India’s extensive textile industry makes it a prime destination for private label clothing manufacturing. With access to skilled labor and cost-effective production, businesses can partner with top manufacturers to bring their designs to life.
The best private label clothing manufacturers in India1 include Shahi Exports, Arvind Limited, and Billoomi Fashion. These companies specialize in creating custom apparel for global and domestic markets.
Let’s explore the viability of starting a clothing brand in India, the cost of clothes, and the steps to launch a brand.
Is it a good idea to start a clothing brand in India?
India’s growing middle class and booming e-commerce sector present an exciting opportunity for new clothing brands. But is it a worthwhile venture?
Yes, starting a clothing brand in India2 is a great idea due to the high demand for fashion, affordable production costs, and a thriving market for both domestic and export-oriented brands.
Fashion Design and Fabric Selection
Dive deeper into why it’s viable:
-
Market size:
- India’s fashion market is projected to reach $125 billion by 2025, driven by increasing disposable incomes and urbanization.
-
Production advantages:
- Affordable labor, access to raw materials, and skilled artisans make India cost-efficient for clothing production.
-
E-commerce growth:
- Platforms like Myntra, Flipkart, and Amazon simplify entry for new brands.
-
Diverse audience:
- India’s vast demographic allows brands to cater to niches such as ethnic wear, activewear, or sustainable fashion.
Are clothes cheap to buy in India?
Clothing prices vary depending on the type of garment and where it’s purchased. Is India an affordable place to buy clothes?
Yes, clothes are generally cheaper to buy in India, especially in local markets and for domestically produced items. Branded or imported garments, however, can be priced comparably to global standards.
Dive deeper into clothing costs:
-
Local markets:
- Cities like Delhi (Sarojini Nagar), Mumbai (Colaba Causeway), and Jaipur are famous for affordable yet fashionable clothing.
-
Branded stores:
- Prices at brands like Zara or H&M in India are similar to their international counterparts.
-
Traditional wear:
- Sarees, kurtas, and lehengas made by local artisans offer exceptional value for money.
-
Fast fashion:
- Indian retailers like Fabindia and Pantaloons offer trendy and reasonably priced apparel.
Example:
A high-quality cotton kurta may cost ₹800–₹2,000 ($10–$25) in India, compared to significantly higher prices abroad.
How to launch a brand in India?
Starting a clothing brand in India involves strategic planning, from product development to marketing. How can you ensure a successful launch?
To launch a brand in India, register your business, source a reliable manufacturer, develop your brand identity, and leverage online platforms for sales and marketing.
Dive deeper into the steps:
-
Register your business:
- Obtain GST registration and other necessary licenses to operate legally.
-
Find a manufacturer:
- Partner with private label manufacturers like Billoomi Fashion or Arvind Limited for quality production.
-
Build your brand:
- Create a logo, website, and social media presence to establish brand identity.
-
Choose sales channels:
- Sell through platforms like Amazon India or set up an independent e-commerce site.
-
Marketing strategies:
- Use influencer collaborations and targeted ads to reach your audience.
Tip:
Start with a small collection to test the market and refine your offerings based on customer feedback.
Is there tax on clothes in India?
Taxes on clothing in India impact pricing and profitability. What should businesses know about taxation?
Yes, there is tax on clothes in India. Goods and Services Tax (GST) is applicable, ranging from 5% to 18%, depending on the type and price of the garment.
Dive deeper into GST on clothing:
-
Tax slabs:
- 5% GST applies to garments priced under ₹1,000 ($12).
- 12%–18% GST applies to garments priced above ₹1,000 or made of synthetic fabrics.
-
Input tax credit:
- Businesses can claim input tax credits on GST paid for raw materials and services.
-
Exemptions:
- Certain handloom or traditional garments may qualify for tax exemptions under state-specific policies.
Insight:
Understanding GST rates helps in accurate pricing3 and compliance with tax regulations.
Can I use Made in India logo on my product?
The “Made in India” logo adds credibility and supports local manufacturing. But can any business use it?
Yes, you can use the Made in India logo on your product if it is manufactured or significantly assembled in India. Compliance with national guidelines ensures proper usage.
Dive deeper into using the logo:
-
Eligibility:
- Products must meet the government-defined criteria for local manufacturing.
-
Application process:
- No formal approval is required, but businesses should follow ethical practices to avoid misuse.
-
Benefits:
- The logo builds trust among consumers and aligns your brand with India’s self-reliance initiatives.
-
Caution:
- Misrepresentation of the logo can lead to legal and reputational risks.
Example:
Brands like Fabindia and Khadi use the logo to highlight their Indian heritage and craftsmanship.
Conclusion
India’s top private label manufacturers, such as Shahi Exports and Billoomi Fashion, provide excellent opportunities for starting a clothing brand. With affordable production, growing demand, and supportive government policies, launching4 a brand in India can be both profitable and impactful. Proper planning, compliance, and marketing ensure long-term success.