Featured Market-14: Ahmedabad - Cotton Market

. 6 min read
Featured Market-14: Ahmedabad - Cotton Market

Why You Should Visit? Insights for Small Businesses

Ahmedabad is one of the largest textile hubs, home to thousands of spinning mills and tons of wholesale markets with a wide collection of fabrics and garments.  It has 62 textile mills and employs around 1.3 lakh people, about one-tenth of the city's population. It is popularly known as “Manchester of India.”

Famous cotton markets in Ahmedabad

The city embraces a spectrum of markets based on their size (the number of shops that can fit in the market). Small, Medium & Large Markets. Each market has a scope to have retail & wholesale shopping. It also is home to some famous brands like Arvind Cotton and more. These famous markets in Ahmedabad are located in the middle of the city and are easily accessible via all means of transport.

Some of the best markets in Ahmedabad are listed below:

  • Rani No Hajiro market is famous for its handloom fabrics (Ikkat, Mashrysh, Ajrakh) and costume jewellery.
  • Looking for Bandhani & the best cotton fabrics for your Kurtis or dupattas? — Bandhej market is your go-to place.
  • One of the most lively Ahmedabad shopping markets with almost everything you look for (from food markets to accessories) is the Lal Darwaza market.
  • Want to meet local Amdavadis and also shop at cheap rates? — visit Sindhi market, one of the best markets in Ahmedabad.
  • Dhalgarwad Market has amazing collections of sarees, cholis & lehengas for all your wedding or traditional needs.

Apart from these, you can also explore Maskati Market, Ghantakarna Mahavir Market, Nutan Cloth market, New Cloth Market, Ratanpole, and countless others.

These markets are home to several wholesalers, manufacturers & suppliers. The number of shops in these markets ranges from 200-500 based on their sizes. Most of them have offices and godowns in the same market.

You find all ranges of fabrics starting from Rs.12/meter to Rs.1000/meter. To give you an idea of the starting range of products, dress materials start from 100/-, Kurtis & leggings start from 85/-, and ready-made dresses start from 350/-. You can find the best quality garments at the lowest prices in these markets.

Most of these markets open at 10 am and close at around 10 pm. These markets are located in the middle of the city (13kms from the railway station & 14kms from the airport).

1. Low Capital Requirement & Easy Set-up.

To start a small shop (wholesale/retail) in a popular market usually doesn’t require huge upfront capital. You can start with renting a 100-200sft space and set it up with basic requirements. Before investing capital on the inventory (fabrics/garments, based on the type of business), analyze the hot selling products in the market and invest in them accordingly. You can also try partnering with the local manufacturers/wholesalers for better deals or try navigating the business towards inventory light models.

Decide what works best for your business and how you can add value to the customers compared to the other competitors in the market.

2. Very Less Marketing Expenses.

The Ahmedabad shopping market has hot selling points. The individual shops usually don't need any advertisements to attract customers. The general tendency of visitors here would be to visit as many shops as possible to get the best deal on the item of their choice. So, focus on building better pricing models, a better collection of hot-selling products, and the look and feel of the shop.  

Indian lady with long black hair and red shirt shopping in a handicraft store

3. Very Low Maintenance Cost

Since the shop will be located in a market where there are around 200 shops. Usually, a small space with basic requirements will be sufficient. The rent, electricity, labour charges will be low compared to a proper retail shop in a fancy locality in the city. Also, you will be able to manage the shop with 2-3 workers.

How to set up a small profitable textile business in 4 simple steps

1. Before you decide, do a diligent market study.

Every famous market in Ahmedabad has its vibe. Visit all the markets within the zone of your focus and find the best fit for your new business. While you decide:

  • Make sure you check about all the legal requirements. Some markets might prohibit certain types of goods. Some might limit the number of vendors who can sell certain products.
  • Ensure the market has some scope and is not saturated with the type of products you plan to sell.  Also, make a note of the pricing on items similar to yours.
  • Know about how to reserve space in advance and how much it costs.
  • Talk to the other vendors and ask if they are happy with the traffic and sales.

Understand who the responsible authority is and the paperwork needed to set up a business in the focus area. Have a clear idea of the tax and licensing requirements. Be careful and proactive.

3. Source your inventory and set up your shop

Maintain good connections with local merchants, wholesalers & suppliers. You might find a ton of textile lots available actively at auctions. Figure out the shipping and logistics of your inventory. Optimise the costs when starting up.

Decide what equipment you would need for your shop. Depending on what you plan to sell, you may need more for display than just tables. Set up clothing racks, stands, mirrors, etc., which make the shop look attractive.

Do not over-stock the inventory at the beginning. Have a plan to source inventory based on the demand. Have it flexible in the first couple of months. Once you identify the hot-selling products & high-demand items, you can plan your inventory based on them.

Computer on wooden table writing SELLING

4. Start Selling

Have everything ready to sell when the market opens up, and your first customers arrive. The first impression lasts. So, try the following to boost your sales:

  • Take some time to make your shop look nice and fine. Have the showiest items in the front. Give shoppers a good reason to stop at your place.
  • Be prepared to negotiate the price. Customers love to bargain. Decide in advance how low you would be willing to go on your goods.
  • Have plenty of cash on hand, especially small bills. If you like to maintain your book records digitally, try Okcredit for a seamless experience.

Also read:

1) Best Markets in Haryana
2) Best Markets in Tamil Nadu
3) Best Markets in Kerala
4) Best markets in Andhra Pradesh
OkCredit: Simple, Paperless & Secure solution for businesses


Q. Should I apply for a loan to open a shop in a big market?

Ans. Not necessarily. Usually, businesses in the Ahmedabad cotton cloth market are not capital intensive. However, if you evaluate your business needs (logistics, raw materials, & merchandise) and decide to take a loan, you must have a good credit score and neat documentation to get the loan approved.

Q. How can I make my small business profitable?

Ans.  These small businesses can be very profitable when executed in the right way. Spend time doing the right market research and identifying the most popular items that are usually in high demand. Try to have a more appealing inventory compared to the competitors in the market. Ensure competitive pricing. Have bundled offers that are very attractive and catchy to the customers.

Q. Is building an online presence necessary?

Ans. If you are a small business owner and own a shop in a huge wholesale market, an online presence might not make much sense. But if you have unique products which can attract customers, having an attractive social media page would be beneficial.

Ans. One of the must-visit places, when you visit Ahmedabad, is the Sabarmati Ashram & Riverfront. Apart from this, you can explore Iskcon temple, Kankaria lake, Auto world vintage car museum, Manek Chowk, Hathee Singh Jain Temple, Lothal, and many more. The best time to visit Ahmedabad is usually in winter.