Launching a fashion business of any type takes commitment and creativity, but the footwear industry has its own unique challenges. Drawing on decades of experience in the footwear and handbag industries, Len Pesko of Modern Pulse Consulting Group shared his insights at the August edition of SOURCING at MAGIC Las Vegas. 

While footwear sales in the United States totaled a whopping $118 billion at retail last year, the industry is currently in a sales slump as compared to years past.1 According to Pesko, the industry needs new ideas, so the time is right for people with fresh concepts. It is said that it takes 250 steps from developing a concept to delivering a shoe to the consumer, but there are a lot of other things beyond design and construction that lead to success.   

First and Foremost: Have Your Finances in Order  

While some brands have been built on a shoestring budget, realistically, Pesko says that from his experience, it takes around half a million dollars just to get started. And that doesn’t even include what’s required for sample development or paying for your first order. “It’s been my experience that plenty of people who have created a great shoe either give up too soon—most folks don’t make a profit until the third year in business—or they don’t have the finances required. You must be obsessed with success—ready to roll up your sleeves and do the hard work. Nobody is going to throw orders at you, and you’ll be competing with 3,500 different brands of shoes sold in the United States right from the start.”

Other requirements include:

• Understanding sales and marketing (key to this market are PR and social media, celebrity placement, and working with influencers)

• Having a clear focus on who the customer is 

• Having a fully developed story 

• Creating a “pro forma” (a financial statement that projects expenses and revenues) to show to potential investors 

Travel is also essential, says Pesko: “While phone calls and teleconferences are both cost- and time-efficient, nothing beats a face-to-face meeting to build a business relationship.”