The Readymade Clothes Export Business is one of the top industries in India. You will be surprised that all top clothing brands, including Zara, H M Clothing, and Jokey, manufacture their clothes in India and sell products globally.
The ecosystem of India is suitable for establishing a readymade clothing manufacturing company. Resources required to manufacture high-quality clothes are already available in the country.
Also, clothing was the first industrial job that came into existence in India, which helped people to learn the skill and become masters in the job through experience.
Due to this fact, you will easily find skilled workers in the community. Existing clothing businesses leverage the low labor workforce and export quality products to developed countries to earn good profits.
If you are also fascinated with starting the import-export clothing business, then a readymade textile export business would be the right opportunity that you should leverage like other players in the Industry.
Readymade Clothes Export Business is an evergreen business model.
The Readymade Clothes Export Business is undoubtedly an evergreen product that runs on a long-term sustainable model. Let’s talk about the report published on the export of articles on Apparel and Clothing accessories.
The report shows that the export of readymade clothing and accessories has grown to US$ 1.32 billion between April and July 2020. The rising number clearly indicates that India’s clothing industry is earning a global presence.
Step by Step guide to start a Readymade Clothes Export Business
1) Registration of the company
Before you export and import readymade clothes, you must have an authorised licence from the government to become a readymade garment exporter. Establish a company under the sole proprietorship if you are an individual entrepreneur or form a private limited company known as a partnership company.
Afterwards, complete the company formation with the brand logo, website, contact number and product brochure to promote your business. Once you get the company registration number, you can open a current account with the bank to perform a business transaction, get paid by foreign buyers, and participate in foreign exchange.
2) Necessary license and certification
Companies participating in export and import business must procure different certifications and licenses to qualify for trading goods.
First and foremost is the PAN card, which requires filing income tax. Next is the import-export code (IEC) number need to start an export business. Exporters also submit the registration cum membership certificate (RCMC) number when exporting the goods.
Other certificates granted by the FIEO, Commodity boards and Export promotion councils are also beneficial to get the export benefit on certain products. Apply for the certification as soon as you complete the company registration.
3) Finding the client
Once the company registration is done, the next step is to find customers to sell readymade clothes in the foreign market. Your sales and marketing expertise will play a critical role in getting big orders for Indian-made clothes. Use your network and sales ability to find customers for your products.
Finding a client would take time, but if you stay consistent, you will reach the customers and become a global player in readymade clothing.
4) Finance analysis
Finance is the backbone of the business. A company cannot run without sufficient funds in the bank; thus, entrepreneurs should keep an eye on each passing bill. Keep the expense under control and focus on generating a positive cash flow for the business.
Export business is quite vulnerable. A sudden change in the policies could affect the payment from the client. The positive cash flow is a good sign for the company. Regular finance analysis will inform you of the money and ongoing expenses.
5) Choosing a machines
Machines are going to play a vital role in business automation. You can only run a modern business with human power. You need a mixture of humans plus machines to achieve the desired success in the Industry.
Getting good machinery for the production factories will multiply the production capacity.
Also, a specific type of machine is designed to get high-quality products through natural resources. List down the machinery available in the market that is built to reduce human efforts.
You will find garment-making machines such as cutting machines, power backup, pressing, stitching etc. The right equipment reduces wastage and helps you to save on the operation cost.
The Readymade Clothes Export Business is relatively easy to start if you got good international standard products. The team of experts will assist you in creating the company and give you the necessary tools and information to become the top player in the Industry. You can also take assistance from the import-export consulting firm Impexperts.
We hope the article has helped you to learn how to start readymade clothes export business. The import and export of garments in India are consistently growing. Being in the export business will give you several opportunities to become the top brand in the Industry.