Complete Guide to Start a Kidswear Manufacturing Business in India – 2023
Did you know? Recently, the world population hit 8 billion+ which not only created history but, it became an all-time record. Yes, this population is never going to decrease once the respective countries start to take some serious actions or precautions.
More and more babies are being born every day which is increasing their daily needs. For example, the need for baby foods and baby sanitary products has increased rapidly in the past few years.
On the other hand, the businesses in these fields are growing every day and are booming in their respective market. When we talk about global kids apparel market size then that is something which has never declined. As of 2022, the global kid's apparel market size was valued at USD 187.29 billion, and in 2023 it reached USD 187.29 billion.
Yes, it was not a huge increase but, it did see some major increase in the industry. All the credit for its huge booming business goes to its increase in demand and rise in population.
Now, you will be amazed by the fact that by 2030 some resources have claimed that, this figure will grow up to USD 318.24 billion, exhibiting at a CAGR of 6.96% during the forecast period. Moreover, that is one of the primary reasons why there is a huge demand and there will be a growing demand for kidswear in the coming decade.
So, if you are planning of opening a kidswear business , Kidswear Franchise or apparel store then this could be the right time for you and your business to establish.
The Benefits of Starting a Kidswear Manufacturing Business
When you are stepping into a new or existing business there are always lots of pros and cons. Businesses must be chosen by looking at the pros list not by looking at the cons list. Here is a small tip for people who are willing to open or step into a new business.
Make sure you make a proper list of the pros and cons of that business, if the pros list extends as compared to the cons list that is the right business for you. On the other hand, if the cons list extends the pros list, think twice before you step into that business.
Now, we will be talking about the benefits of starting a kidswear manufacturing business.
High-profit margin
Unlike any other business in the market, starting a kidswear manufacturing business provides a high-profit margin. If you have targeted the right audience and in the right market then you can easily experience 30-60% of profit margin from your business.
The purpose of starting a business is to earn massive profit and to expand your business. Opening apparel targeting the kidswear audience will help you grow your business and earn good profit.
Simple business model
Most clothing businesses or manufacturing businesses have a very simple business model. It is where you collect all the raw materials from trusted places and then process them in your store or warehouse and then finally set them for sale. Such an easy process is not easy to find in any other business.
Longevity and reliability
If you are looking for futuristic businesses then opening a kidswear manufacturing apparel is the best idea out there. It is because the demand for kidswear will never vanish or it will never decline. You can easily maximize your profit margin or expand your category list in the long run. On the other hand, it is highly reliable as you do not face many problems or hassles starting this business.
Highly scalable
Starting a clothing manufacturing business is highly scalable. Initially, you will be starting with a few clothing pieces but, once you have targeted the right audience in the right market that will increase to more and more. You can easily expand your business within a few years down the line after starting this business.
How to Start Kidswear Manufacturing Business?
Now, when you have finally planned to start a kidswear manufacturing business, you need to take some crucial and most important steps very carefully. There are some processes, steps, and procedures that must be followed very strictly before and while starting a kidswear manufacturing business in your market.
Now, we will talk about how one can start a kidswear manufacturing business in their market. Make sure you follow all these steps before and while you are willing to start a kidswear manufacturing business.
Step 1: Do your research
The very first step of any business should be proper research on every aspect or parameter that is required for your business. This step is very crucial because your whole business depends on this first and initial stage.
On the other hand, most parents are very careful and particular when shopping for their children than they are for themselves. When you have targeted the kidswear section or audience, you should always focus your research on clothing safety, durability, latest trend, design, and comfort.
Comfort is something that must be focused rigorously, this is because when the kids are comfortable wearing your clothes, parents will be happy to visit again. Safety precautions must ensure the clothing is flame redundant.
Make sure you identify your target market in your area. Not all people can afford premium kidswear apparel so that is where you could provide mid-range and best quality products. But, if you are planning to target both middle-class and premium class then you would require to market or advertise your products differently.
For example, you could advertise products to upper-class people on social media platforms or you could offer an exclusive section for them, on the other hand, for middle-class people you can easily put huge sales where they can come and grab them.
Make sure to analyze your competitors who are doing the same thing in your area. The best way to overcome your competitors is by offering exclusive features, design, and most importantly the price section. The more innovative products you bring the better attraction it becomes for customers.
Step 2: Create a Business Plan
After you have completed the basic and the most important step this is the second step which is to create a business plan. If you have done proper research then creating a business plan or the work process will be very easy. A well-thought business plan must be implemented in your business.
You need to define your business goals while creating a business plan. For example, you need to find out what is the mission and vision of your business in the market. You need to apply your vision and mission to your final product as well so that the customers become a part of your business.
The second part of a business plan is to develop a marketing strategy. For example, you could use various social media platforms to promote your products. Other than this you could even conduct a manual survey by giving out samples of your best product. Yes, a survey can also be taken online which will be cost-effective and will save you time.
The third part of your business plan is to set financial targets for your business. This kidswear clothing apparel business must have a proper financial structure so that the money processing is smooth and easy. Your product is your god, so the more innovative products you make the better and faster you will meet your financial target.
Step 3: Secure Funding
Without adequate financial resources, your business will surely have a hard time. In this step, you would need to be highly realistic about how long it will take for revenues to catch up to costs. Make sure no extra expenses are done while setting up or after setting up your business.
It is always better to make a list of the products or items that are necessary for your business and then make a list of their expenses. Always try to not go beyond that list which will add up more funds on different and unnecessary things.
The first step is to determine your funding needs. As mentioned above, spend on those products and materials that are required for your business. Businessmen must understand the difference between need and want. For example, if you are managing within two shelves there is no requirement for a third one unless necessary.
The second step to securing your fund is to identify potential sources of funding. Make sure you have proper investment for your business. For example, you could gather funds by either taking loans or by partnering up with your family, friends, or other relations.
The third step is to apply for funding. Now, applying for funding does not mean taking loans from banks. You could raise money from your friends or families during the initial stage or start your business with three to four partners. Doing this will divide your total investment and other costs. In the end, applying for bank loans or other business loans is always an option.
Step 4: Set up your manufacturing facility
Now it’s time to finally implement all your business plans, research, and funding ideas for your manufacturing facility. It is one of the most crucial stages while setting up a kidswear apparel manufacturing business. Now, here are the things to consider in this step:-
Location- After all the research and analytics you surely have got a major idea of where your manufacturing business should be opened. Select the best location possible according to your data and research. For example, people willing to buy products from you must be able to see your store and can easily come there.
Lease or purchase equipment- Not all people willing to conduct business have land of their own. This is where you will search for the best land possible and take it on lease. After you have taken the land, you will have to purchase all the equipment that is required to start your store or manufacturing unit. Now, you will also require painting material to design your interior.
Hire employees- Setting up your manufacturing unit also means hiring the right people who will work. For example, without the right people or employees, there is no soul in your business.
Step 5: Start marketing your product
Now, it's time for your brand to expand through marketing and advertisements. There are various methods and ways in which a new clothing manufacturing business can advertise its products innovatively. The primary goal of marketing your brand is to attract customers and share the awareness of your business.
Use Social Media- One of the best and most cost-effective ways to market your products is through various social media platforms. For example, a newly-launched business will not market its products through advertisements. They can easily use different social media platforms or personally message all the products to them.
Create a website- Nowadays, almost every business has a website. Similarly, you can easily make a website (user-friendly) where you can show all your recent products. For example, make a unique yet catchy website where all your products will be featured along with the price tag. This will help customers know about the products and your company as well.
Attend trade shows- Trade show marketing has proved to be quite efficient ever since it was established. You can visit different fairs or places to show your unique products. Make sure you visit this kind of show where you have a better target audience. Not all places or shows will be suitable for your business.
Conclusion
Your total business setup will depend on how efficiently you have worked and how deeply you have conducted your research. Not all businesses have worked even after deep research and analysis. Make sure you conduct proper research and analysis and most importantly efficiently.
Now, the key to success in the kidswear manufacturing business is manpower (trained), machinery, raw material, and methods. If all these are correct in your business then there is no one who can stop you from expanding. Now, when it comes to the future of the kidswear apparel industry we have already given you the facts and figures of how they are going to expand in the coming decade.
Other than this, many sources have seen a definite shift in the lifestyle of people and their choices. There will always be a demand for kidswear in the future as the taste and preferences keep on changing. The faster you adapt to the latest trend the better you can grab the market.