The fashion industry is rough and contains a lot of competition for venture capital in startups, especially for tech investments. What’s more, most fashion investments tend to lean towards already established businesses with vast markets in brick and mortar stores as well as in online e-commerce markets. Certain businesses like The RealReal, which offers shoppers luxury branded clothing consignment with huge price cuts on brands like Louis Vuitton, bring in millions of dollars a year in addition to investment money to assist in growth. Likewise, Poshmark, while not as luxurious, offers women a place to sell their clothes to other users quick and efficiently, and has great investment as well. If the market is well known and an idea is worth growing, it is definitely worth a shot.
It may be surprising, but most brick and mortar stores are actually losing revenue to online marketplaces due to the ease of shopping and convenience that online stores bring. E-commerce startups for fashion tend to be a lot easier to get into since there are much cheaper fees involved when it comes to purchasing a domain, as opposed to renting a storefront for a small chain of clothing stores. Moreover, efficient and unique ways of selling clothes tend to speak to investors and venture capitalists that see promise in a brand, since the world of fashion is always expanding and in need of new ideas for clothing, selling products, marketing, and analytics.
When looking at some of these new websites, the listings tend to be compact and simple with prominent buttons for signing up with Facebook, Google, Twitter and e-mail (see recent Marketo and co-founder Brian Sheth of Venture Equity Partners news), which makes for an easy way to keep track of signups while still incorporating e-mail confirmation and password logins.
Tools and Resources
The organization of the clothing and accessories is also important. With a business like Snap Fashion, a new and cool tool that helps you find similar items just by taking a picture, the rate for investments in a product like that are high because of the amount of potential that something similar carries. Indeed, taking a picture of a piece of clothing, a purse, or even a pair of shoes can help a consumer find things cheaper and easily without the hassle of using a Google search just to find one or two things.
Donde Fashion, another new website, focuses primarily on colors, sizes, and shapes of the particular garment to help find types of fashions based on what color they want to wear. This helps cut down on items that are exclusive only to one or two websites and helps the user clear their mind and focus on what looks appealing instead. There is a lot of promise for a website like this because of the potential to expand and become a large and bustling service for consumers everywhere.
The tech and fashion industry go hand in hand with each other, contrary to the popularity of newer gadgets and software that are available in today’s economy. The need and desire for newer companies is out there and stronger than ever, and there is plenty of money involved for a new idea that can be put to good use like the websites listed.