Editor’s note: This article was first published in June 2010, and its references to the crisis and to garment printing machines being very cheap “right now” reflect 2010.
In the United States, Spain, Mexico and Peru, opening a clothing store may not be the best business idea unless we follow a few guidelines. These countries have to compete with China’s textile industry, which, as we all know, is hard to beat on price.
But as you know, here we like to create innovative businesses and keep fighting until we outdo the competition.
Ideas for making clothing a good business
Small garment printing shops
Something that’s starting to become fashionable is shirt printing. Nowadays we can have a photo printed on our favorite garment. This business also gives us the chance to work for small and medium-sized companies on their uniforms, printing the company’s logo and name on their workwear.
By agreeing on prices with your manufacturers or distributors, you can also make money not only from printing T-shirts but also from supplying the workwear itself. Right now, garment printing machines are very cheap.
Clothing store
The traditional clothing store is the one feeling the drop in sales the most, both because of the crisis and because of low-price competition. It’s not the best idea unless you plan to innovate or do it in a way that sets you completely apart from your competitors. If you like design, this could certainly be your big chance to make a name for yourself as a designer and earn money along the way.
See also: 20 businesses that succeed abroad and that you can import because they don’t exist in your country
Thinking big
As Donald Trump said, “As long as you’re going to be thinking anyway, think big.” I don’t know whether you’ve heard who the world’s biggest clothing exporter is. It isn’t China. The biggest exporter today is India.
India’s prices let you compete with any other industry. The quality of the fabric is excellent.
Large companies and very well-known clothing brands, which I won’t name to avoid future trouble, have their clothes made to order by this industry.
Comparing the cost price with the retail price, they can make a 950% return. Yes, you read that right: almost 1,000% on every garment.
The advantages of bringing clothing from India are very clear
The price. You can get garments that you see in upscale downtown stores for €40 for the modest price of 90 cents.
The drawback. Obviously, shipping and the minimum order. You’ll have to bring in at least a full container of clothing, the equivalent of roughly 1,000 kg.
You have several business options
Either you team up with two or three other people in the trade, or you plan your business to distribute the clothing to shops and markets around your country. In France, an entrepreneur put this idea into practice: he started with a container of clothing that cost him €1,500 and now receives four containers a month. Naturally, he plans to start expanding into Germany and Spain. For him there’s no crisis; quite the opposite.
In the next article I explain how to bring in clothing from India and some precautions to take: Tips for importing clothing from India.
Further reading
- Business ideas in body care
- Business ideas in leisure and tourism
- Why new businesses fail
- Manufacture or outsource production?
Featured image: Bukulu Steven, CC BY-SA 4.0, via Wikimedia Commons.
