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The luxury fashion market is worth billions of dollars, and it’s very enticing to try to take a piece of that cake. However, this business may not be for everyone, and joining the game is usually quite costly. Like in any other business, planning costs and preparing for them is the most important element of starting your business. 

It costs between $500 and $50000 to start a fashion brand, and if you’re aiming for the luxury market, you should start at the higher end of this price range. The costs will also increase as your business grows. However, the most valuable thing is experience in the industry and a recognizable name. 

In this article, we’ll give a rundown of the costs of starting a fashion brand, analyzing each detail and giving estimates of how much you can expect to spend on it. We’ll also review what you need to start a luxury fashion brand to see if it’s the right thing for you. 

The Costs of Starting a Luxury Fashion Brand

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When starting a fashion brand, there are some key factors that you need to consider before embarking on the business journey. 

Whether you’re aiming to capture the high-end market or the regular one, there are key costs you need to examine and plan for, such as: 

  • Manufacturing costs
  • Sourcing costs
  • Costs of delivery
  • Marketing costs
  • Modeling and photography
  • Design costs
  • Web development
  • Storage costs
  • Overhead expenses

As you can see, the list of things to consider is rather extensive. Let’s look at each cost and estimate how much you can expect to spend. 

Manufacturing Costs

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When starting your clothing business, manufacturing costs are the most important thing to consider. If no one is manufacturing your clothes, then there’s nothing to sell, and how much you pay for them initially will dictate the final price your customers pay. 

Manufacturing costs depend on where you manufacture your clothes and what practices you engage in. For example, a piece that may cost $25 to produce in America may cost around $15 or even less when produced in China. 

However, if your goal is to create a luxury brand, it’s better to spend more money on production and create a better picture of your brand. Manufacturing your clothes in America or another developed country shows that you’re a brand owner who cares about their products’ quality instead of just another person who imports clothes from China and hikes up the prices. 

Furthermore, what might make manufacturing even more expensive is the size of your order. As a luxury fashion brand, your goal is to create fewer products to make them more exclusive. Sadly, it’s usually cheaper to manufacture more (per item), so you’ll probably spend a few thousand dollars on manufacturing immediately. 

Sourcing Costs

Before you get to manufacture, you’ll have to acquire raw materials. If you’re hiring another company to manufacture clothes for you, you might leave it up to them to deal with this part. However, you should be engaged in the process. Creating a luxury item requires high-quality materials, and if you oversee the process, you can be sure that you’re only getting the best. 

Sourcing adds thousands of dollars to your costs. It’s very well worth it eventually since the customers you’re looking for will be happy to pay more for a product made from the finest materials. 

Costs of Delivery

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Delivery costs can pile up quickly. You’ll have to pay to get your goods delivered to your warehouse unless they’re produced by a manufacturer who offers free shipping. In addition, you’ll have to pay to get your products to your customers and the shops that sell your products. 

You can also transfer the shipping costs to the customers, but offering free shipping is better. Many luxury brands offer it, and it might make you less competitive if you don’t. Plus, customer experience is of utmost importance when building a luxury brand, so you’ll have to pamper your customers. 

Marketing Costs

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Creating brand awareness is crucial, especially at the start. You’ll have to spend at least $1000 or $2000 on online ads to promote your products. However, it doesn’t stop there if you’re creating a luxury brand. When you think about it, you rarely see ads for luxury brands.

Luxury brands typically have this aura of exclusivity that does a lot of the marketing for them. You need to convince your potential customers that your products are only for the chosen ones. For this, you’ll need to get celebrities and high-end influencers to wear your clothes without them being too in-your-face. 

A clever marketing campaign will also go much further than regular ads. For that, you’ll need a team of marketing experts. You can either hire them directly or hire a marketing company. Either way, you can expect to spend a lot, depending on how much you wish to achieve. A marketing campaign can set you back between tens of thousands and millions of dollars. 

Modeling and Photography

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If you wish to promote your products, you’ll need high-quality photos of your clothes modeled by professional models. This can cost as low as $0 if you’ve got the right skills, equipment, and friends willing to be in your photos. 

However, a luxury brand requires more than that. It’s best to hire a professional photographer and actual models, which might add between a few thousand and tens of thousands of dollars to the total cost.

While these services don’t come cheap, they play an important role in presenting your brand. High-quality photos will strengthen the exclusivity of your brand and present your clothes as desirable to buy. 

Design Costs

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In the beginning, you’ll probably do all the design yourself. This will cost you nothing apart from your time and energy. This is a particularly good approach if you’re already an established name in the game. In that case, signing every design with your name will make the clothes more exclusive and desirable. 

However, as your business grows, you might hire other designers or outsource some work to freelance designers. This might cost you anywhere between a few hundred to a few thousand dollars per piece. Since you’re attempting to go for luxury, it will most likely be in the higher range.

Web Development

img 62edb3cc8f520Having a great website is crucial for any business nowadays. Since your brand is high-end, you don’t want the website to look like something made by a high school kid on Squarespace. You’ll have to hire a competent, experienced web developer, adding a few thousand dollars to your bills. 

Storage Costs

If you don’t have a warehouse of your own, you’ll have to rent one. Depending on your stock size, this might add around $5000 to your costs. You might even get a warehouse for less money, but you shouldn’t save money here if you want to ensure that your clothes won’t get damaged. 

Overhead Expenses

Overhead expenses are another critical factor to consider when starting a luxury fashion brand. Overhead expenses include costs such as bills, rent, salaries, etc. These costs might not be huge initially, but they will grow as your business grows, so you’ll have to plan for them. 

Is It Difficult To Start a Luxury Fashion Brand?

It is difficult to start a luxury fashion brand because it takes years or even decades for a brand to become a luxury brand. Typically, you don’t start a luxury brand; you build it instead. This is especially true if you have no experience in the industry. 

It is tricky to talk about starting a luxury fashion brand. It is particularly difficult if you’re an underdog with no experience in the fashion industry. Even if you have millions in your bank account, creating a brand that people will truly accept as luxury is hard. 

This is because luxury brands are typically exclusive. They cater to a niche of affluent consumers and slowly build this aura of exclusivity over time. It’s not difficult to create products and put high price tags on them. It takes time to convince people that your price tags are worth it. 

However, this is different if you’re already an established name in the industry. Therefore, before starting your own brand, it’s best to work for an established luxury company. This will allow you to make a name for yourself and get the right connections. 

That way, you won’t be brand new in the industry, but rather someone with a good reputation who knows what they’re doing. This will automatically make your products more exclusive, and they will be more easily accepted as luxurious. 


Starting a luxury fashion brand will cost at least tens of thousands of dollars, and the costs might easily reach millions of dollars. It’s best to spend a few years working in the industry before starting your own clothing company.