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It is the 2nd volume of our last article on the clothing business ideas. In this volume, you will find clothing business ideas that required higher investment and risk. But more importantly, the scope of rising, earn a profit, and building a large chain of companies is also bigger.
Please read the rest of the 10 clothing business ideas in our previous article.
Business Ideas for Clothing V2
A Buying House is a shadow office of a clothing brand. If you want to start a buying house then you need to have an R&D department to make a style collection, a marketing team to present those collections to the brands, a merchant team for costing, to follow up developments & orders, and a commercial team to follow up shipping documents & payment. Brands pay to buying houses via LC or TT and that Buying house pay to the manufacturer via transferred LC or TT as per committed price. Buying a house works as a bridge between brand and manufacturer. You must have good knowledge of & connection in the clothing industry, your team has to be efficient and well qualified and also need good investment to run office & for marketing to be successful in this business.
It’s a competitive and risky business clothing business idea but if work hard you will get a good result for sure.
A Garment Factory is a complete production unit of apparel products. Its main strength is its Man, Machine & Material. Which factory can utilize these 3 resources efficiently will get successful. The factory will have fixed monthly costs which will have an impact on your competitiveness of price. So make sure you are analyzing SOWT before you are investing in this. Comparing to all the previous clothing business ideas this is one that required the highest investment.
Below are departments which a garment factory must function properly –
- Marketing Team for presenting the collection to Brands
- Costing & Development department of new styles. A team of a fashion designers is also a plus
- Pattern & Marker Maker
- Merchant team to coordinate orders
- Strategic & Factory Planning team
- Commercial, Finance & Accounts team
- Industrial Engineering team to optimize resources
- Cutting Section
- Sewing Section
- Finishing & Packing
- QA team
- Shipping department
- Warehouse management
- HR, Admin & Compliance team
- Electrical & mechanical department
Garment Washing Plant
Washing plant can be a part of garment factory or it also can be a different company. But it requires almost the same types of management skills. For technical issues, you need to have a wash technician. Wash works like a magic and can change the outlook & handfeel of a garment. So as much as a skilled technician you have as much as higher value it will add to your company. Regarding machines, you need to have a facility for both Wet & Dry processes. Wet processes are the process which washes garment in water by adding the required chemical. The garment dying process is also considered a part of the wet process. Dry processes you will see usually in denim, like, PP Spray, Grinding, and Destroy, etc. Also, need a qualified person to purchase chemicals and to preserve them properly.
Another value-added service on the garment. Same as embroidery, printing is not mandatory for all garments so you can buy some commercial printing machines to give support to garment factories. Also, you can buy the best heat press machine to start giving pressing services in your neighborhood. Once you get the fund then start a commercial printing factory with other printing facilities.
Fabric & Trims Factory
The key raw material of a garment is Fabric and Trims like thread, labels, buttons, paper tags, polybags, cartons, etc. For each of the items, you can establish an individual company. Consider the competition in your area and the availability of raw materials. If you have to source raw materials far away from your location then that will have an impact on lead time & price.
Selling Stock Garment, Fabric & Trims
It is not a fashion trend-oriented business but can be a good option to source garments at a low cost for your retail store. The factory usually produces 2-3% extra from order quantity and sells the leftover garments once after 6-12 months of shipping the actual quantity. You can buy those leftover garments by changing labels, price tickets, or any other trims on which the actual brand name reflects.
Caution!! Each brand has a copyright on its name & logo. Also, they invest in developing a style and produce a garment. That’s why they do not want the factory to sell any leftover garments of their brand. But few brands give an authorization letter to the factory to sell leftover garments after 6-12 months by removing their brand name. So make sure you are checking with the factory if they have the authorization to sell. Otherwise, you may face legal issues if the actual brand claims copyright on the product.
The clothing business is like a spider web. It looks messy when you try to enter but it’s very organized. A Consultancy Firm knows how to design a clothing line business and they can make things work efficiently. If you are an expert in the clothing or garment business then hire a team and start setting up companies or a department of companies. Try to find out which company is struggling in which department so that you can offer your service to them. If you have a proper team or expert & a good portfolio you can easily get minimum 3 months contract which later can be expanded. We have seen few consultancy firms working which the same company for years due to their success.
It’s a place from where the end customer buys a product. You can start from a small retail store in your area and convert it to a chain store in the future. Remember, you are not selling bulk products here so one customer means you are selling one product of a particular style. That’s why you have to be very careful on designing & sourcing product and also promotion & marketing of your product.
Vendor at Ecommerce Sites
There are a bunch of eCommerce sites that ask different vendors to sell their products on their websites. Usually, they take care of all the promotion and marketing of the products. So if you don’t want to start an online clothing line but don’t want to invest extra on a website then simply contact those eCommerce sites.
Other Supporting Products
Clothing Business is wide range business. So related business-like, machine supplies, transport, farming cotton, shipping & forwarding, the training center has a big stake in this industry. If you have any similar business already, then you can focus on marketing in the clothing industry.
In both the articles, we have covered all kinds of clothing business ideas. We hope it will help you to understand which is the best clothing business idea to start. We recommend you analyze your resource, knowledge, market, and potentiality before choosing any particular business from this list.
We would like to know your success story in the clothing business also. So please email us or write to us in below comment box.