The true cost to start a fashion label in Australia

Starting a fashion label can be a dream for many, but turning that into a reality, like anything in life, takes a lot of time, money, grit and determination. When it comes to the future success of your business, it pays to crunch the numbers and here at Visionise, we’re all about being open and transparent with our clients not only about the manufacturing process but financial realities that come into play when it comes to the true cost to start a fashion label.

How much does it cost to start a fashion label in Australia?

If you want to start your own fashion label, make sure you take a look through the following guide as we outline all the items and what they cost to start a fashion label and launch your brand.

One of the best pieces of advice we’ve ever received when it comes to budgeting for your start up fashion costs, is to write down every single expense you can think of, and then double it.

This is what you should be prepared to spend as you launch your fashion label. From the initial business costs to design and development, bulk production and the various marketing activities and inevitable unexpected expenses you’ll encounter, you’ll soon come to learn you need substantially more than what you originally think.

Before we get into the true cost to start a fashion label, let’s first explain the difference in fixed vs variable costs in your budget.

Some main factors that will determine the cost

• Product type
• MOQ’s: Number of styles and colourways
• Complexity
• Fabrics and trims

Your first collection will be the most expensive because you are doing everything from scratch; however, many of these jobs are not ongoing. Once your branding material, tech packs, patterns, and fabric etc are established, this can be re-purposed saving time and money moving forward.

FIXED vs VARIABLE EXPENSES

When starting your label, like any business, you’ll have a mix of one-off, fixed and variable costs to consider.

Fixed: These are ongoing, regular expenses that will stay the same such as rent, internet, wages.
Variable: These will differ month to month such as design and development costs, samples and advertising etc.
One-off: These are costs that you only need to outlay once, such as your business registration and trademark fees.

Start-up fashion costs explained

Generally speaking, when it comes to the true cost to start a fashion label in Australia with a small collection of about 5 styles in 2 colourways per style, we usually recommend expecting a minimum outlay of about AUD $12,000 which would be spent on the initial business costs such as design development, tech packs, branding, sampling etc (many of these costs are once-off) and then a further USD $25,000 / AUD 42,000 for bulk production.

So, let’s break down some of the costs that will be involved in starting a fashion label:

Fashion business start-up costs

The initial outlays involved in the cost of starting a fashion label include a range of essential elements crucial to establishing a solid foundation. These are usually either one-off costs such as business registrations, trademark and legal fees, or ongoing fixed costs for things like your website and insurance, packaging, rent, bills, utilities and subscriptions.

Design & manufacturing costs

The design and development stage of your business will constitute a large portion of your initial budget in the start-up phase. This is where you’ll be working with a range of designers (such as our senior fashion design team at Visionise) to create tech makes, generate samples, source materials and then move into bulk production, where if you’re working with off-shore manufacturers, shipping and tax will also need to be considered.

Again, depending on your product, some of these costs may be a one-off if you’re only looking to produce a singular design, however, if you’re producing a number of collections each year, you will need to consider this in your yearly budget.

Having a clear vision for your brand and knowing exactly what you want will help save you time and money in the long run, however, some example costs could look like:

Branding & Marketing expenses

Brand positioning and marketing are integral in defining your label identity and fostering positive engagement with your audience. While one-off costs such as your branding (ie logo, fonts & colours) are essential investments, ongoing marketing activities are dynamic and will largely depend on the strategies you employ to promote your brand
Consider monthly subscriptions for various platforms such as email marketing or Canva, paid advertising costs whether that’s through Meta, Pinterest or Google as well as influencer collaborations and PR efforts which can all vary. In the competitive fashion landscape, planning ahead and dedicating sufficient resources or strategic initiatives will be essential to cultivating brand awareness, driving sales and establishing a lasting connection with your audience.

We’ve broken down some of the costs below:

Branding – $1,500
Packaging – $1,500

Photoshoots
models – $2,000
photographer – $3,000
Hair & Makeup Artist – $500
Usage – $500

Marketing
Email marketing – $40
Digital Advertising – $1,000
Influencers – $3,000
PR Agency – $5,000

It’s important to note that each brand is different and all costs outlined above will vary based on the strategy and direction you choose to take, however, as you can see, there is a lot more investment needed when starting a fashion label than just the initial design development and bulk production costs.

We know numbers can kill the creative juices but we can’t ignore the importance of budgeting when it comes to the long-term success of your business.

Here at Visinoise, we don’t want any of our clients investing such a significant outlay without a carefully planned budget as strategically balancing these costs is key to navigating the complex landscape of launching a successful fashion venture.

This is why we assist with pricing strategies and budgeting throughout our fashion framework services so that they can set themselves up for success and make carefully calculated decisions.

Have any questions or would like to discuss your brand with one of our industry experts? Book a free discovery call today!