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Beyond the Launch: Remodelling How Fashion and Beauty Startups can Thrive
Although the fashion and beauty landscape continues to accumulate numbers, there are waves of a plummeting economy across sectors, with luxury household names bearing the brunt, and indications of young startups seeking strategies to keep safe from an industry rife with economic mishaps.
Elvis Kachi
January 28, 2025
As of 2023, the total fashion industry was estimated to be worth over $1.7 trillion, while the global beauty industry is forecast to generate revenues amounting to nearly $132 billion by the year 2029. You would find that this is a stark representation of how undeniably lucrative both industries are, making it one of the most challenging to navigate and cut through.
If you’re a startup entering this space, you need to brace yourself for hurdles, ranging from fierce competition to rapidly evolving consumer demands. Building a sustainable business model is not only critical for your long-term success, but is also a prerequisite in an industry where conscious consumers and investors expect more than surface-level innovation. Therefore, strategies and frameworks need to be put in place if you’re looking to groom a sustainable business model, and position your brand for resilience and growth.
Understanding The Market Through Targeted Positioning
Firstly, you need to remember that only 47% of businesses in the retail ecosystem succeed after the first four years of operation. Within the first year, 23.2% of new businesses fail, with rates increasing to 48% after five years and 65.3% after 10 years. Experts say that among the many reasons, founders casting their nets too widely is at the fore. Success, therefore, lies in identifying a niche and addressing unmet needs. It lies in conducting deep research into your target audience to uncover pain points and gaps.