What are the biggest expenses for fashion companies, and how do they allocate their budgets?

There are several key expenses for fashion companies, and how they allocate their budgets can vary depending on the size and focus of the company. Some common expenses for fashion companies include:

Raw materials: These are the materials used to create fashion products, such as fabric, leather, and trimmings. The cost of raw materials can be a significant expense for fashion companies, especially if they use high-quality or specialty materials.

Labor: Fashion companies have expenses related to hiring and paying employees, including design, production, and retail staff. The cost of labor can vary depending on the location of the company and the wages paid to employees.

Marketing and advertising: Fashion companies often allocate a significant portion of their budgets to promoting their products and building their brand. This can include advertising campaigns, sponsorships, and collaborations with influencers and celebrities.

Rent and overhead: Fashion companies may have expenses related to maintaining physical stores or office space, as well as general overhead costs such as utilities, insurance, and office supplies.

Research and development: Fashion companies may invest in research and development to create new products or improve existing ones. This can include prototyping, testing, and market research.

Fashion companies typically allocate their budgets based on their priorities and goals, and may adjust their budget allocation as their business needs change.