According to surveys and market research, the average spending rate of each individual on clothing needs accounts for about 14% of total daily spending. Clothing is an essential need of every person, moreover, with the current trend of “eating well and wearing beautiful” like the present, you do not need to worry about the trend of clothing business that will be outdated and difficult to live.
Is the clothing business profitable?
Join Sapo Blog to follow successful people in the fashion industry to see how they have made a profitable clothing business!
CEO Bui Thi Ngat: She was born in 1990 in a poor rural area in Thai Binh province. She is one of the successful people from a small clothing business. With a small amount of capital earned from her tutoring job, she boldly invested in importing clothes to sell at the student market. This start-up business has helped her get capital and invest in many other businesses. Up to now, she has achieved a lot of success and was voted as the best young entrepreneur in ASEAN in 2015.
Ms. Phuong Thao – General Director of Vietjet Air is the first female billionaire in Vietnam to start a business selling clothes. While a sophomore majoring in financial economics in Russia, she started a clothing business. With passion and acumen in business, she has earned a large amount of money from this job. This is the first stepping stone to help her succeed in later business fields and become the most successful businesswoman in Vietnam.
Lai Huy Viet (Ba Dinh, Hanoi) is the owner of 2 clothing stores with an income of VND 50 million a month. Previously, he worked as a barber with a low salary. During his career as a barber, he observed many social media sellers making huge profits. Realizing that an online business has the potential to grow, he decided to collect 5 million dong of his savings to start a business. Initially, he also used the 30 – 40% discount strategy as other stores are applying. But can’t compete with reputable stores. Then he came up with the idea of selling below the entry price. He sold a T-shirt for 40,000 VND at a loss of 5,000 VND compared to the input price.
In order to buy this shirt, customers need to buy at least one other product at the store. Each product sold with him will profit from 100,000 to 300,000 VND. This is called a non-profit sales campaign, but in fact, with the selling price of the accompanying shirts, he has earned a profit of nearly 40 million VND after 1 month of organizing this campaign.
From the above 3 stories, we realize that we do not need to grumble with the question Is it profitable to open a clothing store?? As long as you have passion, enthusiasm, effort and an effective business strategy, you will surely succeed!
Read more: Starting a business with the idea of an old clothes business that is not old
How to make a profitable clothing business?
Clothing business is a potential enrichment market that many people are pursuing and doing. But not everyone’s business is profitable, so to be successful, you must have a specific strategy before starting a business.
1. Survey and find yourself a suitable niche
This is an important first step in answering the question “Is it profitable to open a clothing store?”. What is the target consumer market you need to survey? Survey the living standards of people around you, how much money they are willing to spend to buy clothes.
Within a radius of 5km, are there other shops that are also competing with you?… Once you have answered these questions, you will know which market is right for you and has the most potential.
Read more: 10 questions to list in your clothing buying habits survey
2. Is opening a clothing shop profitable? Depends on the design and quality of the product!
Whether you are opening a shop selling children’s or adult clothes, male or female subjects, Vietnamese exports or Chinese, Thai, Japanese, Korean goods, etc., you still need to ensure the quality and diversity factors. product designs and models.
In addition to imported goods, you can also trade in self-designed fashion clothes “following” the hot styles on the market. And whether it’s an imported product or a designer product, you always have to ensure that it’s beautiful, unique, strange, and reasonably priced. If you have a good response in terms of design, price, quality, then the question “profitable clothing business please do not” Already have the answer, right?
Read the article now Cheap clothes wholesale you may not know if you’re ready to get started.
When you become a clothing shop owner, you definitely have to learn how to manage your store. Otherwise, the store cannot operate smoothly.
You need to know how to manage inventory, manage employees, to avoid loss of goods. Sales, profit and loss of the store also need to be monitored daily. Read the article below to learn how to effectively manage your store, and to become successful fashion shop owners!
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3. Choosing a business location – An important factor in deciding whether a clothing business is profitable or not!
The clothing business is more or less profitable, largely depending on the location of your business. It is advisable to open a clothing store in crowded places, or small neighborhoods that make it easy to attract customers’ attention to your store.
If the store offers young, dynamic and suitable clothing for students of all ages, it should be opened in areas near universities, colleges or high schools.
Business location- The deciding factor to open a clothing shop is profitable
4. Apply promotions
Regular promotions, discounts and gifts will help your brand get closer to customers. Customers will feel more excited to buy.
However, do not abuse the discount programs too much, which will “damage” customers when promoting the habit of buying cheap goods. Moreover, when the frequency of promotions is dense you think Will the clothing business be profitable??
To build a strong brand, not because of cheap prices, or many promotions, but because of product quality. Applying promotions will help you find new customers and help Is it profitable to open a clothing store? becomes easier.
But for customers to come back to buy products for you for the second and third time, only the quality of the product and the appropriate price can decide.
Promotions find more customers and answer the question “is the clothing business profitable” easier
Read more: An overview marketing plan for a fashion business idea
5. Combine selling in store and selling online
85 million Vietnamese people regularly go online to find information and buy goods. So in addition to selling at the store, you should combine your online business now to reach your potential customers.
Initially when the capital is small, you can post products and sell on Zalo, sell Facebook. There are many methods to reach customers such as advertising, like, share for incentives or participate in mini game shows to receive free gifts, which is the best form of advertising for business owners.
After that, you should also create a website to sell clothes and sell through e-commerce sites like Shopee, Lazada, Sendo… to create your own brand and improve customer trust.
Is the clothing business profitable? It’s up to you to decide, luck is only a very small part. Even if the market is crowded and saturated, you still have the opportunity to grow if you have a good strategy and find your own niche.
However, the road from the beginning to the end is a arduous journey, and not only in the clothing business but also in any profession. Only when you have a detailed plan, brave enough and alert to overcome difficulties can you succeed.
And remember, when opening a shop, to effectively manage your clothing store, use Sapo POS clothing store management software! How “miracle” Sapo POS is, let’s find out here!
