Proudly serving in header

Thinking of a Garment Business ? We will be happy to help you.

A garment business is a business that designs, manufactures, brands, and sells clothing and accessories. It is also known as the clothing industry or apparel industry.

  • Feature Icon Easy
  • Feature Icon Fast
  • Feature Icon Secure

    Submit your query

    4 easy steps to PAN Application

    • Fill up the Form.

    • Submit the documents.

    • Pay only professional fee.

    • Get your PAN Application.

    PROCESS OF STARTING A GARMENT BUSINESS

    • Decide the Type of Garment Business

      There are multiple garment business models you can choose from such as Manufacturing-Based Garment Businesses, Retail-Based Garment Businesses, Online Garment Businesses, Custom and Niche Garment Businesses etc.

    • Conduct Market Research

      • Identify your target audience (kids, men, women, corporate, ethnic, casual, sportswear, etc.).
      • Analyze competitors and pricing strategies.
      • Understand the latest fashion trends and Choose whether to cater to mass-market, mid-range, or premium segment.

    • Decide on Business Model & Legal Registration

      • Choose a suitable business structure like Register as Sole Proprietorship, LLP, or Private Limited Company.
      • GST registration, Trademark Registration, Import Export Code, MSME, BIS Certification etc.

    • Arrange Capital & Funding

      • Start with personal savings or take a business loan from banks.
      • Apply for government subsidies like PMEGP, Mudra Loan, MSME schemes or can Seek investors or partnerships if scaling the business.
      • Consider crowdfunding for unique or sustainable fashion businesses.

       

    • Select a Suitable Location

      • For retail store, choose a high-footfall area and For manufacturing, rent or buy a factory space in an industrial area.
      • If running an online business, start from home and scale as demand increases.

    • Source Raw Materials & Machinery

      • Identify reliable fabric suppliers and wholesalers (cotton, silk, polyester, denim, etc.).
      • Arrange stitching, cutting, and embroidery machines for production.
      • If outsourcing, partner with job workers or garment manufacturers.

    • Hire Skilled Workforce

      • Hire tailors, designers, pattern makers, and machine operators for manufacturing.
      • For retail businesses Recruit sales executives and For e-commerce, hire digital marketing experts, website developers, and logistics managers.

    • Design & Develop Product Line

      • Focus on trendy and quality designs to attract customers.
      • Create samples and prototypes before mass production.
      • Maintain quality control to ensure durability, colorfastness, and comfort.

    • Set Up Sales & Distribution Channels

      • For retail: Open a showroom or sell through multi-brand outlets.
      • For wholesale: Partner with distributors, local retailers, and supermarkets.
      • For online: Sell via Your own website (Shopify, WordPress); Marketplaces like Amazon, Flipkart, Myntra, Ajio; social media (Instagram, Facebook, WhatsApp Business)

    • Marketing & Branding Strategy

      • Online Presence: Create a website, list on Google My Business and Create a brand identity (logo, packaging, and labels).
      • Online & Offline Promotions: use social media (Instagram, Facebook, YouTube) for promotions and Run ads on Google and Facebook to reach a larger audience and Offer discounts, combo deals, and loyalty programs
      • Collaborations: Collaborate with influencers and fashion bloggers for more visibility.

       

    TYPES OF GARMENT BUSINESS

    MANUFACTURING-BASED GARMENT BUSINESSES

    These businesses focus on producing garments and selling them in bulk to retailers, wholesalers, or brands.

    • Garment Manufacturing Unit – Producing garments in bulk for brands or retailers.
    • Export House – Manufacturing garments specifically for export to foreign countries.
    • Job Work Unit – Providing stitching, embroidery, dyeing, or finishing services to other garment manufacturers.

    RETAIL-BASED GARMENT BUSINESSES

    These involve selling garments directly to customers.

    • Retail Clothing Store – A physical store selling ready-made garments.
    • Branded Garment Franchise – Selling garments of a well-known brand under a franchise model.
    • Boutique – A small shop selling unique or designer garments, often customized.
    • Factory Outlet Store – Selling surplus, slightly defective, or previous season’s garments at a discount.

    ONLINE GARMENT BUSINESSES

    These businesses operate through e-commerce platforms.

    • Own E-Commerce Store – Selling garments through a dedicated website.
    • Marketplace Seller– Selling garments on third-party platforms (Amazon, Flipkart, Myntra, etc.)
    • Dropshipping Business – Selling garments without maintaining inventory; orders are fulfilled by third-party suppliers.
    • Print-On-Demand (POD) Clothing Business – Selling customized T-shirts, hoodies, and other garments with unique prints.

    CUSTOM AND NICHE GARMENT BUSINESSES

    These businesses cater to specific customer needs or markets.

    • Ethnic Wear Business – Selling sarees, lehengas, kurta sets, and other traditional outfits.
    • Kidswear Business – Specializing in clothing for children.
    • Sportswear & Activewear Business – Selling gym wear, sports jerseys, and fitness clothing.
    • Corporate Uniform Business – Manufacturing and supplying uniforms for schools, hospitals, hotels, and corporates.
    • Lingerie & Innerwear Business – Selling undergarments, shapewear, and nightwear.
    • Maternity & Baby Wear Business – Selling pregnancy-friendly outfits and newborn clothing.
    • Sustainable & Organic Clothing Business – Focusing on eco-friendly and organic fabric clothing.

    FASHION DESIGN & CUSTOM APPAREL

    Businesses focusing on creativity and customization.

    • Fashion Design Studio – Designing and selling exclusive fashion garments.
    • Tailoring & Alteration Services – Custom stitching and garment fitting services.
    • Handmade or Handloom Clothing Business – Selling handcrafted, handwoven, or embroidered clothing.

    WHOLESALE & RENTAL/RESALE CLOTHING BUSINESS

    • Domestic Wholesale Business – Selling to local retailers, boutiques, and shops.
    • Export Wholesale Business – Supplying garments in bulk to international buyers.
    • Fashion Rental Business – Renting designer wear, wedding dresses, or costumes.
    • Second-Hand & Thrift Store – Selling pre-owned branded or vintage garments.

    REQUIREMENT OF GARMENT BUSINESS

    BUSINESS PLAN & MARKET RESEARCH

    • Identify Your Business Type: Decide if you want to start a manufacturing unit, wholesale business, retail store, boutique, online clothing store, or sustainable clothing brand.
    • Study the Market: Analyze competitors, target audience, latest fashion trends, and pricing strategies.
    • Investment Planning: Estimate capital requirements for production, inventory, marketing, and operations.

    CAPITAL & FUNDING

    • Investment Required: Small-scale business: ₹2 – 10 lakhs; Medium-scale business: ₹10 – 50 lakhs; Large-scale business: ₹50 lakhs – ₹5 crores
    • Funding Options: Self-funding or Family Investment, Business Loans from Banks (MSME Loans), Government Schemes like Mudra Loan, Angel Investors (for online fashion startups)

    LOCATION & INFRASTRUCTURE

    • Manufacturing Unit Requirements: A factory space (1000 – 5000 sq. ft.) for machines, cutting tables, and raw materials. Proper ventilation, electricity, and worker facilities.
    • Retail Store Requirements: A commercial shop in a high-footfall area or a mall.
    • Online Business Requirements: A warehouse or home-based storage for inventory.

    MACHINERY & EQUIPMENT

    • Depending on your business type, you may need:
      For Manufacturing: Sewing machines (basic & advanced), Cutting tables & machines, Fabric dyeing, printing & embroidery machines, Steam iron & packaging tools
    • For Retail: Display shelves, trial rooms, POS system
    • For Online Business: Professional cameras for product photography, Computers for designing & online management

    RAW MATERIAL & SUPPLIER SOURCING

    • Fabric Sourcing: Choose suppliers for cotton, linen, polyester, silk, denim, and sustainable fabrics.
    • Trims & Accessories: Buttons, zippers, labels, tags, and packaging materials.
    • Reliable Vendors: Get bulk fabric suppliers from Delhi, Surat, Tiruppur, Ludhiana, Jaipur, or Mumbai.

    WORKFORCE & SKILLED LABOUR

    • Manufacturing Unit: Tailors, pattern makers, machine operators, finishing & quality check staff.
    • Retail Store: Sales staff, cashiers, and customer service personnel.
    • E-commerce Business: Website designers, marketing team, and logistics support.

    BRANDING & MARKETING

    • Brand Name & Logo: A catchy and unique identity.
    • E-commerce Website & Social Media Presence: Create a store on Shopify, WooCommerce, or marketplaces like Amazon & Flipkart.
    • Influencer & Digital Marketing: Promote through Instagram, Facebook, and Google Ads.
    • Offline Promotion: Advertisements in newspapers, banners, and local events.

    DISTRIBUTION & LOGISTICS

    • For Retail Business: Partner with local delivery services.
    • For Online Business: Tie up with courier companies like Blue Dart, Delhivery, DTDC, or India Post.
    • For Wholesale Business: Have a strong B2B distribution network to supply to retailers.

    DOCUMENTS FOR GARMENT BUSINESS

    FIRE & SAFETY CERTIFICATE

    • Fire & Safety Certificate, also known as a Certificate of Conformity to the Requirements of Fire Safety
    • Verifies that a building meets fire safety regulations and standards, ensuring the safety of workers and the premises.

    PAYMENT GATEWAY INTEGRATION

    • Required to sell on platforms like Amazon, Flipkart, Meesho, and Myntra.
    • Required for accepting online payments on your e-commerce website like Paytm, Razorpay, Stripe, etc.

    BUSINESS AGREEMENTS

    • Vendor agreements for raw material suppliers.
    • Retailer or distributor agreements if selling through wholesalers.
    • Designer contracts for exclusive fashion design partnerships.

    UDYAM (MSME) REGISTRATION

    • Get MSME/Udyam Registration for government subsidies, business loans, and tax benefits.

    TRADE LICENSE

    • Required for physical retail stores, boutiques, and manufacturing units.
    • Apply at your local municipal office for legal business operation.

    SHOPS & ESTABLISHMENT LICENSE

    • Needed if you plan to set up a physical store and employ workers.
    • Issued by the Labour Department of the State Government.

    FACTORY LICENSE

    • Needed if setting up a large-scale garment manufacturing unit.
    • Issued by the State Government.

    POLLUTION CONTROL CERTIFICATE

    • Required from the State Pollution Control Board for businesses that involve fabric dyeing, printing, or chemical processing.

    BIS CERTIFICATION

    • If manufacturing garments, you may require BIS (Bureau of Indian Standards) certification for quality assurance.

    TRADEMARK REGISTRATION

    • If you are launching a unique clothing brand, register a trademark to protect your brand name & logo.

    GST REGISTRATION

    • Register for Goods and Services Tax (GST) if your annual turnover exceeds ₹40 lakh (for normal states) or ₹20 lakh (for special states).
    • Required for wholesale, retail, and online clothing businesses.

    DOMAIN REGISTRATION & WEBSITE LEGAL POLICIES

    • Purchase a domain name for an online store.
    • Draft privacy policy, return & refund policy, terms & conditions for your website.

    Why us

    Recognized by Govt. of India

    End-to-End Financial & Compliance Solutions

    ISO Certified

    Data Security & Confidentiality

    Trained & Professional Team

    On Time, Every Time - We Respect Deadlines

    Technology Driven

    Transparent & Ethical Practices

    Support for Startups & MSMEs

    Compare with other Garment Business

    Pick a Business Structure That Works Best For Your Business

    • Initial Investment
    • Land/Space Requirement
    • Technical Expertise
    • Government Regulations
    • Profit Margin
    • Market Demand
    • Risk Factor
    • Time to Break Even
    • Labor Requirement
    • Sustainability
    • Technology Usage

    Manufacturing-Based Garment Businesses

    • High
    • High
    • High
    • High
    • Moderate to High
    • High
    • High (Raw Material & Labor Costs)
    • 3-5 Years
    • High
    • Moderate
    • High (Automation & AI)

    Retail-Based Garment Businesses

    • Moderate to High
    • Moderate
    • Moderate
    • Moderate
    • High
    • High
    • Moderate
    • 2-4 Years
    • Moderate to High
    • Moderate
    • Moderate (POS & Inventory Software)

    Online Garment Businesses

    • Low to Moderate
    • Low
    • Moderate
    • Low to Moderate
    • High
    • Very High
    • Low to Moderate
    • 1-3 Years
    • Low
    • High (Eco-friendly packaging & sustainable brands)
    • Very High (E-commerce, AI)

    Custom and Niche Garment Businesses

    • Low to Moderate
    • Low
    • High
    • Low
    • Very High
    • Moderate
    • Low
    • 1-2 Years
    • Low to Moderate
    • High (Unique & Handmade Items)
    • Moderate (Customization Software)

    Fashion Design & Custom Apparel

    • Moderate to High
    • Low to Moderate
    • Very High
    • Moderate
    • High
    • High
    • Moderate
    • 2-4 Years
    • Moderate
    • High (Sustainable Fashion)
    • High (Digital Design, 3D Printing)

    Wholesale & Rental/Resale Clothing Business

    • Moderate
    • Low
    • Moderate
    • Moderate
    • High
    • High
    • Low to Moderate
    • 2-3 Years
    • Low to Moderate
    • High (Circular Economy & Reusability)
    • Moderate (Inventory & Logistics)

    Here are some Frequently Asked Questions about Garment Business

    What Are the Best Locations to Start a Garment Business in India?

    For Wholesale & Manufacturing:

    • Delhi (Gandhi Nagar, Chandni Chowk), Mumbai (Dharavi), Ludhiana, Surat, Tiruppur, Jaipur.

    For Retail & Boutiques:

    • Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Chennai, Ahmedabad, Pune.

    Where Can I Source Raw Materials for My Garment Business?

    Wholesale Fabric Markets in India:

    • Surat & Ahmedabad – Synthetic, polyester, and silk fabrics.
    • Ludhiana & Tiruppur – Cotton, woolen, and hosiery fabrics.
    • Delhi & Mumbai – Mixed fabrics and designer textiles.
    • Kolkata & Jaipur – Handloom, ethnic, and printed fabrics.

    International Fabric Sourcing:

    • China, Bangladesh, Vietnam, Indonesia, Turkey.

    How Profitable Is the Garment Business?

    Retail & Wholesale Profit Margins:

    • Retail Markup – 30-200% (depends on niche & brand).
    • Wholesale Margin – 10-40% (bulk sales).

    Manufacturing Profit Margins:

    • Basic clothing – 15-40%
    • Luxury & designer clothing – 50-200%

    What Are the Challenges in the Garment Business?

     

    • High Competition – Many players in the market.
    • Seasonal Demand – Fashion trends keep changing.
    • Quality Control Issues – Fabric defects, color fading, etc.
    • Inventory Management – Overstocking or understocking problems.
    • Logistics & Delivery Costs – For online and export businesses.

    What Is the Future of the Garment Industry?

    Future Trends in the Garment Business:

    • Inventory Management – Overstocking or understocking problems.
    • E-commerce growth – More brands selling online.
    • Sustainable & eco-friendly clothing – High consumer demand.
    • AI & Virtual Try-On Technology – Online shopping enhancements.
    • Customization & Personalization – On-demand printing & tailoring.

    Leave Your Accounting to Us and File GST Accurately.

    Save time, money, and taxes with our AI based Business softwares and expert accountants.

    Upload Excel