Garment Shop Business Plan: Start Your Retail Clothing Store in India

Garment Shop Business Plan

Everyone enjoys shopping for clothes. But can you imagine yourself selling them on your own? If yes, this article is your ultimate guide.

How to start an online garment shop in India?

To start an online garment shop in India, you should do the following:

Determine your niche : What category of garments you want to sell, now this can be dependent upon various demographics like the location of your business, the overall demand, seasonal factors, gender specific clothes, etc. It is important to determine your niche as it is a major determinant if the sales you may expect
Get acquainted with your domain : It is essential for you to get acquainted with your domain, being aware of the current trends in the industry, expectations around upcoming fashion trends, buyer preferences, price trends, minimum order quantity from suppliers to get the landed price right, etc
Locate suppliers for your shop : In most cases, the ultimate motive of doing business is profit maximization, this can be done by either increasing sales or minimizing costs of raw materials. Having contacts to the right suppliers will help with minimizing cost. Not only this, finding great suppliers also helps with sourcing the latest trending fashion and help predict latest upcoming trends. Reliable suppliers should also be able to consistently fulfill demand
Know your audience : For any business, it is imperative that you know your audience, factors like audience preferences, likes and dislikes, price that audience would be willing to pay are one of the most important and crucial aspects for running a business
Arrange the capital required : No business can work with lack of capital availability, having adequate capital not only helps with smooth functioning of the business but also with plans of expansion and profit maximization
Take care of your legal obligations : An entrepreneur should always ensure that they’re legally compliant with all the national and local rules and regulations, this includes certifications from relevant safety and municipal authorities as well as required licenses and registration with tax authorities
Evaluate your channels of distribution : Understand the mode of selling, if you’re into retail garment distribution, then do you want to sell your products online or do you want to cater to the offline retail customers, or even a mix of both! Having clarity over channels of distributions would help you decide which line of business you should focus on more and to what extent you need to navigate through your current plan
Manage your inventory : Depending upon your average sales, you should have a clear plan of managing your inventory, having apt amount of inventory is absolutely essential as it not only covers you in times of high demand but also protects you from accumulating dead stock
Price your products and services right : To succeed in business, it is imperative that you sell well, and there’s no fooling customers! In a market like India, where the customers are very price sensitive, the entrepreneurs cannot overcharge for the goods and services they’re providing since the market is not only price sensitive but also highly competitive, as there’s always someone selling comparable products at a cheaper price and working on razor-thin margins
Promote your venture : Instead of running the business the old fashion way, the entrepreneur should think about exciting and new ways of promoting the venture. This helps the entrepreneur with marketing which essentially helps with increasing customer base, client retention and goodwill in the industry.

It is one among the most profitable ventures in the world. Garment is second only to food when it comes to spending money for most of us. Trends and fashions change almost every day. This allows space for small players to outsmart their competition. Follow the steps given below if you feel that you are one among them:

1. Have a detailed garment business plan

Preparing a business plan is the first step towards success as an entrepreneur. It helps you outline your goals and your vision about your venture. In fact, a business plan is the roadmap to success. There are certain things that you should really focus on while creating a plan to start a business in the clothing industry. Firstly decide, do you want to venture into wholesale fabric distribution, or a business in clothing line. Secondly, the channels of distribution or how you want to sell. Depending on this you may need to establish a business setup. Here, you decide your budget. This leads you to the next step.

2. Determine your garment business model

The industry offers you numerous options when planning to start a garment shop in India. Some of them are as follows:

A. Become a fabric manufacturer:

Manufacturing fabric is definitely a profitable venture. But it requires a sizeable amount as capital. The infrastructure too has to be of excellent quality. You need to form a workforce to perform various processes involved; weaving, dying etc. This too requires a huge amount, to spend for an extensive time period.

B. Become a garment designer:

Garment industry is in need of fashion designer. For that, you need to be highly skilled in the field. You also should be updated with the latest trends in fashion and designing.

C. Start a ready made clothes shop:

As a retail shop, your venture retails garments to the customers. Begin by choosing your platform. You can retail offline or online. You may even use your network for the purpose. If you are good enough, you can trade both online and offline. Your offline arm will include a good marketing team and a well-built brick and mortar shop with highly skilled staff. Your online venture will involve a good website along with a practical marketing strategy.

3. Choose the right location

The location of your shop too plays a vital role in the success of your garment business. It has to be an area that gets lots of traffic. Starting your shop near a mall is definitely a good idea. There, lots of people come and they see your garment shop.

Besides the main store, your shop should contain a reception area, resting space for employees and a place to tag your merchandize. You should build your shop in such a way that it is visible from the road itself. If people can see your store at a glance, they may come and see what is inside.

4. Take care of the legal formalities

See to it that your shop fulfills all the legal requirements to operate in your area. Register with the local bodies. If your turnover is below 2000000, you should have your GST registration. If you fail here, other reputed firms will avoid you for fear of violating tax rules.

5. Take care of your finances

Evaluate your budget. Decide how much you want to spend for your garment shop in India. Check if you need any external assistance. There are numerous banks and other financial institutions offering business loans. Consider your requirements, your ability to repay and decide accordingly.

6. Be mindful of the infrastructure

Good infrastructure is the key to success for your garment shop. Make sure that your shop has sufficient space to make everything easily accessible. Remember, the design of your store is the first thing that your potential customers see. And it is going to have an impact on your business.

7. Build the workforce you need

Prepare a list of the people you need to run your garment shop. You may need an accountant, a sales person; the list will vary depending on your requirements. Do a thorough analysis and explore the pool of talent to fulfill them.

8. Manage your inventory

Inventory management is a skill you need to smoothly operate your garment shop. You need to stock up on trendy items and clear your old stock. If you are not expert enough, consider hiring a professional.

9. Prepare for the logistic challenges

Whatever is your choice; online or offline, logistics is going to be a tough challenge. Calculate the cost of transportation involved and prepare for it.

10. Build your brand

Know your unique selling point. You may build your brand based on that. Brand can be anything. You may use a word, sound or logo for the purpose. Whatever it is, make sure that it stands apart from your competition. Doing this will help you stay above your competitors. A brand name also makes it easier for your customers to find you.

11. Stand behind your promise

Excellence of quality is going to have the first place when framing your promise to customers. Stand behind them. Be mindful of one fact. You are just one among millions of sellers vying to get customers. Compromising on quality will lead you to the door in the market.

12. Promote your business

Whatever is your choice mode, marketing your business is a must to survive in today’s competition. Build your profile on social media and remain active. Hand out flyers and stay in touch with customers. You may also organize contests and sweepstakes. Initiatives like these will encourage customers to share your business among their circle of friends. Offer discounts to loyal customers. Gather feedback on improving your service and act upon the comments you receive.

Things To Do Before Starting a Garment Business in India

Starting a garment business in India can be a rewarding venture, but it requires careful planning and preparation. Here are essential steps to take before launching your clothing business:

Market Research:

Conduct thorough market research to understand the demand-supply gap in the market and how you can efficiently fill the gap while maximizing profits. Next would be to decide on what scale you can operate the business and also consumer preferences, current fashion trends, and your target audience. Identify gaps in the market that your clothing line can fill.

Clothing shop Business Plan:

Create a comprehensive business plan outlining your business goals, budget, marketing strategy, and sales projections. A well-structured highlighting your business placement in the industry, the product you’re going to deal in, usual profit margins, client demography, suppliers for cheap and trending raw materials, business niche, etc. will guide your business decisions.

Legal Requirements:

Register your business and obtain all the necessary licences and permits, including GST registration, permits from local authorities, and municipal corporations, and other compliance requisites like fire safety. Comply with labour laws if hiring employees.

Sourcing and Suppliers:

Find reliable suppliers or manufacturers for your clothing. Suppliers should be able to offer material at reasonable prices, trending products and stable supply. Negotiate prices, quality, and terms to ensure a steady and cost-effective supply chain.

Financial Planning:

Estimate your startup costs, working capital needs, and operating expenses. Secure funding through personal savings, loans, or investors if required.

Branding and Design:

Develop a unique brand identity and design your clothing line. Invest in professional branding, including logos, labels, and packaging.

Online Presence:

Create an e-commerce website and establish a strong online presence. Invest in high-quality product photography and effective digital marketing strategies.

Inventory Management:

Implement an inventory management system to track stock levels, reduce waste, and maintain a consistent supply.

Pricing Strategy:

Determine your pricing strategy by considering production costs, market competition, and your target market’s willingness to pay.

Marketing and Promotion:

Develop a marketing plan including social media, email marketing, influencer collaborations, and fashion event or exhibition participation.

Store Setup (if applicable):

If you plan to open a physical store, choose a strategic location and design an attractive retail space that aligns with your brand.

Team Building:

If necessary, hire skilled staff, including designers, tailors, and sales associates. Train your team to maintain quality and provide excellent customer service.

Taking these steps before starting your garment business in India will increase your chances of success and help you navigate the challenges of the fashion industry effectively.

Tips for a Garments Business

Running a successful garment business requires a combination of industry knowledge, strategic planning, and effective execution. Here are some key tips to help you thrive in the competitive world of clothing retail:

Market Research: Stay tuned to evolving fashion trends and consumer preferences. Regularly conduct market research to understand what’s in demand, helping you make informed decisions about inventory.
Quality Matters: Prioritise quality in your clothing offerings. High-quality garments attract and retain customers, building a positive reputation for your brand.
Unique Selling Proposition (USP): Develop a clear USP that differentiates your clothing brand from competitors. Whether it’s sustainable materials, unique designs, or exceptional customer service, make sure your brand has something special to offer.
Inventory Management: Maintain a well-organised inventory system to track stock levels, avoid overstocking or understocking, and minimise losses due to unsold items.
Pricing Strategy: Determine competitive yet profitable pricing. Factor in production costs, market trends, and the perceived value of your garments.
Online Presence: Establish a strong online presence with a user-friendly e-commerce website and active social media profiles. Engage with your audience, post appealing content, and invest in online advertising to boost visibility.
Customer Service: To build loyalty and repeat business, provide excellent customer service. Respond promptly to inquiries, address concerns, and offer hassle-free returns or exchanges.
Marketing and Promotion: Invest in marketing strategies tailored to your target audience. Use online and offline channels to reach potential customers, including email marketing, social media advertising, and influencer collaborations.
Adapt to Trends: Stay flexible and open to adapting your clothing line based on emerging trends and customer feedback.
Sustainability: Consider adopting sustainable practices, such as eco-friendly materials and ethical manufacturing, as consumers increasingly prioritise responsible fashion choices.
Financial Management: Keep a close eye on your financial health. Maintain clear accounting records, manage cash flow effectively, and budget for growth and unforeseen expenses.
Networking: Build relationships with suppliers, fellow fashion professionals, and industry experts. Networking can lead to valuable insights, collaborations, and growth opportunities.

By following these tips and staying dedicated to the growth and improvement of your garments business, you’ll be better equipped to succeed in this dynamic industry and meet the demands of today’s fashion-conscious consumers.

Summary

Starting a garment shop or readymade garments franchise in India can be an exciting and rewarding journey as garment business profit can be really lucrative. First, you need to find your garments business plan. You do this by finding your niche by deciding what type of clothes to sell based on your location and what people in your area like. Understanding current fashion trends and customer preferences like ready made clothes is essential for choosing the right products. Building good relationships with reliable suppliers will help you access trendy clothes at reasonable prices, keeping your costs down is essential in the clothes business.

It’s also important to know your customers—learn what they like and how much they are willing to pay, as this is key to your success as an entrepreneur. Ensure you have enough funding to cover startup costs, including supplies, rent, and staff. Don’t forget to register your garments store and comply with local laws. Decide whether you want to sell online, in a physical store, or both, as this will shape your business strategy.

Effective inventory management is crucial; keep track of your stock to avoid running out or accumulating unsold items. Creating a unique brand identity will help you stand out in a crowded market, and providing excellent customer service will ensure that happy customers return and recommend your shop to others. By following these steps, you can successfully start your garment business and thrive in India’s vibrant fashion market.

Business Plan – How to Write a New Business Plan & Elements, Types

Restaurant Business Plan

Bakery Business Plan

Hotel Business Plan

Garment Shop Business Plan FAQs:

1. How much can I expect as profit from my garment business?

In a general scenario, profit from a garment shop falls in the range of 30-60%. It increases as you expand globally. For certain brands, the initial profit alone may go up to 50%.

2. Is garment shop a good business in India?

Starting a garment shop is one among the most profitable ventures in the country. It yields up to 60% profit.

3. How to price the garments I sell?

Analyze your market, monitor your competition and price your garments accordingly. You may also use the keystone markup method for the purpose.

4. How hard is it to start a garment shop in India?

Starting a new venture is not an easy thing. Garment industry is not an exception. It does yield huge profits. But you have to stick to your passion till the end to see the result.

5. Do you have any suggestion to de-stress for new entrepreneurs?

Learning to manage stress is a must for you to succeed in your business. The Internet abounds in practical ways to de-stress. Know your mind and choose the ones that work for you.

7. How can I identify my main competitors?

A thorough market research alone is enough to help you in this regard. Join social media. Become a member of online communities. Gather customer feedback. All these will help you monitor your competition.

8. How to handle financial insecurities in garment industry?

Financial insecurities are there in every industry. Manage your capital well. Acquire help when required. And repay your loans on time.

9. What kind of help is available for the inexperienced?

Having work experience will always work in your favor when starting a garment shop. If you are a newbie, contact your network. Prepare a list of your skills. There may be those who may help you out. Contact them and discuss your vision.

10. What is the minimum investment for a garment shop?

The minimum investment for a garment shop can vary widely, but a small boutique may require around Rs 400,000 to 1600000 for initial inventory, rent, and basic fixtures.

11. How to start a clothing business on a low budget?

If you want to know how to start clothes shop on a tight budget, focus on thrift or wholesale clothing, sell online, use social media for marketing, and minimise overhead costs like rent and staffing.