How To Start A Readymade Garments Business In India?

. 11 min read
How To Start A Readymade Garments Business In India?

Table of Contents:

1. Readymade Garment Business Plan

2. How To Start A Garment Shop In India?

3. How To Start Garment Business- Online.

4. Key Takeaways

FAQs On Readymade Garments Business

1. Readymade Garment Business Plan

All of us indulge in shopping for clothes, right? But have you ever dreamt of selling the clothes that you buy? Then read on. Because in this article we will show you how to turn that dream into reality! Readymade apparel is a part of our daily lives. People are bound to shop for clothes for numerous occasions-it can range from an anniversary gift to a festival, even for a housewarming party. Ready made clothing are made from different types of fabrics, and are mass-produced, finished textile products. The demand is steadily increasing, and they are very simple to manufacture and market. Hence, making readymade garment business plan a lucrative one.

Readymade garments have got a huge domestic market and also accounts for approximately 45% of India’s total textile exports. The Indian apparel and textile industry was valued at 100 billion $ in 2019 and is expected to reach 220 billion $ by 2025. A readymade garments business can be a profitable one, but you must have some fresh ideas. If you look around, you will find that there are plenty of apparel stores that are not doing well; the main reason is the lack of proper planning. Starting a clothing business can seem daunting at first, but with the first customer sale or trial sample run, you will get great joy and satisfaction.

2. How To Start A Garment Shop In India?

Starting a clothing line, like with all other businesses, can be a personal journey. The idea to start strikes most people when they notice a gap in the market. You will need both a creative as well as a business mindset to utilise it. Here are some simple business tips to start a garments store business in India:

1- Make A Proper Business Plan

Gain some experience in some other business, maybe a ready made dress brand before venturing out on your own. Once you work there, you will have first-hand knowledge of the challenges in the business and how to overcome them. Start with a simple plan; pick one product that you love and can easily buy or manufacture. Create a budget with different expense heads like marketing, sales, operations, purchase, etc. Also, you have to have an idea about the cash flow and the return on investment. You should visit other clothing stores doing well in your area and learn from the competition. Observe their display style and products. Also note business hours, location, and services.

2- Pick A Proper Location

A crucial part of any business is to first select the location. Find out the market potential of the area to which you would like to cater. Finalise the location after doing a proper market survey. Choose an area that is densely populated and there is a high chance of selling profitably. The proposed location should have a high foot-traffic and less competition.

Also read: Garment Manufacturers in India

Before starting a business, you have to take all legal permissions and licenses from the local administrative bodies. If the estimated annual turnover of your clothing store business is going to be less than Rs 20 lakhs, you should get a GST registration done. If you don’t have a GST, many reputed companies will avoid doing business with you to avoid violating tax laws.

4- Get Your Finances Ready For Investment

Starting an apparel store business is expensive. Get an idea about the amount of money that you have to invest, and the time of the return of the same. Remember that initially, you will have to spend money to make more money. If you don’t have the seed money, you can borrow the capital from your family or friends. Or getting a small business loan from a bank might be a better option. You will need funds to buy materials like fixtures and lighting, pay rent for the store, purchase merchandise, and many other expenses.

Also Read: Clothing Manufacturers in India

5- Infrastructure

A good infrastructure is important because if the outer appearance of your store is visually attractive, it will draw in customers easily. Inside the store, you should keep the same sizes of clothes in the same row, to make it easier for buyers.

6- Manpower

Make a list of people whom you need to hire an accountant, a sales-person, or a helper to help in the business. Then start hiring the right people.

Readymade Garments Business

7- Create Exciting Designs

One of the most important things in the clothing business is good product development. You must first sketch the design on a piece of paper. Or, you can use any specialised software like adobe. After the design is finalised, you must create a tech-pack which contains all technical specifications like measurements. This you must give to the manufacturer.

Also Read: Best Clothing Brands in India

8- Inventory Management

While purchasing goods, you have to plan properly, and should not buy a huge stock. Before purchasing stock garments or manufacturing in bulk, you must first make a trial run. Suppose you order 30 dresses in all sizes. You must first see how they are selling. There is no point ordering in bulk if the initial lot does not do well.

Also read: Jeans manufacturers in India

9- Choose Selective Items

You should first decide on your niche and stay focused on a few categories of clothes. Avoid stocking all the varieties for different age groups. For example, you can choose a particular variety as kids wear, menswear, womenswear, or bridal wear. Stock only those items which are trendy and marketable. Even if you branch out later into other products, you will be always remembered for your original product-line. Take the middle ground and don’t veer towards too expensive or cheap products. These are the best ways to attract customers.

How To Start Garment Business?

10- Create The Right Brand

Though branding is essential for all businesses, it is absolutely critical for a clothing line. Your brand is your business’s public identity and should display the most essential attributes of your company. If it is not good, you will not get a chance to stand out among the competition.

11- Maintain Quality

You should maintain a balance between the cost of the product and the quality so as to give your customers value for money. If you are sourcing from any apparel manufacturer, you should check if the product delivered matches your specifications. Good packaging is also important for presentation.

Watch the video on How to start a Ready-made Garments Business in India in HINDI

3. How To Start Garment Business- Online.

The impact of Covid-19 has shifted many consumers to online shopping. Here we discuss how you can start an online shop for clothing.

1. How Will You Sell?

Choose an online store builder like OkShop that will let you start selling clothes with an online shop of your own. And this all is for free!

2. Social Media Marketing

Social media is a must-use marketing tool to boost your brand. You can use celebrities and popular social media influencers to endorse your brand and thereby boost sales. You can use various social media platforms like Facebook and YouTube to promote your product to friends.

3. Pick A Business Model

For your online clothing store, you can pick from the four following business models:

Custom cut-and-sew: This type of business model is for those who want to launch their own clothing brand and design. Everything, from designing to manufacturing, has to be done by yourself.

Print-on-demand: It is the cheapest and easiest, and is best for custom t-shirt printing.

Private label: Here you buy blank or label-less apparel and then add your custom label, design, and tag. This is more cost-effective than print-on-demand, as you can get better rates while buying in bulk.

Drop shipping: Here you pick clothing from wholesalers and it is cost-effective since you don’t have to buy stock upfront.

How To Start A Garment Shop In India?

4. Key Takeaways

Readymade apparel is a good business opportunity if you work hard. It will provide you with a steady income every month, so it is a good option for entrepreneurs to invest. We hope that the business tips on how to start a garment shop in India we shared in the above article would help you to enter the prospective business of clothing.

We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
How to start a Book House? How to start a Photo Studio? How to start a car Repair Shop?
How to start a Coaching centre? How to start a Consultancy Firm? How to start a Soft Toy Business?

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FAQs On Readymade Garments Business

Q. How to start a ready-made garments business in India?

Ans- These are some of the things you should keep in mind before curating a readymade garment business plan:

  1. Finding a Niche
  2. Get acknowledged with the Domain
  3. Finding Suppliers
  4. Creating your Target Market
  5. Finalising the Correct Location
  6. Getting Funds/Investment
  7. Registering your Business Legally
  8. Managing your Distribution Plan
  9. Inventory Management
  10. Hiring the Correct Staff
  11. Product Pricing
  12. Marketing Your Business

Q. How much profit does a garment shop make?

Ans- In general, the clothing market profit remains anywhere between 30% and 60%. But for international and domestic brands, the margin rate increases gradually. On some brands, the starting profit margin is easily above 50%.

Q. How do I start a readymade garment business?

Ans- Here are some of the requirements on how to start garment business in India:

  • Purchasing online procurement
  • Curating a Proper Infrastructure
  • Selecting a Proper Location
  • Maintaining Quality
  • Inventory Management
  • Targeting Selective Items
  • Obtain Marketing Knowledge
  • Check Legalities
  • Gain some beforehand experience
  • Begin with small scale

Q. Is clothing a good business?

Ans- A clothing store business is truly profitable in India. With profit margins ranging from 25 to 60%, it is deemed to be one of the most profitable businesses in India.

Q. How to start a Clothing Store Business in India?

Ans- Any readymade garment business plan is incomplete without a strong business plan. A clothing store business can be truly profitable, check out to start a clothing store business in India:

  1. Gather Money for Investment
  2. Finish GST Registration Process
  3. Choose Location Wisely
  4. Start with a Small Scale Business
  5. Do Competition Research
  6. Finding Proper Suppliers
  7. Be Original with Branding
  8. Filling Stocks
  9. Choose your Selling Items
  10. Hire Additional Staff
  11. Manage Working Hours
  12. Put out Attractive Offers & Discounts
  13. Learn Bookkeeping

Q. How do I start a garment shop?

Ans- Follow these steps to start a garment shop in India:

Step 1- Deciding your Niche

Step 2- Building business plan or budget

Step 3- Shaping Your Business

Step 4- Curating Your Business Designs

Step 5- Create your Personal Brand

Step 6- Start your Manufacturing Process

Step 7- Test Your Products in the Market

Step 8- Introduce your products to the Market

Q. How do you price clothes?

Ans- Pricing of Cloths is done with the help of the keystone markup method. In this process, you can multiply a price by 2 (sometimes up to 2.5) in order to get their pricing for the next level. If you start with the garments CP or cost price i.e. the cost price of all your manufacturing costs.

Q. Is it hard to start a clothing business?

Ans- Every business has its own pros and cons while beginning but everyone's doesn't have the risk factor in them to begin. The clothing business is profitable but the thing to note is to stick through the ups and downs of the market.

Q. What is the profit margin for clothes in retail?

Ans: It is generally within a range of 4 to 13 percent.

Q. What does the term ‘readymade garments’ mean?

Ans: It refers to those clothes which are finished and can be worn off the hook without any other work to be done. They are available in different sizes.