A design graduate who previously worked for a company, Nguyen Ngoc Anh (Thanh Xuan, Hanoi) decided to quit her job to launch her own fashion brand.

For her, fashion was not just business but a long-cherished dream. She wanted to create a brand with a unique identity for young people to express their individuality. With that vision, she poured all her faith and nearly VND1 billion into making it a reality.

When her first shop opened, it attracted a high number of visitors due to curiosity, and initial revenue was fairly stable. However, after a brief "honeymoon" period, customer numbers began to decline. Monthly operating costs, including rent, staff salaries, utilities, and marketing, were estimated at VND40-50 million.

Meanwhile, the deposit for retail premises (VND150 million), store decoration costs (VND100-150 million), and the initial inventory (VND300-400 million) consumed most of her capital. These fixed costs could not be recouped quickly.

Sales revenue was insufficient to cover expenses. Anh had to dip into reserve funds to keep the business running, but those funds gradually ran dry, pushing the brand into a deadlock.

After 10 months of operation, revenue from the shop and online channels only reached VND70-90 million per month, while total operating costs exceeded VND500 million. Inventory worth about VND200 million couldn’t sell well due to outdated designs and lack of appeal.

Anh borrowed additional funds from relatives to sustain operations. The cumulative loss was estimated at VND600-700 million, putting her at risk of closing the business and losing her initial investment entirely.

Anh said the shop targeted the mid-range segment, with prices between VND100,000-300,000, aiming to attract Gen Z and Millennials. 

However, the fashion market is dominated by low-cost brands and giant e-commerce platforms like Shopee and Lazada. These competitors benefit from large-scale production, streamlined operations, and rapid design updates. Young customers prioritize affordability and variety, making Anh’s products, though creative, seem "overpriced."

Realizing that traditional retail channels were no longer effective, Anh shifted her focus to online sales. She invested in creative product photography, livestreamed on TikTok and Facebook, and boosted content on Instagram. However, fierce competition meant her content was easily buried among thousands of online stores.

Another major mistake was the lack of a clear financial management system from the beginning. Revenue and expenses were tracked loosely, with no detailed reports. More critically, she failed to plan her cash flow. She also did not separate personal and business finances, which led to financial chaos.

Pham The Anh, a fashion industry expert, pointed out that launching a fashion startup requires more than just passion and capital. Thorough preparation is also necessary to increase the chances of success in a competitive field.

Duy Anh