pucci_mama said:
Jeezus so many labels shutting down latley.. fashion is not doing to good, is it?
there are too many designers, too many clothing companies and too few customers, also many of the PPL who can afford to buy designer clothes (actresses/ actors, singers etc) are expecting to get clothes for free
it is extremely expensive to run a fashion company. also a lot of these so called designers are not properly trained, so they have to surround themselves with a plethora of PPl to help them get anything done. this escalates significantly the cost of the clothing because everyone has to get paid from the sale of the clothes.
here is a rough list of some the people who have to be paid from the sale of clothing/ fashion goods
creative director/ designer
pattern maker(s)
sample maker
stylist
administrative employees
assistant designers
design assistants
showroom/sales rep
public relations
magazine ads (for big companies)
fabric suppliers
factories (clothing, shoes, leather goods)
production managers
shipping companies
trim suppliers
fashion show production companies
models
phtographers
graphic artists (for lookbooks etc)
all of this could possibly be before you sold one item of clothing for $200 and all of these ppl must be paid from clothing /accessories sales
the problem is that most companies operate in the red for a few year hoping that with the growth of thier business they will eventually break even and become profitable. However there is no guarantee of this as a design company is often left to the mercy of store buyers with thier chargebacks, markdown money and all.
one bad collection and you could be out of business quickly.