When Emma Lopez launched her first swimwear line in the States, she thought outsourcing development overseas would save her money. Weeks later, she discovered her designs didn’t translate correctly, machines couldn’t match the specifications, and her launch window had already passed. She isn’t alone…
ARGYLE Haus of Apparel, which has helped over 1,000 fashion startups in the last 11 years, says this scenario plays out all the time.
“100% of brands that come to ARGYLE Haus after overseas development have to start from scratch,” a spokesperson said. Differences in measurement systems, fragile file formats and machine calibrations often turn what looks like a small saving into thousands of dollars in additional costs.
One swimwear startup spent $4,000 on overseas designs that failed, losing five weeks and its summer sales opportunity. A corsetry brand invested $8,000 abroad, then spent another $12,000 restarting domestically and delayed their launch by three months. ARGYLE Haus calculates that a $1,000 initial saving can quickly grow to $26,000 when shipping, file rework, and lost seasonal revenue are included.
Domestic manufacturing allows startups to control quality, iterate quickly, and retain ownership of their intellectual property. ARGYLE Haus emphasises that owning files gives brands freedom to scale production, tweak designs, and protect their brand from production risks.
How Are Technology and AI Changing U.S. Fashion Startups?
Economic uncertainty and changing consumer behaviour are affecting U.S. fashion startups. McKinsey & Company projects single-digit growth for 2026, reflecting cautious spending and a focus on wellness and value.
AI is becoming an important tool for fashion startups. McKinsey reports that over 35% of executives already use generative AI for online customer service, product discovery, and marketing. “Customers are turning to large language models to search for products, compare offerings, and receive tailored recommendations,” the report said. Startups are using AI to optimise production, target consumers more efficiently, and engage with AI shopping assistants.
Resale and wearable technology are also opening new doors. Secondhand fashion is expected to grow 2-3 times faster than the first hand market until next year, giving startups a way to reach cost-conscious and environmentally minded shoppers. Meanwhile, smart eyewear and jewellery continue to grow for consumers who are into style and functionality.
What Lessons Are Fashion Startups Learning?
The lesson for U.S. startups is this: invest in domestic development and adopt technology early. Controlling production ensures consistent quality and timely launches, while AI helps brands understand and respond to consumer needs.
ARGYLE Haus’s experience and McKinsey’s insights tell us that startups who manage costs wisely and integrate AI tools are best positioned to grow sustainably in a challenging market. With that being said, these are some USA fashion startups that are paving the way in that regard:
All Cotton and Linen
All Cotton and Linen is a US based online store built around a simple idea: everyday essentials should be made from natural, breathable, and thoughtfully crafted fabrics. We began our journey focusing exclusively on premium table linens, including tablecloths, runners, placemats, and napkins made from pure cotton and linen. Our products are designed to bring warmth, comfort, and understated elegance into modern homes while remaining practical for daily use.
Over the past few months, driven by strong customer demand, we have expanded beyond home textiles into fashion and lifestyle categories. Today, All Cotton and Linen offers a growing range of women’s clothing made with comfort first design principles. This includes T shirts, tank tops, crop tops, camisoles, sweatshirts, pants, shorts, leggings, and pajama sets that balance softness, durability, and everyday style.
We have also introduced men’s apparel such as T shirts, pants, sweatshirts, shorts, tear away shorts, and pajamas, along with a small but thoughtful collection of baby girl dresses. In addition, our store now features fashion jewelry that complements our apparel line and reflects a clean, minimalist aesthetic.
As a startup, our focus remains on natural materials, quality craftsmanship, and expanding responsibly while staying true to our roots in cotton and linen. We believe this blend of home essentials and wearable comfort sets us apart in the evolving fashion and lifestyle space.
The Monterey Company
The Monterey Company is a Bend, Oregon based custom merchandise brand that helps teams turn logos into pieces people actually want to wear and keep. Founded in 1989 and now led by owner Eric Turney, we focus on fashion-forward branded apparel and accessories like custom hats, hoodies, tees, beanies, and outerwear, plus the details that make them feel premium, including embroidered patches, woven labels, and high-quality embroidery. We work with small businesses, startups, events, sports groups, and organisations that want their gear to look clean on day one and hold up after real use.
Our process is built for speed and clarity, with free digital proofs, guided material recommendations, and production methods chosen to match the job, from patch hat programs and heat-applied patch bars to stitched embroidery and label finishing. Customers come to us when they want consistent color, sharp detail, and an easy ordering experience, even for multi-item kits and repeat programs. We are a digital-first team that runs e-commerce and lead gen side by side, so product presentation matters, photography, fit, and fabric notes are part of how we sell and how customers buy. If you are building a modern brand and need merch that feels like apparel, not a giveaway, that is our lane.
Fittora
Fittora is redefining fashion by tackling one of the industry’s most costly and environmentally damaging problems: poor fit. According to Shopify’s 2024 Fashion Industry Report, one in three garments are returned due to fit issues, fuelling massive waste across the global fashion system. Fittora addresses this head-on with an AI-powered, made-to-order clothing platform that delivers perfectly tailored garments—without a single fitting room visit.
Using proprietary computer vision technology, Fittora calculates a customer’s exact body measurements from just a few uploaded selfies. AI then generates personalised style recommendations based on prompts such as occasion, colour preferences, and uploaded inspiration images. These recommendations are refined by experienced human stylists before skilled pattern makers and tailors craft each garment to order. The result is one-of-a-kind, waste-free fashion delivered globally in just six weeks, at an accessible luxury price point starting from $110–$175.
Fittora’s on-demand model directly challenges the fashion industry’s waste crisis. Global textile waste reached 120 million metric tonnes in 2024, with 80% dumped or burned, while textile production accounts for the vast majority of fashion’s greenhouse gas emissions. By producing only what is ordered, Fittora eliminates overproduction, overstock, and unsold inventory.
Founded by former Marks & Spencer International executive Nicola Bond, Fittora blends advanced AI with human craftsmanship. With curated sustainable fabrics, personalised finishing touches, fast tailored delivery, and repair and restyling services to extend garment life, Fittora is helping to define a new era of AI-enabled, sustainable luxury fashion.
Memorí
Memorí is the Miami-based eyewear brand quietly doing everything the opposite way, and winning. In a world of mass production, Eyewear conglomerates, and nepo baby brands, Memorí creates ultra-limited sunglasses and optical frames in batches of 100 pairs or fewer, each one handmade in Italy the old-fashioned way with every step documented by its founder on social media.
The brand has become known for something most eyewear companies ignore entirely: fit. Memorí specialises in narrow, tailored frames designed for smaller faces and anyone who has complained about looking “like a bug” in sunglasses. Sizing ranges from Extra Narrow/Petite to Medium fits. Not only do they look great with unique and sculptural designs, but they solve a size inclusivity problem within the eyewear industry.
Without traditional PR or big marketing budgets, Memorí has built momentum organically through pop-ups in places like the Hamptons and Miami Art Week. Along the way, celebrities such as Ed Sheeran and Bethenny Frankel have worn and featured the brand.
At the centre of it all is a founder who documents the highs, lows, and absurdities of building a fashion brand in real time on TikTok and Instagram, earning a loyal following with honesty, humor, and zero fluff. Memorí isn’t chasing trends. It’s creating timeless pieces meant for customers to wear while they make some of their life’s best memories.
The Exchange Project
The Exchange Project is redefining resale through a curated, luxury consignment platform that blends sustainability and community. The Exchange Project is one of the only resale platforms with the entire inventory online, shipping nationwide, making conscious shopping seamless, elevated, and accessible across the U.S.
