$1m clothing brand owner keeps it real for 20 mins
Summary
TLDRIn this candid video, Dave Nash shares his journey and hard-hitting advice for aspiring clothing brand owners. He warns about the complexities and operational challenges, suggesting that for most, running a clothing brand is not the best way to make money. He emphasizes the importance of passion and the long-term commitment required to succeed in the fashion industry.
Takeaways
- π Dave Nash starts the video candidly, sharing that he didn't prepare much for this session and just woke up an hour ago.
- π₯ He announces an exciting update that his clothing brand has hit $1 million in revenue, a significant milestone from zero just 15 months ago.
- π° The first hard-hitting fact: If your primary goal is to make money, Dave suggests considering other ventures, as running a clothing brand is not the most lucrative or straightforward path.
- π« He warns that 95% of viewers might not be suited for running a clothing brand, especially if they are motivated by seeing others flaunt success, which might not be sustainable.
- π Dave explains that clothing brands are operationally complex and require a multitude of hard skills, which often leads to failure or short-lived success.
- π He emphasizes the importance of having a solid marketing system and fundamentals in place, rather than relying on hype, to ensure long-term success in the fashion industry.
- π The operational complexity of a clothing brand includes managing design, manufacturing, marketing, content creation, inventory, and customer service, which is much more demanding than other types of businesses.
- πΌ Dave shares that in clothing, you might need to add a full-time employee for every $1 million in revenue, unlike other businesses where one employee can manage up to $4-5 million in revenue.
- π He discusses the cyclical nature of fashion, noting that brands can quickly fall out of favor, and staying relevant is a constant challenge.
- π Dave advises that if you're determined to start a clothing brand, be prepared for a 2-3 year period before making any significant money, due to the time needed to achieve economies of scale and establish credibility with manufacturers.
- π For those still interested in pursuing a clothing brand, Dave offers further advice on the long-term realities of the fashion industry, including the need to adapt and innovate to maintain relevance.
Q & A
What is the main theme of Dave Nash's video?
-The main theme of Dave Nash's video is to provide candid advice and hard-hitting facts about starting and running a clothing brand, emphasizing the challenges and complexities involved.
Why does Dave Nash suggest that most people should not start a clothing brand?
-Dave Nash suggests that most people should not start a clothing brand because it is operationally complex, requires many hard skills, and is not the most efficient way to make money.
What is the 'cold heart truth' that Dave Nash wants to convey to his audience?
-The 'cold heart truth' is that if someone's primary goal is to make money, they should consider doing something else other than starting a clothing brand.
What are some alternative ways Dave Nash suggests for making money instead of starting a clothing brand?
-Dave Nash suggests learning a skill, such as email marketing, SMS, or Facebook ads, and offering those skills to people. He also mentions starting a design agency as an alternative.
Why does Dave Nash believe that clothing brands are unnecessarily complex?
-He believes that clothing brands are unnecessarily complex because they require managing multiple collections simultaneously, dealing with inventory, customer service, marketing, and other operational tasks, which makes scaling and maintaining relevance challenging.
What is the significance of the clothing brand hitting $1 million in revenue according to Dave Nash?
-The significance is that it took only 15 months to reach this milestone from zero revenue, which shows the potential for growth in the clothing industry despite its complexities.
What are some of the operational challenges Dave Nash mentions in running a clothing brand?
-Some operational challenges include designing clothes, managing relationships with manufacturers, handling paid marketing, creating content for social media, managing inventory, and dealing with customer service and finances.
How does Dave Nash describe the relevance of fashion brands over time?
-Dave Nash describes the relevance of fashion brands as cyclical and subject to ups and downs, with brands becoming popular and then falling out of favor over time.
Why does Dave Nash think that many people are attracted to starting a clothing brand?
-He thinks that many people are attracted to the idea of starting a clothing brand because they see others, like influencers, flaunting their success, which may not be representative of the reality for most clothing brand owners.
What advice does Dave Nash give to those who are determined to start a clothing brand despite the challenges?
-Dave Nash advises those determined to start a clothing brand to be prepared for a long-term commitment, understand that it may take 2-3 years to make meaningful money, and to focus on building a solid marketing system and reliable customer base.
Outlines
π Candid Insights on Starting a Clothing Brand
Dave Nash begins the video candidly, admitting he hasn't prepared much for this session. He wakes up with a strong urge to share some hard-hitting facts with the fashion community, particularly for those at different stages of running a clothing brand. He emphasizes that if the primary goal is to make money, starting a clothing brand might not be the best idea. He suggests that for most people, running a clothing brand is not advisable due to its complexity and the allure of quick success seen in others, which he warns against. He also mentions the operational challenges and the need for a diverse set of skills, concluding that many people are likely to fail in this endeavor.
π€ The Complexities of Running a Clothing Brand
Dave Nash delves into the complexities of running a clothing brand, drawing from his 15 months of experience and 8 years in e-commerce. He contrasts the operational demands of a clothing brand with other types of businesses, highlighting the need for more employees and the variety of skills required. From design to marketing, inventory management, and customer service, he outlines the numerous tasks involved in running a clothing business. He also discusses the challenges of maintaining relevance in the fashion industry, citing examples of brands that have fallen out of favor and those that have managed to regain popularity.
π Passion vs. Profit in the Fashion Industry
Dave Nash acknowledges his own passion for fashion, which drives him to persist in the industry despite its challenges. He advises those who are determined to start a clothing brand to be prepared for a 2 to 3-year journey before seeing significant profits. He explains that initial costs are high due to a lack of leverage with manufacturers, which affects pricing and scalability. He also touches on the importance of content creation and the potential for virality on platforms like TikTok, but warns against relying solely on this strategy. He emphasizes the need for a solid business foundation and a marketing system that can generate consistent revenue.
π The Cyclical Nature of Fashion Trends
Dave Nash discusses the cyclical nature of fashion trends, using examples like Uggs, Crocs, Oakley, Gucci, and Off-White to illustrate how brands can rise and fall in popularity. He warns that even successful brands can become irrelevant if they fail to adapt to changing tastes. He stresses the importance of understanding that fashion is not a stable or enduring market, and that brands must constantly evolve to stay relevant. He also reflects on his own position in the industry, acknowledging the challenges he faces and the lessons he has learned.
π A Raw Conclusion on Clothing Brands
In the final paragraph, Dave Nash wraps up his video with a raw and honest message. He reiterates his caution against starting a clothing brand for those primarily interested in making money quickly. He emphasizes his commitment to providing value and advice without promoting a course or using flashy tactics. He encourages viewers to share the video, like it, and subscribe for more content, especially if they are interested in the clothing industry. He ends on a note of authenticity, promising to continue offering real insights and advice.
Mindmap
Keywords
π‘Candid
π‘Clothing Brand
π‘Operational Complexity
π‘E-commerce
π‘Economies of Scale
π‘Content Creation
π‘Market Saturation
π‘Fashion Cycle
π‘Profit Margin
π‘Relevance
π‘Hype
Highlights
Dave Nash starts the video candidly, sharing that he didn't prepare much for it.
The video is aimed at both new and established clothing brand owners, offering insights relevant to various stages of business.
Dave's clothing brand recently hit $1 million in revenue, marking a significant milestone from zero revenue 15 months prior.
A harsh truth: for those primarily interested in making money, Dave advises against starting a clothing brand.
Clothing brands are operationally complex and require a diverse set of skills, making them a poor choice for those seeking easy money.
Dave suggests alternative business models, such as service businesses, as more straightforward paths to earning money.
He emphasizes the importance of having a solid marketing system to ensure consistent, predictable traffic and sales.
Dave explains the operational complexities of running a clothing brand, including managing multiple collections and drops.
He mentions the need for a team with diverse skills, from design to marketing to inventory management.
Dave discusses the high costs associated with starting a clothing brand, especially in terms of manufacturing and marketing.
Economies of scale are crucial in the clothing industry, with costs decreasing as revenue increases.
He warns that success in the clothing industry is not guaranteed and can be short-lived, especially for those relying on hype.
Dave shares his personal passion for fashion, which drives his commitment to the industry despite its challenges.
He advises that it typically takes 2 to 3 years to achieve meaningful revenue in the clothing industry.
Dave highlights the cyclical nature of fashion trends and the importance of being prepared for periods of irrelevance.
He uses examples like Uggs, Crocs, Oakley, and Gucci to illustrate the fluctuating popularity of fashion brands.
Dave concludes by reiterating his candid advice and encouraging viewers to consider the realities of the clothing industry before starting a brand.
Transcripts
hey guys welcome back to the channel my
name is Dave Nash and to be honest in
this video I didn't really prepare
anything too crazy it's just my notepad
right here with them like four or five
bullet points and it's a super candid
video I woke up I'm not going to lie
like 1 hour ago and I was taking a
shower brushing my teeth whatever and I
was just like huh this is something that
I need to tell the broader fashion
clothing brand owner
Community um so I'm going to go ahead
and turn my camera on and fast forward
we are right now in this video where I'm
going to tell you some hard-hitting
facts that I think you need to know
before starting a clothing brand if
you're 6 months into being to running a
clothing brand and if you are 3 to 5
years into running your clothing brand
then you're going to real you're going
to resonate with what I'm saying because
you've been through this so no matter
what stage you are at right
now I think this video is going to make
a lot of sense and hit for you so watch
till the end and yeah let's roll so the
title of the video is going to be
something like $1 million clothing brand
owner keeps it real for XYZ minutes
probably like 12 minutes or 15 minutes
or 20 minutes depending on how long I
want to Yap today
but um yeah so actually before I even
get into the video the exciting update
the clothing brand hit 1
million and you know I couldn't be more
happy happy because 15 months ago we
were doing 0 in Revenue so yeah it's
it's been a wild ride and through
through this journey I'm going to tell
you some things that I've I've learned
along the way so the number one thing
which is honestly a cold heart truth
that I need to tell you is if you want
to make money like if you actually want
to make
money then do something else
like let that sink in like if you
actually want to make money then then
you need to run very very far away from
owning and operating a clothing brand I
would say for 95% of you who are
watching this video you should not be
running a clothing brand and I'll
explain why there's a large group of you
who want to run a clothing brand just
because you saw like someone fluxing
like a car or sitting on like a thousand
packages or whatever and then
trying to show the world that you know
they they're doing well or whatever I
know that's like probably 90% of you
watching this video and if that's what
actually made you get into the clothing
brands in the first place then you're
just not in it for the right reason and
I mean anyone could be into anything for
any reason but with the
hardships that owning a clothing brand
will bring onto you it's simply just not
worth it there's way more ways to make
money and there's a lot of people who I
I talk to who are trying to make money
that's like their goal right and I'm
just like dude there's way better ways
to make money clothing brand is just one
of the most operationally
complex things to do to make money I
think service
businesses is probably just like the
best way like learn a skill um to you
know intern for somewhere for someone
and like Shadow them or like you know
make some friends who know how to do
certain skills for example email
marketing SMS or um Facebook ads and
stuff like this and offer those skills
to people or learn to design and then
design and then start a design agency
and and do that to get money like
clothing brand clothing brands are just
unnecessarily
complex and require so many hard skills
that most of you don't have which means
that you're probably going to
fail and even if you do have success for
the
first few drops
then it's probably going to be
shortlived
and you know I know people who you know
they did 40K their first few drops first
couple drops cuz I don't know they went
viral and then you know 20K the next
drop and then 6K the third drop 4K
whatever it is
and it just goes you know it goes
downhill from there and the reason why
is because people in the market and
customers especially younger customers
if you're targeting like 16 to 21 they
really like new stuff and once you stop
being like new or like underground or
whatever then you just start to like
fall off and that's why you see a lot of
Brands who like they used to be popping
they fall off and the reason is because
they based their business off of hype
instead of like Rock Solid fundamentals
and a marketing system that was able to
bring in reliable and predictable
traffic day after day in the long term
so okay let me just backtrack and kind
of get into the complexities that people
don't really understand when they're
first starting out in clothing but 15
months into the game for me as well as 8
years in e-commerce in general I've run
a ton of different brands from Skin Care
to jewelry to
ronics and I can say without a doubt I
ran all of them at the high level too
over 1 million in revenue for each thing
I did and I could say without a doubt
that clothing is just so unne
unnecessarily complex compared to the
level of Revenue you can do what I mean
by that is most brands that are not
clothing they can add one employee one
full-time employee for every like4 to5
million in Revenue but with clothing
I you need to add like one full-time
employee for every $1 million in Revenue
which means that once you're at like
three like 5 million in Revenue you need
five full-time employees in addition to
the founders when another brand a
skincare brand only needs one
employee and the reason for this is
because there's so many things you need
to do in clothing to even run the
business for example you guys all know
this you need to design clothes who's
going to design the clothes it might be
you but if you're a designer then you
probably don't have a lot of the other
hard skills I usually see people are
either really creative or just really
like technical with marketing it's
usually not one or the other which is
why it's really nice when like an
operationally sound person partners with
a creative person that's a good team
um but yeah you need you need to you
need someone who's going to design the
clothing you need people who are going
to talk to the manufacturers you need
people who are going to do paid
marketing through Facebook and Google
Tik Tok you need people who are going to
post on Tik Tok and reals and make
content for you um like every day you
need someone to do photo shoots you need
someone you need someone who's going to
manage the shoots styling modeling you
need someone who's going to manage
inventory manage a 3pl relationships
someone who's going to do customer
service someone who's going to manage
your bookkeeping and your
finances like there's so many things
about running a clothing brand
specifically that is just so difficult
you're constantly making new pieces
you're managing six collections at the
same time
over the course of because you're if
you're planning six to nine months ahead
you're working on many collections at
the same time um most brands are working
on stuff 12 months in advance and
there's going to be drops every month
and you need people like making sure
that all these drops are being hit and
the targets are being hit like every
single month it's just it's just so
operationally complex dude I really I
really wouldn't wish it on my worst
enemy um the one one of the people I
look up to the most his name is Reese
wabara he owns many deir It's a UK brand
despite the French sounding name and I
believe he's worth 100 million and just
five six years ago he was just probably
like some Ecom Guru kind of guy like
selling a Facebook thing but you know he
stuck to his craft and he's his brand
does like 760 million in Revenue at
least this year
and what he said is that he would not he
also would not wish clothing on his
worst enemy like he is literally $100
million valuation of his brand and he's
saying don't get into clothing because
anyone who's experienced in clothing
100% knows that it's like the most
difficult thing like ever and like other
people are making it seem like it's the
easiest thing but they're probably just
cutting Corners in a lot of ways like
they're you know they're frustrating
their customers they're doing pre-orders
when they say they're not doing
pre-orders or they're even doing
pre-orders pre-orders at all and it just
takes 8 to 12 weeks for the customer to
get it
like I mean people can get rich in
clothing right don't get me
wrong but it's the vast it's the vast
minority right it's just like a few
people who are doing it and then 99% of
you who are watching the video right now
and probably 99% of people who watch
like any clothing brand content on the
on the internet like I see people with
like hundreds of thousands of views like
on a how to start a clothing brand thing
there's not 100,000 successful business
owners there's probably like
a handful maybe like a couple thousand
who are doing meaningful Revenue to
support their like their Liv
livelihoods
and yeah
so I'll just move on to okay the first
point was if you want to make money then
just do something else the second point
is okay let's move on if if you are
actually hellbent on doing clothing
because you like the clothing industry
like I love fashion I was wearing Rick
Owens 10 years ago you know ASAP Rocky
2012 Fashion Killa piss whatever it is I
was literally listening to that I lived
around New York at the time and I was
like obsessed with ASAP Rocky and I was
just trying to copy his swag so I was
wearing Rick Owens Raph Simmons like
whatever it is like designer in 2012
2013 I was wearing it before anyone else
was wearing it not to be like one of
those like I did it first people but
legit I've been doing like fashion and
into fashion for a long time I'm 29
years old by the way I might not look it
but like most people tell me I look
younger but I've been doing this since
like 17 18 I was one of the first people
on
gr so I actually love fashion so to be
in this industry I don't mind it because
and I don't mind all the the issues and
operational complexity just cuz like
it's my passion kind of um
but yeah if it is your passion as well
and you you are hellbent on doing
fashion brands
then you just have to know that it will
take 2 to 3 years probably to make any
meaningful amount of
money um and there's a couple reasons
for this it's because when you first
work with the
manufacturer your costs are going to be
very high number one is because you
don't have
credibility um you don't have any
leverage over them you can't say hey I'm
Nike so make my cost low or else I'm
going to take my business somewhere else
you're just going to order 50 to 100
units so they're going to give you bad
pricing and if you get bad pricing then
you are not going to be able to scale as
fast as you want like you won't be able
to do a million in 6 to 12 months
um you because you can't afford to pay
overpay for customers on Facebook you
know your your break even cost per
acquisition is probably going to be like
30 instead of like 50 or 60 or
70 so the more and what I mean so the
point I'm saying the point I'm trying to
make is that the more you grow the lower
your cost per unit is is because at 100
units you might be getting charged $25
for Hood whatever at 300 units $23 at
500 units $21 at a th000 units $18 so
and and so it's kind of like interesting
because like the rich get richer like
the bigger you get the easier like the
bigger your profit margin is which means
that it's easier to even to get even
bigger so the more you grow the more you
grow and to get to that like to hit
those economies of scale you have to be
operating for at least 2 to 3 years the
first couple years unless you get really
lucky with like Tik talks and reals and
stuff like
that um it's aware that you you actually
have a system for pumping out good
content like week day after day where
you can actually drive meaningful
Revenue through you know Organics and
that's like your specialty and that's
what your creative Talent is and and is
your competitive advantage of the
market then you're not really going to
make money for two to three years so if
you actually are hellbent on making a
clothing brand then just know that you
have two options you either suck it up
and just try to get to economies of
scale or number two you just go crazy on
Tik toks and reals and you just try to
go viral and even then there's no like
guarantee that you're going to go viral
forever like you might have one hit and
then you're quiet for 3 months then one
hit quiet for 3 months and I don't know
it's kind of stressful to do that so I
don't really recommend relying on that
so another way to get economies of scale
by the way is is like through your photo
shoots because like if you do photo
shoots for example they might cost like
$2,000
um and at the beginning you're only you
say you have Z in Revenue 2,000 is a lot
right but then when you start to make
100,000 a month 2,000 is not it's still
a decent amount it's 2% of your total
rev but it's like it's it's manageable
you can stomach it and then when you
start to get to like $1 million a month
or something like that and you have to
pay maybe maybe maybe in order to do
that million your photo shoots need to
be higher quality so you need to pay
about five or 10,000 for a photo shoot
it's still like way smaller it's only
1% of you know 1% .5 to 1% of your total
revenue once you get to scale so your
cost will go down on your cogs like your
your product pieces and your photo shoot
costs will become a smaller percentage
of your
Revenue Okay so
now that we've talked about whether or
not you should even do a clothing brand
which you probably shouldn't but if you
if you're watching it if you're still
watching you you probably want to do it
because I've already told you not to do
it so if you're if you're still here you
probably still want to do it so okay now
that we've established that you want to
do it just know that it takes two to
three years if you haven't left the
video in disuss because of that then now
let's talk long long long term so if you
are saying okay let's do a clothing Rand
even though there's better ways to make
money
if you're saying I'm okay with waiting
two to 3 years to make money then first
of all you're crazy but second of all
I'll give some even more advice to the
people who are still watching the video
at this point um so let's just say you
do get
sales right um and you're running for a
few years it's going
well you can't
always how do I say you can't expect to
be relevant
forever and there's so so many examples
of this in in fashion um especially the
brands that have been around for decades
um let's take a random example like for
example Uggs Uggs had like every girl in
a choke hold between like 2007 in
2014 2015 and then they stopped being
cool like even when I when I was like a
freshman in high school in 2009 I had
Uggs moccasins and I genuinely thought I
was like the coolest [Β __Β ] on the
planet like I was like yo I got Uggs I'm
like the first guy not a girl I'm the
first guy to wear UGGs everyone was like
oh [Β __Β ] that's crazy back then but then
there's a point of like 2014 to 2020
2021 where it's just not cool like if
you're seen wearing ugs you you just
look weird right and but now it's like
cool again like girls are wearing it
even I see guys like wearing it it's
like it's like cool again same thing
with Crocs like Crocs have been uncool
for like what 20 years and then for some
reason two three years ago they just
resurfaced and now their stock goes up
and then there's a lot of stores popping
up and like everyone wears Crocs and
maybe right now they're probably a
little getting a little bit like out of
style but the point I'm trying to make
is that it was popular in like I don't
know the early 2000s then it goes down
in the you know early 2010s now early
2020s it's popping again um you can look
at oakle like oakle was probably huge in
the 90s and the 2000s and then in 2010s
it's kind of like oh this is like a dad
brand like
my Dad wears Oakleys and then for some
reason in 20 probably 2020 or so like
vintage Oakleys kind of started going
crazy all like gr and depop and eBay and
whatever and
then yeah then now it's in style and now
people like Oakley and then lastly is
like Gucci right in like
2016 or so 2017 2018 Gucci was like
super popular like I was like feing for
Gucci myself and like
so many girls like even just basic girls
would just be wearing Gucci belts and
then even I had a Gucci belt in like
2017 and I was wearing like Gucci
t-shirts and everything um and then a
lot of my friends were too and then now
it's like Gucci is basically like what
happened was it became so saturated that
it became like the new H&M like if I see
someone wearing Gucci I don't think
anything of it I'm just like oh cool
this just like a normal brand which is
insane cuz it's Gucci dude they sell
like $900 like shirts and stuff and but
now just because of how saturated it is
and you know the ups and downs of
fashion markets and just the way that
consumer Trends and tastes go they're
just not popular anymore if I see Gucci
I'm like whatever if I see someone
wearing LV or something like that it's
like whatever if I see someone wearing
offwhite I'm like no sorry LV I think is
cool Sorry Sorry LV I think is cool
off-white I'm just like uh that's
whatever that's so 2017 like Rip virgal
but like come on bro like
that's 2017 Stu you know what I mean
like the off-white belt the Gucci shirts
now these brands are not relevant so if
you get past the fact that you're
starting and you want to do clothing
brand if you get past it for two three
years you want to do clothing brand but
even if you start doing it for 5 to 10
years you have to realize and I know I'm
not really like in the position because
I've only been doing it for two like one
to two years but just what I notic on a
on like a broader scale you're not going
to be relevant
forever and this is like the truth this
is like a hard truth of fashion and it's
just like what it it's just how it is
fashion is simply cyclical
and it's just going to be ups and downs
and it's crazy like these brands are
just like really in the gutter like
abber Corian fish you know we were
shopping I was like begging my mom to
buy me that in
2010 and then you know 2015 to 2021
rolls around and it's like this is
cringe and like now it's like popping
again like people actually want abian
fish like I see like abian fish fur
hoodies from like that they sold
probably in 2008 vintage stuff go for
like over $100 on doop it's like getting
crazy out there guys um but yeah I mean
this is pretty much what I wanted to say
just you know giving a warning to
everyone that wants to do a clothing
brand I'm probably the only person on
the internet that is like a clothing
brand YouTuber that's like actively
telling their followers to not do a
clothing brand it's just not good for
business but um you know I always keep
it real on here guys um you know I have
my own businesses like I've been doing
business for 8 years so I made a little
bread here and there so I don't really
like I'm not trying to sell a course or
anything like that like I'm I'm trying
to like consult and Coach people and
stuff like this but I'm not going to go
buy a a Urus or something like that and
you know use that to get people to buy
my course or whatever I'm just here to
give you guys just raw
value um you know share this with a
friend and give it two thumbs up
and hit the Subscribe button because you
know you don't want to miss one of these
uploads especially if you're into
clothing so yeah till next time peace
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