Let’s move on an evaluate another of our business ideas. This time we are looking at clothing and accessories for the tween / teen audience. Pretty straightforward, which also means that it’s a VERY crowded space. But, let’s not jump the gun. We’ll get to the competition as we answer our 4 questions.
The Idea
The business idea here is to create a line of clothes and accessories that will appeal to a specific age group–tweens (11-13) and/or teens (14-18). We know upfront that these have to be fun, hip, and worthy to talk about our our audience will completely ingnore them. However, is this enough? Can we sub-segment this market or target an under-served group within the category? That is going to be one of the challenges that we must keep in mind as we evaluate the idea.
The 4 Questions
1. Will customers buy it? (Does it fill a need? Is it attractive to them?)
Answer: It depends. What kind of answer is that? Well, any teenager will tell you (or their parents) that the need new clothes. However, they need those clothes from whichever designer is “in” and whichever trend is relevant at the moment. So, more important than the need in this case is the want. Of course, the want is going to be driven by whether or not the accessories / clothers are attrative to the teens and their peers. However, we know that they do spend their money on clothes:
- According to a 2003 study done by Coinstar (Coinstar Teens Talk Poll: Teens Report on Money, Spending and Buying). Teens spend 33 percent of their weekly earnings and allowance on clothing and an additional 21 percent on food. Other popular items include movies, music and games.
2. What does the competitive landscape look like? (Are there too many competitors already? Do you have the resources to compete with them?)
The answer to this question is pretty simple. There is a LOT of competition. From malls filled with the Gap, Banana Republic, and Forever 21 to the lastest fashions seen on American Idol or in Twilight, you’ve got plenty of competition. The more important question here is not do you have the resources to compete, but how will you compete. Even if you have the resources, you have to be able to get their attention and offer something unique.
- According to the 2001 American Express Retail Index: More than a third of teens (39%) describe themselves as “trendsetters,” or fashion style leaders. Even if it means going over budget, more teen girls (44%) than boys (35%) will purchase clothing that is “hot and trendy.”
3. Can you create the business or build the product and bring it to market? (Do you have the resources and skills? If not, where will you get them?)
The response here is similar to my suggestions from the Baby Boomer Mental and Physicial Gym Post. You need to evaluate your skills and experience in clothing, merchandise and retail. Have you ever made products for teens before? Do you have experience with sourcing and creating a clothing or accessories line. If you answer to these are “no”, then you are going to need to find a partner or vendor that can help you.
Beyond your first line of products, design is going to be constant challenge. Ultimately, it will be what sets you apart from all of the competition. You have to be able to quickly and regularly bring new designs to the market.
This is your opportunity to think creatively about how you might differentiate. You want to be abe to bring the clothes to market, but you also want to be able to regularly spot trends or unmet needs in the marketplace. For example, is there a clothing line for girls who want to look sophisticated without showing “skin.” Can someone create a clothing line that girls will like AND their mothers will approve? If you can bring that to market, you might just have a chance!
4. Can you make a profit off of it? (Will you be able to price it so that you can make money? Will it be too expensive to create?)
Again, your answers to question 4 will always depend largely on your responses and thoughtfulness around questions 1-3. Can you make money if you are able to chart $45 for a shirt that only cost you $12 to manufacture? Yes, if you don’t have to hire 5 people to help you get the design and sourcing done. In the age of cute non-designer clothes at Walmart and Target, the $45 premium (example) must have strong percevied value in the mind of the teenager. However, the brands that charge $45+ for their tank tops and shirts also have a strong brand behind them. You will have to think of creative, low cost ways to create the brand that will allow you to charge enough to to make a profit.
As you can see, this is another interesting idea with some potential. However, the clothing industry is very competitive. It lives at the mercy of the latest trend. You can do it, but you have to bring something unique to the table (or closet in this case).
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