How To Start a Clothing Business in India? [A Complete Guide]

. 12 min read
How To Start a Clothing Business in India? [A Complete Guide]

Table of Contents:

1. How To Start A Clothing Business?

2. Steps To Start A Clothing Business In India

3. Clothing Business In India

4. How To Start A Clothing Brand In India?

5. Clothing Business In India- How To Get Your Brand Noticed?

6. How To Start An Online Store: Step-By-Step To Start An Online Clothing Store.

7. How To Start An Online Store In India For Your Fashion And Apparel Business?

1. How To Start A Clothing Business?

Readymade garments are a 3 trillion dollars industry, and over one trillion clothes are sold worldwide every year. As per McKinsey’s FashionScope data, the Indian apparel market will be worth over $59.3 billion by 2022, and India will become the sixth-largest garment manufacturer in the world. The market growth is due to a rising population and a growing, aspirational middle class. It is a huge market with space for everyone-big and small.

A clothing reseller or retailer sells apparel to the public after buying them in bulk from a manufacturer or a wholesaler. There are many types of garments to sell. You have to first select a niche category and cater to that demographic segment; it can be boys, girls, men’s, or ladies' clothes. There are also specialty garment shops that cater to a specific group and have a loyal customer base.

2. Steps To Start A Clothing Business In India

Proper planning is the key to start a clothing retail store. You have to find a suitable location to set up a shop, develop a good business plan, and source the right inventory at the perfect price. To successfully start a retail clothing business in India, you can follow this game plan:

Write down your goals A great way to start is to note down what you wish to accomplish with your apparel retail business. For example, you may have a goal to open 5 stores within the next 10 years. Or you may want to successfully expand a stand-alone store.

Step 1- Prepare A Business Plan

You should prepare a business plan for how to run the garment business. A business plan is necessary to obtain financing, and also provide you a road-map. It includes the following: advertising and marketing strategy, business financing, hours of operation, managerial and staff selection, and the manner in how a business will be conducted. Register your apparel retail store with proper government agencies and obtain the necessary permissions and licenses.

Step 2- Location

The location of your store should be in a high-traffic area where lots of people can walk through the area and see your clothes. For example, leasing a store in a shopping mall which has lots of foot-traffic, might be a good idea. Apart from the main showroom, you should have a space to receive and tag merchandise, a small employee lounge, and office space. The location of your store should be such that people can see the storefront from the road. If it is easily visible, then there are more chances of people coming and checking your store.

Step 3- Style Selection

Before opening a readymade garments store, you have to decide on the type of clothing that you would like to retail. You may opt for men’s wear, women’s wear, or children’s wear, or it could be a combination of these. A good idea will be to conduct market research to identify whether or not your market would support a certain type of apparel. For example, your area might need a new women’s ethnic wear store.

Also Read: Best Clothing Brands in India

Step 4- Marketing Strategy

You should put a plan in place to catch the attention of potential customers and get them to purchase garments from your store. A good marketing plan should convince customers that your clothes are better than your competitor’s. All your marketing decisions will depend on your business plan. For example, if you want to sell apparel targeting men over 40, you may want to advertise in a local magazine or newspaper, that is read by that demographic. Social media will also play an important role in your marketing strategy.

Step 5- Financing

If you don’t have your own money to invest, you can fall back upon your friends or family to help you out. You can also reach out to an investor, or take startup loans from a bank. Crowdsourcing is also a great way to finance your clothing business.

Also Read: Clothing Manufacturers in India

Step 6- Technology

Retailers must adopt technology and new ways of meeting a buyer’s needs. The Covid-19 crisis has caused the retail landscape to change overnight. Shopping habits have shifted to online. But though online demand is rising, retailers can lose in sales, if a product is not available online, though it is in stock in stores. The solution to this is an optimised Order Management System (OMS). Retailers have to be data-driven and use tools that make visible every available product on all channels to increase sales. Your sales advisors can process online orders and can also enrich the customer experience by offering personalised shopping services such as pre-booked appointments.

Step 7- Sourcing

Research online to find merchandise vendors who carry clothing that you want to sell. Email or call them to say that you want to buy from them wholesale for selling at your store. Visiting trade shows is another option to buy wholesale merchandise for your store.

Also read: Jeans manufacturers in India

3. Clothing Business In India

Clothing retailers are located across the country and are also on the internet. Most of these retailers need wholesale merchandise for reselling to customers. This is where distributors of apparel come in. A wholesale business provides a link between retail stores and consumers and can be a lucrative venture. An apparel wholesaler usually sells garments in bulk to businesses. First, you have to decide on the garments that you would like to sell. You can choose a special category like women’s wear, or you can pick a particular clothing brand.

Then you have to find suppliers for the clothes that you intend to retail. One of the ways to do it is to go to a company’s website and apply for a distributorship. Visit apparel stores in your area to find a customer base. It is a good idea to start with the local ones since they have the authority to purchase from a new supplier, i.e., you. It is a good idea to bring samples of clothing for the manager or owner to see.

You will be identified by the product that you will sell. So, your focus should be to provide the best quality clothing. Selling bad quality apparel will make you lose your reputation, and perhaps your business. On the other hand, selling good quality clothes will help you to grow your customer base. A garment distributor should stay abreast of all the current fashion trends and able to offer them to his customers. You have to buy or lease a warehouse with an overhead door to make incoming and outgoing shipments easier to handle.

Also Read: Best Watch Brands in India

4. How To Start A Clothing Brand In India?

Every iconic brand has an origin story. Most successful clothing brands are created by people who are passionate about clothing. Here we will share with you some tips on how to get clothing brand started:

1- Develop Your Brand Identity

Brand identity is the public profile of your clothing brand. So, choose a brand name, logo, and slogan that matches your collection, and what you want to convey. Customers like brands with a compelling story, so weave that into your logo and brand name.

2- Social Media Branding

You should pay a lot of attention to your Facebook page profile picture cover and the short description below it. Most visitors see this at first glance. So, you have to work on the image and description, so that it makes a lasting impression. You should put the following details:

  • Hours of operation.
  • Mobile number.
  • Website address.

These details are significant to determine how your business will appear in search results. Facebook also has an internal search, and if people like your page, your brand will get more eyeballs.

Also Read: Best Kids Clothing Brands in India

5. Clothing Business In India- How To Get Your Brand Noticed?

Marketing is the key to ensure that your brand stands out in the crowd. Communicate to your customers what your brand is about, and why you do it. Let the world know about your products and what differentiates them from other competing brands. Remember that you are your brand’s number one marketing person!

6. How To Start An Online Store: Step-By-Step To Start An Online Clothing Store.

  1. STEP 1- CREATE YOUR ONLINE PRESENCE: First, create a clean, professional-looking website and use a domain provider to secure a web address that matches your business. Make your website visually appealing; it should match with the apparel that you would like to sell. For example, if you want to sell clothes to teenage girls, design your website so it’s fun and cute with bright colours. For the best results, you can hire a web developer to create your website.
  2. STEP 2- USE SOCIAL MEDIA FOR YOUR BENEFIT: Social media is an integral part of marketing your products. You can add a link to direct visitors to your website and increase its traffic. Start an Instagram for your business to advertise the sale and to share photos of your inventory. Create a Facebook page to share content that will make people aware of your business and will also increase engagement.
  3. STEP 3- STAND YOUR NICHE: Clothing Business In India-be it retail or wholesale is a very profitable and promising business if done with dedication and hard work. We hope that the above article will incentivise you to start this venture.
How To Start A Clothing Store Business Plan In India?

7. How To Start An Online Store In India For Your Fashion And Apparel Business?

With the dawn of the pandemic, online business in India has boomed drastically. Retail businesses and companies are going online since then, but have you ever wondered how would online fashion shopping work? What are the customers need, what's your target audience or how would you start marketing your online clothing store; let us discuss them below:

  • Get a domain for your website, and hire a web designer for customising and development.
  • Designing your Store- Online or offline all stores require a custom theme that'll showcase your brand, menu navigation, add about section page, contact information, privacy, return, and shipping policies, etc.
  • Design your Product Catalogue and assist in making the right purchase like- size chart, reviews, live chat support, and virtual try on.
  • Customise your cart, add various payment methods on checkout, add shipping fees, and coupon codes if applicable.
  • Customise emails via email marketing strategies.
  • Partner with a delivery company, and provide customers with a tracking facility for their products.
  • Also, offer ‘pick up at store’ for people living in the same neighbourhood or city.
We hope our article helped you with your research. You can also visit these linked articles if you're interested in starting such a business:
Dry fruit business Pani Puri business Car dealership Kirana business
Franchise business Medical store business Tea stall business Vegetable business

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Q. How to start a Clothing Store Business in India?

Ans- The clothing business in India is one of the most prominent industries in India. Follow these steps to understand how to start a clothing store business plan in India:

  1. Gather funding and Investment for business
  2. Fulfil your GST Registration
  3. Be precise in Picking Location
  4. Start via small scale don't go big upfront
  5. Do competitive market research
  6. Be creative and curate original styles/items
  7. Find reliable Distributors and Suppliers for filling Stocks
  8. Decide what to Sell
  9. Hire trusted Staff for your Store
  10. Choose the Right hours of Working and Operation
  11. Offers Attractive Discounts to attract Customers
  12. Manage inventories with Bookkeeping via OkCredit

Q. How can I get a license to sell clothes in India?

Ans- After choosing your business entity and filing the needed paperwork for the same you have to register within your city(if applicable). The licenses mandatory for a clothing business in India are Gumasta license, Sole Premonitory/Partnership/LLP/Private Limited, TIN/PAN/TAN, VAT & CST for eCommerce.

Q. How much money do you need to start a clothing store?

Ans- Initially, to start a clothing business in India you will need a minimum capital from 5,00,000 to 10,00,000 Rupees. This amount will cover all from location to business license costing.

Q. How to Start a Clothing Brand in India?

Ans- The things needed to start a clothing brand in India are as follows:

  • Solid Business Plan
  • Choose your Target Market Audience
  • Prepare a Solid Business Model
  • Obtain all needed Permits & Licenses
  • Establish Business Contacts
  • Curate a Marketing Portfolio
  • Participate in Exhibitions, Shows, etc.
  • Email Marketing and Press Releases

Q. Is clothing a good business?

Ans- The Clothing store business is one of the most profitable and successful businesses in India. If you plan and manage your cash flow properly, you can start obtaining profits within your first year of venturing into the clothing market.

Q. Is it hard to start a clothing business?

Ans- Every business in the world comes with its own list of pros and cons and if there isn't proper planning, execution, reliable staff or decent funding your clothing startup can be doomed towards failure. So plan well and market better to become successful and earn profits.

Q. Where can I sell clothes online for free?

Ans- Generally free websites aren't available in India, as they all require some nominal mandatory charges. However, here are some popular websites to sell your clothes online in India are:

  1. Etsy
  2. eBay
  3. Amazon
  4. Flipkart
  5. Myntra
  6. Snapdeal
  7. Meesho
  8. Facebook Marketplace
  9. Kiabza
  10. Olx
  11. Quickr
  12. OkShop
  13. Vinted
  14. Shopify
  15. Shopclues

Q. How successfully sell clothes online?

Ans- Some easy tips for selling your clothes online are as follows:

  • Focus on your Niche style to promote
  • Take time to understand and research the market
  • Be creative with packaging and providing a personal touch
  • Launch seasonal collections to keep up with the trend
  • Manage your Labels
  • Check competitive website pricing before putting your own
  • Have good quality photographs with better descriptions
  • Ensure second-hand items are in good condition to sell & ship

Q. How can I start a clothing business with no money?

Ans- You can try crowdsourcing, ask your friends or family to invest or reach out to banks for a small startup loan to begin your business. You can reach out to investor and prove your brand value and get going.