Investment Potential: Cost & Benefit of Clothing Franchise in India

on Feb 25, 2023 | 84235 views

By Shifa Qaiyum

Interested in fashion and looking to invest in the clothing industry?  Buying a clothing franchise is an option for you. A clothing franchise is easy to set up and more convenient to manage rather than starting a new clothing business from scratch.

A clothing franchise is one of the most profitable businesses the demand for clothes never stops and fashion can never run out. The apparel industry’s revenue amounts to US$96.47bn in 2023 and is expected to grow at a rate of 3.8% in the coming years.

One of the most important factors to run the clothing franchise successfully is its marketing. You should select the brand carefully before investing because it can help with the same. The location also plays an important part in the sale of your products.

Here are the Top Brands To Get an Insight into Clothing Franchise Costs

The range of investing in a clothing franchise can differ depending on the brand as well as the location of the shop.

Here are the top 10 clothing brands in India:

1. Barcelona Club Franchise- The company started as an initiative by Stitched Textiles Pvt. Ltd. and has become India’s largest and fastest-growing brand providing luxury and premium clothing for men from the world to the country. The company has 43 EBO stores across India.

Initial investment: INR 10-15 lakhs

Area required: 500 to 750 sq. ft.

2. Biba Franchise- Biba is an excellent brand for women’s clothing. It has achieved recognition owing to its premium quality women's wear for women of all ages. The company helped in making comfortable and simple designs into a fashion statement. Its rich and vibrant colours are what attract its customers. Biba has more than 250 franchise units across India.

Initial Investment: INR 20-50 lakhs

Area required: 1,000 to 1,200 sq. ft.

3. Manyavar franchise- Manyavar is the name that instantly comes to your mind when you want to buy clothes for weddings or other special occasions. The company started as men’s wear but it has expanded its field to women’s wear also. The company has more than 600 outlets in 200 cities in India.

Initial investment: INR 40 lakhs to 1 crore

Area required: 1,000 to 2,000 sq. ft.

4. Raymond- No one can beat Raymond's reputation and brand value when it comes to men’s suiting and shirting. Raymond is at the top of your mind when someone says “A Complete Man.” They cater for the common man to elite members of society with their range of clothes varying from fabric to ready-to-wear.

Initial investment: INR 25-50 lakhs

Area required: 600 to 1,200 sq. ft.

5. Siyaram- Siyaram is one of the most popular fashion brands in India with a widespread of 1 lakh retail stores.

Initial investment: INR 20-30 lakhs

Area required: 1,000 to 1,500 sq. ft.

6. Zara franchise- Zara is a luxury clothing brand which promises to look after the development, quality control, designs, logistics and sales through stores as well as online shopping. Zara stores are mostly located in popular commercial places.

Initial investment: INR 50 lakhs to 1 crore

Area required: 1,000 to 1,200 sq. ft.

7. Jockey- The brand developed in the undergarment segment in 1976 and has been unstoppable since then. It came to India in 1994 and since then it has opened 150 outlets and it is also available in other retail stores. Jockey made it huge due to its good quality, innovation and most of all the comfort it provides.

Initial investment: INR 20-30 lakhs

Area required: 1,000 to 1,400 sq. ft.

8. FabIndia- The company is known for its khadi and pure cotton ethnic apparel. They are also known for their hand-woven and hand-printed fabrics that often resonate with traditional Indian prints and motifs. They have over 200 branches across India.

Initial investment: INR 10-15 lakhs

Area required: 1,500 to 2,000 sq. ft.

9. Allen Solly- Allen Solly created the ‘smart casuals’ category in India with its great fashion and intelligent communication. It rectified what India wore to work taking a break from the same boring grey, black, white and navy blue colours. Allen Solly was also the first brand to introduce work fashion for women.

Initial investment: INR 65-75 lakhs

Area required: 1,500 to 2,000 sq. ft.

10. Westside- Westside is India’s largest and fastest-growing retail store with an exclusive range of its own branded apparel wear. The company has established more than 155 stores across India.

Initial investment: INR 1-2 crores

Area required: 2,000 to 3,000 sq. ft.

See more: The top 10 clothing franchise businesses in India.

 

Why Should you Start a Clothing Franchise in India?

The demand for clothes is something that can never be stopped. The business has proven to be profitable because it is recession free. Investing in a franchise is a low-risk and high-profit prospect as the franchisee does not have to set up the business from scratch.

The key benefits of owning a clothing franchise are as follows: 

  • Profitable Growth- The main advantage for a franchisor is that it can increase its presence in the market by utilising a franchisee’s capital to expand the business. The brand has already made a reputation for itself in the market. This will help the outlet to get customers fast which will help in bringing early profits.
  • Change in fashion- There will always be a change in fashion and no high point to the designs and elegant clothing which will always be in demand by the brand and a fashionista. The trends and fashion styles keep changing and there is no end to the demand by fashion-conscious people.
  • Reduces risk factor- The merger with a reputable brand gives the franchise an advantage in the market and greatly reduces the risk factor in the investment of their capital.
  • Advertising- The franchisor helps you with striking advertising and marketing if you buy a well-established franchise. It reduces your personal investment in promoting and helping to boost your customer base.
  • Location- Finding a perfect location to set up your store is very difficult. Business owners look for places that provide healthy competition but there should also not be too many similar businesses. The franchisor helps you in finding an appropriate location for your store because their research helps them in finding what suits their business.
  • Peer assistance- The biggest advantage of a clothing franchise is that fellow franchisees can advise new entrepreneurs on how to run the business. If one franchise runs successfully, the other outlets also benefit from it because all of them operate under one brand.
  • Faster set-up- A franchise is a faster option rather than sole ownership for starting a business. Research shows that it takes around 2-12 months to launch a franchise while an independent business may take more than a year to set up.

Get more insights on Franchising Basics.

What steps do you need to follow to open a clothing franchise?

You need to make sure of your preference before launching a clothing franchise. Here is a list of steps you need to follow to open a clothing franchise:

  • Research- Conduct market research to know the current market trends of the industry. You should talk to the existing brand’s franchisees to know about the returns and if they are happy. You should select the retail format in which you want to invest in depending on the investment capital you have. A franchisee should also have some knowledge to run the clothing franchise store as it will help in the operations to run it successfully.
  • Investment- Investment in the clothing franchise depends on the area, size of the store, retail format and the market where you want to open the franchise. You must ensure that you have enough capital to run the franchise as you have to invest in the franchise fee, furniture & fixtures, equipment and marketing.
  • Location- Selecting a proper location to set up the store is the most important thing. Malls, high streets and commercial hubs are ideal to open apparel stores.
  • Consult a Legal Expert- The franchisee should consult a legal expert before signing the agreement with the franchisor. They should ensure that all their preferences are also mentioned in the agreement.
  • Design as per Current Trends- The franchisee should do market research and customise their products according to the ongoing demand and what is being sold quickly.

 

What are the Top women's wear franchises in India?

The top ten women wear franchises in India are as follows: 

Brand name

Investment (in INR)

Shree Franchise

25-30 lakhs

AND

30-35 lakhs

Global Desi

30-45 lakhs

Suti

15-25 lakhs

Aurelia

15-20 lakhs

CTC mall

30-50 lakhs

Afsana

15-30 lakhs

Di Moza

15-20 lakhs

Rangriti

20-30 lakhs

Madame

30-50 lakhs

 

Frequently Asked Questions

1. Does the franchisor help in finding a suitable location for your store?

Ans. Yes, the franchisors can provide some insights about certain locations, legal and real-estates to the franchisees which would have been difficult without professional help. Thus, it will be easier to find a suitable location for your store using the franchisor’s resources.

2. What is the cost to start a clothing franchise?

Ans. The cost to start a clothing franchise depends on the location and the brand name. It can range from around INR 30 lakhs to 1 crore.

You also need to keep in mind that you have enough capital to keep the business afloat till you reach a break-even point. You need to pay a franchise fee annually, utility bills, rent of the place and operational costs.

3. Is investing in a clothing franchise profitable?

Ans. Yes, the clothing franchise is one of the most lucrative businesses in India at this time. The profit margin ranges from 25 to 60% depending on the brand which you undertake.

Your profit also depends on the location of your outlet. If your showroom is located at a high-profile shopping street, mall or cloth market, you will get more buyers which means more profit.

4. Which brand is the most profitable clothing franchise in India?

Ans. In recent research, it is seen that Raymond has become the most profitable franchise in India due to its high-quality clothes. They provide unstitched materials as well as readymade clothes for men. The investment required is around ₹25-30 lakhs and its ROI is around 20%.

 

Conclusion

The most basic requirement to open a clothing franchise is that you should have a sense of fashion and should be a good salesperson. This will be enough to keep your business afloat. In the end, it can be said that investing in a clothing franchise is a lucrative business because the demand for clothes never stops and the changing fashion trends can help you keep your place in the market by providing the customers with what they are looking for. 

That concludes the article and we hope that you enjoyed reading about the clothing franchise in India and its growth in the last few years. Thank you for reading and do share your thoughts with us.

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