The global custom clothing market is massive. According to Cognitive Market Research, North America holds the major market of more than 40% of the global revenue. The market size of North America alone amounted to USD 20086.08 million in 2024. The market is projected to grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031. If you are into custom apparel, you would know that America loves custom hoodies.
If you want a piece of that pie, this blog can help. Here are 5 tips that will help you build your own custom hoodie business. Know that there are quite a lot of wrong ways to do it that you want to steer clear of.
#1. Source Smart or Start Broke
This step ends up as a misstep for many aspiring entrepreneurs. In pursuit of sourcing quality hoodies at the lowest possible risks, many entrepreneurs end up spending either too much or earning too little. It’s best to start with quality blanks instead of sourcing a whole bunch of customized ones. Before sourcing blank hoodies in bulk, you should know the main players in the wholesale market. There are a lot.
Brands like Port Authority, Gildan, Sport-Tek, and District won’t disappoint beginners. Port Authority, particularly, is among the most preferred wholesale apparel brands among custom apparel startups. Blank district hoodies and sport tek hoodies wholesale don’t cost much, offer great comfort, and are engineered for customization. But don’t limit yourself. Test multiple suppliers.
Wholesale prices should land between $10-15 per blank hoodie for healthy margins. Order samples before committing to get a hands-on feel of the fabric. Wash them to see how they hold up after customization. Your customers will notice quality. Build relationships with multiple suppliers. This is a backup plan to save your business, just in case.
6 out of 10 successful custom apparel businesses work with at least three different suppliers.
#2. Design for Your Dollar
Creating designs that sell, requires strategy. Though this is obvious, it’s mostly the wrong strategy that ends up causing a mess. However most custom apparel startups begin their research on social media, which is a good thing. However, social media might encourage you to go for complex designs, just to stand out. That is a common misconception. Surprisingly, simple designs outperform complex ones in profit margins, in most cases. Start with 3-4 color designs max as the more colors you add, the higher the cost. You don’t want to charge your customers a lot when you begin unless you already carved your niche. Test designs on small batches before large investments.
A good majority of failed apparel businesses overspent on initial inventory with untested designs.
#3. Set Up Your Store & Production Carefully
In 2025, an online presence is non-negotiable. You’ll need a platform to showcase your designs and take orders. There are a few options here. You could build your e-commerce website using platforms like Shopify or WooCommerce. This gives you full control over your brand and customer experience. Another option is to use print-on-demand (POD) services like Printful or Printify. These services handle the printing, packaging, and shipping for you, which can be a great option for startups with limited resources.
If you go the POD route, make sure to research different providers and compare their pricing, product quality, and shipping times. You’ll also want to integrate your POD service with your online store for a seamless ordering process.
If you plan to do the production, just choose your path wisely.
Screen Printing
- Perfect for bulk orders (50+ pieces)
- Higher initial setup costs
- Excellent durability
DTG (Direct to Garment)
- Ideal for small runs
- Full-color designs are feasible
- Generally high in demand
Heat Transfer
- Low startup costs
- Quick turnaround
- Good for customization
- Reasonable equipment costs
#4. Price for Profit
Many businesses aim for popularity so they get more orders and customer ratings to thrive. Works well on paper. But in reality, your pursuit of popularity could be poisoning your business. The ideal way is to price your offerings for profit alone at the beginning, without compromising on value to your customers.
If you’ve spent $12 on a blank hoodie which you then customize for $5, assume the total amount you spent including overhead costs is $20. You can sell the hoodie for anywhere between $28 and $40 apiece. For bulk buyers, you can offer the hoodie for $35 per piece. Work out the gross margins you expect and what you can get from your offerings.
#5. Don’t Bet On Your Products To Do The Talking For You
Many startups choose to count on their customers to get the word out. This is helpful. But from a business standpoint, you just can’t expect to get a lot of momentum from this strategy. It could take a while even if you get that momentum. You should have a plan to get a lot of attention on your goods as soon as they go out into the market. Social media helps once again, but it’s best to focus more on creating video content for maximum engagement. Apart from Instagram and TikTok, Reddit is also a great platform to get your business some local attention.
Additionally, work on building a list of emails from day one. This also helps segment your first customers. Once you get a pace, join small business groups and target small organizations and schools. You can also cut down on marketing costs if you can find partners to collaborate with.
Bonus Tips
- Do creative product photo shoots
- Always market your product with care instructions
- Be transparent on the return policy
- Surprise your customers occasionally to make them brand advocates
Starting a custom hoodie business in 2025 takes grit, strategy, and smart planning. Custom hoodie businesses can typically take 6-12 months to turn a consistent profit, assuming you did everything right with the setup. Your success depends on executing fundamentals and having a value-packed special sauce. Start small, test everything, and scale what works.
Good luck.
