Everyone desires economic freedom and pleasant life. But, it's unlikely to attain this without doing anything. Using the available opportunities, you could make an excellent income.
The selection of the area where you'd like to operate and conducting thorough market research are also important concerns. It is essential to ensure that your budget is adequate for the venture you plan to create so that you do not need to borrow huge loans to begin a company.
Each business concept can bring an excellent profit if it is evaluated properly. Some ideas, when executed correctly, can triple your profits. This article includes a countdown of highly lucrative retail business ideas in India.
Did you Know?
In India, the retail sector contributes to the equivalent of 10% of the GDP in addition to 8% the employment. India is among the top 5 retail markets around the globe in terms of economic value. It is among the most rapidly growing retail markets worldwide.
Best Retail Business Ideas in India
Looking for retail business ideas? There are many options available in India. You can retail almost anything if you have the passion and the platform. Some of India's most common retail ideas include Kirana Stores, Fruits Stores, Stationery and Books Stores, Flower Shops, etc. Here are some more ideas to get you started:
1. Kirana Stores
Kirana shops can be an ideal option among the best profitable retail business in India. Besides the benefits of a small store, a Kirana Store is a lucrative business in India. Kirana stores sell household items like detergents and soaps and are located near a residential neighbourhood. Their profits vary but are between 5% to 20%.
As a result, Kirana stores are highly profitable. It is essential to understand the local market and its needs before deciding on this type of retail business. Before starting a business, one should know his target customers' needs and expectations. When starting a Kirana store, consider targeting the locals within a few kilometres of your store.
Locals may prefer local brands for food items, bathroom products, snacks and candy. While selecting the inventory, consider the consumption patterns of your target customers. After all, your customers are the ones who will be spending the most money on your store! The Kirana store business model requires sourcing from trusted suppliers. By using reputed suppliers, you can get lower prices for basic commodities.
Customers will become loyal to your store and your staff, so the prices will keep changing regularly. Buying on credit is also possible with this business idea because you will only pay suppliers when your products are sold. Your profits will increase because you will not have to worry about sourcing inventory from different suppliers.
2. Stationery and Books Store
Stationery and books store is a profitable venture, as it allows you to earn a profit of up to 35-50%. Also, stationery items are in high demand in schools and offices, so you can target them and make a handsome profit.
If you wish to expand your business beyond stationery items, you can also sell confectionery items. In addition to stationery and books, you can also offer educational DVDs, creative art kits and new-age gadgets to your customers.
There are many ways to increase your profit. For example, you can sell stationery and books online. You can promote yourself by posting links and photos on social media sites if you have a website.
Also, if you have a store that sells stationery, you can sell it online at a good rate. Regardless of which method you choose, you should be able to make money!
3. Fruits Store
Among the best retail business ideas for fruits, opening a fruit store is one of the easiest ways to make money. The first thing that you need to understand about this business is the cost of maintaining and procuring the fruits.
If the fruits are not kept in good condition, they will spoil soon. You need to invest between ₹40,000 - ₹60,000 in opening a fruit shop. The remaining amount can be invested in equipment or a business licence.
The fruit business has heavy prospects in India, but it's important to understand that the competition is tough, and you will have to focus on an effective marketing strategy. Other than that, you'll also need to focus on customer service skills and inventory management. Fruits are an important part of our lives, as they help keep a healthy body. Hence, you should focus on the quality of fruits to ensure a good reputation.
4. Flower Shop
Among the best & new retail business ideas, the flower shop deserves a position. Opening a flower shop is one of India's most common business opportunities. The popularity of flowers has increased across the country, and it never goes out of style. Flowers are a popular gift item for loved ones, and they match the essence of festivals.
The fact that flowers are accessible and enjoyed by people from all social classes makes them a great opportunity to open a flower shop. Whether you choose to own a flower shop or franchise, the benefits of opening a flower shop are endless.
Depending on your location, you can sell flowers online and at local events. To make the process even easier for customers, you can also open an online shop. Once you have established an online presence, you can begin selling your services.
Depending on your location, you can expand your business to other cities and states. Having a physical location may not be necessary, so be sure to take the time to learn about the local market before opening a flower shop.
5. Gift Shop
One of India's most popular retail business ideas is opening a gift shop. These sarees are widely used by people of all age groups and can be profitable. The basic requirement is a suitable location.
Apart from selling sarees, you can also sell gift cards and corporate gifts. These cards are widely used for every occasion and can generate good revenue. In addition to these products, gift shops can also sell items for weddings, parties and other occasions.
6. Cosmetics Store
Despite its high competition, running a cosmetics store is still profitable & among the best retail business in India. Cosmetics are a must-have for women. But men are equally interested in trying out new beauty products.
This retail business idea is worth trying. Its product range can be endless. Here are the essential steps to running a cosmetics store. You will also need to hire staff. The total cost of setting up a cosmetics store is between ₹1-2 lakh, including a deposit, rent for a few months and furnishing of the shop.
First, the layout of the store is crucial. In the beauty industry, brick and mortar stores perform better. Consumers want to try before they buy, so the store layout should be designed to allow shoppers to do so. You should avoid focusing too much on the products; if not, shoppers may get frustrated and leave empty-handed.
7. Medical Store
If you are looking for a profitable retail business venture, you should consider a medical store. This type of store involves providing prescriptions and other medical services to the public. Depending on the location and size, you may need to invest between ₹10 lakhs to ₹1 crore.
You should have a shop with a minimum area of 10 square metres. In addition to that, you will also need a refrigerator because certain drugs need to be stored at a low temperature. The cost of a medical store varies from town to town, so you should be prepared to spend a little extra money.
Compared to buying an existing store, setting up a medical store is a relatively inexpensive venture, and you'll also spend less on financial deals. Medical store loans are available from various institutions, and disbursement is quick.
Once the medical store is up and running, you'll need to invest in marketing to maximise the profitability of your business. This process may take a long time, however. It will take some time to build a customer base and become profitable.
8. Saree Shop
As one of India's most profitable retail business ideas, setting up a saree shop is an excellent choice. It allows you to become both a wholesaler and retailer. You can start with very little experience, but this business requires a well-planned sales strategy.
Choosing a name for your saree shop is an important first step in this business plan. Make sure that you choose one that is easy to remember and avoid any trademark issues. Using the same name as another brand can lead to legal troubles, so do some research first.
If you maintain a good inventory that comprises sarees of various types and various price ranges, then your shop can become a local hotspot for saree buyers.
9. Art Shop
If you are an art enthusiast, you can open up an art store. Aside from selling paintings and photographs, you can also hold classes and private parties and even sell paintings. You can also specialise in mural art. If you are an art lover, you can also open up an art store that sells handmade crafts. You can also sell paintings and other decorative items in your store. A few good ideas can help you start a successful art store.
Eligibility Criteria for Obtaining a Retail Business Loan
To qualify for a loan for a retail business, you must meet the following requirements:
- To be eligible for a loan, you must be an Indian citizen.
- To be eligible for the loan, you must be a self-employed individual.
- Self-employed individuals between the ages of 26 and 66 are eligible to apply for a loan.
- Businesses that have been in existence for at least three years are eligible.
Documents Required to Obtain a Retail Business Loan
A list of common paperwork required to acquire a loan to buy a shop is provided below.
- Fill out the business loan application form and attach one passport-size photo.
- Passport, PAN card, voter's ID card, driving licence, and other forms of identification are acceptable.
- Ration card, telephone bill, lease agreement, electricity bill, passport, trade licence, and sales tax certificate are examples of proof of residence.
- A passport, photo PAN card, and voter's identity card are all acceptable forms of proof of age.
- Financial documents such as the last two years' IT returns, the last six months' bank accounts, and the last two years' P&L and balance sheet audited by a C.A.
Professional Proof of Sole Proprietorship Identity - List of Documents for Self-employed Individuals
- Proof of Sole Proprietorship Identity
- PAN card/IT return documentation of the borrower or municipal tax, water, and electric bills in the applicant's name
- Proof of identity for sole proprietors, such as a passport, driver's licence, voter's identity card, or PAN card.
- Proof of residence for the sole proprietorship, such as a driver's licence, passport, or voter's identification card.
List of Documents for Non-Professional Self-Employed Individuals Proof of sole proprietorship identification.
- Tax returns from the previous three years.
- Documents from three years of sales tax returns.
- For the previous three months, a copy of the periodic stock and creditors' statements.
- The applicant's bank statement for the previous six months.
These were the most lucrative retail business ideas in India. All have different requirements, and you must choose a business in which you're truly interested and have knowledge. No matter what business you choose, consider doing in-depth research before starting.