cash Flow and Contingency Planning
No matter how well you budget, unexpected costs will arise. That’s why cash flow management and contingency planning are crucial. Imagine launching a collection, only to find that one of your key suppliers has gone out of business. Without a financial cushion, this could be disastrous.
Set aside a contingency fund—typically 10% to 20% of your total budget—to cover these unexpected expenses. Always be prepared.
Conclusion: Planning Pays Off
So, how much does it cost to launch a fashion brand? As you can see, it depends on numerous factors, and there’s no one-size-fits-all answer. But with careful planning, a clear vision, and a solid budget, you can turn your fashion dreams into reality without falling into financial ruin.
The key is to start where you are, use what you have, and do what you can. Focus on building a strong foundation, and the rest will follow. Remember, fashion is an investment—not just in money, but in your creativity, passion, and perseverance.
FAQ
1. How much money do I need to start a small fashion brand?
For a small brand, you can start with as little as £5,000 to £10,000, depending on your product range and market. This would cover initial design, production, and basic marketing efforts.
2. Is it better to manufacture locally or overseas?
Manufacturing locally offers better quality control and quicker turnaround times but comes at a higher cost. Overseas manufacturing is cheaper but carries risks like longer lead times, higher minimum order requirements and potential quality issues.
3. How do I manage my budget if I have limited funds?
Start small with a capsule collection, focus on building a strong online presence, and reinvest your profits to grow gradually. Prioritise essential costs and look for ways to cut unnecessary expenses.
4. Do I need a physical store to succeed?
Not necessarily. Many successful brands operate entirely online. However, a physical presence can help build brand credibility and offer customers a tactile experience with your products. We’d only ever recommend this if you have substantial startup funds (£50K+) and enough planned product volume to fill your store space.
5. How can I ensure my brand stands out in a crowded market?
Focus on what makes your brand unique - whether it’s your design aesthetic, sustainability practices, or customer experience. Authenticity and a strong brand story resonate with consumers.
Author
Chris Bennett, Marketing Director
With over 15 years of experience in strategic marketing, Chris works with clients to understand customers, drive sales and run a profitable online store. Chris also runs his own high-end fashion label.
If you’re interested in launching your own fashion brand, or growing a brand further, then get in touch below to see how we can help!
