How to Start Jeans Manufacturing Business in 2021 - Investments, Profits

manufacturing

How to Start Jeans manufacturing business in 2021

Overview

How would you like to deal in a product manufacturing business, the demand for which has been consistent and is always in trend since the past 150 years?

The consumers for this products range from your milkman to even Jeff Bezos and and bill gates, even you own a pair of those blue/black/white jeans, don’t you?

The Indian fashion retail market is expected to account for $115.14 billion by 2026 out of which the Indian denim jeans market it’s expected to reach $77,999 crore by 2026.

The demand for jeans has not been subjective according to the income classes. Infact, it was first created during the Gold Rush in the 19^th century by using denim to create sturdy trousers that can withstand hard labour by the brand we know today, Levi’s under Levi strauss

On an all there are 6 billion pairs of jeans produced every year across the world because of the convenience, comfort, affordability, availability and durability this jeans provide to all segments of consumers

Wouldn’t you like to take advantage of this large consumer market?

Well, it’s time you pull up your jeans

Market potential and uses

Jeans, are a type of pants which are made of denim material using 100% cottons yarns which has been worn by the working class, kids and teenagers and served as a fashion statement among many others as well.

The market potential of jeans has been vast because of its

durable quality which gives the Gen-Z customers the ease of putting it to wash after 4 wears,
it gives the convenience perks to the working class among offices which promote leisure work environment,
it serves as a fashion statement in terms of athlesiure and casual wear among many high end consumers as well

Moreover, the potential for this jeans manufacturing business can be defined and elaborated on the following purposes

On the basis of types of denim jeans

Straight fit
Basic
Distressed/ripped
Wide legged
Skinny
High waist
Low waist

On the basis of colour of jeans

Blue
Black
White

On the basis of type of denim used

100% cotton denim
Raw denim
Acid wash denim
Coloured denim
Stretch denim
Crushed denim
Poly denim

On the basis of uses of jeans

To be worn at work
To be worn as casuals
To be worn at events
To be worn during vacations

Fill the form below if you need any help starting this business, we will reach you and assist you regarding this business.

Licenses required

The licenses required to run this jeans manufacturing business is

MSME registration
GST registration
Factory license
NOC by state pollution control board
Trade license
ICE registration

Process of jeans manufacturing

Hand picking the cotton
Twisting the cotton and wool into machinery
Machines weave the warp and weft, the threads in fabric
Denim gets cuts and seamed by hand
Various parts are also put together by hand
Buttons gets added
Followed by Pocket grommets
Jeans get inflated and stretched to see throughout their length
Per washing
Tagging
Shipping

Investment required

The investment required to set this jeans manufacturing busines is ₹30 lakhs – ₹ 40 lakhs

Profits made

The profits which one is likely to make from this business is ₹20 lakhs per year

Target consumers

The target consumers for this jeans manufacturing business are as follows

Tier 2 and tire 3 cities: The demand from these consumers for the the unorganised and unbranded jeans sector which accounts for 91% is huge because of its affordability and comfort
Middle & lower working class: These require jeans as a part of the nature of their work like plumbers, technicians, electricians, delivery men/women etc and others self employed entrepreneurs without any rules as per dress code also demand for jeans on a quarterly basis
Kids and teenagers: These wear jeans as a part of their routine and because jeans foster a sense of comfort and set a fashion statement at the same time it attracts these niches more
Fashion bloggers and influencers: The jeans manufacturers by you could be in demand by the social media fashion bloggers and influencers who experiment and make vlogs on the types off jeans one must own and have, combinations with jeans etc
Women and girls: Because of westernisation the demand for jeans as a part of athleisure and urbanisation has been increasing particularly among women to experiment with types of jeans like bell bottoms, boyfriend jeans, straight fit jeans etc and also combining it with the traditional Kurtis and tops etc
Online clothing stores: By putting up the jeans of your brand on online clothing sites of various, colours, styles, patterns etc you can attract the online shopping millennial and baby boomer generations
Shopping malls: By setting up a shop in shopping malls and exhibits one can attract the middle cakes and uppers class demand of offline shopping consumers
Retail stores: By establishing or dealing with retail clothing outlets of jeans you can attract the demand of the consumers who’d wish to have personalised purchase in terms of size, fit of the jeans purchased by them

Area required

The area required to set up this jeans manufacturing busines sis 1000 sq ft

Raw materials required

The raw materials required to set this business up is

Threads
Buttons
Zippers
Belt loops
Stickers
Washing acid
Dyes
Denim fabric
Logos

Machinery required

The machinery required to set up this jeans manufacturing business is

Stitching machine
Folding machine
Chain stitching machine
Washing machine
Stain removing machine
Embroidery machine
Ironing machine
Cutting machine
Printing machine
Logo making machine
Overlock machine
Lapping machine

Manpower required

The manpower required to set this jeans manufacturing busines is

3 skilled labours
3 unskilled labours

Moreover, ample training to these workers in terms of the following must also be provided with

Machinery usage
Equipment handling
Safety and precautions

Business model and growth

The business model of a Jeans manufacturing business can be defined using these four variants

Value proposition: The value which this business is likely to provide to you is

Large target customer base
Easily available raw materials and labours
Consistent demand from all income levels of consumers
Increasing trends in jeans
Numerous distribution channels
Higher profit margin

Target consumers: The target consumers which this business is likely to get to you is

Shopping malls
Retail outlets
Online clothing stores
Women and girls
Lower and middle class consumers
Kids and teenagers
Tier 2 and tire 3 cities

Competitor review: The major competition to you in this jeans manufacturing business is from

Spykar lifestyle
Mufti
Killer

Marketing strategy: The marketing strategy that can be implemented by your business is

Advertising: Through tv commercials and brand ambassadors
Social media: Through fashion bloggers and fashion influencers promoting your brand
Print advertising: Magazine and blog appearances
Brand endorsements in movies and fashion shows

Growth

The jeans manufacturing business has witnessed and has potential for the following growth prospects

Firstly, the Indian fashion retail market it expected to reach a CAGR of 9.7% by 2026
Secondly, the Indian denim market through jeans is expected to reach a CAGR of 14.5% and is expected to account for ₹39,641 crore by 2021
The growing demand to urbanise the traditional outfits of Kurtis, kurtas. Wedding outfits etc through jeans has been increasing as well contributing to the growth in this business

Profit margin

The profit margin which this business is likely to yield to you is 25%

Suggestions

Don’t let this business opportunity fade away like that pair of your jeans in your closet and here’s why

Firstly, The demand for jeans remains consistent irrespective of the trends in the clothing industry. Thereby, giving you an opportunity to expand your brand and business easily
Secondly, the availability of raw material and labour for this business in country like India has been abundant giving you the perk of catering you to the global market under your own brand as well as a manufacturer
Lastly, the profit margins for this business is vast and the consumer segments to cater to is wide enough to keep you in this business for longer.