How to Start a Shoe Line

Part 1 - How to start a Shoe Line business - Background

A shoe line is a designer’s collection of footwear focused on a particular niche (e.g., atheletic, street, dress, etc). It usually refers to lines sold at luxury shoe stores, though not always. Entrepreneurs may concentrate their shoes for a variety of budgets, designing two or even three different lines to bring fashion to everyone.

Our guide is in 3 parts:

• Part 1 - How to start a Shoe Line business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a shoe line?

The more you spend on quality materials and manufacturing, the more money you’ll pay to start your business. Costs are different for each designer, especially if you choose to open in a highly competitive area where even the cost of materials can run high. Those in the industry say to give yourself at least $200,000, though this isn’t a hard-and-fast rule. One designer started with $35,000 for all expenses (including travel), and planned to make it back within 9 months.

What are the ongoing expenses for a shoe line?

Shoe line owners may have the following ongoing expenses:

• Materials for shoes

• Production/manufacturing charges

• Retail space

• Marketing/website costs

• Employee salaries

Who is the target market?

The target market for most designers are those who have plenty of disposable income. Those who shop for inexpensive shoes are likely to go to major retail stores. However, the demographic of those who want trendy shoes is vast, and everyone needs to wear shoes regardless of how much money they make. Designers may want to develop a secondary line using inexpensive materials that may be purchased at a store like Target or Wal-Mart.

How does a shoe line make money?

Shoe lines have a profit margin on each pair sold. The amount a customer pays needs to cover not just the cost of materials and marketing. They’ll also pay a premium for the designer’s time and efforts. Each designer will set their own profit margin based on the cost of production and the demand of their designs.

How much can you charge customers?

Top designer shoes can sell from between $300 and $600. Mid-range shoes may sell from anywhere between $75 to $200. A shoe store like Payless may charge anywhere from $20 to $50 per pair.

How much profit can a shoe line make?

The average profits for a shoe line is about 40%, so the profit margins are extremely enticing to newcomers. Should you sell 200 pairs at $400, you would make approximately $40,000 in profit a year.

How can you make your business more profitable?

Consider selling additional accessories, such as scarves or handbags. Once you understand the finer points of production, it’s easier to add to your line of fashion items. You’ll already have the relationship and contacts necessary to take your business to the next level.

Day-to-Day and Growth

What happens during a typical day at a shoe line?

A shoe line owner’s day may consist of the following tasks:

• Designing shoes

• Marketing the line

• Networking with distributors

• Scouting manufacturers

• Additional design education

What are some skills and experiences that will help you build a successful shoe line?

Successful designers may come from all walks of life, but they normally have at least some experience in the fashion world. Some people start in retail, asking questions about each line and formulating their own plan on how to eventually become a designer. Experienced designers in the industry will say that much of creating a shoe line is about understanding the production process.

There’s a lot to know about the steps necessary to turn an idea that may have started as nothing more than a sketch on a napkin into something that can be sold in stores. However, that doesn’t mean that you need a background exclusively in shoes to be successful. Shoe designers may have experience in other types of design as well (e.g., clothing, product handbags, etc.)

What is the growth potential for a shoe line?

The US market alone spends just under $30 billion on footwear every year, so the growth potential is there. Experts say that this number is only more likely to increase as shoes are an important way for people to express their sense of style.

What are some insider tips for jump starting a shoe line?

Most people find it easier to get started in a city that already puts a big emphasis on shoes. Even though the competition will be higher, there will also be more people to learn and grow from. Living in NYC, for example, will put you near not just fellow designers, but also innumerable production methods and fashion classes on how to design shoes.

Normally, designers already have an idea in mind of who they want to design for, but it’s worth noting the largest markets before getting started. The single most definable one is that of men’s athletics shoes. They account for 20% of all sales. Women’s casual follows at 17%, while women’s dress shoes are at 13%.

Study the human foot, and how different types of feet react to pressure. Once you have a handle on the form and function, work on getting a patent to protect your ideas. While knock-off shoes are common, this can give you legal recourse if you decide to pursue action against a particular entity.

Finally, be careful about where you choose to produce your shoes. Shoe designers usually use manufacturers located in China, which used to provide an inexpensive way of getting the shoes to market. However, China has become a lot more competitive in recent years, with price rising and labor falling. It may still be a viable option, but you may also want to search outside of China for more opportunities.

How and when to build a team

A shoe line owner will likely want to start on their own or with the help of one or two mentors. Once sales are strong, consider adding associate designers to broaden your line and attract more customers.

Part 2 - Is a Shoe Line business the right fit for you?

Part 3 - Action plan to launch your Shoe Line business in 90 days