How to Build a Million Dollar Clothing Brand: The Journey to Success and Lessons Learned

The Journey to Success

• The conversation starts with the guest, Justin P, sharing his journey to success, which began with throwing parties in high school to make money. He couldn't afford SoundCloud reposts and other promotional services, so he decided to start a business.

• The business took off and became highly profitable, leading him to shift his focus from being an artist to building and running the business. He also talks about transitioning to a new approach called 'edutainment' that combines entertainment and education in his content.

• The conversation moves on to discuss the birth of 'Support Black Colleges,' a brand started by Justin P to showcase the excellence and culture of HBCUs. It was inspired by his experience at Howard University, and the aim was to tell the story of HBCUs through fashion and make it appealing to more people.

• The guest also shares the phenomenal growth of the brand and how it resonated with the HBCU community, spreading rapidly across campuses and gaining traction in a short period of time.

The Journey to Success

Challenges of Scaling and Handling Customer Expectations

• The company scaled too quickly, from doing well to suddenly handling 700-800,000 dollars a month in sales.

• The rapid growth led to challenges in handling the increased volume of orders, with the team being inexperienced in managing such high demand.

• Mistakes were made in addressing the issues, such as attempting to solve the problem by hiring more people and spending more money instead of focusing on training the existing team to streamline processes.

• The decision-making process was affected by the lack of experience in operating a business at that level, resulting in incorrect strategies to address the problems.

• The company took full accountability for the situation and acknowledged the mistakes made during the scaling process.

Challenges of Scaling and Handling Customer Expectations

Building a Business and the Lessons Learned

• The entrepreneur reflects on the challenges of managing a business, highlighting the dangers of having a big ego during times of struggle. Consulting with experienced individuals was crucial in gaining valuable knowledge and skills in a shorter time frame.

• The entrepreneur's self-awareness and lessons learned include the importance of building a business around the desired lifestyle, rather than the other way around. This realization led to a shift in focus towards marketing, branding, traffic, and customer service.

• The discussion touches on inventory management challenges, supply chain issues, and the impact on customer satisfaction. The complexity of managing multiple aspects of the business at scale is evident, especially during the initial stages of entrepreneurial journey.

• The entrepreneur shares valuable advice for entrepreneurs looking to start a merch brand, emphasizing the significance of self-awareness, leveraging organic content, and utilizing platforms like Shopify and TikTok for marketing.

• The parallels between building a merch brand and promoting music are highlighted, emphasizing the value of organic content creation, testing, and validating before investing heavily in marketing and production.

Building a Business and the Lessons Learned

Importance of Small Details in Merchandise

• The level of importance placed on small details in merchandise varies widely based on the type of brand.

• For brands like 'Support Black College,' basic tags in the hoodies didn't hinder a $4 million annual revenue, indicating that product quality can often speak for itself in certain market segments.

• However, for luxury brands like Louis Vuitton, custom tags and attention to small details are crucial for communicating the brand value to customers.

• The importance of the experience accompanying the merchandise increases with the price point of the products. Typically, for garments priced over $50-$55, custom details become more relevant, as customers expect a premium experience with their purchase.

• It's also essential for brands to consider the customer perspective and understand their specific requirements, as sometimes attention to details like custom tags may be more relevant to certain customer segments.

Importance of Small Details in Merchandise

Negotiating with Manufacturers

• The speaker emphasizes the importance of negotiating with manufacturers, especially when dealing with large orders from major retailers like Urban Outfitters. He discusses the significance of negotiating for better prices to ensure higher profit margins.

• He highlights the need to be shrewd and strategic in negotiations, mentioning how playing manufacturers against each other can help in slowly working down the price. However, he warns about negotiating too hard, as it can lead to compromises in product quality, ultimately affecting profitability.

• The speaker also stresses the value of transparency with manufacturers, citing an example of openly discussing profit margins and costs to ensure a mutually beneficial arrangement.

• Additionally, he advises on the use of 'tech packs' as detailed documents outlining garment specifications, which can facilitate communication with manufacturers and aid in obtaining samples.

• The conversation delves into the significance of product differentiation and the strategic composition of collections to appeal to various consumer segments. He recommends creating product lines that cater to different buyer profiles, maintaining a balance between higher-end and lower-end offerings to maximize sales and appeal to diverse customer preferences.

• The segment concludes with insights on upselling strategies, emphasizing the importance of post-purchase upsells, down sells, and cross-sells to increase the average order value and drive higher revenue.

Negotiating with Manufacturers

Conclusion:

Justin P's journey to building a million dollar clothing brand is filled with valuable insights and lessons for entrepreneurs. From scaling challenges to the importance of merchandise details, the story showcases the determination and resilience required for success in the competitive world of fashion entrepreneurship.