Ever walked past a boutique window or garment store and dreamt of having your very own clothing business? Those trendy stores filled with gorgeous pieces can be seriously inspiring. However, launching a clothing store might overwhelm you. You have to take business registrations, comply with local administrative regulations, find a suitable location for opening your readymade garment store, and also find suppliers for your garment inventory requirements.  

From juggling finances to keeping track of inventory, from dealing with cash registers to customers, it’s easy to mess things up. And to be honest – if you’re starting from scratch you can easily miss out on important details. 

Therefore, it is advisable to go step-by-step to make things much smoother. To help you out, we’ve put together a detailed guide filled with everything you need to know about starting your garment business in India.

This article covers all the necessary steps to start a readymade garment store in India. It includes a checklist for how to find the location for establishing your stores, key business registration documentation required, operational requirements, standard procedures, inventory requirements, and software applications needed to run the store efficiently. Let’s explore how to start a garment store business in India in 2024.

Why a Garment Store Business? Is it a Profitable Venture? and How to Start a Garment Store Business in India

If you are planning to enter the fashion industry, you may be wondering whether it is worthwhile to open a readymade apparel boutique in India.

Let us clear this confusion of yours. 

Did you know the Indian apparel industry is expected to reach a whopping $190 billion by 2025-26? That’s a giant market waiting to be tapped into! The immense growth of clothing fashion startups like Bewakoof.com, Tata CLiQ, Zivame, Clovia, and many more, in recent years is the witness of apparel industry’s positive prospects. The garment industry has long been India’s main economic driver. 

Now that we know the promising outlook that our garment industry has for small clothing businesses, let’s get into the essence of starting one. 

1. Market Research

Before opening your shop doors, take some time to understand your market. This means learning about the local people you want to sell to. What is their persona? What kind of clothes do they like? When and how do they usually shop? By understanding your target audience, you will find your niche. This will help you to stock the right clothes and brands within the correct price range and create a shopping experience they’ll enjoy.

After getting a feel of your target market, get to know your competition. Research other garment stores in your area: what do they sell? What clothing styles are they offering? What are their strengths and shortcomings? This will help you determine your unique selling points. All the things that make your store special and different from the others. 

2. Create the  Business Plan

A detailed business plan is like that map for your readymade garment store. It lays out your goals and shows how you’ll get there. Here’s what to include:

• Shop Concept: What kind of clothes will you sell? What will make your store special?
• Target Market: Describe your ideal customers – their needs and preferences.
• Pricing Strategy: Consider your costs and your customers’ willingness to pay.
• Financial Projections: Set realistic sales & income goals and estimate your expenses.
• Marketing plan for your store: How will you attract customers or market your clothes?

A strong business plan is key for getting loans or attracting investors for your clothing business: 

Personal Investment: A business plan will help you know how much you need to invest if you are investing your own money or savings. 

Loans: It helps you to convince banks to lend you money. A good plan shows them you’re not just winging it, you have a real plan to make your business successful. This makes them feel more comfortable giving you a loan. 

Investors/Partners: A strong plan shows your vision which attracts investors or partners with money! It shows them exactly why your business is a great opportunity. It explains your awesome ideas, how you’ll make money, and how they’ll eventually get their money back (with a profit!).

3. Get Registrations and Licences

Now comes the legal part, in this section, we will discuss some of the common but must-have government formalities that you will need for your store. Before starting the store, you must have proper business registration, local administrative licenses and permits.

Get your business  registered as a suitable entity like:

• Sole Proprietorship
• Partnership Firm
• Private Limited Company
• Franchise

• Shops and Establishment Registration: An Essential for small shops and stores to carry out commercial activity.

• GST Registration: GST number is a synonym of trust in recent times. GST number is a must-have nowadays. If you foresee sales under 20 lakh rupees per year, your clothing store must register for GST. Without a GST, many reputable firms may avoid you because it’s a tax law infringement.

• E-commerce Business License: If you plan to sell your clothes online and have a payment gateway, you will need this license.

• Trademark Registration: If you plan to sell clothing under your own brand, you should register your brand, logo, etc to protect them from being copied.

• Trade License: A trade license is a must-have license to open any small or big shop.

• Fire Safety Certificate

• MSME Registration 

• EPF Registration

• Professional Tax Registration

4. Store Location and Layout 

Finding a perfect location for your garment store can significantly influence your business. Determine the market potential of your target area. The location should be selected after a market survey. Select a heavily populated location with a strong profit potential. High foot traffic and low competition are needed at the suggested location. Sales of physical stores are primarily driven by foot traffic. Make sure there is enough pedestrian traffic and that too of your target demographic. 

Layout Suggestions: 

• Entrance: Design an inviting entrance with clear signage and window displays that showcase your brand and latest collections.  Use mannequins dressed in complete outfits to lure customers in.
• Ambiance: Use beautiful lighting, soft music, and an appealing interior that reflects your brand.
• Accessibility: Ensure adequate aisle space for shopping carts and trolleys. Offer seating areas for waiting customers.
• Fitting Rooms (Trial Rooms): Provide well-lit, spacious fitting rooms with comfortable seating and large mirrors.
• Cash Counter Area: Design a checkout area that is efficient and handles customer flow smoothly. Consider multiple checkouts for peak hours. You can also keep a customer service counter for assistance.

5. Finding suppliers: 

Finding the right people to get your clothes from is like having good partners in your business. You want reliable people who deliver high-quality clothes, just like you promise to your customers. Determine the types of garments you need, including styles, sizes, materials, and quantities. Set clear quality standards for the fabrics, stitching, and finishing. Take your time to research different suppliers and their supply areas. 

You can also attend trade shows, visit local markets, or join online groups to find your ideal supplier. Consider local suppliers for faster turnaround times. Check their business history and customer testimonials.

6. Stocking the Right Products  

Choosing the right clothes to sell is like making a perfect wardrobe. You want to have popular items that everyone loves but also add your own unique touch. Look at what other stores sell and see what people in your area are wearing. This will help you understand what’s trendy and in demand. For example, if you’re targeting young women, consider stocking trendy dresses, statement tops, and comfortable jeans alongside timeless staples. 

Category	Men’s Wear	Women’s Wear	Kids’ Wear	Sports Wear
Tops	T-Shirts Polo Shirts Dress Shirts Casual Shirts Hoodies Sweaters	Sarees Blouses T-Shirts Tank Tops Sweaters Hoodies Tunics	T-Shirts Polo Shirts Casual Shirts Hoodies Sweaters	Sports Bras Gym Tops Sports Shirts
Bottoms	Jeans Dress Pants Shorts Sweatpants	Jeans Leggings Skirts Shorts Trousers Sweatpants	Jeans Pants Shorts Skirts Sweatpants Leggings	Sports Shorts Gym Leggings Sports Shorts
Outwear	Jackets Blazers Coats Vests	Jackets Coats Blazers Cardigans	Jackets Coats Raincoats	Tracksuits
Suits	Business Suits Casual Suits Formal Suits	Maxi Dresses Casual Dresses Evening Dresses Cocktail Dresses	Casual Dresses Party Dresses Rompers	NA
Under Garments	Boxers Briefs	Bras Panties Shapewear	Underwear Vest	Athletic Boxers Supporter
Night Wear	Pajamas Robes Nightshirts	Nightgowns Pajamas Robes	Pajamas Nightgowns Onesies	NA

If you use a garment store software like VasyERP, it tells you your least and best-selling products. This way you can stock more products that are selling high. 

7. Supplies for Garment Store

Once you have your clothes and suppliers, it’s time to think about your shop itself. To present your clothes nicely and run your business smoothly, you’ll need two key things: Hardware & Software. 

• Clothing Racks & Shelving
• Mannequins
• Lighting & Mirrors
• Display 
• Seating chairs
• Surveillance camera
• Decor & Furniture 
• Shopping bags
• Shopping Carts/Baskets
• Cash Register & Receipt Printer
• Billing & Inventory Management Software
• Point-of-Sale (POS) System

8. Marketing Material to Promote Your Store 

So, once your store is ready, it’s time to let people know about it! 

• Opening Event: Host a grand opening with special discounts, refreshments, and music to generate buzz and attract customers.
• Marketing material: Create flyers, banners, leaflets, and other marketing boards for display and promotions. 
• Go online: Create a stunning website or social media pages (like Facebook and Instagram) to show off your collection and connect with customers.
• Get social: Share pictures and videos of your clothes, run contests, and offer discounts on social media. You can even work with influencers to promote your store to their audience.

Garment Store POS: VasyERP

Sure, you’ve got the racks, the mannequins, and the dream collection of clothes. But your trendy garment store needs more than just the basics.  We know that effective management of store operations is not a child’s play. With so many things to manage and track at once, you need a robust Point-of-Sale system. 

That’s where our One-stop POS Solution – VasyERP comes in!

It offers a comprehensive suite of features designed specifically for garment stores. From simplifying transactions to managing discounts and customer engagement. Transforming your daily inventory hassles into smooth offline and online store operations, VasyERP streamlines your garment store with an all-in-one system. The key features of VasyERP Garment store POS include inventory management, Billing and Invoicing, Barcoding, GST Compliant Accounting, CRM, Returns and Refund Management, Multi-store management, Warehouse management, Loyalty and Discount Management. Compatible with various hardware components like cash registers, barcode scanners, and receipt printers, VasyERP ensures seamless integration and high performance.

Wrap Up

Starting a garment store business in India is a promising and potentially profitable venture, given the country’s diverse and vibrant fashion market. With thorough planning, dedication, and a strategic approach, a garment store business in India can thrive and achieve long-term success. This blog post equips you with a detailed checklist, giving you a clear roadmap to jumpstart your clothing venture. It gives essential steps like market research, business planning, legal requirements, and marketing strategies. 

For customer satisfaction, optimal inventory management handling billing, and many more daily activities of your garment store, make sure you deploy quality garment store software. With careful planning, technological support, and a commitment to quality, you can surely thrive in the Indian Garment retail industry.