How much money does it take to open a clothing store is a common question for those who want to start this exciting and challenging business. Today Sapo will analyze for you to have a deeper and more specific insight into this issue.
1. How much capital does it take to open a clothing store?
There are many things that need to be clearly defined before you want to know how much capital you need to open a clothing store:
1.1. Cost rent
The first thing when determining the capital to open a clothing shop is to determine the cost of renting space. If there is no space available, you will have to pay rent for at least 3 months or 6 months with prices ranging from about 5 to 10 million VND/month. However, in big cities and “golden” locations, rents are often one-and-a-half to two times higher. You also have to add additional costs such as electricity, water, security, Internet, etc.
How much capital does it take to open a fashion shop?
If the amount of capital to open your clothing shop is small, it is best not to rush to rent a place to open a shop but only online clothing business to gain more experience, save business capital and find potential customers for your business. myself first. Selling clothes online will save you a lot of costs, and imported goods do not need to be taken too much, you can let customers order first and then import later.
Instead of paying the cost of renting space, all you need is just a sales website. You also do not need to know programming, because there are many units that provide pre-built sales websites on the market, for only about 2.5 million / year.
1.2. Import cost
To answer the question “How much capital does it take to open a clothing store?” Determining the cost of importing goods is very important. Normally, the cost of importing goods will account for about 60-70% of the capital to open a clothing shop. Many of you when starting out often wonder where to open a clothing store? Why are there so many fashion shops where they can import beautiful clothes… Because those shop owners find good sources of goods.
Usually, fashion shops in the North often pick up goods in Guangzhou (China). With this source of goods, it is suitable for those who have the capital to open a large clothing shop and a large store size, it is worth the effort because it takes time to travel, many risks, expensive travel and transportation costs.
If your business is on a moderate scale, you just need to find wholesalers at wholesale fashion markets such as Ninh Hiep market, Dong Xuan market (Hanoi), An Dong market (HCMC) or websites that sell online trade.
If you have skills, skills and high aesthetics, then you can design your own then order at factories or source goods from garment factories to have your own source of goods, good quality, and unique designs. , novelty will be favorable for business.
How much capital does it take to open a small clothing store?
It should be noted that reputable sources, quality products and prices are the key factors that determine the success or failure of any business, not just clothes and fashion. Therefore, in order to do business effectively, whether in the short term or in the long term, you need to find a reputable, stable and quality source of goods.
1.3. Cost of designing and decorating the store
In addition to purchase costs and space rent, in the capital to open a business shop, you must take into account other non-fixed expenses for decoration and store design such as painting, house repair, sign making, glass doors, buying racks, clothes hangers, cabinets and shelves, electric lights, fans, air conditioners, mannequins, mirrors...
Usually, the costs for this decoration can be limited to between 20 and 30 million VND. If possible, find shops that are liquidating or transferring to save money on repair costs and buy decorative items cheaper than the price of a brand new purchase.
You can first read the article How to decorate a beautiful clothes shop to captivate customers and see what accessories will be needed and how to decorate!
How much capital does it take to open a fashion shop?
1.4. Cost of hiring staff and purchasing equipment
With the question "How much capital does it take to open a clothing store?" You also need to calculate the cost of hiring staff and purchasing equipment to be able to calculate the exact amount of capital to open a business shop. It can take you from 5 to 10 million VND/month to hire more staff, buy store management softwarefashion for about 4 million for 3 years, hardware such as receipt printers, barcode scanners also fall into 3 million price range.
It can be seen that to answer the question of how much capital is needed to open a fashion clothing shop, you have to go and solve problems in terms of premises, sources of goods, staff, equipment, etc. In general, depending on the form business in which you will have reasonable initial calculations to determine the capital to open your clothing shop.
Recruiting staff is also very important when opening a clothing store
According to the advice of experienced people, the competition in this field is very fierce and requires you to have capital to open a long-term clothing shop. Let the reserve capital avoid risks, don't "eat all, fall to nothing", will be extremely risky. If you open a shop with a scale of 80 to 100 million dong, you must have 120 to 150 million dong on hand.
However, the capital should not be used to open this clothing shop, but the amount for your first purchase is only about 50% of the amount you have. For example, if you intend to open a shop with a scale of 80 million, you should only spend about 50 million and the remaining 30 million is borrowed from relatives and friends so that you have motivation and pressure to work as well as save the excess money. To cover the cost of the first time, pick up the goods later.
2. Is the clothing business profitable?
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 dressing well" like now, you don't need to worry whether the clothing business is profitable or not. The answer is definitely yes. Check out a few examples below!
2.1. Those who have succeeded
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 tutoring, 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 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 finance and 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. 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 made a profit of nearly 40 million VND after 1 month of organizing this campaign.
So don't keep grumbling with the question of whether opening a clothing store is profitable? As long as you have passion, enthusiasm, effort and an effective business strategy, you will surely succeed.
2.2. How to make a profitable clothing business?
Clothing business is a potential enrichment market pursued by many people. But not everyone's business is profitable, so to be successful, you must have a specific strategy before starting a business.
Survey and find yourself a suitable niche
Survey and find yourself a suitable niche
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.
Shaping your own style for a clothing store
In order for the business to be effective, it is important that the clothing store has its own style, and has specialized products. Selling office clothes, clothes for students, clothes for middle-aged or children, specializing in beach fashion, large size fashion...
You also need to find a difference for your store in terms of quality and design in line with trends on television, movies, and on the street. That difference can also be location and convenience for the customer or come from service, e.g. door-to-door delivery, fast delivery, etc.
Put yourself in the shoes of the customer to get the best sales quality and achieve business success.
Is opening a clothing store profitable?
Product quality must be good, with a variety of designs
Whether it's opening a shop selling children's clothes or adults, male or female, Vietnamese exports or Chinese, Thai, Japanese, Korean, etc., you still need to ensure the quality, variety 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 is an imported product or a designer product, you always have to ensure that the criteria are beautiful, unique, strange, and reasonably priced.
Read the article Experience in opening a clothing store shopif you are not ready to start.
Choose a business location
Clothing business is not profitable, more or less profitable, largely depends 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 clothes for students of all ages, it should open in areas near universities, colleges or high schools.
Clothing business wants to make a certain profit can not ignore the online market
45 million Vietnamese people regularly go online to find information and buy goods. So you need an online business now to reach your potential customers.
Initially, when the capital is small, you can post products and sell on Zalo, Facebook. There are many methods to reach customers such as advertising, like, share to receive incentives. Like, share, tag friends to receive a 40-50% discount or get a gift, participating in mini games to receive free gifts is the best form of advertising for business owners. . When you have excess capital, you should create a sales website to build your own brand and help users trust more.
3. Mistakes to avoid causing your shop to lose money
If you want to sell clothes effectively, you need to avoid inventory and outdated goods because it is difficult to sell and rotate capital. Therefore, if you are just starting a business, don't import goods in too large quantities, just import a little at a time to explore customer tastes. At the same time regularly update new, unique and seasonal models.
You need to avoid inventory and outdated goods
To avoid overstocking, when half of the imported goods are sold out for the first time, boldly open a sale program to release inventory and import new season goods.
Note, never apply fake sales, display the whole sale but only sell outdated products, double the price and then hang a discount sign to attract customers because it is easy to lose trust in customers. Therefore, promotions should only be at real prices or with meaningful products that are valuable for use.
When trading clothes, you should pay attention to the competitors around. You need to have a reasonable price, not too different from competitors. In addition, absolutely do not pounce, force customers to buy products. Please enthusiastically introduce new models, help customers coordinate until they choose the product they like. Even if "customers only watch, not buy", they should smile and thank them.
In general, how much capital is required to open a clothing store depends on the segment you do business, how to choose the source of goods, rent space, etc. But basically, ask yourself if this is the business you own. Do you have a talent and passion for fashion?
In addition, you also need to determine if you can withstand the inherent risks of the fashion business because all businesses are associated with risks when there are periods of peak sales, when stress is high. straight, tough…
