Are you an aspiring entrepreneur planning to start a retail business of your own? You have made a brilliant decision as a retail business has tremendous growth potential. As per projections by India Brand Equity Foundation, by 2021, a major share of 75% will be captured by traditional retail, the share of organised retail will reach 18% and e-commerce retail share will touch 7% of the total retail market.
How to Start a Retail Business?
In a retail business, you sell goods and services directly to the end-user. Before starting your retail venture, there are two important factors to keep in mind. The first aspect is the area or business sector you are passionate about. The second factor is the budget or the amount you can afford to invest in the business. If you have decided about these two aspects, then you are ready to plunge into the world of retail business.
While researching new business ideas, you might have come across several retail business ideas. If you are still unsure about which is the most profitable retail business to start in 2021-22, then this article will serve as a guide for you.
Best Retail Businesses To Start
Now, let’s go through the 20+ most profitable and the best retail business ideas you can choose from.
1. Grocery store
It is the best business to start in 2021. You can start a grocery store in any residential area. The major advantage is that it will fetch you a decent amount of profit. The initial investment for starting a grocery store is less, and you don’t need to possess any specific skill set. However, you need to be dedicated and put in hard work. Once your business flourishes, you can also think about starting an online grocery delivery business. Post the COVID-19 outbreak, a majority of people prefer to order groceries online. As per a report by Forbes, a year back, the share of consumers who never bought groceries online was 81%. However, during the pandemic, close to 70% of shoppers preferred to order online.
2. IT hardware store
It’s the right time for you to start a store dealing with sales of IT peripherals such as computers, tablets, headphones, etc. In the post-COVID-19 world, classes for school and college students are being conducted online, and there is a huge demand for laptops and tablets. You can also provide services of computer peripherals and make good profits.
3. Pet store
If you are really passionate about pets, start a pet store of your own. Stock your store with all the accessories needed for pets. Taking the franchisee of a popular brand such as ‘Pedigree’ would also be a great idea.
4. Stationery and bookstore
Think about starting a stationery shop. Choose a location that is near schools and colleges. Goods such as books, pens and pencils are always in demand, and you can attract the student crowd with attractive posters and hoardings.
5. Organic food store
Nowadays, people have become more health-conscious than ever before. They are willing to spend more on organic food rather than suffering from the aftereffects of harmful pesticides. Hence, take advantage of this boom and start an organic food store. It will also cost you less initial investment.
6. Garments store
Unlike before, people place increasing importance on fashion. Hence, you can set up a garment shop that caters to the needs of different segments, particularly women and kids. If your budget is limited, you can launch your store in a small town or even a rural area. Irrespective of the location, the business has immense potential.
7. Customised gift shops
Wishing loved ones on birthdays, anniversaries and other special occasions has become quite popular. However, a personalised gift makes it more special. Thus, set up a gift shop to offer customised gift articles as per the requirements of customers. It is one of the best small business ideas that you can launch with a relatively low investment.
8. Mobile phone shop
Having a mobile phone is a necessity and not a luxury anymore. A mobile phone store is one of the best business ideas as you need only a moderate investment for setting it up. The best part is that you require only a small space to start this business. You can also provide mobile phone servicing and accessories that will help increase sales.
9. Cosmetics shop
Typically, women have a high level of interest in beauty and wellness products. Try to cash in on this factor and establish dealerships of branded cosmetics products. Dealing with inexpensive brands can bring you handsome profits. You can also have non-branded products on sale.
10. Tattoo parlour
Inking tattoos have become a rage among youngsters. If you are creative, then it is one of the best businesses to start. Research the latest trends and offer the most popular designs in demand. Maintaining hygiene is of prime importance in this business.
11. Perfume store
Many people prefer to use a specific brand of perfume. Gifting perfumes on special occasions is also a popular concept nowadays. Open a perfume store offering multiple brands in different price ranges. The ideal location to set up your perfume store is in a shopping mall.
12. Kids shop
A store selling goods exclusively for kids is one of the best business ideas you can implement. Provide a wide range of products, such as clothes, toys, toiletries, etc. The benefit of offering all these products under one roof is that customers won’t have to search for different stores for their children.
13. Bakery and cool bar
Starting a bakery and an attached cool drinks bar would be a great business idea. If you are looking for a low-cost business, you can consider this sector. You can also start your bakery business in remote areas.
14. Thrift store
Open a thrift store to sell second-hand and used products. As per a report by Fortune, more consumers are becoming environmentally conscious and favouring more affordable used items. Moreover, many middle-class consumers prefer second-hand items over spending a hefty sum on branded items such as furniture and electronics. Keep the prices affordable so that you can attract more footfalls at your store.
15. Automobile spare parts store
A shop dealing with spare parts for automobiles is one of the best business ideas you can consider. By investing in this business, you can make good profits. Locate your shop in or near a prime area or near a reputed garage. It will help you get more business.
16. Sports shop
Target sports enthusiasts and start a sports goods shop in your city. It requires only moderate investment. Research properly and decide on a location where there is more demand for sports goods.
17. Ice cream shop
In summer, in particular, there is a huge demand for ice cream. Explore this potential and start an ice cream shop with a great ambience. It will not cost you much to start this business. Also, try to get dealerships of some reputed ice cream brands. You can also supply ice cream for wedding ceremonies and other public functions.
18. Travel and tour business
As per a report by the World Travel and Tourism Council, 60% of travellers indicated they are waiting to travel once the World Health Organisation (WHO) and governments lift COVID-19-related restrictions. Starting a travel and tour business can change your fortunes in the coming years. Come up with attractive tour packages at cheap rates. Take care of tourist stay and make necessary arrangements for sightseeing.
19. Fashion jewellery store
Launch a store that sells low-cost fashion jewellery for everyday use. Nowadays, people do not prefer to wear expensive gold jewellery for daily use.
20. Flower shop
One of the most lucrative small business ideas is a flower shop. There is always a demand for flowers and bouquets in marriage functions and other social gatherings. Also, provide home delivery service so that it’s more convenient for customers.
21. Medical store
Start a medical store, through which can earn you a good amount of profits. Set up your store near a hospital or a reputed doctor’s clinic. In these times of COVID-19 and frequent lockdowns, providing home delivery will also help boost your business.
Now that you have a plethora of retail business ideas to choose from, what are you waiting for? Pick the one that best suits your area of interest and budget and launch your profitable retail business.
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Q. Is a retail business profitable?
Ans. A retail business is the most profitable business in India, which can be started with a relatively low initial investment. Hence, even people who cannot afford to invest huge amounts can start a small- or medium-sized retail business.
Q. What are the eligibility criteria for obtaining a retail business loan?
Ans. The eligibility criteria for securing a retail business loan are as follows:
- The age criteria are minimum 18 years and maximum 65 years
- The business must have been in existence for at least 6 months
- Annual turnover to be a minimum of Rs. 24 lakh
- The business should be profitable
- Good CIBIL score: 700 or above
- The applicant should be an Indian citizen with no loan defaults or criminal background.
Q. What are the details of business loans offered by banks?
Ans. Business loan details:
- Interest rate - Up to 21% p.a.
- Loan amount - Up to Rs. 75 lakh
- Loan tenure - Up to 5 years
- Processing fee - Up to 6.5% of the loan amount + GST