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Updated On :
August 12, 2023

How to start a Garment business in India?

August 12, 2023

The garment business is one of the most profitable businesses in the world. It never goes out of trend. Garments are an essential part of life. And the intensity with which fashion is prevailing and trends are changing has paved the way to heavy profits for business owners, so, the main question of everyone is that How to start a garment business in India?

You must have witnessed a failed clothing business. The possible reason behind failure could be improper or lack of planning. Traffic tail can guide you in planning and help in lifting your business to great heights.

 How to start a Garment business in India

How to start a garment business?

If you are planning to start garment business in India and don’t know that How to start a Garment business in India, then this article is for you. Starting a garment business is not difficult.

This article contains the answer to different questions associated with beginning a garment business and How to start a garment business in India. It contains a stepwise guide, benefits, and other relevant information in the context of the garment business.

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Benefits of Garment Business

The list of benefits associated with beginning a garment business is large. You can expect to enjoy these benefits only if you have a strong and unique strategy to keep your business in motion. The clothing industry is sizeable and so the number of businesses.

The set of advantages vary based on the type of business. A boutique owner can charge a high price in the name of the brand and specialty. A resale business can experience a cost advantage. The cost of a second-hand business is ought to be lower.

It is easier to launch a garments business in India. The textile industry also employs workers as the unorganized sector uses labor-intensive methods to operate. Another advantage of entering into the garment business with a strong strategy and a well-organized structure can help a lot. If done correctly, the garment business is one of the most profitable businesses as it is a necessity.

So, if you want to know about How to start a garment business in India, here is a stepwise guide to starting a business.

Step 1 – Investment! Investment!

The first step to begin with any business is to assess the cost you are going to incur. You need to consider different types of expenses you are going to bear in a garments business. Undeniably, the cost of initiating a garment business is not small.

You have to gather stock, pay store rent, obtain a license, buy marketing materials, and many more. You need to maintain the interior of the store by fitting attractive lightings and fixtures.

There are different ways of arranging finance for a garments business. You can take loans from family and friends if you don’t have arrangements. Other methods of arranging finance for your business-

  • Investors– You can prepare a strong plan and present it to investors. If they found your project profitable, they wouldn’t mind in investing your projects.
  • Bank loans– One of the most common methods of obtaining finance for any kind of business is a bank loan. Banks provide loans for the business after checking your current situation.
  • Crowdfunding– If you are planning to initiate on a bigger level, you can also go for crowdfunding. People can invest in your business and have their share.

You need to choose the best source for your business after considering personal and professional factors. A pro tip for initiating a business could be- never underestimate the cost you are going to incur. Rather make provisions for extra expenses.

Step 2- Complete GST registration

GST registration is a crucial step in the garment business. If your estimated turnover is less than 20 lakhs, you should get your clothing store business registration done. You will get a 15-digit number.

The government has made it necessary for the garment business to have GST registration. If a garment business operates without this number it would lead to tax violations. It is not an act of intelligence to start a business that does not comply with government rules.

Step 3- Choose your location wisely

Choosing a location for your garment business is not easy. You need to research the market, your competitors, the behaviour of customers and their buying patterns. It is advisable to build your store where footfall is higher.

 How to start a Garment business in India
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Try to bring something new to the market. Check whether the product you are trying to sell has demand in the market. Choose the place where competition is lesser.

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Step 4- Legal aspect

Before starting your store make sure you have obtained the required permissions and necessary licenses. Make sure your business complies with government rules and regulations.

Step 5- Start your store

It is exhausting to start a new clothing store even at a small level. Every big brand initiated with a small store. You need to begin with a strong plan. You need to consider every cost you are going to incur. Verify and validate your plans in the real world.

You can arrange finance from small banks or private investors. Your store should be well-maintained.

Step 6- What your competitors are doing?

Analysing your competitors could be one of the best things you can do for your business. Notice their working hours, way of dealing, location, products everything. You can plan your strategies accordingly. You need to maintain the essence of uniqueness by competently mixing their strategies innovatively.

Step 7- Be creative and Original

The way your store looks matters the most. While estimating the cost of your business do not forget to consider the cost you are going to incur on the interior and exterior of your store. Work on the display styling and utilize the space on shelves effectively.

Make sure the clothes on display should fetch the attention of your customers. Your inventory should comply with the latest trends and seasons. The design of the interior everything should be unique and catchy. Many-a-time, a customer enters the store, just by getting attracted to the interior of the store.

Step 8- Finding Suppliers and gathering stock

Your store should be suffused with enough clothes. Every shelf should be well-maintained and contain the clothes. A full store attracts more customers. Make sure you have obtained your inventory from different sources.

You can visit trade fairs, or find your suppliers online. While gathering stock, make sure you have assembled all the sizes and maintain the essence of diversity. You need to add the latest trends, seasonal and unique clothes to your inventory.

Step 9- What to sell?

The next step is to choose your niche. What do you want to sell? How do you want to sell? You need to research the market and area to choose your product. You need to know the taste and requirements of the people who are living in the area. The choice of the product should be done cautiously.

Step 10- Your team

In the beginning, it is normal not to have enough resources to hire helpers. But if you have enough finance, you should build a team where people can help you.

If you are planning to start a company, you must build a team of specialists like marketers, accountants etc. The size and quality of the team highly depend on your budget.

Step 11- Start with Discounts

Begin selling on discounts. Don’t mind giving a little extra. Sell your products to your friends and family at discount, so that they don’t mind spreading positive words for your business. You can also go for sales to attract the crowd.

You can use holiday discounts or sales to add more customers to your list. This would help you in increasing brand loyalty. Try to sell your products online as well. This is going to enhance your reach and profits.

Click here to know more about How to start a clothing business in India?

How digitalization can help?

Your business has got established but only a few people know about it. So, now your responsibility is to narrate the story of your business to the whole world. You can do it in two ways either by using traditional methods or by using digital methods.

 How to start a Garment business in India

Traditional methods cost higher than digital methods but that doesn’t mean you can avoid traditional marketing. A balance between traditional and digital methods could be the optimum choice.

This is how digital methods can work towards improving your garments business-

  • The first step is to build a professional website. Your website should narrate the story of your business. It should comply with the theme of your business. It should include relevant information about your business.
  • It is up to you the kind of website you want to develop. If you want to develop an ECommerce website, you can run your business through it. But if you want a business website, you cannot operate your business. It is profitable to decide with expert advice.
  • You can also promote your business using social media. If you are not joining social media for promoting your business, you are losing the opportunity to earn profits. It is an affordable method of promoting your business. People are running their businesses through social media.
  • Digitalization helps you in enhancing the reach and getting connected to potential customers. You can even find your team members using online methods.

Digitalizing can add a lot. It can lift your business to great heights. If you have begun with your garment business and looking for the right hands to join you in marketing your business then your search is over.

Join Traffic tail– one of the best digital marketing agencies in India. We provide quality services according to the needs and requirements of your business.

Do You Know?

  • India exports during march 1- 14 increases 17%
  • $20 Billion opportunities for Indian MMF garments
  • The baby garments market is expected to grow
  • Small units are considered as big growth drivers
  • Garment companies shifted from China to India

Pro tips-

  • Choose your niche carefully
  • Be original and unique, try to create inimitable designs
  • Understand the behaviour of customers and their buying patterns
  • Keep updating your inventory plans
  • Train your employees and appreciate your loyal customers
  • Digitalize your business

Now, you must have apprised with the benefits and process of initiating a garment business. When entering into the garments industry, make sure you are ready to cope with the dynamic environment.

Choose the most suitable business in the beginning and expand when you think you are doing well in your sphere.

Frequently Asked Questions

Ques. 1- Is it a profitable business?

Ans. An answer to this question is a big yes. The garment business is one of the most profitable businesses in India. All you need to know is the tact of running.

Ques. 2- How much profit I can make from a garment shop?

Ans. A garment seller is expected to keep a margin between 30%- 60%. If it gets a brand name, it can earn a little more. The profit lies between 25%- 50%.

Ques. 3- Is it profitable to digitalize my garment business?

Ans. Yes, it is advantageous to digitalize a clothing business. Almost every business is earning by digitalizing and when it comes to the garment business, it earns a little extra.

People are running their business through the internet and earning pretty well. So, you can digitalize your business without having a second thought.

Ques. 4- Through which platform I can sell my clothes fast?

Ans. Here is a list of platforms through which you can sell your clothes faster-

  • Poshmark
  • eBay
  • Coutloot
  • Vintage Desi
  • OLX

Ques. 5- How can I price clothes?

Ans. You can price your clothes considering factors like cost, goodwill, location and many more. One of the best methods of pricing clothes is the keystone markup method. You multiply the price by 2 or 2.5 to get a price for the next level.

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