Have you thought about opening a clothing business? A good option to enter the industry are the fashion franchises.
Beyond the catwalks and exclusive parties, fashion is present at all times and is even a medium through which people can express their image and creativity. “Clothes have a lot of power. It is a language that you use without realizing it, because with it you transmit who you are and what you like”, says the Mexican designer Carla Fernández.
In fact, this industry has become very important in our country, reporting a growth of 36% in the last five years according to the consulting firm Euromonitor International. The increase in retail outlets across the country and the aggressive expansion plans of foreign brands in Mexico are some of the reasons for this growth, according to the consultant.
On the other hand, Deloitte considers that electronic commerce has played an important role in this development. And it makes sense, because according to the Mexican Internet Association, 23% of electronic transactions in 2022 were made in clothing, footwear and accessories stores.
Another interesting fact is that 4.6% of the annual budget of Mexican households is allocated to this item, which represents 5,301 pesos on average, according to figures from the National Institute of Statistics and Geography (Inegi).
Mexican brands have also contributed to the growth of this industry. According to data from the National Chamber of the Garment Industry (Canaive) each year 10,000 fashion designers graduate from universities in Mexico. They are added to the clothing segment, which represents 2.4% of the manufacturing Gross Domestic Product (GDP). Another example of this are the 30 franchise chains that operate in the country and that belong to the fashion industry, including footwear and accessories.
Below, we present 10 fashion franchise options that may be the opportunity you have been looking for to embark on this turn. Take note, calculate your budget and returns and start your entrepreneurial adventure on the right foot.
10 franchises to start in fashion
1.D’Paul
The men’s market is also a big consumer of fashion. For this reason, the D’Paul company decided to exploit this niche with a concept dedicated to the sale and rental of fine men’s clothing. Among its products are tailcoats, jackets, tuxedos, suits, caps and gowns. It also complements its offer with accessories and a tailoring service.
Given that this brand, with 47 years of experience, is the only one nationwide that makes its own garments, they detected the opportunity to grow through the fashion franchise model. It currently has 39 units in 31 cities and 22 states of the Mexican Republic.
To grow this network, it is looking for hard-working, responsible entrepreneurs willing to invest at least two hours a day in the business and approximately 1,600,000 pesos. This investment is recovered in an average of 15 to 18 months and the branches must be located in commercial premises at street level.
2.coco class
Beauty has no size. However, the founders of this brand realized that the supply of plus size clothing was very limited in Mexico. Under this premise and with the aim of providing quality and fashionable products for today’s women, Cococlass emerged.
It is a store dedicated to the commercialization of garments that highlight the feminine beauty in extra large sizes, through exclusive designs at affordable prices. It complements its offer with large-size comfort footwear, personalized attention and image consulting for its clients.
The total investment is 1,300,000 pesos, which is recovered in 20 months and includes the initial fee, three-month working capital, initial inventory, and technical assistance. The units must be located in premises within shopping centers, and the entrepreneur who operates the business must have a taste for fashion and a vocation for customer service.
3. unknown
More than 11,500 companies produce shoes in the country, and their creations reach more than 40 countries in the world, according to data from ProMéxico. And only in León, Guanajuato, the supply of footwear generates more than 35,000 jobs, reports the Association of Industrial Supplier Companies of Mexico (Apimex).
Incógnita was born in 1997 with the backing of more than 50 years of experience in the shoe world by its founders. It offers two business models: catalog sales and fashion franchises. The latter serve their distributors throughout the Republic, supplying them with products such as clothing, footwear and whites from prestigious national brands.
To be part of its network, made up of 75 units in the country, the approximate total investment ranges from 285,000 to 335,000 pesos, depending on the location chosen. The investment is recovered between 10 and 14 months and with it the first customer base is acquired, 350 catalog packages, access to annual conventions, territory exclusivity, assistance and training among other benefits.
4.Zingara
Tourist activity in Mexico registered a record number during 2017 with 39.3 million walkers, according to the Ministry of Tourism. National beaches are undoubtedly the preferred destinations for both Mexicans and foreigners, which represents an excellent opportunity to undertake fashion, with an emphasis on the niche of swimsuits and accessories for the beach.
For more than 30 years, Zingara has positioned itself as one of the main brands focused on serving this market. It currently has 81 points of sale; headquarters in Mexico City, Cancun and Uruguay; and two own logistics and distribution centers in the country’s capital and Quintana Roo.
The approximate total investment to be part of this company is $200,000, with a return on investment of 42 months. The brand offers its customers a wide range of products from swimwear and beachwear to exercise clothing and accessories. Although their main market is women, they also have lines for men and children.
5. Gallantdale Uniforms
For health professionals, the uniform is not only part of their needs, but also helps them give a touch of elegance, comfort and confidence within their profession. Detecting this opportunity, the Gallantdale Uniforms company emerged, a concept of specialized boutiques that provide a distinctive touch to the clothing of health and gastronomy professionals. The range of products offered goes from slippers, pants, gowns and aprons to vests, hats, accessories and footwear.
To be part of this network, which so far has 20 units, a total investment of 1 million pesos plus VAT is required. This amount includes the franchise fee, exhibition furniture, one third of the initial stock, civil works and necessary adaptations to the premises. The return on investment is calculated between 12 and 24 months and it is recommended that the unit be located at street level near health centers and shops. In 2017, the brand was recognized with the National Franchise Award, in the Retail category.
6. Pia Caterina
There are special occasions of great tradition for Mexicans. The baptism of children is one of them. The Pia Caterina brand found a market need that it decided to satisfy with robes made by artisans, at affordable prices, with unique details and a wide variety of models. In addition, their stores sell girls’ and boys’ clothes, candles, shoes, sheets and amber products, among others.
To be part of your network, a total investment of approximately 220,000 pesos plus VAT is necessary, to locate the store in a commercial location. This includes 100,000 pesos of inventory, an iPad for business administration, training, control systems, restocking, and advice. According to the brand, this amount is recovered in eight to 12 months.
It currently has 50 units, which offer personalized attention to its customers and the added value of having 100% Mexican and high-quality products.
7. Toucanê
Tucanê is a line of accessories for sports such as polo, sailing, tennis and golf that was born in 2009 in France.
Its products are inspired by the way of life of the old European schools and the sports elite, after a year of development and structuring to achieve the excellent quality that was sought.
The brand opened its first point of sale in Guadalajara in 2010. By 2012, Tucanê managed to have a commercial presence in the 32 states of the Mexican Republic and online sales in different countries around the world, with 4 institutional stores and a strong marketing plan. expansion, in addition to being recognized and accepted by the most demanding social niches, with presence in various fashion shows with the participation of the most prestigious international brands and designers, added to a constant participation in elite sporting events in countries such as: Spain, England, France, Chile, Argentina, Canada, the United States and Mexico.
8.King Monster
If you have a slightly more edgy and rocker taste, this brand is for you. King Monster specializes in items with a dark style and something rockabilly.
The products are available through physical stores in various parts of the Mexican Republic and in Chile. They can also be purchased through electronic commerce on the official website and market places such as Amazon, Rappi, Mercado Libre and Walmart.
This 100% Mexican company has been in operation for 15 years and does not charge an initial franchise fee. They offer territory exclusivity, return on unsold garments and constant training.
It is one of the most popular clothing brands among millennials and GenZ thanks to its different designs and licenses of characters from anime, Marvel, Disney, and more.
With the popularity of the designs, the interest of the clients to commercialize the products arose, so along with its own growth, the company designed a low-investment distribution scheme that consists of placing an order of more than $2,000, which It consists of several free-choice shirts and allows a profit margin of 30% on the final cost of the product.
This fashion franchise business model has further facilitated the positioning of the brand at the national level, since today there are more than 1,000 independent distributors throughout Mexico.
It is a chain of fashion franchises focused on boutiques that sell items for upper-middle-class women.
This brand originally from Sinaloa sells footwear, clothing, and accessories focused on highlighting and stylizing the female silhouette.
Its franchise model offers training, operation manuals, support for the choice of premises and window design.