CHINA FASHION BUSINESS

▼The following discussion and summary from the Coldy Fashion Circle address industry-related issues. These insights are the product of collective wisdom and do not represent individual opinions. The aim is to benefit industry professionals.

Process and Time Management for a Side Hustle as a Fashion Buyer

Group buying agents emerged as a new profession post-pandemic. Their core model involves gathering consumers with shared purchasing intentions to buy directly from factories or wholesale markets via group purchases. This approach bypasses traditional physical stores and secondary distributors, offering significant price advantages to consumers.

In practice, group buying agents source products in two ways:

1. Collaborating with other agents at wholesale markets to meet minimum order quantities (MOQs).

2. Organizing group purchases within their own customer communities.

Taking wholesale markets as an example, most stalls require a minimum order of 5 pieces per color. Popular stalls may demand 10 pieces per style across 3 styles.

The price advantage is the biggest draw. For instance, a cashmere coat costs the agent 769 yuan from a stall. After adding a 30-yuan markup, it sells for 799 yuan, while the same coat retails for 1,899 yuan in physical stores. This stark price difference motivates many consumers to accept the risk of no returns or exchanges.

Key customer demographics (ages 20-35):

Fashion-forward young women

New mothers with young children

Small boutique owners

Individual customers dominate this market, followed by boutique owners. Secondary distributors are less common. For boutique owners, agents often add only a 10-yuan markup per item, as they typically order 10+ pieces per style and tolerate minor quality or sizing issues.

Daily operations include:

Product Selection and Content Creation:

On-site product photography at markets

Simple video editing (~20 minutes per clip)

Publishing product details and promotional posts

Order Management:

Launching group buys via apps like KuaiTuan

Placing orders with stalls once MOQs are met

Handling immediate pickups (ready stock) or waiting 7-15 days for custom orders (up to a month in special cases)

Customer Service:

Inspecting and documenting received goods

Managing returns/exchanges for quality issues (buyers cover return shipping; stalls handle replacements)

Promptly addressing customer inquiries

Calming impatient customers during long wait times

Revenue Example: One scarf sold 1,409 units with a 20-yuan profit per piece, generating 28,180 yuan in total profit. However, increased competition has compressed markups to around 15 yuan per item.

Requirements to Become a Group Buying Agent:

Hardware:

1. A high-capacity phone (256GB+) for storing photos/videos

2. Storage space for inventory

3. Convenient shipping location (e.g., courier stations near markets)

Time Commitment:

1. Dedicate all post-work hours and weekends for a side hustle

2. Ensure timely customer communication

3. Regular market visits for sourcing and content creation

Skills:

1. Basic aesthetic sense and fashion judgment

2. Physical stamina (frequent market trips and heavy lifting)

3. Strong communication (with both stalls and customers)

4. Resilience (handling complaints, delivery delays, etc.)

Platform Management:

1. Publish promotional content on Xiaohongshu (Little Red Book)

2. Maintain personal social media (WeChat Moments, video channels)

3. Build and manage customer WeChat groups

4. Organize group buys via mini-programs like KuaiTuan

Industry Challenges:

1. Intense price competition shrinking profit margins

2. Physical stores avoiding “hot styles” due to duplication concerns

3. Pressure on secondary distribution channels

4. Dominance of large-scale agents with economies of scale

Strategies for Establishing a Targeted Brand and Product Identity

Despite these challenges, newcomers can adopt a ‘learn by doing’ strategy, gradually refining their business model through practice. Passion and patience are essential, as this work requires significant time and energy investment before stable profits can be achieved.

The factory-direct supply model demands large purchase volumes, requiring buyers to personally select products and negotiate pricing with factories. A feature of this model is the ability to set up a resale mechanism, allowing other buyers to sell the products on behalf of the original buyer, though all shipments are handled uniformly by the original buyer. When after-sales issues arise, end customers must first contact the reselling buyer, who then relays the issue to the original buyer. This multi-layered after-sales process is relatively inefficient.

The market influencer model involves sourcing trending products directly from wholesale markets and selling them through platforms like KuaiTuan. The advantage here is that these products already have visibility on platforms like Xiaohongshu, prompting customers to seek them out. However, this model faces intense price competition, often allowing only a ¥20 markup while covering shipping costs. If product quality issues arise, the buyer must bear the shipping expenses, as neither the wholesaler nor the customer is willing to cover these costs.

The boutique buyer model focuses on high-quality, niche designer items, typically found in upscale designer boutiques. Sales are conducted through private groups, where buyers share images and provide quotes via private messages. This model offers higher pricing and profit margins but has a relatively lower conversion rate.

The livestreaming model involves first sourcing samples from the market, then attracting customers through detailed product showcases via livestreams. Interested customers are directed to platform groups before transitioning to private WeChat groups to complete transactions. While this model yields decent per-unit profits, its conversion rate lags behind the previous two models. The upside is that after-sales handling is relatively simpler.

In daily operations, buyers must monitor updates from wholesalers in places like Siqiqing, Guangzhou, and Shenzhen via their social media feeds, filtering high-quality products to test customer reactions in group chats. Product refresh rates typically follow wholesaler cycles, averaging 3-4 new items per week. Beyond clothing, buyers often also deal in bags, shoes, and accessories, with the latter being more beginner-friendly due to their lower price points and simpler styles.

Practical challenges abound. When collaborating with wholesalers, newcomers may be easily identified as inexperienced due to unfamiliarity with industry jargon, leading to reluctance or arbitrary pricing from wholesalers. Even when quotes are obtained, they often lack written confirmation, resulting in price fluctuations. For instance, a recent case saw a pair of pants initially quoted at ¥199 suddenly increase to ¥239 upon ordering, causing losses on over 20 orders.

Additionally, wholesalers may ship incorrect sizes, requiring buyers to cover return shipping for exchanges. Promised seven-day delivery times can stretch to over a month. Most frustratingly, wholesalers often prohibit photography, severely hindering product presentation.

Customer service also brings immense pressure. Some customers lurk in multiple groups to compare prices, canceling orders after confirmation. Others request trying multiple styles only to ultimately decline purchase or demand excessive services aggressively. Buyers must respond to messages instantly—any delay risks losing customers.

Wholesale market sourcing presents further complexities. The vast market often requires hauling goods over long distances. Enduring wholesaler staff’s dismissive attitudes in sweltering heat while handling customer issues can easily breed thoughts of quitting. There are days of frantic effort still ending in losses, or meticulously prepared posts failing to gain traction, and well-planned group buys receiving zero interest—all requiring immense mental resilience.

Given current market conditions, the group-buying buyer industry is trending in two directions: First, deeper engagement in price wars, primarily by large factory-direct buyers leveraging bulk advantages to prioritize affordability at the expense of quality. Second, a boutique approach emphasizing product quality and unique style, building distinctive IPs that offer emotional value, pursuing high-ticket, low-frequency sales.

As the market evolves, physical stores increasingly emphasize experiential and emotional value, while online emotional marketing remains exploratory. Future markets will grow more segmented, with consumer aesthetics diversifying—demanding buyers to specialize in niches, cultivating compact, refined business models.

For newcomers, starting part-time is advisable to reduce pressure. Prepare for continuous learning and self-motivation, accepting potential early losses. More crucially, regularly review and adjust strategies, balancing core competitiveness with market adaptability.

PS: The translation is done by AI.