Beginner’s Guide on Starting a Lingerie Business in the United Kingdom
There are many reasons why people choose to wear lingerie. Some wear it for comfort, some for added confidence, and some for extra appeal. The demand for lingerie is relatively high, and the market value of this commodity continues to rise. Given this information, starting a lingerie business is an excellent idea.
In this article, you will gain all the knowledge you need to start a lingerie business.
What’s the Trend in the Lingerie Market?
The lingerie market is thriving because of the big brands and the hype that they are making. According to research, the value of the global lingerie market is pegged at 37 billion US dollars in 2019. The study also forecasted that this value would have a compounded annual growth rate of 7.6% from 2020 to 2026. Thus, the value of the lingerie market will grow by 57 billion US dollars come 2026.
Notably, in the United Kingdom, the worth of the lingerie market is estimated to be about 4.7 billion US dollars. This value is forecasted to grow by 6 billion US dollars in 2025, and its main driver would be the revenue from the sales of women’s undergarments. If you want to take advantage of this growth, we can guide you in starting a lingerie business. We can help you with a guide to company registration in the United Kingdom, which we will further discuss later on.
What’s Contributing to Its Growth?
If you want to start a successful lingerie business, it will be helpful to know that many factors contribute to its market growth. These factors include the following:
- Advancement of knowledge about the best fit
- Varying needs of the rising population
- Growing women’s spending power
- Inclusion
- Designs for different purposes
- Materials used
Advancement of Knowledge About the Best Fit
Recently, many brands explain to women how to choose the right style of lingerie for their body type. Specifically, these brands are teaching women which bra type would further accentuate their bodies. As people become knowledgeable about these things, their drive to purchase the commodity increases– this is because they learn how to appreciate it and make the most out of their purchase.
Varying Needs of the Rising Population
As the population rises, the demand for lingerie also rises with it. The more people there are, there will be more consumers of lingerie. Lingerie has many uses, and we can include it across all the segments of Maslow’s hierarchy of needs.
It belongs to the basic needs, which occupies the two bottom components of Maslow’s triangle because people need clothing for warmth and security. On the other hand, we can also label them as psychological needs that can be found in the middle part of the hierarchy because they can be used to enhance self-esteem. Lastly, we can also say that lingeries also belong to the top-most section of Maslow’s order of needs because they can be used for creative activities that will help achieve self-actualization.
Growing Women’s Spending Power
The biggest market of lingerie is women. Thus, as women become more empowered and gender inequality in the workplace tapers down more and more each day, the spending power of women increases– this results in increased demand for lingerie.
Inclusion
The fashion market, specifically the lingerie industry, is becoming more inclusive as years go by. This industry now caters to all men and women who have different body types. The release of plus sizes has also driven the lingerie market by so much. Aside from that, the industry is also joining various significant movements such as promoting awareness about different skin colors and helping reduce criticisms for our LGBTQ members. So, if you want to be a part of this important cause, 3E Accounting can help you with starting a lingerie business by assisting you with your company incorporation services in the UK.
Designs for Different Purposes
The lingerie industry is continuously innovating its designs to cater to the different needs of people. Now, when we talk about lingerie, it is no longer just about a plain undergarment. It is innovative and creative, catering to the different lifestyles of people. Lingeries have evolved a lot and have different purposes, such as sportswear, daily wear, bridal wear, and more.
Materials Used
The materials used for crafting lingeries are also drivers of its market growth. Nowadays, more comfortable and lightweight materials are being used in crafting lingeries. They are also putting importance on the color and style, which are also important factors that consumers look at when deciding their purchase. Aside from that, there are also some brands that are focusing on using more sustainable materials to resolve the pollution crisis where the fashion industry is a significant contributor. The lingeries of today are no longer just about appeal and style; they are also for a cause.
How to Start Your Own Lingerie Business?
Now that you already have some knowledge about the market trends and drivers of the lingerie industry, it’s time to get to business. Let us guide you through how you can start your very own lingerie company. Here are some steps that you can follow:
Step 1: Research
It is important to do your research first before venturing into a business. To start your own lingerie business, you must first research your target market. You have to find out about their preferences, lifestyle, budget, needs, and more.
Besides your target market, it would also help if you research your possible competition. It would be a great move if you can answer these questions about your competitors:
- What styles of lingerie do they offer?
- What are their designs?
- What is the range of their prices?
- How is their customer service?
- What are their store hours?
- Who are their customers?
- What is their branding?
- What other perks do they offer?
Step 2: Conceptualization and Planning
You may now proceed to the conceptualization and planning phase after you have sufficient knowledge about your target market and possible competitors. In this step, you can now formulate your business plan. Here are the factors that you should consider while doing this step:
- Why does your business exist?
- What are the goals of your business?
- What are your designs, and how much will you offer each piece?
- How much should you produce, and how will you produce them?
- How much starting budget should you invest in it?
- Will it become profitable?
- Will you have a physical store? If you have a physical store, choose the best location. Otherwise, if you will be selling online, utilize the best e-commerce platform.
- How will you market to your target customers?
- How will you operationalize?
- What are the requirements that you need to accomplish to start your business?
- Do you need human resources? What will be their position and job description?
Step 3: Know the Legalities
When starting a lingerie business, it would also help to be mindful of the legalities. If you think it is so overwhelming for you, you can also ask for assistance from a corporate service provider in the UK.
What are the business requirements you must accomplish before starting your own lingerie business in the UK? Here are the two most important things that you should do:
- Registration
The requirements in registering your business in the UK differ if you plan to be a sole trader, limited company, or partnership. Likewise, the requirements also vary if you are setting up a brick-and-mortar store or an online shop. You may refer here if you want to know the specifics. - Insurance
Having insurance coverage is essential if you want to protect yourself from probable losses from unexpected events. These events may be caused by accidents, natural disasters, and more. The most important insurance you must have is the Employer’s Liability Insurance, especially if you employ some people.
Build Your Lingerie Business With Us!
The lingerie market is undeniably thriving, and if you want to take advantage of this, you can start your own lingerie business without going through the nitty-gritty. You can let us do the complex parts for you, and you can reap and enjoy its fruits when it becomes successful afterward! If you want to know more, don’t hesitate to contact 3E Accounting!