Knowing your customer is important because it allows you to identify their likes and dislikes, and tailor your designs to accommodate them. You need to hone on who exactly is likely to buy your designs, and if your first response is an enthusiastic "everyone," you need to rethink your plan.
Everyone is not going to want what you have, regardless of what it is. People who need prom dresses are teenage girls, not grandfathers, and sports collectors.
When you're just starting out, you may need do do your own market research. Go to the mall and take note of the people who are buying products similar to yours. What do they like? What do they have in common? How are they dresses? What accessories are they wearing?
Asking yourself those questions will help you further define your perfect customer.
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