If you are thinking of starting a fashion business or expanding an existing enterprise in 2025, this blog brings forth some of the essential fundamentals with contemporary refinement.
Focusing on the Aspect of Functionality
Functional fashion is a relatively new concept but is increasingly gaining prominence among stakeholders – fashion brands, fashion designers, fashion enthusiasts, and everyday users. Functional fashion refers to the idea of binding fashion with specific utility, functionality or purpose. It enters the realm of trendy fashion but does not deviate from utility objectives. Athleisure fashion serves as a good example here where products are made to look fashionable and yet fulfil the user requirements. Different brands may approach this differently in terms of overall product quality, fabrics used, production processes, and specific usage requirements. As providers of fashion business consulting services, YRC emphasises that blending fashion and functionality helps augment the equation of ‘value of money’.
Premium Shopping Environment
The shopping environment has direct ramifications on the shopping experience of customers as the former creates instant impressions. Relate the idea of the shopping environment to that of the marketing significance of packaging. When the quality of packaging is good, it helps create a good impression. When it is average, it leads to results of a corresponding nature. In developing fashion store design and layout solutions, YRC emphasises that when it comes to the shopping experience or customer experience, the quality of the shopping environment should find a significant deal of attention.
In the recent past and going into the future, fashion retail brands and businesses might have to focus more on offering premium shopping environments with expert emphasis on visual merchandising and planograms. Even small and medium fashion businesses driven by the motto of making affordable fashion might find it difficult to dodge this requirement.
Another important factor that fashion retailers must take into account is the prevailing and upcoming market standards and developing customer expectations.
With years of experience in delivering fashion store layout planning solutions, YRC underscores the role of professionals as layouts once incorporated cannot be easily altered.
Cleanliness is another vital focus area for creating an elegant and attractive visual appeal in fashion stores. Experienced fashion business consultants often reiterate the significance of SOP-based systems for achieving consistency in maintaining high levels of cleanliness.
Value for Money
The concept of ‘value for money’ is subjective in nature. Finding the right match between price and products is trickier in the fashion business. It calls for a very good level of understanding of subject matters like fabric science, production processes, sourcing of raw materials, fashion trends and expectations of target segments, and buyer behaviour to name a few.
It is nearly impossible to please every potential customer. Instead, a smarter approach is to resonate strongly with a large majority of customers within the target segments. This is something which almost all successful brands and businesses seek to achieve.
Critical Control over Value Chain
In the fashion business, it is important for retailers to have good enough control over the procurement of raw materials, production processes, product design finalisation, pricing decisions, and distribution channels. This control allows fashion retailers to maintain product quality and the overall quality in the delivery of value propositions. It can be challenging for micro and small retailers to have much control over the supply chain that precedes them. For medium and large businesses, this is a bit easier because of their purchase quantities and market shares. The rule of thumb that applies to fashion businesses of all sizes and stature is to define the required quality standards and enforce them strictly with their value chain partners. So, whether you are buying finished products for reselling or input materials for further value addition, by deploying measures of critical control you can ensure better delivery of promised value propositions.
Insightful Understanding of Target Segments
The significance of market research has only increased over the years. With consumer behaviour becoming more complex, the fragmentation of market segments, and diversification of demographic variables accompanying urbanisation have made it more challenging for fashion brands and businesses to define their target segments and better understand their needs and expectations. This problem is not confined to fashion startups only but it also affects existing brands and businesses. The latter has to stay periodically updated on the subtle developments in the external environment affecting their respective target segments. Even when it comes to growth and expansion endeavours, fashion enterprises cannot simply copy-paste their business models into new markets without insightful market research campaigns.
Expertise in Localisation
The importance of localisation does not require any elaborate highlighting especially, in the world of fashion retailing. Regional and local adaptations are not any off-the-course requirements especially when designing business models. Even tried and tested business models must go through the test of local market conditions in a different region. Retailers need to put in the required efforts in this regard to generate a strong level of brand and product resonance in local markets. This often encompasses making detailed assessments in areas like product design and/or selection, brand communication, store design and layout planning, strategy for customer experience, distribution strategy, and regulatory compliance.
About Your Retail Coach
YRC is a retail and eCommerce consulting brand with a scaling international footprint. With over ten years of experience, YRC has worked with 500+ clients in more than 25 sectors with a success ratio of over 94%.
To speak to a professional fashion retail consultant, feel free to drop us a message and we will shortly reach out to you.
FAQs
What are some of the relevant pricing strategies in the fashion business?
In modern-day retailing, pricing strategies are not formulated in isolation. The big determining points already emerge from the business idea or business model in question. A business model already establishes who the target segments are and what value propositions are in the offing. Pricing is an important component of value proposition. So, the broad price brackets already emanate from the early stages of product or business planning. Here are some approaches/tactics to further narrow the broader price brackets or to get towards the right price point:
- Cost-plus or mark-up (safe)
- Competitive pricing (tough competition, market entry)
- Pricing based on perceived value (premium brands, seasonal demand)
- Pricing adjustments after sales (specific to individual businesses)
- Pricing based on actual and projected demand of individual products/SKUs
- Seasonal pricing
- Real-time pricing (robust digital monitoring systems are necessary)
· Consideration of regulatory stipulations
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