The trade of clothes or readymade garments stores is a very fast growing business in India today. Due to the high margin in clothes for the trader in this trade, the trader has a very high profit opportunity. But for this business, the trader also reads how to maintain a lot of variety in his store and is always afraid of changing the trend quickly over time in this business. So it’s not a joke to trade clothes or open a readymade garment store, there are a lot of things that the trader has to keep in mind so that he can do his business successfully.
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Readymade Garments Business Tips
- You need to take care of certain reasons before you can start trading any kind of clothes in India. Readymade garments are a final product that you cannot process further, it has to be sold directly to customers. Earlier, we told you about the cotton shirt making business, which is a good business at a low cost. Some things need to be chosen before you can start a readymade business. We are giving below some of the things that will work.
- Type of clothes: The first thing you need to do for this business is to decide if you want to sell any kind of clothes in your store. There is a lot of variety available in the market, which you can start with. In addition, you also have to decide for whom you want to sell clothes in your store for children, young people or boys or women. You can serve more than one kind of person in your store, but our advice will be to start with the same thing.
Readymade Garments Business Plan tips and idea
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Target Customer:
In this business, you serve a direct customer, called the B2C business model. For this, you need to set your target customer from the beginning. Because this business will have different kinds of customers for women’s clothes, different kinds of customers for boys’ clothes and different kinds of customers for children’s clothes. So it’s better for you to decide your customer and set your strategy accordingly.
Carry out paperwork:
This is the most essential thing for any kind of business, the paperwork to be done. You need to prepare all kinds of licenses and other papers complete by opening your store.
Market Research: Before starting any kind of business, it is very important that you know the market and their choice around you. Fashion and style change every day in readymade garments, so you need to collect good information about the trend around you and the price they bear.Quality checks:
The quality of the face you sell matters a lot. In today’s era, the competition has increased a lot of time since people don’t take much time to follow you. Therefore, it is very important to maintain quality along with fashion and trends.
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License for Readymade Garments Business
- Readymade garment businesses require trade licenses like all kinds of businesses. The trade license is issued through your local facility. If in any case, the sellers of readymade garments want to sell their goods outside the city but within the state limits, they also read to apply for a separate license.
- Registration is required for GST or goods and service tax in addition to trade licenses. You can register in GST through any chartered accountant or any other tax consultant in your city. If your annual turnover exceeds 20 lakh, you will be applied for GST, but in every case, you are required to apply for it.
- Selling Price Margin
- The business of readymade garments is a very profitable deal, with a much higher margin than other businesses. If we talk about statistics, the business has a margin of about 40 to 50 percent. The margin of clothing also depends on what kind of clothing you are selling, branded or unbranded because the margin of branded clothing depends entirely on the company.
- In addition, the margin of the clothes also depends on who your target customers are or what quality product you are serving.
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Risk and Precaution
- There is also some risk in this business that you need to know about. Below we’re getting you acquainted with some of the risks associated with it.The business of readymade garments in India is very risky, as it is either very successful or you can go to a disadvantage immediately. In India, stocks change twice a year, one in the cold and in the second summer, so the shopkeeper has to stay updated.
When the function changes, you have to return the old stock to the company or you can sell it by selling it and attracting your customer to a lower price. This allows you to avoid keeping stock till next year and you don’t lose much.
Your products are sold at a good price due to the need for the season. But charging higher prices than other competitors in The Markant can prove to be wrong for your business and your customers may be attracted to another. - Therefore, it should be kept in mind while creating your price list, and one time you need to know about the price of others.