To run a fashion business that hits target goals, you will need to do more than make beautiful clothes. Running a fashion business, just like any business, requires a business model along with other factors.
It may sound unprecedented for a fashion business to change its business model but think about it: just last year, the pandemic brought some major fashion stores to their knees, with many stores losing patronage due to lockdowns. Business Insider wrote last year, that multiple industry leaders declared the death of the fashion industry as we know it. These show that the industry is changing rapidly, and if your business will survive, your model has to evolve, it must.
Your business model dictates your profit-making. It is how you adapt to trends and challenges that your business will face. It should be updated regularly, or the fashion business will fail to move forward. Fashion business models are the same too.
If your business has been running on a model for a long and you have noticed diminishing returns: then you need to rethink your model. So how what factors to consider before changing your fashion business model?
1. The target audience
If your target audience is not responding to your marketing efforts, it’s rapidly changing, too small, too large or has no buying power. Your model should change to accommodate the new audience you are targeting.
If you are expanding, what worked for you before might not work again. It might be time to evaluate the market once more and check your plan to see if you are ready to meet the demands.
A model only works if it is bringing in the expected profit. When you start getting recurring losses, it is time to change your model.
4. A change in trend
The pandemic, for example, is a change in the lives of people. It has drastically changed how much they get clothes as well as other aspects of their fashion life.
Is your model currently working for your business? Do you need to change it or make slight adjustments? Let’s discuss