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I don't know if it will turn customers away for the simple fact that nobody has heard of it and therefore do not want to be seen in public with it. | |  | |  | |
Speaking generally: Unless you are going to spend a lot of money advertising and marketing your new company in major media, I would suggest leaving your brand name off of the design.
Nobody knows who you are or why they should wear your brand, so they won't want to be an advertisement for your company.
The reason why Ambercrombie and Fitch, Hollister can do it and charge big bucks for it is because they spent lots of money in advertising, marketing and branding. They do radio ads, tv ads, magazine ads, sponsor athletes, get celebrity endorsements, have a retail store, which gives people the feeling that it is a "must have" brand and when they wear that brand, they want to be associated with what the brand is aligned with.
There are exceptions to this rule of course, but as a general rule, if you don't have the big bucks to advertise and market and get known, then just focus on the designs, and leave the branding to your neckline tags or even a sleeve tag or other non-intrusive area.