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What are the key factors to consider while STARTING A NEW GARMENT SHOP?


Are you planning to start a new garment shop?

Fashion/ garment shop is definitely a profitable and glamorous business if it is planned well. Do you want to start a new shop? Every year we see opening of new garments shop, but do all of them succeed? Unfortunately no, the reason for their failure is lack of proper planning. Through this article we will help new retailers to make better decisions to start a new shop by analyzing important factors crucial for success of a garment shop.

Understanding your target customer profile

You must first analyze profile of people residing near the planned shop location based on – gender, age, occupation, income, religion, etc.

Identify relevant product segments

Based on customer profile analysis, you should be able to shortlist categories that are more likely to succeed in the proposed locality. For example, if the proposed new shop is near a girl’s college – a shop selling casual girl’s garments in economic range is likely to succeed more compared to menswear, women’s heavy ethnic wear or kids wear shop. So your identifiers are – 1. Girl’s garments; 2. Casual wear; and 3. Economic range.  

Budget Planning

It is very important to plan for each component of working capital/ capital expenditure before finalizing store/property within the proposed locality.

Important elements of working capital are garment stock, store rent/EMI, staff costs, marketing expense, electricity bills and interest cost for borrowed capital. Store must maintain 3-4x monthly sales as inventory at any point of time. Business must be adequately financed to ensure it runs for at least 1 year without financial stress.

Capital expenditure will be on setting-up interiors of store. While the store must have tasteful interiors to attract customers but you should not over spend as it will increase breakeven period and delay store renovation requirement.

Selecting store

Based on budget, location and size of store must be selected. We believe that stores upto 500 sq. ft. should cater to a single category as it will help you to have enough variety to attract customers and convert more store walk-ins into sales. It will also help to create store identity in costumers mind and help repeat purchase.  If you have bit of everything without variety depth in each category, store walk-ins to sale will be very low.      

Location preference should be in a retail market/ mall with high footfall with fashion retail space. It will give you instant walk-ins without spending too much on marketing. It will also help you to keep up-to-date with new trends and competition.


It is ideal to identity market gap so as to avoid competition and create unique identity. However, if attractive market gap doesn’t exist then you should try to select under-served segment.

WholesaleBox is India’s most trusted Wholesale E- Commerce & Credit Fintech organization, allowing retail businesses and shopkeepers to bulk buy from factories– fast selling and quality- checked products across categories like clothing, footwear, branded stock lots, home furnishing, accessories and more.

Our Mission is to help the retailers / shop owners grow their business amid multiple problems faced in an unorganized wholesale sector exacerbated by a boom in B2C online shopping. WholesaleBox is enabling the shop- owners to source fast- selling, quality- checked and latest designs from factories in just 6- 10 days and further sell quickly to their customers without lagging behind the ongoing trend.

For more information or to start a new shop visit website or call at +91 8696491521