The fashion industry is arguably more competitive than ever. The continuous growth of the market can largely be blamed on a great number of fashion startups cropping up in the last few years, along with the mainstay of the typical brands you’d expect to see at the top of the game.
Fashion startups don’t just have to be new and emerging businesses either. A brand could’ve been established for years and still operate with the mindset and structure of a startup. As with many things in business, how they operate is based completely on preference, growth and affordability – amongst other factors too.
So, in this post, we’ve outlined four fashion startups that you should look out for in 2020. Not only will you see them growing through the market but you may be able to implement some of their business tactics and processes yourself.
Depop was founded by the co-founder of PIG magazine in 2011. Originally, the app started out as a social network where readers could purchase the clothes and outfits that were featured in PIG. However, after an underwhelming performance and not hitting their targets, the fashion startup soon realised that they needed to adapt and change their priorities quickly.
So, to keep up with the fast-paced industry, they realised that they needed to add a selling platform within the app. This addition then sparked the change of their business dynamic, which resulted in them shifting to a global marketplace. It became a place where you can see what your friends and like-minded individuals are buying, selling and inspired by.
Image Credit: And Hope
Since making the shift, Depop has gone from strength to strength and has improved each year. The app is a big hit with the younger audience due to how user-friendly it is and how easily accessible it is too. The app is also ever-popular with small influencers and independent businesses as they can appeal to a segmented audience all in one place.
Although they’re worth a staggering £203 million, Depop can still be considered a startup business. Due to the fast-paced nature of the fashion industry, they have to be quick on their feet when making decisions, which they’ve previously shown they’re capable of doing. Plus, behind the scenes, they obtain a fantastic team culture where every employee matters – even though they have sites all over the world.
Look out for Depop continuing to emerge through the market in 2020 – and why not try to mimic their amazing team culture within your business? Empowering your employees will lead to increased motivation, which will boost overall productivity and business output too.
Established in Shoreditch, London in 2010, Lyst started as a way for people to find the fashion styles that they’ve always dreamt of. Now worth £131 million, they’re considered as one of the largest global fashion platforms, bringing together over five million products from over 12,000 brands and retailers all in one place.
Last year over 70 million shoppers started their search on Lyst and we predict that to grow in 2020. Convenience for shoppers is Lyst’s selling point. Rather than trawling through various sites, everything they need is all in one place. The customer is at the centre of everything that they do, from ease and convenience to the service that’s provided by their great team.
Image Credit: Seek Logo
Fashion startups must put the customer at the centre of everything. After all, your customers are the ones who are going to be lining your pockets, so you’re going to want to make them feel like they can’t resist buying from you. Nothing is too much effort for the customers of Lyst, they’re brilliant at providing that customer-centric approach that shoppers long for.
Lyst shows that it pays off to keep your customers at the forefront of everything that you do. If you start to shape your business without your customers in mind, the chances are that you’re going to lose sight of what you’re doing and your efforts won’t be effective.
Personal shoppers are for the rich and famous, right? WRONG. With thread, you have your personal shopper in your pocket at all times at the touch of an app. Get fashion advice from real stylists based on your style, size and budget. Plus, you get all this information for free and can access it whenever you like.
The service uses artificial intelligence (AI) and real-life behind the scenes stylists to base the latest fashion tips on. Users enter their preferences and the app does the rest of the work for them, segmenting the different results to suit individual shoppers. Customers receive a tailored experience, making them feel valued rather than part of a large organisation.
Image Credit: Drapers Online
Tailored shopping experiences are important for fashion startups. Shoppers want to feel like their custom is valued and that the brand cares about them. So, by taking the time out to select certain styles based on their likes and preferences, you’re showing that you care about their demands and needs.
If a shopper feels like they’re valued, their chances of returning will be much higher. Plus, they’re also more likely to recommend you to their family and friends too. Thread is currently worth around £72 million, a lot of which will be generated by loyal brand advocates. This company shows no signs of slowing down, putting a huge onus on tailored customer experiences.
Trouva is a great company that supports the growth and success of independent boutique-style fashion businesses. Often it’s easy to choose the larger retailers for convenience, but boutiques are where fashion brands trends to express themselves the most. Plus, without an online presence, boutique businesses may struggle to get noticed as they rely purely on footfall.
Trouva focuses mainly on home fashion, which is different from the other businesses mentioned in this post. We know how seriously people take their interior design to put a unique stamp on their home, which is why Trouva is a perfect app in our eyes. Plus, with more people renovating their homes independently than ever before, we can expect to see huge growth from this company.
Image Credit: Trouva
This fashion startup is again an example of putting customers at the forefront of their plans. Normally, boutiques rely on in-store sales, so if you’re not near the boutique itself, the chances are you don’t even know it exists. Trouva allows you the opportunity to browse these boutiques to create the home of your dreams – they won’t let you settle for anything less!
Customers love to see businesses caring about their needs. But Trouva also cares about local businesses and our economy too. They prioritise smaller, independent businesses and give homeowners stylish options that they won’t find in the leading retail stores. Prioritising both parties interests creates a business that can be admired by everyone, right?
There’s no wonder it’s currently worth around £32 million – with incredibly promising signs of growth too.
Grow Your Fashion Startup The Right Way
So, you’re looking to emerge in a new or existing market but does your fashion business have everything in place? Whether it’s finding your niche, perfecting your branding or even having the right equipment, you need to make sure that you have every factor locked down so you can grow as much as possible.
Equipment is a huge part of fashion businesses, especially embroidery machines. But which one is right for your business? They’re a big investment, so you must think carefully before you decide on which one to buy. Luckily for you, we’ve created a comparison that covers every factor to consider before making your investment.
Download your free copy today.