Are you also passionate about shopping for clothes? Have you ever considered the perspective of selling clothes? If you’re interested in starting your own clothing business, then keep reading. Clothing is an essential part of our lives, just like food, and people frequently visit garment shops, similar to how they visit neighbourhood grocery stores.
Garment shops are highly profitable business ventures because people need to buy clothes for various occasions, such as gifts, special events, and even casual gatherings. These shops thrive on the ever-changing trends and fashion, and staying up-to-date with the latest styles is crucial for survival in this industry.
In this article, we will guide you on how to turn your dream of owning a garment shop into a reality. So, what are you waiting for? Let’s dive in and explore the exciting world of garment retailing.
how to start garment business in India: Easy Steps to follow
Ready-made garments have a huge domestic market, according to a prediction this industry will set the mark of 220 Billion Dollars by 2025. If you observe your surroundings you will notice plenty of apparel shops are doing so well and are the one that follows the latest trends. If you have finally made up your mind to start a garment venture then follow the easy steps given below.
Make a Proper Business Plan
Preparing yourself with an effective business plan is the first step towards the success of you as a garment entrepreneur. Your garment business plan is the roadmap to your success in this planning, decide all the challenges along with their solutions and importantly believe in your presumption and plan to find the solution to future challenges as well. Do add the following points while designing your garment business plan.
- Finalise the product, either buy it from the manufacturer to create it.
- Create a budget and make a cost estimate for sales, marketing, operation and purchase.
- Keep an idea of cash flow and Return on investment (ROI).
- Visit other clothing stores that are doing well in your area and try to learn from them, note the working pattern of competitors like products, display area, locations and operating hours.
Be prepared with your Business model
There are numerous options available if you are planning to start your Garment business, as we know that the industry is very broad and has wide options available from a business perspective. If you are entering the garment industry then you have three broad options available.
Be a Manufacturer
It is a profitable venture but becoming a manufacturer is not everyone’s cup of tea, it requires a huge capital investment. You need to set up a manufacturing unit, a factory, machinery, labour, raw material, etc required and also for processes like weaving, dying need skilled labour. Establishing yourself as a manufacturer needs an extended period of time and making sure the goods you manufacture are top in quality.
Be a Designer
The garment industry lacks good fashion designers. If you are looking to explore this opportunity then it is the best moment for you as it is a very booming career that has huge scope. Complete your fashion designing course and be knowledgeable about the latest trends and the fashion industry. Also, to become a designer there is no need to start your own business, established brands will hire you.
Be a Shop owner
Start a retail garment shop and sell your products to customers, you can retail your products both online and offline. Selling products offline requires a good network, communication and maintaining good working relations along with a decent staff. On the other hand online selling needs good marketing skills and a professional appealing presentation of the website.
Choose the appropriate Location
Location in any business has great significance, garments shops are generally found in heavily crowded areas like malls, complexes, main roads etc. Hence ready-made garment shops are quite popular once you start delivering quality products at fair pricing people will automatically start recommending your shop.
Do a Market Survey
As said earlier in the planning, studying the market on various factors is of utmost importance, do a detailed market survey and finalise the location that you would like to cater to and the area that includes your target market.
A locality with high foot traffic, less competition and a dense population have a high chance of selling garments profitably.
Take care of Registration and other Legal paperwork
After finalising the location do the necessary business registration and needed paperwork, and take the required licences from local authoritative bodies, those licences and permits include
- Permanent Account Number (PAN)
- Tax Account Number (TAN)
- Trade licence
- Certificate of occupancy
- Professional Tax registration
- Shop and establishment registration
Get Ready with the Finances
Evaluate the required amount and prepare a budget accordingly. Be prepared with the financial projections and mark where and when you’ll need money and make sure you have enough that is required. In case you are out of funds and don’t have sufficient capital to start or operate your garment business then take Garment business loans from us – we offer a specialised range of loans to SME firms using 3 step procedure, competitive rate of interest and flexible repayment tenure are also ensured.
Hire the Manpower
Prepare a separate list of people who are needed to operate the garment business smoothly, garment firms don’t need big staff unless they are doing it on a big scale. One can commence the shop with these staff
- Accountant
- Helper
- Salesperson
Do a thorough analysis and hire the best people, and make sure the right person is at the right job.
Manage your Inventory
In order to run a garment shop be prepared with the management skill to run your shop smoothly. Plan your purchase from the wholesaler/distributor accordingly, avoid buying huge stock firstly, notice how the garment is performing in the market and make purchases accordingly.
Be prepared for Logistic
In the garment business, either online or offline logistics are always a big challenge, be prepared with transportation, storage and warehouses. The goal behind effective logistics is customer satisfaction in a timely and cost-effective manner.
Make a premium Brand image
As a business, know your USP and build your brand accordingly. Pick an easy name with a catchy headline and a decent logo to stay ahead of the competitors. Brand names and logos are effective in building a premium brand image. Also having high-quality customers is very much effective in maintaining a quality image. Although branding is essential for every business and absolutely critical in the clothing line, if you fail in branding, your business may wind up.
Promote and Advertise
Marketing and promotion of the business is a must to survive in the competitive world, promotion in the garment business can be done using both online and offline basis. Digital form of marketing is the most effective nowadays, having a good social media and online presence is a non-substituting factor that doesn’t have any other alternative.
Encourage customers to buy garments using smart tactics like organising competitions and events, offering discounts to loyal customers and also try to improve the products as per the customer review.
Effective Online ways to promote
After social media presence on various platforms like Facebook, Instagram etc other ways involved are
Blogs
A blog can become an influencing factor in building your digital reputation and adds to your database for other digital works.
Email marketing
It is a trending way to gain customer loyalty, through this you can receive direct replies from the customers.
Website
It is an essential need of every business new or existing, in order to look professional in the market having a website is a go-to factor also don’t forget to list your garment business.
Conclusion
The garment shop Business in India is a competitive as well as lucrative business domain, following the above we have deeply analysed all the associated factors concerned with starting a garment business from scratch, having the right vendor is essential of all and being sure you have the required business capital.
In order to start a Garment shop in India it requires at least INR 5 -10 lakhs, if looking to arrange the capital funds get in touch with OneNDF – a leading loan platform to fulfil all your credit needs, specialised in providing SME loans associated with 100+ lenders offering 4 different kinds of loans including project funding.
Suggested Read:
FAQs on How to Start Garment business in India
Q.1 What is the minimum budget required to start a garment shop in India?
At a Minimum of INR 5 lakhs one can start a small garment shop.
Q.2 What is the profit margin on T-shirts?
The average profit margin on T-shirts is between 30-50%.
Q.3 Is the garment industry profitable?
The garment industry is a bit competitive but very profitable.
Q.4 Who is the biggest garment exporter in India?
- Arvind Limited
- Raymond Limited
- Bombay Dyeing
- Alok Industries ltd
- Loyal Group
- Sutlej Textiles