Handbook for opening a children’s clothing store in the US

Opening a children’s clothing store is a fertile business form in the United States, but this field is quite competitive. Are you planning to open a children’s clothing store but don’t know where to start? The article below will provide you with the most complete guide to opening a children’s clothing store in the US!

1. Overview of the children’s clothing market in the US

1.1. About the consumer market

In 2021, there were around 3.66 million live births in the United States (data from statistical site Statista.com). This is a high number compared to many other developed countries.

The higher the number of children born, the greater the need to buy baby supplies and necessities. Especially for newborns, every parent wants to be fully prepared for their child, so they buy a lot of things.

Therefore, if you want to open a children’s clothing store in the US, you do not need to be afraid of not being able to sell products. You just need to focus on strategies to attract customers and compete with other stores.

1.2. About customer consumption behavior

Parents often do not hesitate to pay for their children as long as they find it reasonable. If you are a store owner, you should plan a clear strategy to attract parents’ attention to the products at the store. In your business plan, you need to put yourself in the parents’ position to know what they need to buy for their children, what ages will need to buy a lot of clothes, accessories, etc. Current trends that parents often favor processed fashion items imported from Vietnam, Thailand, Korea, etc. This is a way to help you understand which items to import, where & how to manage business capital properly as well as grasp get opportunities in the marketplace.

Besides, you also need to understand when parents usually buy things for their children, as well as how much they are willing to spend on each product. Parents in the US are often willing to spend money to buy things for their children that they think are okay without being too concerned about the price. They always want their children to use the best quality products.

1.3. About the supply of goods

The cost of finding a source of goods accounts for a large portion of the total investment capital to open a store. You need to clearly separate the cost needed to import goods for the first time and the cost of importing new goods every month. The more specific you are, the more accurate the accounting will be. The level of consumption of goods in the children’s shop sector is very high because children of this age grow up quickly. Items such as clothes, shoes, etc. must be regularly purchased to fit so revenue will not be interrupted.

Nowadays, there is no shortage of goods, it is important that you choose the right and reasonable source of goods for long-term business. Spending effort and time to find sources of imported goods to sell is very important in whether the business is successful or not.

You can choose factories that export Vietnamese goods or international goods such as Thailand, Korea,… to import children’s items. Because consumers currently favor handmade products, Asian countries will be a reasonable choice thanks to their high craftsmanship and low prices. 

1.4. About product diversity

When running a children’s fashion shop in the US, you need to pay attention to the variety of products. It should not be limited to a single item because children’s clothing needs are very diverse. Most of the stores here import and sell a variety of products to serve the needs of buyers and increase sales revenue.

For example, when selling fashion products for children under 6 years old, you should provide parents with a full range of choices from rompers, bodysuits, sleepsuits, to dresses, outerwear, etc.

2. Difficulties when opening a children’s clothing store in the US

2.1. Fully meeting the standards and business licenses is not easy

When trading fashion items in the United States, one of the most difficult issues concerns the necessary legal documents. Children’s clothing sold in the United States is subject to a variety of safety standards, chemical and heavy metal restrictions, labeling, testing and certification requirements. We talk about some of the most important regulations and requirements, including CPSIA, ASTM standards, tracking labels, 16 CFR Part 1120, flammability requirements, and more. Each owner needs to research and apply for a full license before opening a store, as well as fulfill tax obligations later. This is a time-consuming and costly problem.

2.2. The selling price of children’s items is increasingly high

There are many reasons why the price of children’s clothes is increasingly expensive. They come from many reasons such as material, size, fabric, etc. Additionally, children often grow up quickly so parents also have the mentality of not needing to spend too much on clothes. This limitation is often in the field of high-end children’s fashion. Therefore, the number of children’s clothing stores in the US is not as large as that of fashion businesses for office workers and young people.

2.3. Store management processes need to be optimized

The traditional, manual store management process makes it difficult to know the status of goods. Not only that, bookkeeping can easily cause confusion and errors, leading to a lack of sales. Therefore, you need to invest in sales management software to easily control and manage your store more scientifically, as well as compete with other stores.

Using sales management software is no longer strange in the US. They support a lot in the business process that many store owners have applied very successfully. 

For those just starting a children’s fashion business, you can refer to software such as Pipedrive, Salesforce, HubSpot, Freshworks, Shape CRM, Monday Sales CRM,…

3. Experience in opening a children’s clothing store in USA

3.1. Research the children’s clothing market carefully

When the market has potential, many people compete to open children’s shops. That creates fierce competition in terms of design, genre, price, origin, etc. Before you want to open a store, you need to consider carefully and research and analyze the market carefully first. when investing capital. The more carefully you prepare, the lower the risks in business.

• First, survey the children’s clothing market in the US to see how many successful stores there are, what their advantages are, and why that store attracts customers. Or why some stores have to be transferred, go bankrupt, etc.?
• Second, you have to survey parents’ needs for items for their children. What ages do parents buy the most, and what items sell best in the US? The American market likes the design, origin, which items are hot, etc. Once you have determined which items to invest more in and which items less, the allocation of business capital will be more scientific.
• Third, how much money parents are willing to spend on buying things for their children is also very important. Is that amount reasonable for their family finances? How many parents will be satisfied with a high price for quality goods, an average price, a moderate price or a low price…

3.2. Prepare capital

Prepare capital to import goods: Depending on potential customers in the market surrounding the store and the general situation to determine the quantity. After doing business for a few months, we can determine the amount of product consumption, which items are most popular, etc. How will you balance the amount of capital you need to invest and whether to borrow or not? Plan how much expenses you need to prepare to be as optimal as possible.

Some costs that you need to really pay attention to include:

• Capital for renting premises: The business location of a children’s shop needs to have an area of at least 75m2 or more to ensure the display of products for sale. If stores open in large, densely populated cities, the rent is about $15,000 – $30,000/month. If the location is in the suburbs or less populated areas, the rent is only about $7,000 – $20,000/month.
• Store decoration costs: Capital required to purchase basic equipment for a children’s shop is about $30,000 – $70,000 million/month to ensure the store operates efficiently and stably: Mini supermarket shelves, counters banking, sales management software, debt management, inventory, store surveillance camera system, magnetic security gate monitoring, other equipment such as shopping baskets, iron shelves, portable shopping baskets shopping, packaging,…
• Cost of preparing registration procedures for business license documents in the US: You can refer to how to prepare documents on the internet or receive thorough advice from acquaintances or reputable law units. You need to make sure you have a business license to operate the store in accordance with regulations.

3.3. Choose a suitable supplier

There are many sources of children’s goods on the market, but you need to consider a reputable source that is suitable for the store model.

If you are interested in finding a hand embroidred & smocked manufacturer from Vietnam, K-Embroidery may be the perfect suggestion. With more than 25 years of experience in the garment industry, we have provided hundreds of wholesale orders to the US market, contributing significantly to bringing high-quality Vietnamese garment products to the world.

Refer to Our Catalog now

3.4. Choose a location to open a children’s clothing store in the US

In case you want to open a store where customers can buy directly, here are our important suggestions:

Some criteria to choose a good children’s shop business premises include:

• Store geographical location
• Area and potential of rental premises
• Premises rental costs (contingency to limit mistakes)
• Store awareness and convenience of visiting.
• Choosing a suitable premises also depends on your financial capacity and sales strategy. For popular items, you can choose an alley location with convenient traffic and dense population. For higher-end clothing items, you need to open a fabric store in a crowded area, with a frontage, high-class people, on big streets, attracting visibility and being a place where many customers pass by. potential customer audience.

3.5. Funny and lovely store decoration

After choosing the premises, you need to orient the design and layout style for the store. Each store will have its own idea in designing and displaying children’s clothing stores. Today, the trend of fun and adorable decoration styles suitable for children will bring the most comfortable shopping experience for customers. Design the store space just enough so that customers can comfortably choose, sit and rest or have a well-ventilated try-on area.

A small note is that you must not leave empty goods on the shelves. Make sure goods are always available on the shelf so customers can choose to buy. Display enough products on the same shelf. Divide the hanging area so that guests can easily choose. Ask friends and relatives around you for their suggestions and do it yourself if possible.

After a period of business, you should also have a plan to refurbish the store so that customers don’t get bored, keeping the store’s image always new and professional.

In addition, you should also pay attention to product packaging, bill printing… to increase user experience.

3.6. Choose a brand name

Whether you’re catering to babies, toddlers, preschoolers, or young children, choose a memorable name for your kids’ clothing business. Your name should be short, sweet, and eye-catching enough so that a busy parent will do a double-take when they pass by. Note that previously registered trademarks should be avoided.

3.7. Use store management software

To make the store management process accurate and scientific and save time, you should use management software. They will greatly support the business process that many store owners have applied very successfully. Software technology is also very useful in operations such as employee management, re-marketing, supporting advertising promotions to old customers, minimizing losses, controlling spending,…

3.8. Expand sales on online channels

Children’s products are not exclusive products, so business owners need to focus on investing in product promotion to attract customers. In the market there are many competitors in the same geographical area. Therefore, you need to build a strategy and brand orientation so that customers can pay attention to your online store, especially online channels or e-commerce platforms. This is a method of combining multi-channel sales that brings quick profits and high profits.

In addition, there is another issue that many people often ignore: the attentiveness in customer care of the staff. You need to have truly polite employees who master professional demeanor and qualities. You need to talk closely and gently consult with customers to sell as many goods as possible. This is a unique secret to help you score points and create friendliness with customers. In addition, implementing service packages, discounts, and marketing is also a way to promote sales and target the store’s target audience.

Conclusion 

K-Embroidery has compiled the ultimate handbook for opening the most successful children’s shop above. However, remember to always hone relevant business skills, maintain sharpness, and always be dedicated and sincere to develop your store with customers. If you have any questions, please leave a comment below, we are ready to answer you promptly. Good luck!