Learn how to start your own lingerie business from scratch with this comprehensive step-by-step guide covering everything from creating a business plan to sourcing suppliers to marketing your new venture.
So you want to start a lingerie business? This can be an exciting venture, but also challenging to get off the ground. The lingerie industry is highly competitive, but the good news is that it's also a multi-billion dollar market with lots of opportunities for success.
If you have a passion for lingerie and an entrepreneurial spirit, you're in the right place. In this blog post, we'll walk you through the key steps to starting your own lingerie business:
- Developing your business plan and vision
- Researching the competition and your target market
- Sourcing high-quality and affordable products
- Building your brand and online store
- Marketing your new business and attracting customers
The Lingerie Market Landscape
The lingerie market includes a wide range of products for all body types, styles, and price points. As a new business, you'll need to determine what segment of the market you want to target. Some options include:
Luxury lingerie: Targeting high-income customers with high-end, fashionable products. This is a niche market but can be very profitable.
Mass market: Selling more affordable lingerie to a wide range of customers. This is a larger market but also more competitive.
Plus size: Specializing in lingerie for curvy women. This is an underserved market with growing demand.
Maternity: Selling lingerie for pregnant and nursing women. Another niche market with less competition.
Men's lingerie: Yes, men's lingerie is also a growing market! Lingerie for men including boxers, briefs, sleepwear, etc.
The target audience will depend on which market segment you choose. Be sure to analyze your competition to determine how to differentiate yourself and stand out to your target customers. With some smart positioning and marketing, you can build a successful lingerie brand!
Developing Your Lingerie Products
The products you offer are the foundation of any lingerie business. You'll need to source high-quality, affordable lingerie that appeals to your target market. Some things to consider:
Style: Choose styles that flatter your target customers like lace bralettes, contour bras, hipster panties, etc. Focus on current fashion trends but also offer some basics.
Sizing: Carry a range of sizes that match your target market. For plus-size or maternity lingerie, sizing is especially important.
Fabric and quality: Use soft, breathable fabrics like cotton, lace, silk and microfiber. The quality should reflect your brand and price points.
Private label or wholesale: You can design your own private label lingerie or buy wholesale from manufacturers. Private label allows more customization but requires upfront investment. Wholesale is more affordable to get started but less unique.
Delivery method: Will you sell lingerie online only? Also in retail stores? At lingerie parties? Choose a sales channel that matches your target audience.
Standing out: Look for ways to differentiate your lingerie from competitors. Maybe specialize in a particular style like bridal lingerie or eco-friendly fabrics. Creative and memorable product packaging can also help you stand out.
Developing the right products is key. Keep your target customer in mind and focus on high quality, affordable lingerie that brings something unique to the market. With the perfect product selection, your lingerie business will be set up for success!
The Economics of a Lingerie Business
Like any business, a lingerie company needs to generate a profit to survive. There are several economic factors to keep in mind:
Cost of goods sold (COGS): This includes the cost of materials, manufacturing, and shipping your lingerie products. For a new business, aim for a COGS of no more than 50% of retail price. As you scale, you can lower COGS to around 30-40% through volume discounts and efficiencies.
Pricing strategy: Price your lingerie competitively based on your target market and COGS. You'll need to maintain a healthy profit margin while still appealing to customers. Consider offering tiered pricing with different quality/price points. You can also run frequent promotions and discounts to drive sales.
Operational costs: Factor in overhead costs like rent, payroll, marketing, and other expenses. For an online lingerie business, operational costs may be lower than a retail store. Keep costs in check as much as possible, especially when first launching.
Funding: Coming up with enough capital to start and maintain your business is crucial. Consider using your own savings, taking out a loan, getting a line of credit, crowdfunding, or investor financing. Make a realistic financial plan to ensure you have enough funding to get your lingerie company off the ground.
Sales and revenue targets: Set monthly and annual sales targets to make sure your business is profitable and growing at a steady rate. Revisit your pricing, marketing, and product selection if sales targets are not being met.
The financial viability of your lingerie business depends on keeping costs low, setting the right prices, funding the company sufficiently, and hitting your sales targets. With diligent management of the numbers, you'll be on your way to building a profitable lingerie brand.
Marketing Your Lingerie Business
A successful marketing strategy is essential for any new business. Here are some of the top ways to market your lingerie company:
Search engine optimization (SEO): Optimize your website to rank higher in search engines like Google. Focus on keywords related to lingerie and your target audience. Blog posts, product pages, and meta descriptions should all be optimized. SEO is one of the best ways to drive organic traffic to your site.
Social media marketing: Build a social media following on platforms like Instagram, Facebook, and Pinterest. Post photos of your latest lingerie products and styles. Engage with your followers by liking and commenting on their posts. Run social media contests and giveaways to increase brand awareness.
Email marketing: Start an email newsletter to stay in touch with your customers. Offer promotions and coupons, highlight new products, share style tips, and engage your subscribers with surveys and polls. Build your mailing list by offering a discount or free gift in exchange for signing up.
Influencer collaborations: Partner with lingerie and fashion influencers who have a large social media following. Send them free products to promote on their channels. Influencer marketing is an authentic way to reach new potential customers.
Paid advertising: Use platforms like Google Ads, Facebook Ads, and Instagram Ads to promote your lingerie business to new audiences. Paid ads allow you to target specific groups of potential customers based on location, interests, behaviors, and more. While ads do cost money, they can provide a high return on investment.
Direct marketing: Reach customers directly through mailers, flyers, and email. For a local lingerie business, distribute marketing materials to your neighborhood. For online stores, purchase customer mailing lists to send your marketing pieces to. Direct mail still has a strong response rate, especially for ecommerce businesses.
A multi-pronged marketing strategy targeting new and existing customers through various online and offline channels will help establish your lingerie brand and drive sales. With time and consistency, your marketing efforts will pay off!
Sales Strategies for Your Lingerie Business
To generate sales, you'll need to implement effective sales strategies tailored to your business model and target audience. Some options include:
Online sales: For an ecommerce lingerie brand, focus on driving traffic to your website through marketing and SEO. Offer promotions and sales to convert visitors into paying customers. Make the checkout process easy and streamlined. Provide great customer service and shipping to build loyalty.
Wholesale partnerships: Sell your lingerie products to other retailers who will then resell to their customers. Reach out to boutiques, clothing stores, and other shops that sell lingerie or women's clothing. Wholesale allows you to sell in higher volume, though at a lower profit margin. You'll need to have an established brand and high-quality products for retailers to consider wholesaling your line.
Lingerie parties: Host fun, flirty parties where you sell your lingerie products directly to guests. Lingerie parties are a popular concept, especially for small boutique brands. You'll need to find party hosts, provide samples and materials for them to show guests, offer discounts and specials, and make the overall experience exciting and memorable. Lingerie parties allow you to sell in person, get direct feedback, and spread brand awareness.
Pop-up shops: Rent a short-term retail space to sell your lingerie in person. Pop-up shops are temporary but help you reach local customers and boost your brand visibility. They require finding a retail space, setting up an eye-catching shop, promoting the pop-up sale, and staffing the store during business hours. Pop-up shops can be very effective for online brands looking to establish a physical presence and connect with their local community.
Subscription service: Offer a monthly lingerie subscription where customers pay a recurring fee to receive regular shipments of your products. Lingerie subscriptions are a popular sales model that provides predictable recurring revenue. You'll need to curate fun, themed shipments each month to keep subscribers engaged. Provide discounts and perks for long-term subscribers to incentivize them to continue their membership.
Operations and Execution
To run a successful lingerie business, you need to ensure smooth daily operations and follow through with your plans. Some key things to focus on:
Customer service: Provide friendly, helpful service to keep your customers happy and loyal. Offer assistance for choosing sizes, product questions, returns, and any issues. Respond to customer service emails and calls promptly.
Order fulfillment: For an online store, ship orders quickly and accurately. Include a handwritten thank you note or small product sample with each order. Track your shipping times and customer reviews to make sure you're meeting expectations. If selling wholesale or in retail stores, deliver products on schedule and in the correct amounts.
Inventory management: Keep enough stock on hand to meet demand without ending up with excess, unsold inventory. Track your sales by product and size to forecast how much inventory you need. Run promotions to sell through older stock before the next season.
Supply chain: Build a reliable supply chain for sourcing your lingerie products and materials. Find high-quality manufacturers and suppliers you can trust to deliver on time. Have back-up sources in place in case issues arise with your primary suppliers.
Accounting: Handle daily accounting tasks like accounts payable/receivable, payroll, cash flow statements, balance sheets, and income statements. Work with an accountant to make sure your books are in order and set financial goals. Review your numbers regularly to gain insights into your business's performance.
Team building: As your business grows, hire qualified staff to help run operations. Recruit people who share your passion for the lingerie industry and company vision. Train employees thoroughly and provide opportunities for growth to keep your team motivated.
Compliance: Follow all laws and regulations for operating your business. This includes paying taxes, maintaining proper business licenses and permits, product safety standards, data privacy, and more. Stay up-to-date with changes to avoid potential legal issues.
Legal Considerations
Please note that starting any business requires following proper legal processes. For a lingerie company, you will need to research and comply with regulations regarding registering a business, collecting and paying sales tax, product safety, and data privacy. Be sure to consult with legal professionals to understand all requirements and ensure your business operates legally. Failure to do so could result in significant penalties and legal trouble.
In Conclusion
Starting a lingerie business requires passion, planning, and perseverance. While challenging, the lingerie industry can be highly rewarding. By developing your business plan, analyzing the market, creating unique products, building your brand, implementing marketing strategies, establishing sales channels, focusing on operations and execution, and maintaining legal compliance, you'll have the foundation for a successful lingerie company.
Remember, stay true to your vision, start small and scale up sustainably, treat your customers well, watch the numbers, and learn from both your successes and failures. With hard work and determination, you can build a thriving lingerie brand. Now go start that lingerie business you've been dreaming of - the opportunities are endless!