Every business needs some planning and information, and the clothing industry is no different. Due diligence should be followed in evaluating one’s preparedness for this kind of venture, and all the necessary resources should be used to ensure that the future business is in good shape. Here is part of what it takes to build a successful wholesale clothing business.
Steps to Start a Wholesale Clothing Business
Capital
- Wholesale clothing means massive quantities of goods being sold and bought, and this, is not a light operation.
- The business will normally require some considerable amount of capital for start up. The capital should be able to cater for premises, goods, transport, employees and the operating expenses fro at least the first three to six months.
- The premises chosen should reflect the scale of the operation expected to be reached, within the limits of the capital available. The large the size of the operation will mean larger discounts from manufactures, as a result of the economies of scale.
- Capital can be raised from financial institution, which would require some form of guarantee and a workable business plan. In some cases savings (really large one) may be able to launch a wholesale operation, though not on a large scale.
Competition
- Check out other wholesalers in the general vicinity.
- Find out what products they stock the manufacturers that they obtain merchandise from, the prices thy pay for their merchandise and the prices they offload at to retailers.
- Find out the quality of goods they stock, and find out if one can match or exceed the competition.
- See whether there are any incentives that the competition offers to retailers to entice them into buying their goods if any, and try to come up with a system of rewards, discounts and loss leaders to attract more customers.
Niche
- The competition in the wholesale sector led to the phenomena of consolidation, and this is to be expected, so one should plan in advance how to deal with this.
- A solution to this is choosing a particular niche that fits the model of the business well.
- The niche of clothes chosen will also impact the location and infrastructure (like storage space) that the business acquires. Specializing in niches that large wholesalers find hard to cost effectively service.
Economic considerations
- The wholesale business can start small, to save on costs, having only a small volume of merchandise concentrated along a narrow fast moving stream.
- The business can then grow with time in a sustainable fashion, and in a way that is easy for a new entrant to manage with ease.
Legal considerations
- The business will need to be registered with the local authority’s commerce office to get a trading license, and a license fro every other jurisdiction that it aims to operate in.
- The options include a sole proprietorship, a limited liability company or even a partnership. The sole proprietorship is the easiest to form and is least regulated, and the limited liability company require more effort to form and are heavily regulated.
We get too many comments on our garments business page, thus I have decided to start a new page where you can continue your discussion, and it becomes practically difficult to read 100+ comments on any page.
This page will discuss and share, ideas and opportunities regarding how to start clothing business. How to plan it and much more.
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I am ready to start clothing business, but I need Plan some tips to start my own clothing business. I also want to know how to apply loan and how do I attract new customers, please give information about this.
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Dear Scott,
I have always been attracted by the ready made apparels business and am now proposing to venture into the woman’s wear segment in Bangalore. With respect to the same I would appreciate your guidance on the following queries that I have:
1. What sort of a legal / tax related obligations are required ? I propose to initially retail these garments in malls or exhibitions halls and clubs and then scale up to a store.
2. Apart from Tirupur in TN are there any other supply hubs based out of Karnataka (close to Bangalore)?
3. Please let me know if any banks provide funding for such ventures, especially to women entrepreneurs.
4. Where can I get in touch with traders / suppliers who would provide me with the product in Bangalore? If possible please refer to me a few contacts that you are aware of.
5. Typically, what is the margin that can be commanded in this industry considering that I will source the garments from wholesale retailers in Tirupur and would be selling them directly to end users.
6. Is there any course / program that would aid me with the ropes of this business?
7. What is the minimum capital required for such a venture. Ideally what should be my break even period?
8. Do wholesalers give a credit period for the repayment of dues? If so typically what is the period? If not, then how do I ensure that I gain some repayment period?
I appreciate your help on all this.
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Hello Mr. Scott,
Self have gone thru your article and comments you have for everyone. We like to contact you for some ideas / guideline to start our small garment shop with my friends in Hyderabad. We have planned to sell the following items in our shops.
girls t-shirts, leggings
Shorts (1/2 and3/4)
Skirts (Full and3/4)
Ladies Inner garments
Like this we have planned to start and shop. But we are totally blank, how to start and where to start. We need your support on this for the following.
1. How much space require to start small shop (Minimum)
2. What kind for Interior we have to do?
3. What is the investment we should need to start the stop?
4. Where can we buy the garment?
5. How can we buy a garment from dealer (Means, we don’t know the market price. How can bargain to buy the garment from dealer)
6. Even if we brought the material, how should we fix the price to sell (Rate should be competitive)
7. How do I manage the infrastructure (personnel, IT, Transport, Advertising etc.,)
Need your reply to help us on the above queries. Please Reply This Comment, your immediate response is highly appreciated.
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D M Reply:
August 24th, 2010 at 3:37 am
Hi T.V
I am DM. My hometown is TX. I know how to start the business in my hometown. I am senior software engineer, working in software firm for the last five years in, I have my own textile firm, recently started stitching units, I can give the t-shirts with very good quality for good and reasonable rates, and you can sell the t-shirts anywhere, any price… If you need further communication, please reply me here
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Hello sir, I have to ask one main quest regarding to set the price off cost, because after that only we can find in nearby place or can say can compare with competitors. Let one garment factory needs 50lac, then what would be the cost of one shirt, or any one item. How we can fix the cost of item.
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I would like to start a formal and casual men shirts manufacturing business with a minimum capital. Cotton and cotton blended shirt material would be better for my plan. i have a 4000sqft hall which can be better for manufacturing process.
Please tell me the capital investment including cloth materials, machines, etc. Tell me how to market my product, get license from govt and please tell me the other goodies and baddies in this business.
1. How can I maintain my quality?
2. How can I get skilled tailors
3. From where do I get the packing materials,
4. Where do I find the latest fashions and model,
5. From where I can get the qualified minimum priced cloth materials.
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Hello sir, I am MH here, I want to start my own garments business with low investments. I am based on NY. I like to start business from the age group of 10 to 50 year. Would you please suggest me how can I start business as soon as possible?
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Hi, I am an owner of manufacturing unit of garments (only jeans). My firm is situated in NY. I am not having any experience in this industry. I started my business 3years ago. But I am not eligible to make profit from my firm. As I can diagnose the problems which are in hold. But now I want to some suitable solution for this.
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VK Reply:
January 2nd, 2011 at 11:31 pm
Hi D P!!
I am planning for the same kind of business,like buying the Jeans in bulk from the manufactures and selling them to retail shops. Please get in touch with me through mail if you get my mail id as I am new to this site I am not sure if you get my mail id or not.
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I am Sam, I will start new garment clothing business (only for men) but I don’t have more capital and don’t have more ideas on how to get loan and finance for small scale business of clothing. So can anyone here please give me helpful suggestions on setting up and getting loan for my clothing business?
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Hello, I am Sandy from CA. I will start new garment shooting & shirting clothing business (only for men) but I don’t have more capital and don’t have more ideas.
So please give me some good and helpful suggestion. I am waiting for your reply.
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Hello, I am Sam from CT. I want to start my clothing business. Can you send me the procedure of starting and where are the markets to purchase and how much capital required to invest in this business..Can you give me the detailed information about US clothes market..Give me some ideas in respect of beginning cloth business.
Thank you…
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Hello,
I would like to start a garments business (like stitching unit) in MA. What is the process to start the business and I would like to take loan for the business. Kindly guide me what are the necessary, I have to take to start this business.
Thank you
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Hello everyone,
I am a wholesaler. I have just Started Casual Shirt’s shop in my area. We are looking for exporters who can supply branded Shirts and T-Shirts to us. Manufactures may offer with detailed specification, Sample and realistic prices list. Past performance proofs are to be furnished. .
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Hello, I have as 22years experience in textiles and garments as a retail sales man. I used to travel to the west and east coast of US, and I know the taste buds over there
for designer wears…I want to start online trading of best quality and variety of apparels. How should I go about?
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Hello everyone,
I am searching for various business options and ideas. Can anyone tell me how I can sell my goods and produces. I also want to know that from where I can get good quality of materials. If anyone is aware of good markets, please advise me.
Thank you.
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Hello Friends,
Its Bhujabali from. I am an MBA graduate, have work experience of 3 years.
I am willing to start my own business. I want to open a Factory outlet for Garments/ Apparels to provide a wide range of choice for brand lovers at wholesale price adhering to the quality.
Kindly suggest How to start, what are all the preparations needed, Dos and Don’ts, or wishes.
I wholeheartedly welcome any comment/suggestions,
Regards,
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Hi,
I want to start a wholesale business.
My Idea is to buy the Jeans pants from the manufacturers directly to sell them to the retailers in my town.
These retailers buy the cloths from wholesale shops in cities sell them.
Can you please let me know some information like:
Where can I buy Jeans pants from?
Is this a good business to start? If not please suggest me a wholesale business that I can start up
with $7,000-$8,000 of investment.
What would be the investment required?
It would be really helpful to me if you can mail me the details.
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Hi,
I want to start clothing business. I have done my diploma in fashion designing. I don’t know how to start and where we get materials in bulk. I wanted start in small scale. Please any one suggest me about this.
Thank you.
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Hi,
My idea is to outsource production of jeans to some manufacturing unit or simply buy jeans from manufacturers and than sell them to retailers by putting a label of my company. Is it legal to do so and is it good to start business and also I want to start my manufacturing unit later on. Please reply its urgent.
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LK Reply:
February 8th, 2011 at 10:09 am
Hi,
My idea is to outsource production of jeans or kids outfits to some manufacturing unit or simply buy jeans from manufacturers and than sell them to retailers by putting a label of my company. Is it legal to do so and is it good to start business and also I want to start my manufacturing unit later on. Please reply its urgent.
Thank you.
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Sir,
We are located in Dakota. We want to start a new business in our town for ladies and kids. if you can give to me advice for this business & legal formalities also its very helpful for me.
Thanks,
SM
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Hello Sir,
I want to start up with wholesale garment business from home we are two of us and want to sell ladies garments we want to take garments directly from the manufacturers and want want to sell them in local markets i.e retailers in Bangalore so please reply me how much investment will we require in the beginning and i dont have any contacts so also please tell me how can i build contacts and also suggest me any plan from your side and correct me if my plan is somewhere wrong please reply.
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Hello Sir,
I am planning to enter into garment business, preferably ready made Western Wear and Ethic Indian dresses in partnership with my friend. We are targeting Katmandu Market but we are still doubtful about the heavy duties out there. Can you suggest a profitable way to export garments/
Thank you.
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Hi,
It is intresting in reading the facilitator to promote the New Enterprenuer ship in the field of garment business. Its always interest to start own business in the field of garment manufacturing and logistic. Due my 15 year experience in the garment for international and Indian retail marketing and merchandise. Being new entrepreneur suggest the opportunity and the Investor to take the opportunity. Look forward to hear from your early and further take the discussion in more elaborated version.
Regards
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Dear Sir,
I am planning to set up a garment wholesale business. The garments would be Indian Traditional Wear.I am targeting to set up fully after 1 year of extensive research.I came across your blog and liked the way u responded to the queries.I would like to know from you how much investment would be required for this business.And i belong to Delhi so if u like to share good reference of suppliers(if that is permissible), I would love to know that.
Thanking You.
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Hi.
I am expert in export marketing to Spanish speaking countries (Latin America, Sain and other countries). If anyone want to promote their products please let me know I will do marketing for them. I have knowledge of hard goods (wooden handicrafts,brass,wrought iron,wooden furniture ) and textiles (Ladies garment,bed sheet,curtains,table cloths,mats,rugs and etc )
Thank you.
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Dear Sir,
We are planning to start a retail garments business. I just need the suggestions regarding the minimum capital amount to start this business and also about the loan facilities. I have read the above questions and I got some Ideas. But still I just want to know how much I can spend on this business and where should I contact for getting dresses to sale. I need some wholesale companies.
Thank you.
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Hello Sir,
I want to start up with wholesale garment business from home we are two of us and want to sell ladies garments we want to take garments directly from the manufacturers and want to sell them in local markets i.e retailers. So please reply me how much investment will we require in the beginning and I don’t have any contacts so also please tell me how can I build contacts and also suggest me any plan from your side and correct me if my plan is somewhere wrong please reply.
Thank you.
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Dear sir
I am very intersted in production any cheap rate of article any items I know many languages, please guide which type of business is successful for me, Lungies and childrens dress export is also interested. Saress cotton and silk please guide me and give their mail address for singapore , Malaysia and other countries.
Thank you.
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Hi, my name is EK; I am also interested to establish my garment business. You start your business of garments congratulation for that but do not think and underestimate yourself
Look if you are MBA student. In this present time these degrees are making imp, do you ever thing that most of successful person when they entered in business they was having nothing even most of them was illiterate so just concentrate on some imp thing
1- Never trust anybody in business terms.
2- Always be connected this people who will give u the contract
3- Maintain quality
4- And always keep a doubtful watch to your staff
5- Try to do even small work by yourself
That’s what I can say
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Hey there, I am from ID, and I would like to start my own clothing business from home, please help on how to setup a business, how can I find exporters from Asian countries. I have good experience in textile industry.
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Hi, I am a Software Professional wanting to start a business. I am interested in starting a Garment Business in USA. Please Advice.
• How to get raw material from market?
• What is the highly demanded market right now in garment sector? i.e. clothes for children, for men or for women?
• Would it be better to outsource production and I just take care of marketing part in USA?
Thank you,
SC
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Hello all, I want some advice on a business I hope to start up. I value all of your effort in advance!
I am a young man entrepreneur who wants to start an online clothing business. My niche is young men and women’s Plus-Size outfits. I am also planning to use real models to make advertisements to give a more practical and reliable feel to consumers to know the product in a better way before purchasing.
Do you think I should jump into this business?
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Dear Sir,
I am an MBA graduate. I have 3 years industrial experience as HR. I am willing to start a Factory Outlet. Medium size stall, one stop mall for various brands at wholesale rates.
Kindly suggest me.
Thank you.
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Hi there!
I am from Philippines. I really want to start my clothing business but I am looking for garment supplier. Please help me on this. I am interested in garments for casual dresses, T-shirts, etc. for ladies wear.
Looking forward for your reply.
Thank you so much!!!
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