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Textile Business Plans With Low Investment 2023 Updated
Textile business is the most lucrative business to invest in, as India is among the largest exporter of textiles and apparel in the world. The textile industry is one of the oldest industries in the Indian economy. It is highly assorted with an extensive range of components consisting of products like traditional handlooms, handicrafts, wools, silk, and cotton in India.
If you are looking for business opportunities in the Textile industry, you need to first choose whether you desire to be a manufacturer or a retailer. Here we have listed down the profitable and trending business opportunities in the textile industry.
1. Small-scale garment factory set-up
Mounting up a garment manufacturing unit is considered among the top small business ideas in India. If you have tailoring or manufacturing experience you can hire a few tailors and supporting staff to run your business.
Manufacture garments and sell the final product to the wholesaler or the retailer. You must first survey the market to understand about the garment business in India and the demand of people, then select the product or product groups like ladies Kurtis, school uniforms, shirts, or blouses accordingly. With this business, you can go digital as well and sell your products through online websites or social media platforms.
A garment factory of small scale can be set up at ₹5,00,000. In the beginning, you will have to invest in the machines, factory space, and employee wages. Normally the operation cycle for the garment factory is 3-4 months. Blackhead sewing machines are generally cheaper than Industrial sewing machines.
So you have the option to start with a\the blackhead sewing machine with an electric motor to minimize the capital investment. Once the factory start giving returns, you can do full package garment manufacturing CMT (Cut, Make, Trim) manufacturing, depending on the orders of the buyers
2. Garment wholesale business
Almost every garment retailer purchases its inventory from a wholesaler. The garment wholesale business is a profitable venture in which wholesaler stocks and purchase the garments from the manufacturer and disperse them to the retailers according to their order. Later retailers will sell the products to consumers.
They basically act as a middleman between manufacturers and retailers. You get the chance of earning a good margin as one purchases the products in bulk quantity from manufacturers directly.
Before you swoop into the garment wholesale business, it would be better if you get a good understanding of the same industry. The business has many good opportunities but it has its potential challenges too.
You will be able to succeed only when you are alert and agile enough to stay on top of high-speed changes. The quick fashion trend creates a situation of high risk and high reward. Forecasting which trend will go up and how much inventory is to be maintained can be a big challenge. For the success of this business, one needs to be skilled in supply chain management.
3. Export surplus garments store
Most of Generation Z wants to wear trendy as well as branded clothes, but they don’t want to spend a huge amount of money in purchasing them as well. So, here your export surplus garments store will definitely be in booming demand. Export quality i.e International brands at a low price are what everyone has their eye on nowadays.
Many of the manufacturers make the garments in additional volume than the actual order quantity that they receive from the clients. Also sometimes the entire order gets canceled due to quality issues or shipment delays. Hence you can purchase the surplus stock of garments from manufacturers and sell them at decent prices.
Many stores make low-quality garments locally and attach the label of big garments to them, which is a completely unethical way of doing business. Then they sell these copied products in export garment stores. But these are not the surplus clothes is desiring to buy from such surplus stores.
4. Garment buying agency
This garment agency works as a mediator between garment brands and garment manufacturers. They simply receive orders from buyers and get them completed from the apparel manufacturers. A buying agent chooses their suppliers depending on the type and volume of order. Small retailers give the responsibility to sourcing agents for vendor selection. Whereas big brands hire their own team for the selection of a vendor. You can set up a sampling room and product development to captivate more buyers and showcase your wide range of products.
For this particular business, you should have excellent communication skills as you need to be always in touch with your buyers and sell them your designs. There is a need for a small team to start a garment buying agency. You need to also develop a supplier base at the same time, who is capable of making your desired designs at the targeted cost. Successful execution of small profitable business ideas in the textile business depends on your ability and efforts in operating the key ingredients in the desired amount.