McKinsey’s FashionScope data suggests that the Indian apparel market will reach a target of $59.3 billion by 2022, making India the sixth-largest garment manufacturer worldwide. IMARC Group estimates the market to reach USD 646.96 Billion by 2033, exhibiting a CAGR of 11.98% from 2025-2033.The changing aspirations of the Indian middle class, digitally savvy customers, and strong economic growth make starting a clothing brand a lucrative business endeavour. This guide on how to start a clothing brand in India covers everything from developing a business plan to design, license and permits, and much more.
What is a Clothing Brand?
A clothing brand is a collection of products launched under one brand name. It is designed for a certain demographic or clientele. It can be offline via retail shops or on online platforms. One can showcase high-end designer labels to trending styles all under one roof. A brand identity could lead to more profits for the business if conducted properly.
Follow the below steps on how to start your clothing brand to ensure a smooth and successful business transition.
How to Start a Clothing Business in India with Easy Steps
If someone wants to know how to start a clothing brand,they should consider the below steps.
1. Develop a Business Plan
The first step is to create a business plan. It helps evaluate the set-up and operational costs, funding source, market competition, etc over the short and long term. In addition, a business plan can also put business ideas into perception. For example, a business plan could tell what customer needs can be addressed by the launch of the clothing brand. Projections are also a key component of the business plan and branding strategy.
2. Evaluate the Target Customer
Just having a business plan will not be enough to help you crack the idea of how to start a clothing line. Focussing on the target market/audience/niche area will help determine the business scope and viability in the market. For example, they could focus on manufacturing maternity wear, teen clothing and so on. Similarly, they could select certain demography, buying habits, climates etc. when narrowing down the target. Focussing on the targeted customer needs and preferences helps assess demand for clothing in the market.
3. Implement a Business Model
The next step in how to start a fashion brand in India is to have a business model in place. A business model helps specify the operational aspect of the clothing brand business. It means the brand owner can design the product on an individual or a wholesale scale. Or else, it can be sold only to retailers or to certain outlets.
4. Apply for Licenses and Permits
A key criterion of how to start your clothing brand in India is to have the necessary licenses and permits in place. Licenses and permits are specific to the place of business operations. It could be registered as a Private Limited Company, Limited Liability Partnership, Proprietorship and so on. Whatever the case, the clothing brand must be registered. If the business involves the set up of an establishment or shop, then the Shop and Establishment license must be obtained from that State Government. Having the relevant licenses and permits ensures that all legal formalities for establishing a clothing brand are met before the actual operations begin.
5. Maintain a List of Contacts
When thinking of how to start a fashion brand, having a list of the various business contacts is important. The contact list includes suppliers, distributors, publishers, boutique owners and customers.
6. Conduct an Exhibition
After deciding on the contact list, developing the collection/catalogue book, pricing etc. the next step would be to exhibit the clothing line. A clothing line will gain visibility and traction only when the products are shown around. So, when someone plans to launch their clothing brand or line, they need to conduct an exhibition. Invites should be specifically sent to the people from their contact list. The exhibition should be made available to the general public as the case may be.
7. Develop a Marketing Portfolio
An exhibition will help get a limited audience. If the business owner wishes to target a larger audience they must get their marketing strategies right. Also, if they want to know how to start a clothing business online, an offline exhibition may not give the desired outcome. Developing a marketing portfolio based on select pieces of the clothing line will attract customers. Such a portfolio would not have the price or size details.
8. Create a Promotional Strategy
Plans on how to start a fashion brand will not hold ground if the entrepreneurs do not develop the right promotional strategy. For example, a famous fashion model may give the brand a much-needed boost. Similarly, press releases can help a clothing brand thrive. By sending press releases to potential buyers/customers, media/editors and boutique owners, the owner can promote their brand adequately. Further, it can gain traction if it collaborates with a known e-commerce platform. Such a strategy could give the brand the much-needed impetus during its initial years.
Estimated Costing to Start a Clothing Business
The estimated cost to start a clothing business can vary depending on various factors, such as scale, branding, location, etc.
The initial costs for a small scale operation can add up to Rs. 30 lakh to Rs. 40 Lakh. Here is a breakdown of this estimate:
1. Inventory and Production Costs involve sourcing materials, manufacturing, and initial inventory. These costs can vary significantly based on the type of clothing you’re creating, and their quality and quantity. (Estimated cost: 5-10 Lakh)
2. Branding and Design includes creating a brand identity, designing logos, tags, and other brand-related assets. They can have varied costs depending on whether you do it yourself or hire a professional. (Estimated cost: 3-5 Lakh)
3. Business Registration and Licensing includes fees such as those for registering your business legally and obtaining the required permits and licenses. (Estimated cost:1-2 Lakh)
4. Marketing and Promotion includes advertising, promotions, and marketing campaigns to launch your clothing line and reach your target audience. (Estimated cost: 5-10 Lakh)
5. E-commerce or Retail Space Costs can vary depending on whether you’re planning to sell online or in physical stores. For online selling, consider costs related to website development, hosting, and e-commerce platform fees. For physical stores, consider rent, utilities, and interior setup. (Estimated cost: 2-3 Lakh)
6. Operational Expenses include employee salaries, packaging, shipping, and other day-to-day running costs. (Estimated cost: 2-4 Lakh)
Different Types of Cloth for Business
The following table illustrates the different types of cloth for clothing business:
Types of Cloth Businesses
Description
Retail Clothing Stores
These include various formats like department stores, boutiques, fast-fashion chains, and luxury brands
Online Clothing Retailers
E-commerce platforms providing convenience and accessibility
Custom Clothing Shops
Providing a personalized and unique experience
Athletic Wear Brands
Specializing in sports and activewear, meeting the growing demand for functional clothing
Sustainable and Eco-Friendly Clothing Brands
These brands focus on using sustainable materials and ethical production practices in their clothing lines
Different Types of Clothing Businesses
The following table illustrates the various types of clothing businesses:
Types of Clothing Business
Estimated Cost
Description
Retailers
15-20 Lakh
These businesses sell clothing directly to consumers through physical stores or online platforms.
Wholesalers
20-25 Lakh
They sell clothing items in bulk quantities to retailers or other businesses rather than to individual customers.
Manufacturers
30-40 Lakh
Companies involved in the production of clothing items, often in large quantities, which are then sold to retailers or wholesalers.
Distributors
10-15 Lakh
Businesses that facilitate the movement of clothing items from manufacturers to retailers or wholesalers
How Does a Business Loan Help to Start a Clothing Business?
Your clothing brand will require sufficient finances for various business aspects, such as operational costs, shop space, manufacturing costs, etc. A business loan can help you fulfil your business financinf needs and ensure a successful business launch.
Here are the key benefits of a business loan for starting a clothing business:
1. Cover the cost of expansion: Once your business launches, your business needs will grow, including more space, skilled professionals, and advanced equipment. A business loan covers the funds for these growing needs.
2. Growth and expansion: A business loan can help with expanding your product line or opening a new store front.
3. Marketing: A business loan allows you to hire a good marketing team and obtain more customers.
How to Apply for a Business Loan Without Any Hassle?
Applying for a business loan for your clothing business does not need to be stressful. Follow the given steps to easily apply for a business loan without any hassle:
1. Visit the Tata Capital website, or the website for loan-lending institution of your choice
2. Click on the business loan application page
3. Fill out the required details about yourself and your business
4. Upload the required documents
5. Enter loan requirement
6. Upon verification, you will receive a loan offer with the amount, interest rate, and tenure
7. Accept the loan for a quick disbursal into your bank account
Conclusion
Starting a clothing brand can be as overwhelming and stressful as it is exciting. When thinking about how to make a clothing brand successful in India, entrepreneurs should consider the various factors that impact it, such as the business model, operation costs, store location, etc. Knowing how to start a clothing brand in India will ensure smooth business operations and visibility. Developing a comprehensive business plan, obtaining the necessary licenses and registrations, maintaining a list of contacts, getting the name of your business out there, and effectively managing your finances are key to a successful clothing business.Start your profitable clothing brand today with Tata Capital. Tata Capital offers business loans at affordable interest rates, flexible repayment options, hassle-free processing, and quick disbursals. For more details, visit the Tata Capital website.
Clothing business are a profitable business venture to the constant high demand in India for trendy clothes. The profit margins of your company will depend on factors such as business size, pricing strategy, production costs, etc.
Do I need a license to start a clothing brand?
Your clothing brand must be registered. If you wish to open a shop for your clothing brand, you must obtain additional licenses, such as a Shop and Establishment license from your state government.
What happens if I don't have business registration proof?
Failure to obtain business registration proof may result in legal issure and cause you to lose credibility with your suppliers and customers.
How Much Does It Cost to Start a Clothing Business?
The cost of starting a clothing business includes space, inventory, staff, operating costs, etc. These expenses generally add up to around Rs 5-10 lakhs. The initial cost can increase with the size and scope of your business.
How do I name my clothing brand?
The name of your clothing brand must reflect your brand identity and resonate with your target market. You can tie your brand name to your personal life or use an online name generator.
21 April 2025
9 mins read
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