When starting any business, including a fashion one, it is essential to do proper market research. Market research implies collecting and analysing information to acquire insights regarding the industry. These insights involve learning more about the competitors, the target market and the top businesses, among other things. Conducting proper market research is vital both when starting a business and when already running a business. Doing market research in any of those cases ensures effective use of marketing expenditures and increases chances for success.
Before giving tips on how to do proper market research when starting a fashion business, we will explain why proper market research is necessary when starting a fashion business. In short, because the market responds strongly to trends, there is variation in target groups, and the market is highly competitive. When it comes to types of market research, there are primary and secondary. Primary market research involves focus groups, ethnographic research and individual interviews. Secondary market research, on the other hand, involves public and commercial sources and educational institutions.
Why is proper market research necessary when starting a fashion business?
The market responds strongly to trends
What we notice nowadays is that the market responds strongly to trends. For instance, influencers directly affect buying decisions of their followers. Anyone with a larger number of followers can change people’s shopping habits. The runaway and social media fashion trends also impact the fashion industry.
There is variation in target groups
Another thing we can notice is variation in target groups. For example, people who once loved buying high-fashion items and enjoyed fast fashion have perhaps now become more eco-conscious. That means they now buy certain clothing items made from particular materials and in specific shops.
The market is highly competitive
Moreover, doing proper market research is essential because the market is highly competitive, and it can help us make the right business moves to stand out from the crowd and achieve success. Nowadays, there are too many brands out there, and the competition is fierce. You should do a few things to minimise your costs and maximise visibility and revenue. First, if your business targets Australia, you should find quality wholesale clothing in Australia, which you can resell and earn profit. Buying wholesale enables you to get discounts on the price and shipping as well.
Types of market research
Primary market research
Primary market research is a combination of qualitative and quantitative research. This type of market research involves getting in touch with end consumers or employing a third party to conduct studies to gather data. When it comes to the kinds of information you can collect in primary market research, there are exploratory and specific. Exploratory research is open-ended, while clear is used to solve problems identified by exploratory research.
The first method of primary market research is using focus groups. It involves a small group of people, usually from 6 to 10 people, reacting to or answering online surveys. This method is used to collect complex information, and it is more expensive.
Ethnographic research is in-depth research conducted in the natural environment of respondents, in a town or a city/
This method involves personal connection through individual interviews. The interviewer asks several questions to collect data. The questions are often open-ended.
Secondary market research
Secondary market research, on the other hand, is managed by outside sources such as government agencies, media, and chambers of commerce. It involves information published in magazines, newspapers, company websites, books, free government and non-government agencies, etc.
Public sources include public institutions with free resources, such as libraries. You can use them to find helpful information for your business.
Commercial sources are reliable but expensive. They include local magazines, newspapers, journals and media to collect all the information you can use in tailoring your business strategy.
Even though educational institutions such as universities are usually not a very popular choice regarding secondary market research, they can still be used. Many research projects are carried out there.
Proper market research is vital as you can learn many things about the market. When you know the market well, you can tailor a perfect business strategy that will bring you success.