If you are thinking about How to Grow Readymade Garment Business then we share a complete knowledge about this topic .
As you must be aware, how fast the business of clothes is going on these days. Along with this, the business of readymade garments is also going to new heights, behind which is style and new fashion. According to the figures of 2020, there are more than 20 million readymade garment shops in India and thousands of new stores are opening every year. That is, this business is flourishing very fast.
In this article, we will inform you all those types of information so that you can prove your business of readymade as a good business and how it is grown, it will also be deeply considered.
How to Grow Readymade Garment Business
In such a situation, if you also want to start this readymade garment business and want to grow it, then this post will be very helpful for you.
Because in this post, we will tell you how you can avoid many pitfalls by following the 8 tips given below, as well as set up a profitable clothing business.
Along with this, if you want to know which business to do as a side business, then read this also.
#01 Focus on buying rather than selling
This means that instead of selling anything to the customer like a salesman, focus on the inventory you buy. Buy only that stock and keep it in your stock which is in trend, customer wants to buy or very easily sold immediately. Now understand your market and sales to focus on Purchasing.
For which ask these 3 questions –
- What kind of public lives and hangs out where your store is located?
- What is the best selling item in the last 6 months of sales?
- What are your competitors selling the most and are they profitable?
When you get the answers to these questions, you will know which goods you should buy. Because when you buy the right goods, you do not have to put much effort in selling, that thing is sold automatically.
#02 Understand Fast Inventory Rotation
India is a country of festivals and festival means more shopping. In such a situation, the festival of Diwali and weddings is very important for any garment retail store.
But this is where most of the new traders/shopkeepers make the biggest mistake that they order Inventory/Stocks one month or 20 days before the festival. As we know that the whole of India is going to shop together on festivals, then the demand will increase, due to the demand, there will be more load on the Manufactors and due to which the Supply Chain will be completely busy at the last moment.
Due to which it happens that you get a little expensive stock at such a time and the delivery also gets delayed.
The best way to avoid this is to place your order for your goods/stock at least 60 to 80 days before the festivals. Along with this, contact such a Manufactor who provides Fast Delievery with good Quantity.
#03 Bring your business online
Small things matter a lot in business. In such a situation, if you have a garment shop today, then your access will be only to offline customers. But do you know that with a peak cost of only ₹ 2500 to ₹ 3000, you can also create your online presence and promote your shop online.
For this you can do the following things:-
- List your shop on Google My Business – It is completely free.
- Make a shop website and feature the product – it costs ₹ 3000.
- Use Social Media – Instagram, Whatsapp, Youtube are useful for you.
All this will happen that you will be able to reach more and more people, which will increase the overall impression of your shop, which will also increase your sales.
#04 Give the customer what he wants
Never present an item different from the demand of the customer. Because in the first 10 to 15 minutes after entering the shop, the customer has real excitement to buy and if you are not able to give him what he has come to take in this time, then there is every possibility that he will leave without buying anything.
Will go For example – A woman comes to your shop and she demands Courtenay saree. In such a situation, if you or your salesman starts showing silk or any other type of saree by mistake without fulfilling the first demand which is Courton saree, then it creates a negative image towards your shop in the mind of the customer.
That’s why it is important that first listen to the customer completely and try to understand what he wants. Whatever his demand is, if you put the relative best product in front of him, then the chances of sales become very high.
#05 Train your salesmen for Marketing
Do you know that by keeping only one better salesman at your shop or by giving 2 to 3 months training to an average salesman, you can increase the Monthly Revenue of your shop by 50%.
Let us take an example to understand this – Suppose you have 50 customers a day at your shop and you have a salesman who deals with the customers. Now that salesman is a normal speaking person due to which he is able to sell goods to only 10 out of 50 customers.
Now if you give training to that salesman to talk to the customer, sell the goods, speak friendly and understand the demand of the customer, then he will be able to sell the goods on 15 instead of 10 out of 50, which will increase your sales by 50. Will increase by %. But if you do not have any salesman and you deal with the customer, then in this case you can make yourself better with online training and offline practice.
#06 Business location is also important
Is there no vegetable market near your shop? Are you in such a location from where thousands of people leave everyday? Is there any big showroom near your shop or shop similar to yours?
If the answer to all the above three questions is yes, then the location of your shop is perfect. If it is not so then you have to think about the location once again.
Because it has 3 important points –
- Impression (how many people viewed your shop),
- Clicks (how many people visited your shop)
- Conversion (how many people actually made a purchase) All these points are also applicable for your shop.
So if your location is perfect, then thousands of people will visit your shop daily (impressions), which will increase the chances of coming to the shop (clicks) and it will also increase the sales (conversions).
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#07 Stay away from debt stock
Debt Stock means that the goods which have been lying for the last 4 to 6 months and are not being sold. Due to over buying of inventory, change in trend or out of season the stock becomes out dated and due to that it remains lying for many months. In such a situation, you have to understand that until the old goods are not sold, there will be no cash flow to buy new goods, nor will there be a place to keep them.
For this it is necessary that you sell the debt stock as soon as possible and keep doing Inventory Rotaion every 1 to 2 months. This will happen that every time the customer will get to see the fresh stock and he will be more inclined to buy it. Now the question is how to sell Debt Inventory?
So one of the best ways for this is that if your goods have become 6 months old, then it is better to sell them cost to cost and if it is not selling in that too, then reduce the price a little more. Yes you are listening right. With this, instead of selling the goods of ₹ 500 for ₹ 800, you will start giving them for ₹ 500 only, which will seem cheaper to the customer and the goods of 6 months will be sold in 10 to 15 days.
Due to which your Cash Rotation will start which will help you in buying new goods and you know that new goods are easily sold.
#08 What is seen will be sold
By the way, this saying has been going on for a long time that what is seen will be sold. This is also true because you must have seen that in big showrooms and shops, some such attractive clothes are hung outside in the frame or on the mirror of the main door, which impresses the customer.
Goes and with this your business also increases and the number of customers also increases. In this way, you can run the business by moving forward with the interest of the customers.
#09 Offers and Discount
Whether you agree or new, Offers/Discount are liked by everyone. So in this case, if you sell by reducing your margin by only a few percent, then the sales will be more, the faster the sales, the faster the stock rotation will happen and the new goods will also be sold faster.
For example, Ram and Shyam both have a garment shop and both of them bought 100 shirts from the same wholesaler, which they got at ₹ 500 per shirt.
Now Ram kept his margin (profit) at 30% while Shyam at 60% – Now there was no difference in the quality of both but Ram’s shirt was worth ₹650 (500+30%) and Shyam’s was ₹800 (500+60). %).
Due to this difference, Ram sold 300 such sets, due to which he earned ₹ 150 each, so his profit = ₹ 45,000 (₹ 150*300)
Due to the higher rate of Shyam, he was able to sell only 100 certs, due to which he could make a profit of = ₹ 30,000 (₹ 300 * 100).
If you want to grow your business of readymade garments, then focus on Inventory Rotation, Low Price, Online Presence and Salesmen. Because if you become 10% better in every part, then you will be 40% ahead of your competitor and will be able to earn more profit.
In this article we share a complete knowledge about How to Grow Readymade Garment Business and related things. If you have any questions then comment us.