Sustainable Business Models for Design Companies

[Faust]

I suppose there is a place for someone like him to do Russian Camp. I just don't know how long it will last.

[Alesha]

He'll last as long as Courchevel ;)

[RADO]

I would say that focusing on the product itself and targeting the market give you some clues of how to drive your whole business. Let say that a brand needs to be defined to find its niche. More concepts may work as long as it has been well segmented which is not easy.
CCP seems to follow the tandem of the designer + businessman. They work on continuous collection adding some new experimental concepts each season. They have a good after sales service covering all defects occurred because of the experimental side.
Facts as they do one single collection a year, do not like the products to go on sales and so on, make the company more special and unique which is part of their added value.
MA+ ; Maurizio Amadei himself is very involved on the selling and getting feedbacks for retailers. It makes an unique approach to the buyers to his products. Again, he works in an continuous collection bases so his product does not need to go on sales. Packaging is great as CCP.
JULIUS has a strong image, same as RICK OWENS I would say though smaller and newer company. No mention of the new emerging brands and some others easy to find in this forum since I only intended to bring out some examples everyone knows here.
In my point of view the market is changing and niche brands will have more room into it. Luxury popularization will damage brands as Prada, Gucci, Dior and so on. Sales go up to 70% and outlets all over make the customers think about what they are paying on season is not the real price. Add values takes a huge percentage of the retail price but give the customer no exclusivity anymore.
Fashion and how we wear means the image we want to give to others and feel different to some people but similar to others, getting into an economic-social group. Therefore it is important to have a picture of your target and know what they like, where they shop, how they buy, and so on. Then find your strategy will be easier just seeing what they have done other people or brands like you and adding something new or different that makes your brand unique.
Must say my English is not as good to develop this subject properly but I do hope that my ideas would help somehow to Zam and others in the same situation.

[Faust]

Hey, Zam - saw this at Strand yesterday. I did not examine it thoroughly, but may be worth a shot?

[zamb]

Hey, Zam - saw this at Strand yesterday. I did not examine it thoroughly, but may be worth a shot?

Thanks to everyone (Alesha and RADO especially) for their advice and input, greatly appreciated,
Faust, I will order a copy this evening. there are also some other good books I have been reading......................

[Brother Stasi]

...there are also some other good books I have been reading......................

Out of curiosity, what books might those be...?

[Yan]

Well, I do understand the importance of PR, but it can also be an albatross around your neck, most of these PR companies can be very demanding, the have HUGE fees and want to guarantee very little in return.
I know someone right now who is (will be) paying about 100K a year for PR and have sold very little so far, being with a reputable showroom in New York.............
Not many small startup companies have that kind of money to spend on PR
what it comes down to with PR as far as I'm concern is basically....... you are buying a business connection. The problem with this is unless you have the additional resources for the potential follow through (sales) it becomes a problematic and potentially money losing investment.
I am looking at all aspects of a business model, from product design, manufacturing, effecient, value added management, all the way through selling a great product to the customer.........
Image is really important, but that has to be balanced against a good product that customers will want to buy.

The other problem with PR is that depending on who you decide to work with, you are invariably a small fish is a big pond therefore it could be throwing money away that you could otherwise use. I am going through a similar process but with a slightly different strategy. Feel free to pm me to discuss this?

[zamb]

Out of curiosity, what books might those be...?

Lean thinking.................James P. Womack and Daniel T. Jones

The Machine that Changed the World........(authors as above)

the Entreprenuers Guide to Sewn Product manufacturing......K Fasanella

[sound&vision]

Chronicles of Never is a good example of interesting brand from the middle of nowhere.

I wouldn't say Chronicles of Never came out of nowhere exactly, the designer was with Ksubi/Tsubi before he left and began the label, so I'm sure being with a brand that massive before creating CoN has some impact...

[Classique]

Fashion Firm; Retail.

Establish a partnership wit talented designers, who have similar aesthetic / ambitions, as you. Use "Atelier / Barneys," as a model for your business; Except, as artists, you will be free from the corporate magnates.

(Zamb + A + X + Y + Z + ... = $)

You can "Run a small factory... [With] the bulk of collection.... ma[de] in house." Coincidentally, one of these new designers might specialise on: Leather, knitwear, footwear or accessories. Owning the machines and tools for creation and mass production.

Instead of your store[s] "Buying," your merchandise; Pay via comission, individually for the items sold from a specific person (Like an art gallery.) Or collectively divide income weekly / bi-weekly (As stock percentages with investment.)

[Classique]

For, efficient fashion press and advertisement; The internet.
Lookbooks are a bargain, compared to a fashion show or impractical television slots. With $100,000 you could become a "Forum sponsor," at the three most popular fashion websites in the world and have all the moderators recommend you to all the members for years. (I know you probably do not have 100K. But, if that is a PR monetary quote; The choice is obvious.)

But, if you did decide on a runway show, as a union sharing expenses; Fragment, a fashion show like the finales of "Project Runway." One desingner after the next.

Be aggressive, open a shop or boutique next to your rivals. Remember, people always demand the best quality possible per dollar and many people can not afford haute couture.

*Scenario*

If Albert's (Collateral) label + several amazing cost-efficient alternatives to the clothes at Atelier, opened a boutique next to them; Selling clothes at 1/3 - 1/2 price... I dare any forum member not to shop there frantically. Mall tactics.

[Alesha]

I wouldn't say Chronicles of Never came out of nowhere exactly, the designer was with Ksubi/Tsubi before he left and began the label, so I'm sure being with a brand that massive before creating CoN has some impact...

Actually I refered to the location :) But just remembered how many actually good designers came from there.

[Chinorlz]

For, efficient fashion press and advertisement; The internet.
Lookbooks are a bargain, compared to a fashion show or impractical television slots. With $100,000 you could become a "Forum sponsor," at the three most popular fashion websites in the world and have all the moderators recommend you to all the members for years. (I know you probably do not have 100K. But, if that is a PR monetary quote; The choice is obvious.)

But, if you did decide on a runway show, as a union sharing expenses; Fragment, a fashion show like the finales of "Project Runway." One desingner after the next.

Be aggressive, open a shop or boutique next to your rivals. Remember, people always demand the best quality possible per dollar and many people can not afford haute couture.

*Scenario*

If Albert's (Collateral) label + several amazing cost-efficient alternatives to the clothes at Atelier, opened a boutique next to them; Selling clothes at 1/3 - 1/2 price... I dare any forum member not to shop there frantically. Mall tactics.

haha, I'm flattered to have been mentioned here!

Your idea of a collective shop where pieces are sold on commission and all constructed in-house is a VERY interesting one. Sort of an artist's commune type approach. The only difficulty in something like that is getting like-minded/like-aesthetic'd designers together. It would certainly be a very neat environment to work in.

Damir's store in Paris and Thom's in NY are attractive to me because the pieces in the showroom can easily have been crafted in the studio in the back. I really like that direct connection to the client and you in a way kill two birds with one stone by having your studio be the retail space/showroom as well. That closer connection between the designer and the client encourages loyalty as well due to the individual catering to each buyer. Adjustments, fabric choices etc. can all be made so that the creation of some pieces feel like a collaboration and more one-off making the overall experience more special.

[eat me]

serious topic for the first post. Found SZ just a couple of days ago (I know, a revelation), felt so much at home it made me feel bad in a way (like, look, so many people are doing already something you are just planning to do in 1,5 years). Anyway, enough with the intro, on with the thread.

I am interested in the business aspect of running a niche start-up business a lot.

My quick thoughts:

1. Do not set up an official store at the start. As far as I know, if you want to base it in an area that your TA would want to shop in - it will cost you a lot (operating, rent, staff, bills). Setting up a store in the middle of nowhere will not bring enough sales and could potentially damage your brand (although, that really depends on the brands aesthetic)

2. If you do want to set up a store, it might be worth to look at making it a studio and a home as well. 3-in-one, so to speak. If you are living with the husband/wife/gf/bf - consider their help with rent, etc.

3. PR - if it costs nearly as much as was posted, I don't really think it's viable for a start-up. Same goes for catwalks.

4. Use web 2.0 as much as possible for PR purposes. Be aware, that supporting the hype would take a lot of energy. So it really depends on your personality - whether you're a person who can run/sit around talking to different people A LOT of the time without looking emotionally and physically exhausted - fantastic.

5. Instead of opening a 'physical' shop, think about setting up an online store. International shipping etc. Sure, it's an investment, and there will be tons of setting up to do, but ultimately it's much cheaper then having a boutique.

6. Hire professionals, or find willing to work for free talents to do your photography and styling (lookbooks, tags, labels, packaging, etc.) A lot of people seem to think that if they can design a fancy jacket, they are also an expert of graphic design and copywriting. I mean, sure, some of them are, but more often they're not.

7. Consider finding a mentor who could take on you. A'la RO and Gareth. But that can take a while, and I'm sure there will be less freedom.

At the end, it all depends on the budget. If there is a serious backing behind you I might just be wasting my breath.

Hope that helps and I'm psyched to be joining SZ .

[eat me]

Also if it helps, I was working for a designer whose whole operation was a mess, whose budget was miniscule and whole workforce consisted of interns. We were madly stitching the garments 1 week before Milan FW and at the end it still kind of worked for him - got attention of some major high-street labels wanting to do a deal with him on making a diffusion line. Seriously, the guy was a mess, basically the whole project was based on connections that he made or his model gf made during numerous parties that he happily attended while we were slaving away with 'his' collection.

Sure, helps that his mom was friends with Wintour, but how he was able to live like he was and have a huge studio space in central London (which is uber-expensive) is beyond me.