Read a super business idea how to start a saree business at home, this business idea is crafted neatly for the Indians and Indians living in USA and Europe, after reading this article you will understand how good this business is and efficient it generates revenue.
In the last few years, the saree business has become more popular around the globe. It is a traditional Indian dress that consists of a long piece of cloth draped around the body to cover the wearer’s torso and arms. It is typically worn by women of the Indian subcontinent of all ages and can be worn on various occasions. The United States and Europe will not become common destinations for Indian sarees, but the number of people who want to buy them is rising.
Introduction: Saree business at home.
This how to start a saree business at home idea is for Indians living across Asia, Europe, and the USA. If you are an NRI have an Indian subcontinent root or know someone of them in India or you are a Resident Indian who knows someone in USA/Europe, then this business is for you. Also, if you are confident in your entrepreneurial ability and think you can build a business from scratch read this high-prospect how to start a saree business at home idea minutely.
Yes, you read it correctly, you can build up a saree business from home with a 50K USD investment (INR 40,0000/-), and for sure you can start this business in any city in INDIA/USA/UK. And, of course, we will see how 50K USD (INR 40,0000/-) can make it happen.
Oh! you can not afford 40 Lakhs to start this business in India, do not worry, you can start the saree business at home with Rs 2.5 Lakhs to 3 Lakhs also….continue reading.
Textile has different segments, among the line of segments the most lucrative is traditional designer ethnic saree, because of its high margin and high demand.
For this segment, the value of a saree depends on three aspects, the design itself, the quality of the fabrics, and its origin. Hence, if you can manage these three aspects correctly nobody can stop you.
We will discuss this Saree business idea a little differently so that you can understand “why” and “how” completely.
Though I am proposing it as a home-based business, we will understand it from a management context….we call 5 “P” but here you need to know only three “P” to start with i.e. Procurement, Positioning, and Place.
So, the success mantra is “To do the designer saree business you need to have three “P” placed correctly on their position”
How to buy sarees for reselling?
1. Procurement
The first “P” is procurement, in this business we will not go for manufacturing sarees but will source from various locations that are famous for saree and carry a hallmark. Another important thing is that few silk sarees have fame for their origin but lack the possibility of artesian work on that. So, the business will mostly deal with those sarees which have the fame of their origin as well as can carry artesian works on them. A few of those are Baluchari, Kantha Stitch, Tant of West Bengal, Chikankari of Lucknow, and Kota sarees of Rajasthan.
So, when it is product and procurement you should be extremely specific, do not compromise quality and work. Try to start as big as possible as the variety and options will help you attract and retain customers. Suppose you start working with 5 specialties (Origin) and each with 25 varieties the count will be 125, even if you spend 200 USD (INR 16,000/-) for each unit the investment will be 25K USD (INR 20,0000/-). This is the minimum I quoted, the more the Gharnas and variety better the business prospect.
Hope you understood the procurement part. I repeat, do not compromise with quality and work, hence I considered 200 USD (INR 16,000/-) as the average source price for each saree.
Do not be shocked knowing that a traditional designer ethnic saree in the USA may get sold for 1000 USD.
How to start a saree business at home?
2. Positioning: Marketing
Now let us know what the second “P” stands for and how to deal with that. “Positioning” is an important action word of marketing, here the word in this small business will steer the entire show. Simply put, “positioning” is a strategic process that helps the brand occupy a central position among the targeted market segments.
As we will play with the brand, I suggest you start this business in a structured format (sole proprietorship or LLC) and with proper trademarking. As I already mentioned, quality and good artesian work are a must for this business because these aspects will help us get the niche. Needless to say, the targeted segment must be the adult female population who has origin in India, Bangladesh, and Nepal.
To get a proper placement or position you need to spend a good amount of money on market communications, especially on digital marketing. To do this kindly spend with professional models and photographs and then make those content viral on FB and IG. I think if you continuously bang on FB and IG in a specific geography (Initially targeting a single city) with quality content within six months the brand will be established and demand will start raising, please note that market communication should be a continuous process so as the new markets (city)
So, now you have understood the positioning part and know how to do it.
How to sell a saree?
3. Place
The next “P” is the place, yes, you got it right, the channels through the product will reach customers. This business majorly will work on an e-commerce platform (In today’s scenario, I do not think this kind of business should go for a physical showroom, which is an unnecessary blocking of money). Hence, I am emphasizing the e-commerce business only. Please build a nice website, and list products on Amazon, Flipkart, and other famous sites. Establish an efficient and well-equipped fulfillment process and be quick and customer friendly.
For pricing please be competitive, do not worry, none of your competition works below a 200% profit margin. Evaluate how you can keep pricing attractive for the customers yet profitable to you. The best way to fix that (When the lowest market price gives a 200% margin) is by benchmarking competition.
Investment required to start a saree business at home.
The total investment should be approximately 50K USD (INR 40,0000/-) and above, the majority will go for products, it is expected you will start with five hundred pieces of saree (To maintain quality and authenticity your purchase is important, I suggest purchase price should not be less than 200 USD (INR 16,000/-), which surely will give you competitive leverage to decide on selling price.
You need to spend a good amount of money on digital marketing, (If you source the service from Indian market can save a lot compared to doing it through a USA digital marketer)
Must know before starting a saree business from home.
If you do not have 50K USD (INR 40,0000/-) do not dare to start this export/import business, in such cases, you may have to compromise with second-quality products and unprofessional digital marketing to adjust the budget, which will not work.
To start in India and sell in India you may start with a different category to target the middle-class and upper-middle-class groups.
In case you have an ardent desire to start this saree business but lack the required capital for investment kindly look for partners or borrow money from family and friends.
One point I must mention here is that in case you form a Private Limited or LLC can easily get business loans from financial institutes. Remember a proprietor is 100% liable for the debts accumulated by the business, whereas, in the case of a limited company, it is on the company not on you (As long as the losses are genuine, and the business fully complies with the law).
Saree business from home in India.
Now let us see how one can start and sell in India.
You may pick up the same model of the business keeping the SKU average price at the lower side….say about starting selling price of Rs 3000/- and a maximum of up to Rs 10,000/-. In such case, you will require Rs 250,000/- to Rs 300,000/- investment.
Here I must say that please do not invest in a saree business if you can not afford this much capital infusion, because saree business success depends on the level of stock being maintained (500 SKU is good enough to start a saree business at home), higher the SKU more the chance one succeed….this is because of typical buying behavior attached with saree.
I hope you have liked this saree business idea, I tried to make it simple and comprehensive so that anyone can understand and implement it.:
A magic touch
In case you are an NRI:
- Get a family friend in India or Bangladesh as supplier, who will get an export license or a legal way out to procure from India and send to you.
- Your company must be a legal importer of saree for USA.
In case you are an Resident Indian:
- Get a family friend in USA/Europe as importer, who will get an export license or a legal way out to procure from India and send to you.
- Your company must be a legal exporter of saree for USA/Europe.
Frequently asked questions.
How do I start a small saree business?
- Utilize online marketplaces: Utilize popular online marketplaces such as Amazon, Flipkart, and others to reach a wide audience.
- Build a website: Create a website to showcase your products and allow customers to make purchases directly from you.
- Use social media: Leverage social media platforms such as Instagram and Facebook to promote your products and reach potential customers.
- Offer customization options: Offer customization options such as tailoring and embroidery services to stand out from competitors.
- Partner with local boutiques: Partner with local boutiques and clothing stores to showcase and sell your products.
- Attend trade shows and events: Attend trade shows and events to network with potential customers and suppliers.
- Focus on customer service: Ensure that your customers have a positive shopping experience and provide excellent customer service to encourage repeat business and positive word-of-mouth marketing.
- Research the market and understand consumer demand.
- Determine your target market and unique selling proposition.
- Create a business plan and determine your budget.
- Source suppliers and products.
- Develop a marketing strategy to reach your target market.
- Launch your business and continuously evaluate and adjust your strategy as needed.
What is the margin in saree?
The margin in the saree business varies and can depend on several factors such as the type of saree, the price point, the target market, and the sales channel.
For instance, sarees that are made with premium fabrics and intricate designs may command higher prices and result in higher margins. On the other hand, sarees that are mass-produced and sold through discount retailers may have lower margins.
On average, the margin in the saree business can range anywhere from 20-100% of the selling price. It’s important to keep in mind that the margin also needs to cover the costs of the business, including the cost of goods, marketing expenses, and overhead costs. As a result, it’s essential to carefully evaluate the costs of the business and price the products accordingly to ensure a healthy margin.
How to attract customers in a saree business?
Here are some tips on how to attract customers in a saree business:
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Offer a wide variety of sarees: Offer a range of sarees to cater to different tastes and preferences. Consider incorporating different materials, colors, designs, and price points.
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Provide excellent customer service: Ensure that your customers have a positive shopping experience and provide helpful, friendly, and responsive customer service.
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Utilize social media: Leverage social media platforms such as Instagram, Facebook, and Twitter to reach a wider audience and promote your products.
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Offer promotions and discounts: Offer promotions and discounts to incentivize customers to make a purchase.
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Attend trade shows and events: Attend trade shows and events to network with potential customers and suppliers.
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Provide customization options: Offer customization options such as tailoring and embroidery services to stand out from competitors.
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Focus on quality: Ensure that the sarees you sell are high-quality and made with premium materials.
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Partner with local boutiques: Partner with local boutiques and clothing stores to showcase and sell your products.
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Utilize word-of-mouth marketing: Encourage satisfied customers to spread the word about your business to their friends and family.
By implementing these strategies, you can attract and retain customers, grow your business, and increase your sales.
Hope you have liked this how to start saree business at home business idea, in case you want to know more or need any assitance to plan and execute may write to me, I promise to get back to you within a week or two. Thank you.
Best of luck!
