Today we will talk about fashion – not as something that is ‘beautiful/ugly’, but as a market. Imagine: any item of clothing is a small model of the global economy. It has a material, a country of manufacture, a brand, a price – and a history of how it came to us.

Our task is to learn to see beyond an ordinary T-shirt or shirt: a chain of decisions, people, technologies, and money.

At the same time, it is important to answer the following question:

• What most often influences the purchase of clothing: price / comfort / design / brand / ‘because it's about me’?


‘Clothing = economic history’

Textiles are one of the few areas that are simultaneously:

1. very material (fibre, fabric, dyeing, sewing),
2. very symbolic (style, status, belonging),
3. and very entrepreneurial (competition, brands, marketing, trends, speed).

In short, textiles create markets because people have always wanted not only to “protect themselves from the cold” but also to show who they are. And where there is desire, there is demand. Where there is demand, there are manufacturers, trade, competition, and innovation.

In the world, fashion is an industry where technology (materials), creativity (design), psychology (identity) and business (sales) intersect. That is why start-ups love it so much: there is room for creativity, money and new solutions.


Let's try to break down any simple thing — for example, a T-shirt — into stages.

Fibre → yarn → fabric → dyeing/processing → cutting/design → sewing → packaging → logistics → sales → service/returns.

And the main question for business: where is the greatest added value here?

Often, it is not in the fibre. It is in the design, brand, communication, service, and trust. That is where the margin is formed.

At what stage, in your opinion, does the high price ‘come from’: the fabric or the brand?


Now the most important thing is to distinguish not between ‘expensive/cheap’ but between the logic of the segments.

Fast fashion sells speed and trends: quickly conceived → quickly sewn → quickly sold. The value is in the novelty. Premium/middle sells balance: quality + design + reasonable price. Here, value is embodied in reliability and comfort.

Luxury sells symbolism and status: brand history, craftsmanship, exclusivity, emotion. Here, value lies in identity and belonging.

Hence, there are different business models. Fast fashion earns money on volume and turnover. Luxury earns money on margins, reputation, and ‘cultural weight.’
Try to think of three reasons why people buy luxury goods.
Have you thought about it? As a rule, it is not ‘because the fabric is better,’ but often ‘because of history/status/ritual/symbolism.’

Clothing is a language. We signal with our style: ‘I am this way,’ ‘I belong to this group,’ ‘this is important to me.’

When culture becomes a recognisable code, it creates a niche. A niche is a small market with a very specific audience that is willing to pay because it is ‘theirs.’

The Ukrainian context is strong here: we have powerful symbols, techniques, traditions, materials (linen, wool), and we can transform them into a modern product.

But the key word is modern, which combines the idea with functionality, design, quality, and communication.

• What local symbol/history of your region could become a fashionable product? (1–2 examples)

To better understand the logic of the product, you can practise in a shop — pay attention to the labels — what is the name of the item/brand (if any), what is the composition (material); country of manufacture; price. And try to formulate a hypothesis: what are people paying for here?
(material/design/brand/convenience/ethics/status) and which segment: fast/middle/premium/luxury? Why?

After all, a label is a small business document. It can tell you about the material, the geography of production, and sometimes even the positioning.
It is also important to remember that if you want to do business in fashion, you don't necessarily have to start with a ‘full collection’.

Startups enter fashion through different doors:

1. Product/brand (one ‘hero product’: shirt, hoodie, bag)
2. Materials/technologies (functionality, durability, new fibres)
3. Service (repair, alteration, customisation, rental)
4. Platform/marketplace (as a means of connecting craftsmen/manufacturers/customers)
5. Digital solutions (3D design, AR fitting, digital collections as marketing)

For Ukraine, it is promising to combine tradition, modern design, quality, and history. This can become a competitive advantage in the global market.

Therefore, we can conclude that:

1. Textiles are the economy because they create demand and supply chains.

2. Fashion is not just fabric, but value + symbol + service.

3. Entrepreneurship in fashion is about finding a niche and solving problems, not ‘a large collection right away’.


Try doing this little exercise at home. Choose three items from your wardrobe.

For each one, briefly describe — very briefly, just for understanding:

- What did you actually pay for?

- Which segment?

- How would you improve this item as an entrepreneur (material/design/service/packaging/story)?

Now let's move on to the next important question: How the fashion market works: supply chain, roles, money and ‘bottlenecks’

Last time we talked about how clothing is not just fabric, it is a market and value created at different stages.

Today, we will take a look behind the scenes: who does what, how materials and money move, and where opportunities for start-ups arise.

By the way, what do you think: which link is the most important: materials, production, sales or marketing?

Let's imagine that we are creating one item — for example, a hoodie or a shirt.

The chain can be broken down as follows: Raw materials (fibre); Yarn; Fabric; Dyeing/processing; Design and patterns; Sewing; Quality control; Packaging; Logistics/customs; Marketing/content; Sales (online/offline); Returns/exchanges/service; Repeat purchases/loyalty.

Accordingly, the winner is the one who knows how to manage the chain: quality, deadlines, inventory, reputation. This is important: business does not start where ‘someone sews,’ but where there is a process, a role, and responsibility.

Let's divide the roles into 4 groups:

1) Materials and textiles: fibre/thread suppliers; fabric manufacturers; dyeing, printing, finishing (density, softness, water resistance, etc.)

2) Product and production: designer/pattern maker; technologist/seamstresses/workshop; quality control, packaging

3) Business and market: brand manager, marketer, content creator; e-commerce manager, marketplace manager; sales/partnerships (retail, showrooms)

4) After-sales service: returns logistics, customer support; repair/alteration/care; loyalty programmes.

• Which role is closest to you: creating a product, promoting it, or organising the process?


People often think, ‘if the fabric is expensive, then the item is expensive.’ But price is not just about the material.

The price includes: the cost of materials; production (labour, electricity, rent); logistics and risks; marketing and sales; returns/discounts; and a ‘premium’ for the brand, design, service and trust.

In many models, the highest margin comes from the brand + sales + service area.

And the production area often causes the most ‘pain’: deadlines, shortages, staff shortages, price fluctuations.

It is also necessary to calculate the need (and possibility) for discounts in order to reduce inventory and increase asset turnover.

Startups appear where there is a problem that: affects many people, is recurring, and has a solution.

Here are some typical bottlenecks in the fashion industry:

1. Unpredictable quality (batch ‘successful/unsuccessful’)
2. Fit and size (returns due to ‘doesn't fit’)
3. Inventory (surplus/shortage, frozen money)
4. Finding reliable production (especially for small brands)
5. Transparency of origin (what kind of fabric is it? Who made it?)
6. Waste and defects (what to do with leftovers?)
7. Logistics and returns (expensive and complicated)

Each ‘bottleneck’ contains a potential business idea.


To identify such areas, you can create a kind of ‘chain map with potential startup points.’

To do this, you need to draw (formulate) a value chain for the selected product (it usually contains 10–12 steps).

Then identify at least 3 risks (where it can ‘break’) and, accordingly, 3 places where you can create a startup (solution to the problem).

For example, to reduce the number of returns, create a service for accurate size selection; for fabric remnants, create an upcycling service; to ensure a longer life for items, create a modular design.

Now let's see what this map looks like for Ukraine.

We have strengths:
-creative industries (design, senses, cultural codes);
-skilled craftsmen and sewing factories in different regions;
-natural materials as a tradition (linen, wool);
-demand for Ukrainian identity and quality;
-very strong stories (storytelling) that interest the world.

But there are also challenges:
-scaling (from ‘handmade batches’ to stable volumes);
-access to quality materials/fittings;
-quality standards and repeatability;
-logistics, risks, financing.

Therefore, promising start-ups in Ukraine are either niches with high added value (design + code + quality) or services/platforms that make the chain simpler and more transparent.

So, we have learned to see fashion as a system of roles and processes and understand the main thing: startups are not about ‘sewing more,’ but about doing things smarter: reducing losses, improving quality, building trust, adding service and digital tools.

In the previous section, we broke fashion down into a value chain and saw that ‘clothing’ is not just a thing, but a whole system of roles, processes, and money.

And here it is important to understand: when you want to offer a new product, you don't have to start with a ‘collection.’ You need to start with a problem that people care about and try to create a solution that they are willing to choose and pay for.

To begin with, think about your shopping experience and try to sum it up in one word: what annoys you most about clothes/shopping? (Sizes? Quality? Price? ‘They don't have my size’?)

Have you thought about it? After all, when people hear ‘fashion startup,’ they often think, ‘create a clothing brand.’ But a startup is not about ‘I want to sew,’ but about ‘I want to solve a problem.’

Imagine two situations:

• Option A: ‘We want to launch a hoodie brand because we love hoodies.’

• Option B: ‘People constantly have a problem: hoodies quickly become shaggy, shrink after washing, or don't fit well on the shoulders. We want to make a hoodie that lasts longer and fits better, and prove it with a test.’

The second option is startup logic because it has a specific problem, specific people, and a specific result.

So, the startup formula is something like this: For whom? → What is the problem? → What is the solution? → Why us? Where ‘why us’ is your advantage: design, quality, service, speed, history, technology, local context.

And in fact, it is much easier to sell a solution to a specific problem than ‘just another brand.’

It is advisable to identify the problem or problems in a brainstorming format.

It is desirable to get together as a team and form a list of at least 10 problems (it can be done quickly, without perfection) regarding the existing product or need.

For reference, you can use the following list:

- fit and size (‘doesn't fit’, ‘returns’, ‘strange patterns’);
- quality (“pilling”, ‘seams coming apart’, ‘fabric shows through’);
- comfort (‘sweating,’ ‘prickly,’ ‘doesn't breathe,’ ‘uncomfortable to move in’);
- transparency (‘I don't understand what I'm buying,’ ‘composition/origin/ethics’);
- durability (‘after 3 washes, it doesn't look the same’);
- accessibility (‘need clothing for special needs/adaptive’);
- service (‘no repairs/alterations’, ‘not clear how to care for it’);
- style/identity (‘want local code, but modern’).

Next, take 5 minutes to select the top three problems, and then choose one as the main problem.

The selection criteria could be as follows: the problem recurs (more than once); it affects many people; we can come up with a simple product (MVP) to test.

Great. We have problems. But a problem without a person is just a complaint. Now let's do the most important thing: find a specific customer.

The same problem looks different for different people. For example, ‘uncomfortable clothing’: for a schoolchild, it is when ‘you cannot move normally’; for a student, it is when ‘it is uncomfortable all day’; for a mother, it is when ‘it is difficult to wash/gets damaged quickly’; for a volunteer/outdoor enthusiast, it is when ‘it does not withstand the conditions’. That's why startups love personas — short customer profiles.

A persona template might look like this:

1. Who is it? (age/context)
2. Situation: when does the problem arise?
3. ‘Pain point’: what exactly is wrong?
4. What is he/she doing now? (alternative)
5. What is important: price/quality/style/ethics/time/status?

Fill in the persona for your problem. Give it a name (conditional) – it makes it easier to talk about. For example, ‘This is Maria, 17 years old...’.

Now we have ‘who’ and ‘what hurts’. The next step is to formulate the solution so that it sounds like value, not ‘we sew’.


There is a very simple difference between ‘product description’ and ‘value’.

• Product description: ‘We make cotton hoodies’.

• Value: ‘We make hoodies that don't pill, keep their shape, and look like new after 20 washes.’

A value proposition answers the question: why would people choose this?

The value proposition formula, accordingly, will look something like this:
For [who], we do [what] to [what result], unlike [alternative], because [our advantage].

Now pay attention: even if it sounds nice, it doesn't mean people are willing to pay for it. That's why we move on to MVP - Minimum Viable Product.

MVP is the minimum version of your solution that allows you to test whether it is needed.

This is especially important in fashion, because ‘making a collection’ is expensive and risky.

That's why we have a rule: first we test, then we scale.

The logic of MVP can be as follows:

Creating a Hero product: one hero product (not a collection). For example: one perfect basic shirt, one bag, one pair of trousers.

Next, we do a pre-order/drop: 20–30 units and sell them by a specific deadline.

MVP service: repair/customisation/alteration as a service.

B2B pilot: one school/club/organisation as the first customer.

Digital MVP: sketch/3D/mood board + collection of requests (‘I want this’).


Demand tests for our product may include the following steps:

5 interviews: ‘how do you decide now?’, ‘what annoys you?’, ‘what would you pay for?’; post/survey + application form; one landing page (even in Google Form) with a ‘pre-order/sign up’ button.

And the last big block is money. Because business is when a solution is not only useful, but also self-sustaining.

The price is not ‘how much you want.’ It is the answer to two questions:

1. How much does it cost us to make and deliver?

2. What value is the customer willing to pay for?

The price structure usually includes cost price + profit, sometimes referred to as ‘margin’.

In turn, the cost price consists of the cost of materials, labour, depreciation, logistics + various overhead costs.

It is also important to take into account a reserve for discounts/returns/defects.

Therefore, you should always consider several price options:

• minimum (just to ‘survive’),
• average (realistic),
• higher (premium version). For the premium, you need to clearly understand what people get extra for this ‘higher’ price? (better fabric, service, warranty, personalisation)


Well, now we know how to turn an ‘idea about fashion’ into a startup structure.

In this course, we have also gone from understanding how textiles and fashion create markets to being able to look at the industry through the eyes of an entrepreneur: seeing the value chain, finding people's real ‘pain points,’ formulating a value proposition, creating an MVP, and testing demand. You have learned not only to come up with ideas, but also to ‘ground’ them in a business model: calculate the price basis, choose channels, plan communication, and manage risks and responsibilities. The main thing is that you now have the tools to turn creativity into solutions, and solutions into projects that can be tested, improved, and scaled in Ukraine and around the world.