The textile sector plays a significant role in economic development. It is one of the country’s oldest industries, contributing 2.3 percent to GDP. India’s readymade textile industry has enormous potential in both domestic as well as international markets.
It possesses tremendous export potential, accounting for more than half of India’s total textile exports. This is why Government and foreign investments have also increased dramatically, boosting India’s garments industry.
Since the Indian Government eased the regulations for obtaining small business loans to encourage people to expand their businesses for better economic growth, more and more industry players are now readily opting for a textile loan to widen their business horizons.
With these significant opportunities for quick access and satisfactory profits, the scope of garment businesses entering this territory is also increasing.
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How do you open a readymade clothing store in India?
As the first step in any venture, it’s crucial to understand the pros and cons of the ongoing market. One easy way to prepare is to closely inspect an existing store to get a good idea of the wide range you can offer, the customer’s tastes, the capital or MSME loan required, the revenue earned, the supplier’s terms and conditions, logistics, etc.
Also, you must explore all kinds of clothing stores in your area, whether they are small or large, and look at the clothes they sell, the price range, and other features like discounts, return policies, and other factors.
Moreover, keep in mind that you will not see huge profits right when you start your business, and it will take a while for it to mature. As long as you’re optimistic, implement better strategies, and remain friendly with your customers, your business will grow over time.
Mentioned here are points to consider while opening a readymade garment store in India.
Plan the layout of your store
The readymade garment industry has a wide range of products, so consider the following while opening a new store:
- Choose which type of customer you will target with your product – children’s clothing, men’s clothing, or women’s clothing.
- Then, decide what kind of products you’ll sell. Concentrate on one or two products when you’re just starting. When your business grows, you can add more.
- To begin with, the quality of the goods should be a top priority and the terms and conditions of the billing cycle.
Other things you should consider are:
Stay simple and straightforward
To get started, focus on selling and buying products easy for customers to understand and purchase. This is because when you focus on selling, your profits increase, and you can adequately cater to your initial expenses such as supplier payments and electricity or rent costs. Moreover, it will also provide a reasonable return on investment in the future.
Try to find a suitable location
It is best to locate a store that sells readymade clothes somewhere people can readily get to, such as the marketplace, near transportation hubs, or in a shopping mall. If people like your product, they’ll start recommending it to their friends and family.
First-time investment
Due to infrastructure, premises, whether owned or rented, licenses, and supplies credit. As a result, you can borrow money from a bank or family and friends. Try to keep your capital usage to a minimum.
Authorizations and licenses
A shop or establishment license is required- by law from the local Government. Your business should be registered- within 30 days if it is likely to reach the threshold for GST registration. This benefit is available even if your income does not exceed the threshold.
Transportation system
Clients will only enter your store if it appeals to them. Organize your space so that it is appealing, and neatly arrange your products on shelves and hangers following factors such as type of clothing, color, or price. If possible, make it as customer-friendly as possible.
Workforce
Make sure that your employees are effective, as they are crucial and will help your company grow. Also, ensure that you have a team of motivated individuals who can effectively market your business. Also, an accountant and other support staff are crucial for the textile business.
Establish yourself in the market
It is hard to survive in the readymade clothing business, where customers have many choices and can quickly move to others if they are not satisfied. This means that you should be available at all times and make a strong impression on your customers, so they come back to you.
Here are a few suggestions to establish yourself in this industry:
Providing specials
The word “discount” attracts customers. To encourage customers to spend more, many stores offer seasonal, holiday, heavy purchase, and birthday month discounts to entice them to do so.
Buying one gets you a second for free
Customers also get enticed to shop more by offers such as buy one get one free. In general, you must give this offer when a product is no longer in vogue or demand for it has decreased.
Reward cards
Only a few stores offer loyalty cards, which accrue points for each purchase. Clients can redeem them at a later date.
Seek expert suggestions
An expert opinion is essential when starting a new business. You can take advantage of several government initiatives aimed at helping new businesses succeed.
Apart from ease of doing business and tax benefits for a few years, there are many other benefits. As a result, it is vital to seek professional advice to reap the most benefits.
Bottom Line
Just like any business, there are advantages and disadvantages to running a readymade clothing store. Hence, you must accept them, overcome them, and satisfy your customers to succeed, get the best advice and support to get the results you deserve.
Moreover, it is crucial to understand what your customers want and cater to them to build your prominence. Also, if you are looking for a business loan to start a readymade garment business, ZipLoan can be your best pick.
We can help you finance your business endeavors by providing an MSME loan at the most affordable interest rate. To know more, contact us at 011 – 4310 – 9577.
Frequently Asked Questions
1) Online Purchase of Procurement
2) Start with Small scale
3) Gain some experience before
4) Location Selection
5) Legal Aspect
6) Marketing
7) Inventory Management
8) Target Selective Items
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.
Generally selling price margin ranges between 30% and 60%. If the garments are branded then it can be more gainful for the seller as the margin is much higher than that of non-branded clothes.
1) Research work on readymade garment business and understand the business process and supply chain.
2) Study the market opportunities.
3) Preparing a project report for the business set-up.
4) Learn about garment manufacturing
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