The fashion world is seen as an inspiration to many and something that a great number of people spend a lot of their time and money on. But there has been a rise in the number of private investors in the industry over the past few years and that is going to become more prevalent as an increasing number of people become aware of investment as a possibility.
Getting something back
Everyone likes to get a bargain, but if you know anything about the fashion industry then you will know that if you are willing to spend a little bit more, you will get better quality clothing. Even with so many new businesses starting up each year, it means there’s a lot of money being made – and customers are now discovering that they can get access to some of that by investing in
Big name brands
Investment in fashion brands is nothing new of course. Some of the most well known clothing companies have been listed on the international markets for years such as ASOS and Zara. But the consumers of these products are only just starting to invest in their favourite brands – by purchasing stocks as well as the merchandise. High-end fashion brands such as
Look at start-ups
But it is not just the well-known multinational companies that you should be looking at as an investor. Part of the skill in making money on the markets is to find a company on the up as early as possible to maximise your profits. The fashion industry is ideal for this kind of investment. With the huge number of small start-ups that spring up every year – due to the very nature of fashion – if you know what to look for you could make a lot of money. Research is key when it comes to getting on a brand at the right time – and it pays to look further than just the mainstream names and brands. One good example of this is Farfetch, who are set for an IPO (the initial public offering – the first sale of stock to the public) later in the year. Farfetch works as a digital marketplace showcasing many of your favourite brands. They take a commission on every sale and have been phenomenally successful at it due to their knowledge of today’s buyers.
How to find a sound investment
Of course, it is not just a case of searching through your wardrobe and buying shares in whoever makes your jeans. The fickle nature of the fashion industry means that finding the right investment can be a tricky task and it is therefore a good idea to get professional help before jumping in and investing a lot of money. There are lots of brokers and investment companies that cover the fashion industry and
Make measured decisions
The temptation when it comes to investment is to attempt to make as much money as possible in a short space of time – but if you are a novice in this area then you may find that all you are doing is losing money fast. Get advice and conduct research into the markets and study sales data closely. You should only invest in your favourite brands if they are actually a good investment – brand loyalty should only go as far as what you wear.