Readymade Garments Business

Friends garments and other wearable things are our an essential part of life after food. Therefore people spend lot of money on garment and will always remains its demand high.

Todays the clothing business or readymade garment store is a very fast growing  and profitable business in India. In this trade, due to the high margin in the clothes for the merchant, the businessman has very high profit opportunities.

But for this trade, the merchant has to maintain a lot of variety in his store and also there is always a fear of changing the trend in this business immediately over time.

So it is no joke to trade clothes or open a readymade garment store, there are many things that a businessman has to keep in mind so that he can do his business successfully.

Readymade Garments Business Tips

Before starting any kind of cloth business in India, it is necessary to take care of some things. A readymade garment is a final product that you cannot process further, you have to sell it directly to customers. A few things need to be keep in mind  before starting a readymade business. We are giving below information about some things that will work for you.

Clothing Type:

The first thing for this business is that you have to decide what kind of clothes you want to sell in your store. There is a lot of variety available in the market, through which you can start. Apart from this, you also have to decide for whom you want to sell clothes in your store for children, youth – boys or girls or women.

If you want, you can serve more than one kind of people in your store, but our advice will be that you start with one thing only.

Target Customer:

In this business you serve the direct customer, it is called B2C Business Model. For this, you have to decide your target customer from the beginning. Because in this business there will be different types of customers for women’s clothes, there will be different types of customers for boys’ clothes and different types of customers for children’s clothes. Therefore, it would be better for you to decide your customer and decide your strategy accordingly.

Do the paperwork:

This is the most important thing for any type of business, the paperwork to be done in it. It is important for you to prepare all types of licenses and other papers by opening your store.

Market Research:

Before starting any type of business, it is very important that you know the markets around you and their choices very well. Fashion and style in a readymade garment changes daily, so it is important for you to gather good information about the trends around you and the price they bear.

Quality Check:

The quality of the item you sell matters a lot. Competition has increased a lot in today’s time, in today’s time it doesn’t take much time for people to follow you. Therefore, along with fashion and trends, it is also very important to maintain quality.

License for Readymade Garments Business

A business license is required for a readymade garment business like every type of business. Trade license is issued by your local municipality. If in any case, the sellers of readymade garments want to sell their goods outside the city but within the state limits, then they also have to apply for a separate license.

In addition to the trade license, registration is required for GST or Goods and Service Tax. You can register in GST through any chartered accountant or any other tax consultant in your city. If your annual turnover is more than 20 lakhs then you will be applicable for GST, but in every situation you must apply for it.

How to Select a Place

Location  is a very important thing for any business. This is where you get the first base for selecting your customers or you can also choose the location according to the nature of your business.

If you want to start a readymade garment business like a wholesaler, then space doesn’t matter to you. If you want, you can start it from your home, because in it the customer comes to you according to his needs and you have to take orders in bulk in it.

But if you want to open a retail store, then the place matters, for this you should choose a place where a large number of people come and go.

Marketing Plan & Marketing Area

The area and plan of your marketing is completely based on your target customer. For example, if you are selling girls clothes, then your marketing area and strategy should be advanced. Like you can use social media or digital media. By the way, this is also applicable in the case of children or boys. The main way of marketing is that if you are serving young PD, then your promotion methods should also be according to them. So that you can reach them.

We are telling you some marketing methods for your business in the points below.

Digital Marketing:

In today’s time, digital marketing is the best and successful way of marketing. For this, you can maintain your own web page and maintain it. Or you can also use various social media platforms like Facebook, Instagram etc. for your marketing.

Tele Marketing:

Nowadays it is the newest method of marketing in the field of garment. This is especially applied on girls. Whenever a new stock comes or an offer is made, shopkeepers inform their regular customers about it, this increases their sales. You can also use it for your new business.

Traditional media:

You can give your news on your local TV channel or radio. Apart from this, you can also advertise your news paper running here. And if you want, its pamphlets can also be made, so that people will get information about your new initiative.

Special Offer:

When your business is new, it is the best way of marketing for you. Through this, you can also attract new customers. And then you can convert them into your regular customer through your services.

Use brand:

If you promote a brand that is not already available in your city, then people will be attracted to you. This will increase your business.
Customer Relationship Management: This is the best way of marketing. If you take proper care of your customer and succeed in making him happy. And this is the way of marketing in which you do not need to invest any money.

Staff and How to Define Salary:

For any type of readymade garment business, you need to read the staff so that you can serve your customer easily. But in the beginning it is necessary for you to hire your staff on less salary and save this money with some efforts. As if you are opening your own shop, you will not need much staff like any big branded outlet. According to a shop, you will need 1 or 2 workers, who can help you in your work and you will have to pay 3 to 4 thousand rupees every month for their work, which is not a huge amount.

Apart from this, you will need another person who will take care of your marketing and will manage your social media platform and website. But in the beginning if you want to save money, you can see it yourself. If you want to do door to door marketing then it will be necessary for you to keep marketing staff separately.

Investment:

You do not need to spend a lot of money for a readymade garment business. If you are a woman and want to start it as a side business, then you can start it from your home. You just have to set a place to keep the goods and serve the customers so that the people of the house are not disturbed. But if you want to open your own store, then you have to invest 5 to 10 lakhs. Your investment can also increase according to the quality, quality and variety of clothes, but it depends entirely on you how much you want to spend.

Selling Price Margin on Selling Price:

The business of readymade garment is a very profitable deal, it has a much higher margin than other business. If we talk about data, then there is a margin of about 40 to 50 percent in this business. The margin of clothes also depends on what kind of clothes you are selling, branded or unbranded because the margin of branded clothes depends entirely on the company.

Apart from this, the margin of the clothes also depends on who your target customers are or what quality you are serving the product.

Profit on Readymade Garments Business:

As we have already clarified that your profit margin is about 50 percent. It can range from 25 to 50 percent in different brands and non-brands. After this, after the salary of various taxes, store maintenance and employees, the remaining amount is your profit. Which is a very good amount, so readymade garment business is a profitable deal.

Risk and Precaution:

There is some risk in this business, which you must know about. Below, we are going to introduce you to some of the risks associated with it.

The business of readymade garment is very risky in India, because either it is very successful or you can go to loss immediately. In India, the stock changes twice a year, one in cold and the other in summer, so the shopkeeper has to be updated in it.
When the fashion changes, you have to return the old stock to the company or you can sell it by attracting your customer for a low price by selling it. This saves you from keeping the stock for the next year and you do not lose much.
Due to the need during the season, your products are sold at a good price. But charging more than other competitors in the market can prove to be wrong for your business and your customers may be attracted to others. Therefore, while making your price list, this thing should be kept in mind and one must definitely know about the price of other people.

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