Readymade Garment Shop Business in India

Business Description

Starting a Readymade Garments Shop Business in India is one of the most profitable and evergreen retail business ideas. With India being one of the largest textile and apparel markets in the world, the demand for ready-to-wear clothes for men, women, and kids is consistently high.

Whether in urban cities, semi-urban towns, or rural markets, readymade garments sell throughout the year, making this business a low-risk, high-demand, and high-return venture.

This detailed guide covers investment, profit margin, business setup, licenses, suppliers, marketing strategies, and growth plan to help you successfully launch your garments shop.

What is a Readymade Garments Shop Business?

A readymade garments shop sells stitched clothing products that are available in standard sizes. These include:

• Men’s Wear (Shirts, T-Shirts, Jeans, Trousers, Ethnic Wear)

• Women’s Wear (Kurtis, Sarees, Dresses, Tops, Leggings)

• Kids Wear (Casual, Party Wear, School Wear)

• Innerwear & Accessories

Unlike tailoring shops, garments shops do not require stitching work, which makes operations simple and scalable.

Why Start a Readymade Garments Shop in India?

1. Very High Market Demand

India’s apparel market is growing at 10–12% CAGR due to:

• Rising income levels

• Urbanization

• Changing fashion trends

• Youth-driven shopping culture

2. High Profit Margin

Readymade garments offer 25% to 40% profit margin, which can go up to 50%+ for private label and boutique brands.

3. Low Business Risk

Clothing is a basic necessity, making this business recession-proof.

4. Easy Setup & Expansion

You can start small and scale into franchise chains, multi-brand outlets, or online stores.

Readymade Garments Shop Business Overview

Investment Required to Start a Readymade Garments Shop

1. Shop Rent & Interiors – ₹1.5 to ₹3 Lakhs

• Rent deposit

• Shelves, racks, mirrors

• Lighting & display mannequins

• Trial room setup

2. Initial Stock Purchase – ₹2.5 to ₹5 Lakhs

• Men’s wear

• Women’s wear

• Kids wear

• Seasonal collections

3. Billing & POS System – ₹20,000 to ₹50,000

4. Branding & Marketing – ₹30,000 to ₹70,000

5. Working Capital – ₹50,000 to ₹1 Lakh

👉 Total Estimated Investment: ₹5 to ₹10 Lakhs

Profit Margin & Monthly Income

👉 With good product selection and marketing, income can grow rapidly.

Best Location for Garments Shop

Choosing the right location is critical for success:

Ideal Locations

• Main markets

• Shopping complexes

• High-footfall streets

• Near colleges, offices & metro stations

• Residential + commercial mixed zones

Avoid

• Isolated streets

• Low-visibility areas

• Low population density zones

Licenses & Legal Requirements

Mandatory Licenses:

• GST Registration – Required for billing & supplier purchases

Optional (Depending on Area):

• Trade License from Municipality

• Shop Act Registration

• MSME (Udyam) Registration – For government benefits

How to Start a Readymade Garments Shop – Step-by-Step Guide

Step 1: Market Research

• Identify demand in your area

• Understand customer preferences

• Analyze competitor pricing

Step 2: Select Business Category

Choose between:

• Budget clothing

• Mid-range fashion

• Premium branded wear

Step 3: Shop Setup

• Attractive interiors

• Good lighting

• Trial rooms

• Eye-catching display

Step 4: Supplier Selection

• Wholesalers from Gandhi Nagar Delhi, Surat, Mumbai, Tiruppur, Ludhiana

• Branded distributors

• Manufacturer direct sourcing

Step 5: Stock Planning

Maintain:

• Daily wear

• Party wear

• Festival collections

• Seasonal wear

Step 6: Launch & Promotion

• Grand opening offers

• Discount coupons

• Social media promotion

• Influencer marketing

Top Wholesale Markets for Garments in India

• Gandhi Nagar Market – Delhi

• Sadar Bazaar – Delhi

• Surat Textile Market – Gujarat

• Crawford Market – Mumbai

• Tiruppur – Tamil Nadu

• Ludhiana – Punjab

Marketing Strategy for Maximum Sales

Offline Marketing

• Attractive shop signage

• Seasonal discounts

• Festival offers

• Referral programs

Online Marketing

• Google My Business listing

• Instagram & Facebook promotions

• WhatsApp catalog selling

• Local influencer tie-ups

Growth Opportunities in Garments Business

• Launch private label clothing brand

• Expand into online selling (Amazon, Flipkart, Meesho)

• Franchise model

• Boutique fashion store

• Export business

Challenges & Solutions

Future Scope of Readymade Garments Business in India

India’s apparel market is expected to cross ₹12 lakh crore by 2030, making this one of the highest growth retail sectors.

With omnichannel selling, private branding, and digital marketing, this business can easily scale into a multi-crore enterprise.

Conclusion

Starting a Readymade Garments Shop Business in India is a high-demand, high-profit, and scalable business opportunity. With proper planning, strategic location, trendy collections, and strong marketing, you can build a successful and long-lasting retail brand.