The clothing business or ready made garment store is a very fast growing business in India today. In this trade, due to the high margin of 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 at the same time there is always the fear of changing the trend immediately in this business. 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.
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. Earlier, we told you about the business of making cotton shirts, which is a good business at low cost. A few things need to be selected before starting a readymade business. We are giving below information about some things that will work for you.
Short Tips About ReadMade Garment Business
- 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, this 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 kind 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 face you sell matters a lot. Competition has increased a lot in today’s era, people do not take much time to follow you in today’s time. Therefore, along with fashion and trends, it is also very important to maintain quality.
License required for readymade garment business
- A trade 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. You Can Apply HERE for 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.
Best Place To Open A ReadyMade Garment Shop
Place or location is a very important thing for any business. You get the first base for selecting your customers from this or you can also choose the location according to the nature of your business.
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 people come in large numbers.
Total Investment For opening A ReadyMade Garment Shop
You do not need to spend a lot of money for 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 5 to 10 lakh investment will have to be made. 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.
Profit/Benefits in readymade garment 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.
Margin on selling price on Garment Business
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 the clothes also depends on the 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 clothes also depends on who your target customers are or what quality you are serving the product.