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Why 70% of Fashion Startups Fail in Production

by | Dec 3, 2023

And How You Can Be the Exception
The fashion industry has never been more accessible. With digital tools, online marketplaces, and global suppliers just a click away, starting a fashion brand seems easier than ever.
Yet, statistics tell a different story. According to CB Insights, nearly 70% of fashion startups fail before reaching full production—not due to lack of creativity, but because of costly production mistakes that derail promising brands before their first collection even ships.
At The Fashion Coterie, we’ve worked with brands at every stage—from concept to global launch—and here’s what we’ve learned: Success in fashion is as much about mastering production logistics as it is about design.
Here are the top 3 production pitfalls—and how to avoid them.

1. MOQ Madness: Negotiating Smarter with Manufacturers
For new designers, the idea of producing 1000 pieces of a single style sounds overwhelming—and for good reason. Most large-scale manufacturers have Minimum Order Quantities (MOQs) of 500–1000 units per SKU, leaving small brands stuck with oversized orders they can’t sell or afford.
Instead of going big from day one, today’s successful brands seek low-MOQ or small-batch production partners—often through microfactories, nearshoring, or digitally enabled manufacturers.
✅ Pro Tip: Always ask about MOQ flexibility before signing anything. A good production partner will offer ways to test, scale, and iterate—without overcommitting.

2. Misjudging Timelines: A Common, Costly Mistake
From sampling to final delivery, fashion production is rarely linear. Delays are common—especially with overseas factories, shipping congestion, or last-minute design changes.
Consider this:
• Offshore production (Asia): Average timeline = 90–120 days
• Nearshoring (Europe, North Africa, LATAM): Average = 45–60 days
Without proper planning, many startups miss seasonal launch windows, cancel marketing campaigns, or face unsold inventory at peak retail periods.
✅ Pro Tip: Plan for double the time you think you need. Include buffer weeks for sample corrections, supplier delays, or unexpected freight issues.

3. Budget Blind Spots: Underestimating the Real Costs
BoF and McKinsey report that first-time fashion founders underestimate their production budget by 30–40%.
Why? Because of the “invisible costs”:
• Sampling rounds
• Freight and customs duties
• Product labeling and packaging
• Quality control inspections
• Warehousing or last-mile delivery
These often get missed during early-stage planning—leading to major cash flow gaps.
✅ Pro Tip: Build a 15–20% contingency into your production budget. It gives you the flexibility to manage hiccups without compromising your brand quality.
Production Isn’t Just About Making Clothes
It’s about creating a reliable, repeatable system that allows your business to grow with confidence.
At The Fashion Coterie, we help fashion brands around the world:
• Find trusted low-MOQ suppliers
• Develop efficient sampling and tech pack systems
• Build realistic timelines and budgets
• Launch collections that are on time, on brand, and on budget
Whether you’re launching your first collection or scaling up globally, we’re here to guide you through the entire process.
🤝 Let’s Connect
💬 What’s been your biggest challenge in getting your collection produced?
Drop a comment below—or DM me. Let’s start a conversation about building a better, smarter fashion business.
#FashionBusiness #ProductionPlanning #FashionStartups #TheFashionCoterie #FashionIndustry #EmergingDesigners #SupplyChainFashion

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