With changing demographics and consumer behavior, both the production and consumption of apparels in India has become exceedingly high.
If you ask the basic utility of clothing in our lives, it would be to keep ourselves protected from harsh weather and from being indecent. Long ago was the time when people used to wear clothes to cover themselves up, today clothing has a much wider utility than ever before. Keeping pace with the modern culture and to keep ourselves updated with the ongoing fashion trends, we buy as many clothes as possible –formal, semi-formal, casual, active, sports, ethnic, seasonal, leisure, party wears, briefs, lingerie and what not!
With changing demographics and consumer behaviour, both the production and consumption of apparels in India has become exceedingly high. Statistically speaking, India is one of the world’s largest producers of textiles and garments. The apparel industry contributes 2% to India’s GDP and employs 45 million people. Being an industry so huge, the distribution channel of the industry requires workforce at a very large level to reach out to the end-users. Therefore, the distribution businesses are among the highest rewarding business opportunities in the apparel industry.
Channel of Distribution in the Apparel Industry
Like in any other industry, distribution plays a very vital role in the apparel industry too. Distribution is concerned with the action of sharing the products out among the end-users. In most of the cases, apparel is not something that someone will purchase from the manufacturer directly. So, a distribution chain manages the distribution of all these products. The channel of distribution changes as the end-user change. Some known distribution channels in the apparel industry are distributors, wholesalers, and retailers.
To carry out the distribution process, the producers sell their products to various distributors in different regions who keep the goods in the big warehouses where all the manufactured goods are kept to be dispatched to the retailers to be further sold to the customers. This channel relieves the manufacturer from the burden of taking care of the distribution process as the distributors take over the entire distribution of their region. Also, the distributors enjoy certain amount of margin on the sales that they generate. This is where the advantage of heavy demands comes into the picture. The more the products are demanded by the retailers, the more profits will the distributor earn (even if the retailers are not able to sell all the products).
Lucrative Investment Opportunity in Distributorship
Fashion is something that is never going to die but will keep evolving with time. With the rising market in this field, clothing and apparel businesses are on the peak of success and are perfect destination for those who are interested in grabbing business opportunities. Becoming a distributor of popular brand will help those people who possess a sound knowledge of how demand-supply chain works and how distribution could be easily managed. With higher margins and lower investment amount, apparel distributorship is a lucrative business opportunity. Here are some of the insights about apparel distributorship opportunity in India.
Investment Requirement: Rs 5-10 lakhs
Space Requirement: 300 sq ft
Distributorship Level: City Level