If properly organized, a fashion/garment business can be a prosperous and glamorous business. Do you want to open a new business? Or perhaps you'd like to expand your fabric business? Many new clothing businesses are starting every year, but do all of them succeed? Unfortunately, no; their failure was due to a lack of good preparation. We will use this post to assist new retailers in making better judgments about opening a new business by evaluating significant variables that are critical to a garment business's success.
You must first look at the demographics of the individuals who live near the proposed business location, such as gender, age, occupation, income, religion, and so on.
You should be able to pick categories that are more likely to be successful in the suggested location based on customer profile data. If the proposed new business is located near a girl's college, for example, a shop offering casual girl's clothing in a reasonable price range is more likely to thrive than a shop selling menswear, women's heavy ethnic wear, fabric supplier, or children's wear. So your identifiers are: 1. girls' clothing; 2. casual wear; 3. fabrics; and 4. price range.
After selecting customer profile, now you can shortlist the type of garments or fabrics for the targeted customers. For example, Georgette fabric has gained more popularity in women collection recently because of its flowy and clingy dresses. It is light in weight and thin. You can also offer premium quality fabrics for a large target base such as Crepe fabric, Chiffon fabric and Viscose fabric.
Before establishing a store/property within the planned locality, it is essential to plan for each component of working capital/capital expenditure.
Garment stock, fabric types, store rent/EMI, personnel costs, marketing expenses, electricity bills, and interest costs for debt finance are all important components of working capital. At any given time, the store must have 3-4 times its monthly sales in inventory. The business must be appropriately funded to ensure that it can operate without financial stress for at least one year.
The store's interior will be put up with capital expenditures. While the store's interiors must be attractive to attract customers, you should not overspend because this will lengthen the breakeven period and postpone the need for store renovations.
The location and size of the store must be chosen based on the budget. We feel that establishments with less than 500 square feet should focus on a single category to provide enough variety to attract buyers and convert more walk-ins into purchases. It will also aid in the creation of a store identity in the minds of customers and encourage repeat purchases. Store walk-ins to sale will be very lower if you have a little bit of everything without variation depth in any area.
The preferred location is a high-traffic retail market/mall with fashion shop space. It will provide you with immediate walk-ins without requiring you to spend a lot of money on marketing. It will also assist you in staying current with new trends and competitors.
It is excellent to identify market gaps in order to prevent rivalry and establish a distinct brand. If an appealing market gap does not exist, you should try to find an untouched segment. You should keep in mind above given factors to establish your successful garment/fabric business.