written by Sourish | March 30, 2021

How to Start a Readymade Garment Business In India?

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. 

Also Read: 15 Best Online Business Ideas to Start with Less Money 2021 

How to start a readymade garment 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)

Plan your readymade garment store

The readymade garment business is a very broad market so consider the following points:

  1. Choose which type of customer you will offer your product- children’s wear, men or women.
  2. Select what kind of merchandise you’ll focus on. Since you have just started your store, focus on one or two and when it is growing well, add more to your products.
  3. Analyze your suppliers- Quality of the merchandise should be of utmost priority, the terms and conditions of the payment cycle, bulk discount, return policy, stock delivery, etc and other terms and conditions.

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

  1. Keep it simple and easy- Start your business with those products that can easily be sold and bought without much thought by the customer. This will take care of your expenses in the initial days like the suppliers’ payment, overhead expenses like electricity, rent, which are essential for conducting business in the initial days. It will also yield reasonable returns for the future.
  2. Look for a decent location- Since readymade clothings are quite popular, it is better to have a store in a location where people can easily access like marketplaces, near transport stations or shopping malls as well. This will make more people aware of your new business and once they are pleased with your product, people will start recommending it to their close ones.
  3. Initial Investment- Initial investment is generally on the higher side as you need funds for infrastructure, premises whether owned or rented, licenses and supplier’s credit. So you can take a loan from banks or family and friends. Try to limit your capital utilization as much as possible. 
  4. Licenses and permissions- Local administration provides legal permissions for starting a business, so get those clearances done like the shop and establishment license. If your business turnover is likely to cross the threshold limit for GST Registration, then you should get your business registered in 30 days. Even if your limit does not cross the limit, you can voluntarily get registered with GST to avail of ITC benefit.
  5. Infrastructure- Your store should be appealing to the customers and only then they will be willing to enter the store and purchase. Make your place is attractive and place your products on neat shelves and hangers with the proper arrangement according to the type of clothing, price, colour, and such factors. Make it customer-friendly as much as you can.
  6. Employees- Getting efficient employees is important. They are the ones who will help your business grow. Have a team of enthusiastic people who can market well for your business. You will also need an accountant, other helper staff for the business.

Also Read: 10 Tips for Successful Money Management for A Profitable Business

Do and carry out your store as planned

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. 

Check and constantly analyze your business

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.

Also Read: What Is A POS Machine, Its Types? How It Helps Small Businesses?

Act on the factors analyzed in the previous check step

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.

Setup your business online with Mystore App

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.

  • Select an online builder- You will have to create an online presence with the help of an online builder such as Mystore.
  • Social Media Marketing- Once your platform is built, you will need to promote your brand on different social media handles like Facebook, Instagram, Youtube to make a powerful impact on the people and attract more customers towards your brand.
  • A wide selection- Since you are in a readymade garments business, attract customers by offering them a wide choice of merchandise, in all sizes, colours with a varied price range and offers. 
  • Flexible terms and conditions- Many online businesses offer flexible terms and conditions on payment, return policy and also cashback schemes to make it more customer-friendly.

Also Read: How to Get UPI QR Code for your Flourishing Business?  

Stay Afloat

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:

  • Offering discounts- Customers are attracted by the word ‘discount’. Time again many stores offer festive discounts, end-of-season discounts, heavy purchase discounts, birthday month discounts to attract customers for purchasing more.
  • Buy one get one free- Offers like Buy one get one free also attract customers to shop more. Generally, when merchandise goes out of fashion or demand decreases such offers are placed.
  • Loyalty cards- Few stores offer loyalty card facility and points get added to these cards on each purchase. They can be redeemed by the customers later on.
  • Alteration facility- People are offered an alteration facility in case of any misfit in the clothes they purchase. This is complementary and no additional fee is charged for the same. So people can get clothes to fit them well.
  • Return Policy- A 7-day or a 30-day replacement policy is offered to customers based on their bill. 

Also Read: What is a Billing Software? – How Does It Help Small Business in Finances?

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.

Get a Consultant

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.

Also Read: What is the Khatabook Digital Business Card Feature? How Does it Help Small Businesses?


 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.

Related Posts

Know the Best Business Ideas in Punjab

Know the Best Business Ideas in Punjab

How to Start An Online Saree Business from Home

How to Start An Online Saree Business from Home

How To Look For Trending Topics For Your YouTube Videos?

How To Look For Trending Topics For Your YouTube Videos?


5 Mantras To Boost Profits Of Your Kirana Store


Free Business Plan to Start an Online Fruit and Vegetable Shop


Simple Steps To Start a Bakery Business in India


50 Low Investment And Profitable Handicraft Business Ideas


Complete Guide On Starting Your Own Mobile Shop


How To Start Automobile Accessories Business In Minimum Steps