Starting an apparel business can tap into the basic human desire to look and feel good and to express a personal style. Many entrepreneurs are drawn to this field because it’s so open; you can shape designs, fabrics, and branding to match your vision.

Clothing also resonates with shoppers on a practical level. Since we all need something to wear, there’s demand for fresh ideas and new styles. According to the US Bureau of Labor Statistics, customers spent an average of $2,041 on apparel and related services in 2023, an increase of 4.9% from 2022.

Below, we’ll discuss why this venture makes sense, how you might narrow your concept into a niche, and what it takes to launch your apparel company—including sourcing, the legal and financial setup, and customer outreach. Here’s what you should know.

What’s in this article?

• Why start an apparel business?
  
• How do you choose your niche in the apparel market?
  
• What are the legal and financial steps to starting an apparel business?
  
• How do you source materials or inventory for your apparel business?
  
• How does Stripe simplify payment processing for apparel businesses?
  
• What are the best ways to market your apparel business?
  

Why start an apparel business?

Many entrepreneurs’ stories begin with a deep love for clothing—someone who wants to remake the standard T-shirt or dreams of fashion-forward denim. But there’s also a practical angle: apparel is everywhere. It’s worn by runners, students, yoga enthusiasts, corporate workers, and more. That broad appeal means there are plenty of chances to find dedicated customers. If you want to build something that can hold customers’ interest, clothing is ideal.

Below are just a few categories that might inspire ideas:

• Custom clothing: Some people want garments that showcase their personalities. Maybe they want bright logos, personalized slogans, or monogrammed jackets. In many cases, the brand flourishes because people appreciate wearing something that feels one of a kind.

• Activewear: Many modern workouts demand specialized gear. Whether it’s moisture-wicking shirts or thermal tops designed for cold-weather hikes, athletic apparel can be a favorite for health-conscious shoppers.

• Sustainable fashion: Eco-friendly solutions are important to customers: a 2023 survey found that customers are willing to pay 12% more on average for sustainable products. This means that people are increasingly moving towards garments made from organic cotton, sewed under fair labor conditions, or designed to last longer than fast fashion. This mindset can build loyalty as customers often feel connected to brands that respect the environment.

There are many other angles, too. Some entrepreneurs focus on vintage replicas, while others stick to comfortable basics with fresh color palettes. The important thing is to identify your passion and figure out how that resonates with the audience you plan to reach.

How do you choose your niche in the apparel market?

Clothing is a broad category, and focusing on your potential audience can help you fine-tune your branding and product lineup. Ask yourself a few questions when you establish your niche.

Who are you trying to reach?

Consider age groups, interests, and style preferences. Will your brand speak to new runners, office workers, plus-size shoppers, or shoppers who love bold prints? It’s easier to create a strong identity if you know exactly who you’re talking to.

What makes your items stand out?

Are you sourcing a special fabric, providing an inclusive range of sizes, or relying on an edgy or minimalist design aesthetic? Deciding how you stand out helps shape product development and marketing.

Which channels make sense?

Some brands excel with a direct-to-consumer online shop, while others do well in physical boutiques or pop-up events. Your preferred channel might depend on your style and price point. Pick a channel that your target audience frequents.

What’s your thinking on pricing?

Are you developing high-end couture or fast-fashion T-shirts? The pricing structure you choose will guide everything from marketing strategy to materials.

What’s your passion?

Real enthusiasm shows when you talk about your business. If you’re passionate about yoga, for instance, you might create a line of leggings and tanks that solve every workout gripe you’ve ever had. If you’re more into fashion statements, maybe you will design cutting-edge silhouettes that catch the eye.

What are the legal and financial steps to starting an apparel business?

After the creative spark comes the administrative to-dos of starting your business. Here are the main steps.

Business registration

Pick a structure that fits your goals. Some entrepreneurs register as corporations or limited liability companies (LLCs), while others operate as sole proprietorships. Corporation and LLC status can help protect personal assets if liabilities come up, although the specifics vary by region. You’ll need to check with local agencies for the proper forms.

Trademarking designs

If you have a logo or a slogan, you’ll probably want to trademark it. Think about your brand name too. The more distinct it is, the more straightforward the trademark process will be. Generally, it’s wise to do a thorough search before deciding on a name so you don’t encounter a trademark conflict after launching.

Permits and licenses

Apparel businesses can require certain permits, depending on where you operate. If you’re printing shirts in-house, for instance, there might be local health or safety requirements to follow. If you’re importing materials, there could be extra customs forms. Consider contacting local business authorities or a legal adviser who’s familiar with the apparel sector.

Financial organization

Set up a dedicated business bank account so you can separate personal and business funds, which will help simplify your taxes. You can choose from a variety of accounting software to track expenses, revenue, and taxes. Some entrepreneurs hire accountants or bookkeepers.

How do you source materials or inventory for your apparel business?

A clothing label is only as good as the product, and a big part of that comes down to sourcing. You’ll want to consider everything from fabrics to manufacturing processes. Below are a few sourcing methods to consider.

Local manufacturers

Local production can be appealing if you’re building smaller batches and want close quality control. It’s often easier to visit the facility, meet the team face-to-face, and make quick changes when needed. Some entrepreneurs prefer to keep production nearby to reduce shipping emissions or support local businesses.

Pros

• Easier communication, since you’re often in the same time zone

• Potential for hands-on checks and stronger relationships

• Shorter lead times and shipping distances

Cons

• Possibly higher costs than in other regions

• Limited capacity or equipment, depending on local factories

Wholesale suppliers

If you’re not focused on designing from scratch, you can buy ready-made pieces in bulk from a wholesaler. Some people then add custom prints, embroidery, or labels. This option allows you to start quickly without building custom patterns.

Pros

• Fast setup since the base items are already there

• Usually straightforward minimum order quantities and timelines

Cons

• Less creative control on fit, fabric, or style

• Potential for others to sell identical items with different branding

Drop-shipping

With drop-shipping, you partner with a supplier who maintains the inventory and handles shipping to your customers. You list items on your website, and once you make a sale, the supplier ships them out. You don’t have to prepurchase large amounts of stock or worry about warehousing.

Pros

• Low up-front investment since you’re not buying or storing items

• Scales quickly if you start receiving lots of orders

Cons

• Difficult to control quality since you don’t see items before they ship

• Possibly longer shipping times, depending on where the supplier is based

Many businesses use a hybrid method. For example, one might produce a flagship line through a local manufacturer and offer a few drop-shipped items for color variety. The main goal is to keep your margins healthy and maintain product quality.

How does Stripe simplify payment processing for apparel businesses?

When customers buy clothing online, they expect a simple, frustration-free checkout. Stripe delivers this in a way that’s easy to integrate with ecommerce platforms such as Shopify and WooCommerce. Here are some Stripe features that can help your apparel business:

• Multiple payment methods: Stripe supports a wide range of payment methods, including credit cards, digital wallets, and localized payment options. This means your store can accommodate various consumer preferences.

• Fraud prevention: Online apparel stores often face the risk of fraud. Stripe includes protective features, such as Stripe Radar, that flag suspicious activity in real time so you don’t have to build your own solution from scratch.

• Subscription billing: Stripe can handle recurring payments, which simplifies membership billing. This is important if your apparel venture includes subscription boxes, such as a monthly T-shirt or socks drop.

• Easy integration: Adding Stripe to an ecommerce site usually involves minimal coding, especially if you’re on a platform that has ready-made Stripe plug-ins. Even for custom-built sites, Stripe’s well-documented application programming interface (API) can help developers get a checkout system running quickly.

• International reach: Stripe allows you to accept payments from many countries and in many currencies without juggling different payment processors. When buyers from other regions see familiar payment methods, that can boost your store’s credibility.

• Data insight: Stripe gives you an overview of sales trends such as the number of transactions processed or refunds requested. This data can help you identify your popular items, see whether a promotion boosted orders, or notice patterns that might shape your product lineup.

What are the best ways to market your apparel business?

Marketing your business involves a mix of sharing visual content, contacting customers directly, and making your brand visible on as many platforms as possible. Below are a few options to consider when you market your apparel business.

Influencer collaborations

Teaming up with influencers can drive brand awareness. It’s often a good idea to find people whose values match your brand’s. If you’re promoting a new line of hemp T-shirts, a sustainability-oriented influencer might be a perfect partner. If it’s activewear, look for fitness content creators who regularly post workout sessions. Influencers can provide styling ideas, showcase the fabric’s performance, and run giveaways.

Here are some tips for succeeding with influencer outreach:

• Provide free samples so they can test your garments.

• Negotiate content deliverables in advance (e.g., one Instagram Reel and two story mentions).

• Track your results with discount codes or affiliate links specific to each collaborator. This will allow you to measure the number of sales each generated.

Pop-up shops

An online store can reach people in multiple regions, but an in-person event can capture the tactile appeal of apparel. Pop-up shops let customers see, touch, and try on your items. You can rent a small space for a weekend or team up with a coffee shop or local boutique that’s willing to give you a corner of its floor. It’s a chance to host a small launch party, meet loyal fans face-to-face, and gather feedback.

Here are some ideas for pop-up shops:

• Set up mirrors and good lighting.

• Play music that sets the vibe.

• Give out freebies such as stickers and tote bags.

• Encourage social sharing with a branded backdrop or signage.

Email campaigns

Email might seem old-fashioned, but it still has an impact on ecommerce. People open their inboxes many times throughout the day, and a thoughtful note can remind them about a product drop or a special discount.

Here are some ways to use email effectively:

• Welcome series: When shoppers sign up for your list, send a short email series that introduces your story and top products.

• Abandoned cart emails: If someone leaves an item in their cart, a gentle reminder can nudge them to complete the purchase.

• Product launch announcements: Hype a new capsule collection or seasonal line with details and high-quality images.

• Exclusive coupons: Reward your email subscribers with “early bird” discounts or codes for free shipping.

Content marketing

Fashion has countless angles for interesting articles, lookbooks, or style guides. If you’re building a brand of eco-friendly garments, you could publish articles about your sourcing process. If you’re creating streetwear, short blog pieces on the cultural roots of different styles could hook readers. You could post this content on your website or pitch it to relevant publications.

Word of mouth and referral programs

People often trust their friends’ opinions more than traditional ads. A referral program might reward loyal shoppers when they bring someone new to your online shop. You could give a small discount for both the referrer and their friend or share access to an exclusive item that’s available only through referrals. This can create organic buzz, especially if your customers truly love your designs.