How to Start a Distribution Business in Textile Sector?

Textiles includes everything from fibre and yarn to fabric, made-ups and readymade garments made of cotton, silk, wool and synthetic yarn. If we talk about India, the country has overtaken Germany and Italy to emerge as the world’s second largest textile exporter.

In today’s post. We will explore some of the key concepts underpinning business opportunities in textile sector.

What is textile distribution?

Textile distributorship involves the making and marketing of a particular product which needs to go through a process which allows people to purchase the commodity. This process involves middlemen in the form of wholesale and independent distributors and retailers who facilitate the transporting, logistics, and sale of the product. Owners of the brand always on the lookout for channel partners to distribute the textile products to the related retail outlets.

In this process, the textile goods are bought for selling again at a certain amount of profit to the retailer. In essence, the business of textile distribution is the system that takes a product from the point of origin to the shop and finally in homes of people.

Developments in the sector

According to research, textile materials distribution is doing very well worldwide in terms of revenue growth as total sales seen by distributors is increasing .

Successful distributors also started deploying ‘JIT’ i.e. just-in-time inventory systems, so they can order goods based on the retailers request, hence it keeps inventory costs down.

The supply chain players

The supply chain for textile industry is a process which includes four major players who are dependent on each other and keep interacting regularly for the benefit of all:

1. Brand: Creates the product and its marketing
2. Distributor: Makes sure that the product gets delivered in the shops
3. Retailer: Provides the end users a place to purchase what they need
4. Consumer: Purchases a commodity from shop or online

Starting a textile distribution business

Starting a successful business of textile distributorship means you will play a crucial role to get the products which the brand supplies from the point of origin (the factory) to the points of purchase provided by the retailers. Steps for starting are:

• Search for retailers

You will choose the retailers you would be servicing and research if their needs are in order to satisfy their demands or not.

•  Storage area is important

Practically, you will also need storage area for large amounts of products. So better start looking at warehousing options.

• Knowledge of fabric is ‘must-to-have’

Textile and fabric distribution business is based on your knowledge of fabric. What you have to do is:

1. Having a keen eye to spot fabric trends
2. Negotiating production cost
3. Stocking your warehouse with the right quantity of fabric yardage.

Running business as a distributor in textile sector also means developing a broad portfolio of skills: From researching, to customer care and sales skills

For example, you need to understand the logistical and financials aspects of the operation including knowledge of setting up a warehouse. In short, it means that any distribution business which aims to grow beyond a narrow local region should be needed to hire a team with those skills.

For more information or joining the opportunity, call us: +91-11- 4671 0506. You can also leave us a comment with your thoughts and share on your social networks.

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