June 19, 2024

How To Start Garment Trading Business In India?

In India, when you think of starting a new business, the first best option that comes to your mind is textiles business or readymade garment sellers. This is because garments are always in demand in India, and it has a dynamic market as well. If you also want to start a garment business, then here’s how you can start:

Find Your Niche

The first thing that you need to decide is to plan what you want to sell, as garments mean a plethora of things. So, sit down and decide that sort of clothes that fascinate you. You can decide on a theme, category, and accordingly, find the right market. Notably, if you try to sell all kind of clothes, you would only confuse your customers and lose out the opportunities.

The following are a few categories:

  • Indian or Ethnic clothes, such as salwar suits, sarees, kurta pyjama for men, etc.
  • Exclusive kids’ fashion
  • Men’s clothes
  • Women’s casuals
  • Sportswear
  • Wedding wear
  • Nightwear or innerwear
  • Winter wear
  • Accessories, watches, belts, jewellery, etc.

Know Everything about the Domain

When you are prepared to enter the field, it is advisable to have some experience in the field. Either retail apparel store apprenticeship or fashion designing degree would help you overcome these hurdles. With some experience, you can efficiently operate and manage your readymade garment business. Now, before you start selling clothes, have an understanding of style and always keep up with the trends.

Find Suppliers

Once you finalised the category that you want to sell, now figure out how to start. If you’re going to produce the clothes or just want to start a retail store. From where to get raw material and where to manufacture the final product?

If you want to manage the wholesale store, find a label that fits you the best. You can become a distribution centre as well. However, for this, you need to tie-up with the manufacturers.

Target Market

One of the most important task before you start your business is to perform market research. You can conduct market research on the existing garment stores and the sort of clothes which are in demand. This will help in figuring out the best customers for your category. In India, people generally think that only women constitute the clothing market. However, in recent times, men have also become a significant contributor to the market. So, you need to find the existing market gap that you can fill in.

Here, the key is to sell the garments which are in high demand but less in supply. Significantly, you need to perform research keeping the following factors in mind:

  • Age group
  • Geographical details
  • Culture, etc.

Find the Right Location

Location of your retail store will play an essential role in the success of your business. You need to search for an area where your customers can reach you with ease – a place with high visibility for your potential customers. Nevertheless, you also need to ensure that you need to combat the competition at these high visibility areas.

Also, look into the physical premises of the store, such as a place to keep inventory, changing rooms, counters, and storage shelves. The shop appearance influences customer purchasing behaviour. So, makes sure your store is neat and accessible by your customers.

Getting the Investment

Funds are essential for your business to run. With no capital in hand, you can’t operate any business. For this, you first need to write a garment store business plan to present to investors. The business plan should have business details clearly mentioned, such as business objectives, ownership patterns, missions, type of apparel you wish to sell, etc.

If you wish, you can also provide a marketing plan in the business plan. Notably, if you need a business loan, a business plan is essential. Besides, if your garment business plan is effectively created, the lenders may offer you low business loan interest rate.

Attending to Legalities

Once you register your business officially, it will be easy for you to obtain all the necessary licenses. Fill all legal documents with insurance details and PAN. Notably, you need to register for appropriate taxes as well, such as GST registration. If required, you can also take legal counsellor’s help as well.

Managing Inventory

Inventory management is a must-have skill to run and manage any retail business. You need to plan your stock management – it is crucial. Stock the clothes that are in demand, clear old stock regularly, and stock as per the seasonal demands. If you wish, you can take the benefit of various inventory management software as well.

Hiring the Right People

Your staff needs to be efficient and capable of running your retail store. Depending on the size of your retail store operations, you can hire people who can handle customers well. Besides, they also need to know the apparel and clothing industry.


Pricing the products correctly hold critical benefits. Price products keeping the market rates in mind. But, also ensure that you have profit margins. Also, if you are offering unique designs, highlight them and accordingly price your products.

In a nutshell, starting your own business is a beautiful feeling for any individual. However, it adds a number of responsibilities on your shoulder that you need to meet.


Kanika is an experienced and knowledgeable financial advisor, ready to work with you to ensure you and your business future. She also emphasizes the need to adjust investment plans as your goals and needs change.

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