While the craft goods industry is often defined by high inventory and high pricing for the most coveted items, handmade craft goods can make up for these weaknesses with the addition of a few unique elements to their designs, unique products, and the right product placement in their market. Below are the most profitable handmade crafts industries.
Handmade Apparel
While clothing (and accessory purchases) are only a fraction of the overall economic activity in the U.S., their popularity as a retail product, a new market of opportunity for small businesses, and a growing need with the growing population of the working and middle classes means that it’s become an increasingly profitable market.
In 2016, apparel was the second largest category for the U.S. economy, behind retail and a growing market, as the demand for clothing grows with new technologies and trends. An important factor in this growth is the growing popularity of the “millennial” male market.
Handmade Apparel is currently the second largest market in its category after fashion, behind only fashion-shopping and fashion retail. Manufacturers are also looking to capitalize on the market of “millennials” as a new market segment, where young consumers need clothes where they can look their best and fit comfortably in.
The majority of makers are based in the Los Angeles (LAX), New York (JFK), and D.C. areas, and each of these metropolitan areas has different demographics.
The Los Angeles metro area is home to over 60% of makers, with over 100 craft fairs a year in the San Fernando Valley alone. Other key regions of growth include Dallas-Fort Worth (DFW), San Antonio (SA), San Diego (SAN), Orlando (Orlando), and Houston (HOU).
Handmade Apparel Market
Where the most money is made is in the LA area, with one craft fair at each location. There are also a large number of makers in the Phoenix area as well as a growing base in Las Vegas. The average production cost per garment is just over $100, which means that a skilled craftsman can produce many garments for less than the cost of manufacturing a comparable model.
Handmade Apparel Industry Cost Structure
A $100 minimum production cost is the standard in the industry and is an important starting point, but the cost can increase quickly as production ramps up. The value of the garments manufactured can also vary, though there are some common themes, such as:
A high quality
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