Ok, i've been doing alot of thought/ research lately, in part because I will be restarting my company soon .................I am somewhat concerned with so many companies/ Designers that have been going, and continue to go bust. kind of gives me the thought that if so many good designers go out of business, what is it that would give me an advantage that would lead to success.
While I do know that there are a Myriad of reasons for the failure of companies, alot of times not related at all to the talent of the designer, I am specifically concerned with developing a business model that allows for the running of a small profitable business. I've never been concerned about becoming wealthy from fashion, but what I do want is to be profitable enough to grow,and continue to work.
I have been doing alot of research in Lean Manufacturing and the Toyota production System, some aspects of which can be very useful to a fashion company. I've also been examining closely the business practices of companies like CCP, Rick, Ann D, Margiela (at least before he sold the company) among others.
the basic caculations to profitability/ sustainability is quite simple (at least in the theoretical sense)
Design / Maufacture Cost + Markup - Materials/ Operating Cost = Profit/ Loss
if operating costs are kept less than the Markup, the business should be profitable.
Loss of profits often stems from cost of Fashion Shows, PR, Advertisment, and other ridiculously priced expenses that have become associated with running a Fashion company.
I just read an Article where Rick Owens used the expenses that His company would have incurred from hiring a press office, to open a store (a very wise investment when done right).
In Todays economy, and with the traditional fashion company business model seeming implausible, what company, or companies do you think have a way of working that sems effecient and practical.
would also love to hear why you think's its practical so please don't just name the company without giving reasons................
thanks
While I do know that there are a Myriad of reasons for the failure of companies, alot of times not related at all to the talent of the designer, I am specifically concerned with developing a business model that allows for the running of a small profitable business. I've never been concerned about becoming wealthy from fashion, but what I do want is to be profitable enough to grow,and continue to work.
I have been doing alot of research in Lean Manufacturing and the Toyota production System, some aspects of which can be very useful to a fashion company. I've also been examining closely the business practices of companies like CCP, Rick, Ann D, Margiela (at least before he sold the company) among others.
the basic caculations to profitability/ sustainability is quite simple (at least in the theoretical sense)
Design / Maufacture Cost + Markup - Materials/ Operating Cost = Profit/ Loss
if operating costs are kept less than the Markup, the business should be profitable.
Loss of profits often stems from cost of Fashion Shows, PR, Advertisment, and other ridiculously priced expenses that have become associated with running a Fashion company.
I just read an Article where Rick Owens used the expenses that His company would have incurred from hiring a press office, to open a store (a very wise investment when done right).
In Todays economy, and with the traditional fashion company business model seeming implausible, what company, or companies do you think have a way of working that sems effecient and practical.
would also love to hear why you think's its practical so please don't just name the company without giving reasons................
thanks
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