Khata Book Udhar Bahi Khata, Credit Ledger Account
In the Indian economy, textile plays an important role. It is one of the oldest industries and has contributed 2.3% to the GDP. It also has employed over 45 million people, contributes 12% of India’s export earnings and 13% of the industrial production. As of 29th January 2020, with 5% of the global trade contributed by India, it is the second-largest exporter of textiles and apparel. The textile industry has its presence in both the organised and unorganised sector.
The readymade garment business in India has a massive opportunity both in national and international markets. It has massive export potential accounting for over 45% of India’s total textile exports. Government investments and Foreign Direct Investments have also increased exponentially encouraging the growth of garments business in India.
The scope of garment businesses entering this area is also growing with the massive opportunity of easy access and making reasonable profits. If you are one of them, then here’s a detailed guide for getting you to kick start your store.
Get an overview- Before stepping into any business, it is of utmost importance to get an overview of the pros and cons of an existing business. One easy preparation tip could be to work in an already established store to gain a fair idea about the variety one can offer, customer’s preferences, capital required, profits made, supplier’s terms and conditions, logistics and much more.
This way you not only get trained for your business but also earn a handful amount and know what to do and what not to do. Also, visiting all kinds of garment stores in your area- small or big, the garments they sell, price range, other additional features like discounts, return policy and all aspects should be taken into consideration.
Once you have decided that you are ready to start your own business, follow the Plan-Do-Check-Act Cycle (PDCA Cycle)
The readymade garment business is a very broad market so consider the following points:
Your basic focus should be on building a brand since people associate your products with your brand name. Quality should be of utmost importance in this case as brand and quality are interlinked.
Other things to keep in mind
Since you have just started your readymade garment business, it will not immediately make huge profits. It will take some time to grow. Be energetic and polite in your approach and your business will grow bigger in time. Things may not turn out as planned so make sure you are prepared to handle situations in case of any mishappenings.
Take the help of business consultants, experienced people and gain more knowledge. Learn from customers- their likes and preferences because they are the ones giving you business. Execution is one very crucial step because planning doesn't cover all the situations and what actually can occur can only be experienced when implemented.
It is of utmost importance to get your readymade garments business store to constantly monitor the five forces- customers, suppliers, threats from new competitors, new products, and rivalry from the existing products.
|Forces||Factors to be analyzed|
|Customers||Any drop in the profit or dissatisfaction from the customer should be dealt with carefully. This may seem a short-term problem but can have long-term consequences.|
|Supplier||Any issue from the supplier side regarding quality or terms and conditions should be reviewed continuously and discussed for betterment.|
|Existing Competitors||The practices and policies from existing competitors need to be known for any loss of market share that can be faced and to make necessary changes in plan accordingly|
|New Competition||Since readymade garment has no barriers to entry, anyone can easily get into this business and so every movement should be looked into|
|Changes in the fashion||Readymade garments are constantly affected by the change in fashion. Every few months people want something stylish, trendy and new. So you should be on your toes to offer the needs of the customers and at times be the first one to offer for better goodwill.|
These five are the basic forces that should be taken care of.
This step leads to the execution phase after the required checking is done. This helps the business to be on its tracks again. Any kind of disturbances should now be dealt with. The business is ready to face new challenges.
This PDCA cycle continues as long as the business runs and hence it is never-ending.
Pre-Covid online business has already made a presence and hence it was much easy for those businesses to offer customers. After the pandemic hit, businesses that did not believe initially were either forced to shut down or mark their presence in the online world. So selling from an online readymade garment store offers massive variety as well as easy availability to customers.
It also helps in providing better facilities like the return policy, exchange policy, payment conditions, periodical discount or bulk discount and much more for making shopping experience convenient and comfortable. Since you have begun your journey, here are the few steps for making your store visible worldwide and attain great heights.
An important business tip in readymade garments business is to survive. Customers have many options so they will go where they feel they are provided well. In this scenario, you should be active at all times and make a powerful impact on your customers so they come back to you again and again. A few tips could include the following:
All such policies make customers feel that they are valued and the store takes into account their preferences and provides a better discount facility. So this builds the brand image and goodwill of the business.
Since you are starting a new business, it is essential to consult a professional before starting. Many government policies have been implemented for new businesses which can benefit you. It includes ease of carrying out business, tax benefits for a few years, beneficial tax rates, and many other advantages. So it is of utmost importance to take guidance to get maximum benefit.
A readymade garment store will have great opportunities and setbacks. So you should accept them and overcome them and satisfy the customers to succeed. Make sure to get the best guidance and support to get the results you deserve. Serve what you as a customer would want.
Shopping is not always about what a customer wants. Sometimes it’s about getting them what they didn’t know they even needed. So place your customers first and then all your support staff, employees, vendors as they help you to grow and make things easy for you in case of difficulties.
Does a readymade garment store have a long-term future?
Since readymade is one of the basic necessities, it definitely is not going to go out of fashion. How well one can gain a better market stand will determine the life of the store. Also, keeping in touch with the latest fashion trends is a key for long-term business.
How much profit margin is in this business?
It generally ranges from 4 to 13 % depending on the market conditions.
Should we go to an online store or is the traditional offline store sufficient?
With the changing scenario, it is essential to expand beyond your comfort zone and do business in both the online and offline for better credibility.
Is the Mystore app free or are there any charges?
The Mystore app is free, there are no hidden charges for using it.
Which is the best place for an outlet?
It is essential for your store to be in a prime location that is easily accessible by the people. A market place or a shopping mall would be a good option.
How is the competition in a readymade garment store?
There is too much competition but at the same time it also has good profitability and future prospects considering that the readymade garment business will stop.
How can we get more customers in case we begin in this venture?
A better way to attract customers would be promoting your business on various platforms, giving discounts and by using other sales promoting strategies.
Khata Book Udhar Bahi Khata, Credit Ledger Account