Textiles play a significant role in economic development. In 2004, it contributed 2.3 percent to the GDP, making it one of the country’s oldest industries. It is obvious that India’s readymade textile industry has tremendous potential both domestically and internationally.
The sector accounts for more than half of India’s total textile exports. Thus, foreign and government investments have also increased substantially, which has boosted India’s garment industry.
The Indian government has simplified the regulations for small business loans in order to encourage entrepreneurs to expand their business for better economic growth, so more and more players in this sector are seeking textile loans to expand their business horizons.
Due to this quick access and profit potential, garment businesses are increasingly inclined to enter this area.
What are the steps to open a readymade clothing store in India?
A critical first step in any business venture is to understand the pros and cons of the current market. You can easily prepare by going to a nearby existing store to see the products you can offer, the customer’s tastes, the capital or MSME loan required, the revenue generated, the supplier’s terms and conditions, logistics, etc.
If you want to find the best clothes in your area, you should look at every kind of clothing store, whether it’s small or large, and take a look at the clothes they sell, their price range, and features like discounts, return policies, and so forth.
Remember that you won’t see huge profits from your business as soon as you start it, and it will take some time before your business matures. Your business will grow over time if you remain optimistic, use more effective strategies, and remain friendly with your customers.
These are the points to consider when opening a readymade garment business in India.
Organize the layout of your store
When opening a readymade garment shop, be sure to consider these points:
- Determine what type of customer you will be targeting with your product – children’s clothing, men’s clothing, or women’s clothing.
- Next, decide on the products you will sell. At first, concentrate on one or two products. When your business grows, you can expand your options.
- To begin with, the quality of the goods and the terms and conditions of the billing cycle should be prioritized.
You should also consider:
Stay simple and direct
You should start out by selling and buying products that are easy for customers to understand and purchase. The reason is that focusing on sales increases your profits while allowing you to cover your initial expenses, which include supplier payments and rent or electricity. Further, it will provide a reasonable return on investment in the future.
Find a suitable location
A store selling readymade clothing should be near transportation hubs, in a shopping mall, or in the marketplace where people can easily access it. People will begin referring your product to their family and friends if they like it.
Investing for the first time
Infrastructure, premises, whether owned or rented, licenses, and credit cards are contributing factors. In this way, you can borrow money from a bank or family member. You want to keep your capital usage to a minimum.
Licenses and authorizations
By state law, a shop or restaurant license is required. In the event that your business is likely to reach the threshold for GST registration, you should register within 30 days. Even if your income falls below the threshold, you can take advantage of this benefit.
Public transportation
A client will only enter your store if it appeals to them. Create an appealing atmosphere by organizing your space and neatly arranging your products on shelves and hangers according to factors such as type of clothing, color, or price. You want to make it as appealing as possible to your customers.
Personnel
As your employees are essential to your business, make sure they are effective and efficient. Ensure you have a team of motivated employees who can market your business effectively. Additionally, your textile business must have an accountant and support staff.
Become a market leader
There are many choices in the readymade clothing business, and customers can quickly move on to another if not satisfied. It’s important to be available at all times for your customers and create a favorable impression so that they will return.
Here are some suggestions for setting yourself up in this field:
Special offers
Discounts attract customers. Many stores offer seasonal and holiday discounts as well as birthday month discounts to entice customers to spend more.
You get a free second one when you buy one
Moreover, customers are also motivated to make more purchases by offers such as buy one get one free. You should give this offer when a product is out of style or when there is less demand for it.
Cards for rewards
A few stores offer loyalty cards that accumulate points for every purchase. Customers can redeem the points later in the store.
Consult an expert
The opinion of an expert is crucial when starting a new business. Numerous government initiatives are available to assist new businesses.
There are numerous other benefits to doing business in Hong Kong, besides the ease of doing business and the tax benefits for a few years. So, obtaining professional advice is of great importance to reap the most benefits.
Summary
Running a readymade clothing store has both advantages and disadvantages, just like any other type of business. As a result, you must accept them, overcome them, and satisfy your customers so that you are successful, receive the best advice and support for your business.
Furthermore, it is crucial to understand what your customers want and to provide them with what they require to win their loyalty. ZipLoan can also help if you are seeking a business loan to start readymade garment business.