If I were to register my company, I would have to consider the scalability of the brand. At the moment I have been ordering garments in little quantities in order to show my outcomes whilst keep the cost low. To scale my business, I must begin to order in bulk. After reflection I have noticed that the suppliers I currently use offer a bulk ordering service. The price of this is also relatively inexpensive when you think about the RRP of each clothing item. At the price reflected by AM Clothing I would be looking to sell my products for £29.99 in order to ensure my margin is high.
Other overheads have to calculated and these will vary between each clothing item. These overheads will involve the cost of labelling, embroidery, packaging etc. After calculations from my other suppliers I have gathered that the lowest margin I could possible make is 66% based on my collection. This calculation applies to all the garments that have embroidery in the design, whereas the margin on the Classic Plain Tee would be 73%. I feel these margins are good as I am definitely making a profit, it also leaves room for any promotional sales that I may want to apply to my collection at certain seasonal times.
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| Material Bulk Order (Source: Screenshot by Blog Author) |
When considering the scalability of my brand I must also recognise the main competitors I will face. These competitors have determined the style / price point of my clothing. I see my main competitors being suppliers of other sustainable clothing, this will mean I will be competing with brands such as: Dedicated, Howies. My other competitors could be within the minimal fashion market such as: Thought, Acne Studios, AMI. These competitors are mostly well established, at the beginning of my business venture I must intend to overcome the many start-up social media brands. I feel my product will differ from these competitors as it has more substance.
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| Main Clothing Competitor (Source: Screenshot by Blog Author) |
I feel the reflection on the growth of my business has helped me a lot within this process. I was surprised at the type of things you need to consider in order for a business to be truly successful. At this stage I now believe I fully understand how to register my company and ultimately scale it up into something that can be available to my audience. This is still a big commitment, and a decision that I will have to make once I have finished my studies. If I decide to progress the business I now have a relationship with the Entrepreneur Centre which can help me with the setup of my brand.
