How to start a Clothing Store in India

Who on the earth has not visited a “ Clothing Store”? We all have! Whether it’s for weddings or festivals, housewarming or anniversary parties, we Indians are bound to shop for clothes.

 Ever dreamt of starting a “Clothing Store” like the one you buy at?

Well, stop dreaming and start doing!

A “Clothing Store” is truly a profitable business to venture into if you’re looking for some new business ideas.  Of course, there are failures, there are plenty of clothing stores that aren’t performing well, mainly because of lack of proper planning or probably there was no planning at all.

Here are 10 simple steps to start a Clothing business in India:

1. Gather your money for investment

Starting a clothing store is definitely expensive. In the case of fashion, you’ll need to spend money to make money. It’s likely you’ll need to borrow money to fund your business through a small business bank loan. 

Some clothing businesses are family funded, many small business owners take loans from friends and relatives. See what works out for you.

It’s important not to underestimate the amount of financial capital you’ll need to get started. 

You’ll need to purchase merchandise, pay store rent, buy marketing materials, furnish the store with fixtures and lighting, and other expenses.

2. Complete your GST Registration

If your estimated annual turnover < 20 lakhs, get your clothing store business GST registration done to obtain your 15 digit GST.

Most businesses avoid Non-GST companies as every transaction is documented and this can end up in tax violations. It is always better to stick to the tax rules made by the government to avoid any complications.

You can apply for GST registration here- https://reg.gst.gov.in/registration/

3. Be smart in picking your location

Go where the people are.

Find a place which a higher chance of selling profitably.

Higher foot traffic the better it is.

If it is beyond your reach, settle for a place with a lot of people coming daily, look for communities that are lacking businesses like the one you want.  

It is always advisable to settle down in the lesser competition area.

4. Start your Clothing Store Small

Every big business once started small. Plan well before you start taking steps.

✔ Validate your financial plan in the real world.

✔ Estimate how much does the setting up of the clothing business cost you.

Apply for the small business bank loans if necessary.

Also, try finding private investors.

Know where you should invest, how much to invest.

5. Learn from your competition

Visit clothing store doing well in your area. See their products and display style.

Note their business hours, location(s), merchandise and items, and services.

6. Be creative, competitive but always original

Pick out an attractive name for your Clothing Store.

Make your store appealing in and out. Spend some time and money on it to make it’s interior and exterior better. Get some pretty looking shelves attached. The balance between using the space efficiently yet arrange it attractively to get your customers eyeballs over it. Displays inside of the store should also be visually appealing.

Make sure that the display clothes are appealing. Set up seasonally-appropriate displays with a visual flair that will indicate what’s currently in your inventory. Avoid having a cluttered store.

7. Filling Stocks and finding Suppliers

✔ Have a well-stocked clothing store that appeals to a variety of customers. Acquire enough to fill all of your shelf and display space. 

✔ Obtain inventory from more than one source.

✔ Visit local craft, art, or trade fairs, and look online on Etsy (or similar websites).

✔ To start, you’ll need to get in touch with vendors who carry the clothing that you want to sell. A trade show is one of the best places to buy wholesale merchandise for your store. At trade shows, you’ll be able to connect with suppliers and see first-hand their product offerings.

✔ When making orders, consider the amount you’ll need when you first open your store, plus the inventory you’ll need to regularly replace the items that sell. Don’t forget seasonal trends, plus those new styles and brands that become popular. You’ll need to have a diverse mix of clothing while understanding that you won’t necessarily be able to satisfy everyone that walks through your door.

✔ Throughout the process, research the best way to set your prices based on the merchandise you’re selling. You’ll need to determine your mark-up amount, understand effective pricing techniques for your type of store, and know-how to discount merchandise effectively.

8. What to sell?

First-time inventory will cost you at least 5 Lakhs – 10 lakhs. Again it depends on your business size.

Make sure to include all items based on your customers’ taste – Sarees, Chudidhars, Petticoat, Designer blouse, lehengas, Shirt pieces and many more in demand.

9. Hire additional workers if required

✔ When you first open the Clothing store, you’ll be on a tight budget and won’t have money to hire help. After several months or a year, though, if your Clothing shop is financially stable enough, start thinking about bringing in additional help.

Think back to the Clothing store that you visited. Were most Clothing stores run by the owners themselves? If not, how many staffs worked at the clothing store?

10. Consider Hours

  • Choose the right hours.
  • Keep in mind that Clothes store do most of their business on and around holidays.
  • Clothes owners rarely get holidays off; in fact, they’re the biggest sales days for nearly all clothes business.
  • Be ready for such shifts.

11. Start with discounts & put items on sale seasonally

  • When you’re ready to open your doors, don’t be afraid to tell everyone. From friends and family to those you’re connected with on social media, be sure you have a message to share with them and reasons they should shop at your new store. You might consider having an open house with special discounts, giveaways, and other “little extras.”
  • Sales are a great way to draw in customers.
  • You can sell clothes that are not fast-moving. 
  • Use Holidays and other special days to celebrate your customers and give them new, exciting reasons to visit your clothing store.

12. Learn to Book Keep

  • Bookkeep the financial expenditures and income of your clothing shop using an Inventory Managment App As a small business owner, you’ll be responsible for keeping track of tax-deductible expenses and paying taxes every year.
  • Use Business accounting software like Vyapar to keep track of your Clothing Store finances, including assets, loans (and loan payments), monthly rent payments, and income from sales.


Download the BEST GST Billing Software.

Happy Vyaparing!!!

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