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How to successfully start a hoodie brand: A complete guide from 0 to 100,000 yuan a month

Abstract

The global hoodie market is expected to exceed 40 billion US dollars in 2025. Driven by street culture and athleisure,How to successfully start a hoodie brand  this category is continuing to expand at an annual growth rate of 6.8%. This article will reveal 10 key steps to start a hoodie brand, covering market positioning, product design, supply chain selection, cost control, marketing strategy and other core dimensions. Through 7 real cases and 12 sets of industry data, we will teach you step by step to avoid the pitfalls that 90% of novice entrepreneurs have stepped on and create a streetwear brand with sustainable profitability.

How to successfully start a hoodie brand

1. Accurate market positioning: Find your golden track

Argument: Market segmentation determines brand life and death

  • Argument:
  • Four high-growth segments:
  • Street fashion (35% market share, represented by Supreme)
  • Fitness function (quick-drying/antibacterial fabrics, Gymshark model)
  • Campus culture (club/graduation commemorative models)
  • Corporate customization (employee uniforms + brand peripherals)
  • Data: Niche design hoodies have a gross profit margin of 65-80%, far exceeding basic models (40-50%)
  • Case: Champion achieves an annual growth of 23% through retro campus style

2. Hot design methodology

Argument: Good design = 30% creativity + 70% market verification

  • Argument:
  • Design element popularity ranking:
  • Oversize version (search volume increased by 120% year-on-year)
  • Retro college style (Vintage elements are 30% premium)
  • Functional details (hidden pocket design increases conversion rate by 25%)
  • Tool recommendation: Use Clo3D for 3D sample simulation, reducing costs by 60%
  • Case: Fear of God achieves $300+ pricing for single products through minimalist design + special tailoring

3. Supply chain selection: ODM vs. independent development

Argument: Light asset model is the best choice for entrepreneurship

  • Argument:
  • Comparison of three models: | Model | Startup cost | Minimum order quantity | Delivery cycle | |——|———-|————|———-| | ODM | ¥10,000-30,000 | 50-100 pieces | 2-3 weeks | | Independent development | ¥50,000+ | 300 pieces+ | 4-6 weeks | | Self-built factory | ¥500,000+ | Unlimited | Self-control |
  • Case: Vlone initially adopted the ODM model, and built its own production line after the sales of a single model exceeded 10,000

4. Cost structure and pricing strategy

Argument: Scientific pricing is the key to profitability

  • Argument:
  • Cost breakdown (taking basic models as an example):
  • Fabric: ¥25-45/piece (combed cotton vs. ordinary cotton)
  • Processing: ¥15-30/piece (ordinary factory vs. boutique factory)
  • Printing: ¥5-20/piece (silk screen printing vs. digital direct printing)
  • Accessories: ¥8-15/piece (YKK zipper premium 30%)
  • Pricing formula: cost price × (2.5-3.5) = retail price
  • Data: The conversion rate of “¥399” pricing is 17% higher than that of “¥400”

5. Production quality control system

Argument: Quality is the basis of repurchase rate

  • Argument:
  • Five indicators that must be tested:
  • Color fastness (grade 3 or above)
  • Seam strength (≥100N)
  • Shrinkage (≤3%)
  • Print durability (50 wash tests)
  • Zipper smoothness (500 open and close tests)
  • Case: Represent 30% return rate due to quality control issues

6. Online channel layout strategy

Argument: DTC model is the core of profit

  • Argument:
  • Channel ROI comparison: | Platform | Average conversion rate | Average customer price | Commission |  | Independent station | 1.8-3.2% | ¥450 | None | | Douyin store | 2-4% | ¥320 | 5% | | Tmall | 0.8-1.5% | ¥380 | 8-15% |
  • Tool recommendation: Shopify+Klarna Installment payment increases customer unit price by 35%

7. Social media hit formula

Argument: Content marketing is a low-cost customer acquisition tool

  • Argument:
  • The most effective content form:
  • Dressing scene video (82% higher completion rate)
  • Factory production documentary (60% higher trust)
  • User UGC content (3 times higher conversion rate)
  • Case: Essentials achieved zero advertising fee growth through amateur street photography

8. Inventory management wisdom

Argument: Scientific stocking to avoid capital chain break

  • Argument:
  • Stocking calculation formula: Safety stock = (average daily sales × procurement cycle) × 1.5
  • Data: Healthy inventory turnover should be maintained at 5-7 times/year
  • Tool recommendation: Cin7 Inventory Management System

9. Brand value construction

Argument: Cultural attributes determine premium ability

  • Argument:
  • Three value-added strategies:
  • Limited sale (hunger marketing increases attention by 300%)
  • Cross-border collaboration (sales increase 5-8 times)
  • Community operation (repurchase rate increases by 40%)
  • Case: Off-White forms brand identity through “anti-theft buckle” design

Argument: Intellectual property is the core asset

  • Argument:
  • Three types of rights that must be registered:
  • Trademark (text + graphics)
  • Copyright (original pattern)
  • Appearance patent (special version)
  • Case: Supreme successfully defended its rights and won ¥2 million in compensation

FAQS

1. What’s the profit margin for hoodie brands?

Niche designs yield 65-80% gross margins vs. 40-50% for basics. Champion’s retro styles drive 23% annual growth.

2. What hoodie designs sell best?

Top trends:
Oversize fits (120% search growth)
Vintage college styles (30% price premium)
Functional details (hidden pockets boost conversions by 25%)

3. ODM or custom production?

Start with ODM (¥10K-30K, 50-100pcs) to test markets. Vlone scaled after selling 10K+ units

4. How to price for max profit?

Use: (Cost × 2.5-3.5). Example: ¥399 converts 17% better than ¥400.

5. Which platforms work best?

Independent sites: Highest margin (¥450 avg. order)
Douyin: Best conversion (2-4%)
Tmall: Lowest ROI (8-15% fees)

Summary: Entrepreneurship action list

  1. Market verification: Test the popularity of design through Douyin
  2. Small batch trial production: The first order is controlled within 100 pieces
  3. Establish an official website: The basic version of Shopify can be started
  4. Content reserve: Shoot 30 short video materials
  5. Community building: Create a WeChat/Discord private domain group
  6. Data monitoring: Track conversion rate and return rate

Cost control skills:

  • The initial investment is controlled within ¥50,000
  • The marketing budget does not exceed 25%
  • Maintain gross profit margin above 55%

Avoid pit guide:

  • Avoid complex processes (focus on 1-2 core processes in the first quarter)
  • Carefully select fabric suppliers (require to provide test reports)
  • Strictly control sample quality (no more than 2 modifications)

How to successfully start a hoodie brand Trend forecast: Sustainable materials (such as recycled cotton) and smart wearables (such as temperature-sensitive color change) will become growth points in the next three years. It is recommended that entrepreneurs maintain technical sensitivity.

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