Sell Small Clothes for Big Returns: Start a Children's Fashion Franchise

The fashion industry is worth £66 billion in the UK, and offers plenty of opportunities for budding entrepreneurs and prospective business owners. It’s a diverse sector that is constantly evolving as a result of changing customer attitudes and spending habits. For example, more and more people are using cheap fashion to regularly refresh their wardrobe and keep up to date with trends. But at the same time, controversy surrounding the ethical and environmental concerns of fast fashion have caused a backlash and praise for retailers that promote the ‘slow fashion’ movement.

Children’s clothing stores

Children’s clothing stores are not immune to these kinds of changes, but focussing on juniors’ clothing offers some advantages over specialising in other areas. For example, while many consumers are trying to cut back on their clothing purchases and repurpose the items they’ve got, they can’t stop buying clothes for their children.

Juniors’ clothes are always in demand, as kids regularly grow out of their existing clothes and need bigger items. As a retail sector that adds £5.7 billion to the UK economy (Statista), childrenswear offers good growth and revenue prospects. For this reason, the children’s clothing sector can be a lucrative one, with potential for significant growth and returns on investment.

However, with many businessowners fearing for the death of the physical store amid dwindling high street sales, consumers are increasingly turning to the online retail market to source and purchase their goods. According to the Office for National Statistics (ONS), it is estimated that in the retail sector, for every four pounds that are spent in-store, one pound is spent online – double the amount spent in 2013. While the UK’s growing e-commerce industry is cause for concern in stores that do not have an online presence, it does represent an exciting business opportunity for those looking to trade online.

But with an openminded attitude and plenty of drive, entrepreneurs and prospective franchisees looking to start a children's franchise will have all the tools to succeed in the thriving fashion industry. For more information about why you should consider starting your own children’s clothing store, find out more about the ins and outs of running a children's clothing store franchise.

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Starting your own juniors’ clothing store

While the right business model can be hugely successful, the importance of the preparation stages should not be underestimated, and business people should take time to consider and research the right path for them. Here are some things to consider when setting up your own juniors’ clothing business:

1. Find your niche: In order to succeed, you should distinguish your business from existing well-known brands. You should give consumers a reason to shop with you rather than at their favourite, trusted store. This is a chance to get creative, identify a gap in the market and build it into your unique selling point. For example, are your pieces representative of a particular fashion style, are they designed to be worn in a specific setting, like sportswear or occasionwear, or are they made with core brand values in mind, such as sustainability or child welfare? As with most start-ups, it is more efficient to start simple, focusing on one core area and expanding when that has been mastered.
2. Establish your business model: This is one of the key elements of your set-up journey. Decide how your items will be designed, manufactured, stocked, priced, stored and shipped. If you want to gain the trust of the largest possible customer pool, you’ll need to make sure your manufacturing processes are ethical and environmentally friendly. However, depending on your chosen brand identity, you may also have to ensure your clothes are affordable for the average shopper.
3. Sort your location: While a website will give your business longevity, it might be best to start your journey by selling key pieces at a marketplace stall or renting a small commercial space. Remember to consider your target market when deciding where to base your business. For example, if you intend to sell high-quality, high-end pieces, you may find it beneficial to set up near a school or nursery in an affluent area. But wherever you station yourself, you should always be in a location with high public footfall that benefits from great transport links and, if possible, a nearby car park.
4. Secure funding: Not everyone is lucky enough to have the capital to set up a children’s clothing store themselves. UK grants, bank loans or equity capital can help you manage the costs associated with launching your own business. If you want to secure funding from an official lender, you’ll need to write a solid business plan. Lenders will want to make sure you have a viable business that is capable of bringing in enough money to pay off your debts. Remember to include details about your business’ operations, chosen location and products, as well as financial projections and your expected break-even point.
5. Test your products: If you want to get the most out of your business, you should always be thinking of ways to improve your product offering – and this starts before you even launch your company. Of course, in the initial stages, market knowledge will be vital if you’re to have a successful launch. A marketplace stall could help you work out which products sell the quickest, or whether customers are looking for an item which you do not yet stock.
6. Take out insurance: Once initial funding has been secured, you’ll need to invest in insurance. If you have a physical children’s clothing store, insurance is particularly important, as it’ll help you survive any unexpected issues further down the line, such as fires, floods or other kinds of damage. Failing to take out the relevant insurance can be disastrous for a business, especially if the owner doesn’t have the extra capital to keep it afloat during difficult periods. Insurance may seem like an unnecessary expense, but you’ll be glad of it if the worst comes to the worst.
7. Prepare your marketing strategy: Once your virtual or physical store is filled with your products, you will need to find customers. A full-scale marketing campaign with television adverts and billboard posters will probably be out of reach for new businessowners, but active social media channels and local advertisements can also do wonders for emerging businesses. High-quality photographs and accurate text help to build trust with customers. A grand store opening with introductory discounts and freebies can be extremely beneficial too. Once customers have discovered the brand, make sure that they are kept abreast of news, sales and brand developments with regular newsletters or email updates.

Kids’ clothing businesses

There are numerous options for people who use the internet to shop for children’s clothes. Shoppers can visit the online component of physical stores or stores that only operate online, and browse the children’s range in stores catering to both children and adults, or find stores dedicated entirely to childrenswear. Here are a couple of popular children’s clothing stores:

Next

One well-known option is Next – one of the nation’s favourite clothing stores for adults as well as children. Next was launched in 1982 and has expanded to develop three channels. These are Next Retail, comprising around 530 physical stores across the UK and Ireland, and Next International Retail, a network of around 200 overseas stores, most of which are franchised. Finally, there’s Next Online, the brand’s website, which has fostered over 4.9 million active customers. Next has already established numerous business partnerships across the world, and those interested in joining the fashion franchise should email international_franchise@next.co.uk.

Juniors’ clothing stores

One of the benefits of internet shopping is the versatility of brands it offers; for example, it’s easy to find juniors’ clothing options for every age group, budget and taste.

Childrensalon

Those in search of high fashion should visit Childrensalon.com, the world’s largest online store for designer childrenswear. Founded in 1952, its website stocks 270 different brands including Burberry, Dior and Gucci. The aim is to provide beautiful, quality pieces to suit babies and children up to the age of 16. Although this store isn’t currently looking for franchising partners, it is accepting affiliate applications from luxury fashion and lifestyle brands, with the opportunity to earn commission on any sales.

Alternatives at Point Franchise

Point Franchise isn’t currently offering any juniors’ clothing store franchises, but investors looking to get involved in the fashion industry could take a look at the ‘slow fashion’ brand, Noa Noa.

Noa Noa

As an international fashion franchise, this store sells clothing aimed at the ‘modern bohemian woman’. Noa Noa products are manufactured from natural elements such as wool, cotton and silk, and the company promotes its ‘slow craft’ to compete with the many fast fashion outlets that are making their impact on the environment and human welfare. These high-quality items are available in 60 stores and 400 department stores across 20 countries. Noa Noa franchisees will need to invest £50,000–£100,000, and can renew a five-year contract if desired.