The allure of the textile and apparel industry is undeniable. With its massive global market, there’s a perception that opportunities abound for those who enter the space. However, for every success story, there are numerous B2B startups in this sector that fail to make the cut. The reasons for this are multifaceted, but they all point to one crucial fact: making it in this industry is far from easy. Let’s dive into the reasons behind these failures and why this sector is unlikely to produce unicorns at the pace seen in other industries.

Entry Is Easy, But Mastery Is Not

One of the main reasons why so many B2B startups are failing in the textile and apparel sector is the low barrier to entry. Unlike industries requiring massive upfront capital or highly specialized knowledge, starting a business in textiles and apparel can seem deceptively simple. With access to manufacturers, suppliers, and a global customer base at your fingertips, it’s easy for newcomers to jump in.

However, while entry may be easy, mastery of the industry is not. Success in this field demands an intricate understanding of the supply chain, from sourcing raw materials to ensuring quality control in production, and ultimately, to maintaining customer satisfaction. The unprepared often find themselves overwhelmed by the complexity, leading to mismanagement and, eventually, failure.

It’s Not a Novice’s Game

The textile & apparel industry is one of the most mature and established sectors globally. It’s not a place where a novice can come in and expect to disrupt the market with a new idea alone. The industry’s intricacies, from fluctuating raw material prices to the demands of fast fashion cycles, require not just business acumen but deep industry-specific knowledge. Startups that lack this expertise often stumble at critical points, whether it’s underestimating the importance of quality control, failing to understand the nuances of international trade regulations, or misjudging the time it takes to build reliable supplier relationships. Without the experience to navigate these challenges, many startups fail to gain traction.

It’s Not a Techie’s Game

While technology has transformed many industries, in textiles and apparel, tech alone isn’t enough. This sector is deeply rooted in tradition, craftsmanship, and established processes. While there’s room for innovation, particularly in areas like supply chain optimization or sustainability, it’s not as simple as applying a new app or platform to an old problem. Tech entrepreneurs often find themselves frustrated by the slow adoption of new technologies or the resistance to change from established industry players. Moreover, the complex and often opaque nature of global supply chains makes it difficult for tech-driven solutions to gain a foothold without significant industry buy-in. Simply put, tech alone can’t solve the deeply ingrained challenges of this sector.

It’s Not a GMV Game

In many tech-driven sectors, gross merchandise value (GMV) is a key metric for success. However, in the textile and apparel industry, focusing on GMV can be misleading. High sales volumes do not necessarily translate to profitability, especially when margins are razor-thin and competition is fierce. Many startups make the mistake of prioritizing GMV over sustainable growth, pouring resources into acquiring customers at the expense of building a solid business foundation. This often leads to a boom-bust cycle where initial success is followed by rapid decline as
costs outstrip revenues, and the business model proves unsustainable.

The Challenge of Building Trust and Relationships

In the B2B world, especially in textiles and apparel, trust is currency. Long-standing relationships between suppliers, manufacturers, and buyers are built on years of collaboration and mutual reliability. A new startup, no matter how innovative, must earn this trust—something that cannot be achieved overnight. It requires time, patience, and the
ability to deliver consistently, often in an environment that is resistant to change. Startups that fail to understand the importance of these relationships or that underestimate the time required to build them, quickly find themselves struggling. It’s not enough to offer a better price or a faster service; B2B clients need to know that they can rely on you through the ups and downs of market fluctuations, production delays, and unforeseen challenges.

The Role of Experience and Industry Knowledge

Experience in the textile and apparel industry is invaluable. This is not a sector where success can be achieved through innovation alone. It demands a deep understanding of materials, production processes, regulatory requirements, and the specific needs of different markets. Founders who come from outside the industry often find themselves unprepared for the nuances and challenges that are unique to textiles and apparel. Perseverance, patience, and a willingness to learn are essential traits for anyone looking to succeed in this field. However, these traits are not enough without the experience and knowledge that only time can provide. Many startups fail because they lack the industry-specific insights that are crucial for navigating the complex landscape of textile and apparel
B2B operations.

The Unicorn Dilemma

The startup world is obsessed with unicorns—companies valued at over $1 billion. However, in the textile and apparel B2B sector, unicorns are a rarity. The reasons are both structural and cultural. First, the margins in this industry are notoriously slim. Achieving the kind of explosive growth required to reach unicorn status is extremely difficult when your profits are being squeezed at every turn. Second, the industry’s reliance on long-term relationships and trust makes it hard for newcomers to scale quickly. This is a sector that values reliability and consistency over rapid disruption. Moreover, the market is highly fragmented, with numerous players competing for a slice of the pie. This makes it challenging for any one company to dominate the space in the way that unicorns typically do in other industries. In short, the traditional measures of startup success don’t necessarily apply here, and those looking for a quick path to unicorn status are likely to be disappointed.

What It Takes to Succeed

So, what does it take to succeed in the textile and apparel B2B sector? The answer lies in a combination of factors that are often undervalued in the broader startup ecosystem.

 Time: Building a successful business in this industry takes time. It’s not a sprint; it’s a marathon. The companies that succeed are those that understand the importance of steady, sustainable growth rather than quick wins.

 Patience: The textile and apparel industry moves at its own pace, and trying to force rapid change can backfire. Patience is essential, whether it’s waiting for suppliers to come on board, customers to trust you, or new processes to be adopted.

 Perseverance: There will be setbacks—supply chain disruptions, quality control issues, shifting customer demands. The key is to persevere through these challenges and keep moving forward.

 Experience: There’s no substitute for industry experience. Understanding the unique dynamics of the textile and apparel sector, from production to market trends, is critical. This is not an industry where you can fake it till you make it.

The textile & apparel B2B sector is a challenging environment for startups. While the barriers to entry are low, the path to success is anything but easy. It’s a space that demands more than just innovation; it requires deep industry knowledge, long-term commitment, and the ability to navigate the complex web of relationships that underpin the industry. For those willing to put in the time, effort, and patience, success is possible. But it’s clear that this is not a game for the faint of heart—or for those looking for a quick path to riches. The reality is that the textile and apparel industry is not going to produce unicorns overnight, and those who enter it with that expectation are likely to find themselves disappointed. Instead, the key to success lies in understanding the unique demands of the industry and building a business that is resilient, reliable, and ready for the long haul.

“The textile & apparel B2B sector is one where ‘fast scaling is fast failing’. The article touches on crucial points that many overlook when entering the textile and apparel B2B sector. At Groyyo, we’ve seen firsthand how the industry requires more than just innovative ideas—it demands a deep understanding of its complexities and nuances. Our mission has always been to bridge the gap for MSMEs by providing them with the strategic insights and industry-specific guidance they need to thrive. It’s not just about getting a foot in the door; it’s about staying in the game for the long haul, and that requires a unique combination of patience, perseverance, and experience.” – Pratik Tiwari, Co-founder of Groyyo.