Wholesale Clothing and How to choose the Right Supplier

With over 1.3 billion people and a growing middle class, India is a major consumer market for clothing. The wholesale clothing industry in India is worth $27.5 billion and employs over 2 million people. Major players in the Indian wholesale clothing industry include Hindustan Unilever (HUL), Walmart, and Future Group.

The Indian wholesale clothing industry has two main categories: garment manufacturing and textile trading. Garment manufacturing includes companies that produce clothes for sale to retailers while textile trading includes companies that buy and sell textiles. The Indian wholesale clothing industry is dominated by five major players: HUL, Walmart, Future Group, Kuroneko, and Mahindra & Mahindra. Together these companies account for over 75% of the market share.

The Indian wholesale clothing industry is highly competitive. Retailers are always looking for new suppliers to compete with, and suppliers need to be able to provide low prices to stay competitive. Suppliers also need to be able to meet the high demand for quality clothes by retailers. To meet these challenges, suppliers use a variety of strategies including automation, price cutting, and aggressive expansion into new markets. Innovative companies are finding new ways to tap into the growing market demand for wholesale clothing in India. A few such companies are sourcing garments and accessories directly from manufacturers in China, Thailand, and other countries.

Background of the Wholesale Clothing Industry in India

The wholesale clothing industry in India is estimated to be worth Rs. 5,000 crore. The sector has been growing at a compounded annual rate of over 15% for the last five years. The main drivers of this growth are increasing awareness of fashion and accessories, changing consumer preferences and rising wages in the formal sector. The Indian apparel market is expected to grow at a CAGR of 18% between 2016-2020.

The garments sector employs over 58 million people in India, which constitutes around 17% of the country’s workforce. The average wage for garment workers is Rs. 750 per month, which makes it one of the most lucrative employment opportunities in the country.

There are several reasons why the Indian apparel market is projected to grow at such a high rate in the next few years. Firstly, there is an increasing demand for fashionable and quality clothing among both urban and rural consumers. Secondly, the formal sector has seen a rise in wages over past few years, thereby creating more disposable income for consumers to spend on clothing items. Thirdly, there has been a proliferation of online retail platforms that have made it easier for consumers to purchase items from anywhere in the world.

Types of Wholesale Clothing Vendors

The wholesale clothing industry in India is a large and varied one, with vendors catering to a wide range of needs and interests. Here is a look at the various types of wholesale clothing vendors in India:

1. Manufacturer- This type of vendor specializes in stocking garments made by other manufacturers. They may have their own in-house manufacturing facilities or contract with other factories to produce their products.

2. Wholesaler- A wholesaler typically sells products from multiple retailers, and can offer customers wider product choices than some of the other types of vendors. They often carry a wider range of brands and styles than manufacturer-based vendors, and may also offer customization services.

3. Retailer- A retailer primarily sells garments to consumers directly, without involvement from another party such as a manufacturer or wholesaler. Many smaller retailers do contract manufacturing work on behalf of larger brands, but this is not the norm for larger retailers.

4. Independent designer- An independent designer is a person who creates their own garments, without involving any third party whatsoever. This can be done through traditional tailoring methods or by using more innovative methods such as garment printing or sewing techniques.

Manufacturing Processes

The clothing manufacturing process in India is a complex and lengthy one, involving a number of steps and stages. The main stages are: design, printing, cutting, sewing, finishing and packing.

The design stage is the most important one, as it determines the finished product’s shape, style and colour. Indian designers often focus on creating unique and fashionable designs that appeal to a wide range of consumers.

Printing is another important stage in the clothing manufacturing process. The prints used on garments must be accurate and legible, otherwise they could end up looking tacky and outdated. In India, many small printing shops that specialize in printing textiles operate side by side with large garment manufacturers.

Cutting is another key stage in the clothing manufacturing process. Clothes are designed to be fitted for different body types, so they need to be cut accurately in order to ensure that they fit everyone properly. In India, many skilled tailors work hand-in-hand with garment manufacturers to create perfect-fitting clothes.

Sewing is another important stage in the clothing manufacturing process. Clothes need to be made from thick layers of fabric that are sewn together perfectly so that there are no gaps

Importance of Quality Control

In the wholesale clothing industry, quality control is extremely important. Not only does it ensure that the clothing being sold is of a high quality, but it also prevents any damages or injuries that may occur during the shipping process.

When selecting a supplier for your clothing needs, make sure to ask about their quality control procedures. If the supplier does not have a rigorous approach to quality control, be wary of using them. There is no sense in spending money on something that may not be of high quality or could potentially cause injury.

While there are many different types of quality control procedures, some common ones include inspecting the fabric before production, testing the finished product for color and texture, and confirming that each piece meets specific sizing guidelines. By choosing a supplier with robust quality control practices, you can be sure that your clothing will arrive safe and intact.

The challenges of starting a wholesale clothing business in India

The wholesale clothing industry in India is a bustling one, with a lot of potential for those who are willing to make the necessary sacrifices. However, starting a clothing business in India is not easy – there are many challenges to overcome.

One of the most important things to remember when starting a clothing business in India is that you need to be very organized and have a clear plan for success. You will also need to be able to work fast and efficiently, since competition in the Indian wholesale clothing market is fierce.

Another challenge that new businesses in the Indian wholesale clothing market face is money. It can be difficult to generate enough revenue to cover all of your costs, especially if you are starting out from scratch. Fortunately, there are many ways to make money in the Indian wholesale clothing market, and some businesses even become successful without ever selling any products. Overall, the wholesale clothing industry in India is exciting and full of potential for those who are willing to work hard. However, it is definitely not an easy task – new businesses need to be prepared for a lot of challenges if they want to succeed.

In the last few years, the wholesale clothing industry in India has seen a significant uptick in growth. There are several reasons for this. First and foremost, there is an increasing demand for high-quality clothing among Indian consumers. Second, the country’s rapidly growing middle class is starting to have more money available to spend on clothes and accessories. And finally, retailers are investing in India as a potential market because of its large population and growing economy. If you are interested in entering the Indian wholesale clothing market, now may be a good time to do so. The market is expanding rapidly and there is plenty of opportunity for successful business owners who can embrace change and adapt their strategies accordingly.

 

How to choose the right supplier

Despite certain significant challenges, the industry is growing and thriving. With so many wholesale players in the market, retailers and small businesses today have so many options, it makes it difficult to make a choice.

Some factors that can be looked into for making the better choice are:

Product quality: Without a doubt, product quality is one of the most important aspects of the clothing industry. Look for suppliers who offer high-quality garments sourced directly from reputed manufacturers. Most reputed wholesalers have detailed catalogues with high-quality product images that can give you an idea of the brands or items they stock. Before drafting your contract, decide who will handle quality-related complaints from customers.

Market reputation: When you partner with someone in business, you want to make sure that they are reliable and have an unstained reputation. Browse online and do your due diligence to learn about the wholesale supplier. As most wholesalers have online storefronts or websites, check customer reviews about them before finalising your association with them.

MOQ: Minimum Order Quantity is the lowest number of units that the wholesaler is willing to sell. Understand the MOQ requirements of the wholesaler in detail to know how much money you will have to invest in purchasing stock. In the beginning, it is wise to purchase from wholesalers who offer a low MOQ, even if the per-unit cost is a bit higher. This is a way to offset the risk of being saddled with too much inventory, in case the product does not receive the response that you had previously expected.

Discounts & packaging: Discounts are crucial to sustaining any business. The higher the discount you get from the wholesaler, the better it is. Additionally, you can also ask for a settlement or trade discount when buying more. Don’t shy away from negotiating. As long as it’s a win-win for you and the supplier, you can expect a good deal.

Returns & payment policy: Return policy must be considered as an essential factor in finalising your deal with a wholesale clothing supplier. Your chosen supplier must ideally accept unsold products, with no or minimal return charges. Apart from returns, check for the supplier’s payment terms, including deposits and monthly or quarterly payment options. If a wholesaler isn’t open for negotiations from the start, it’ll be harder to work with them in the future. 

Specialisation: Wholesalers who specialise in selling only clothes, rather than several other apparel and products, usually have better manufacturer tie-ups and can offer much better designs and purchase terms. The simple reason is their sole focus on one product – clothes. This allows them to negotiate and deal better with manufacturers, and give you better offers. 

You can go even further and focus on category-specific wholesalers. For example, if you are looking to venture into vintage fashion clothing, search specifically for wholesalers specialising in that category since it is a relatively niche space. 

Lead time: Lead time can be defined as the time taken between the ordering and delivery of items. Just like MOQ, a shorter lead time ensures that you get your hands on the inventory faster. In terms of pre-orders, this can aid in faster deliveries for customers.

Sample order policy: This factor can be really beneficial when you order wholesale garments for the first time or experiment with a new style. With sample orders, you can get insights on customer preferences and demand before investing in larger orders to wholesale clothing suppliers.

Study tie-ups of wholesalers with manufacturers: Wholesale suppliers are usually in direct link with the clothing manufacturers. The stronger a supplier’s tie-up with a manufacturer, the better the price and service you get. 

While looking for wholesalers, feel free to ask wholesalers details about their sourcing model – do they source directly from manufacturers or from some mega-distributor, since how many years are they dealing in those products, how does the manufacturer deal with quality concerns, etc.  

From the quality perspective, it is better if the wholesaler directly deals with manufacturers. However, never reject wholesalers outright if they buy clothes from some source other than manufacturers, like mega-distributors or super-stockists. Always check the product quality, hear their terms, and then make your decision.

Dropshipping option: Online businesses can benefit from wholesalers who offer dropshipping services. Dropshipping eliminates your responsibility in stocking and shipping the items as the order is directly shipped from the wholesaler’s warehouse to your customer. This service usually has a price attached to it. However, before you start using a wholesaler for dropshipping, place a few orders for yourself and other close ones to get a sense of how much attention the wholesaler gives to packaging.

Location of wholesale suppliers: The supplier’s location can affect the lead time and shipping charges. Suppose you’re looking for international suppliers, factor in the extra taxes, freight policies, and shipping options that could potentially affect your business. 

 

While building Tradyl, all of these factors had been kept in mind to make the task easier for you. Its made sure that all the factors of significance are used to choose the right suppliers for you, or provide you with all the necessary information so as to aid you in making the right choices for your businesses.

You can head to our site to find the varied selection of items listed, that help you dive into the clothing wholesale scenario with a trusted sourcing partner.

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