Halal Business Ideas: How to Start an Online Clothing Business

Clothes are an essential part of our lives, someone is using them just for covering and don’t have any other attachment to them, but most people find pieces of clothing a way to express themselves. That is the reason why the clothing market is so huge because people are different and constantly looking to purchase something unique.

Dealing with clothes as a business option has great potential, but there is a remaining question, How to start an online clothing business?. Don’t you worry, we have done wide research and we are going to present the steps that needed to be done to achieve your dream, whether it is the launch of a fashion brand and new clothing line, or just reselling garments.

Is the online clothing business profitable?

Profit from the clothing business depends on your business plan and strategy. When we focus on the number of existing stores, it’s very easy to give up on this business, but the clothing business isn’t working that way. Many stores have small selling rates because of a lack of organization, planning, quality, marketing, diversity in style, and many other things.

It’s a jungle out there, you need to be ready to work hard, to be unique, thorough, and persistent if you want to beat the competition and become successful. If you succeed in this field, it will be very profitable. A clothing store business is on top by profitability, according to the statistics.

Best ways to sell new clothes

When it comes to selling new clothing, new fashion line, there are different options to do that.

1- by reselling clothes

2- creating your own fashion line or clothing brand

1- Reselling clothing business

If you don’t feel like creating something new, this is a perfect clothing business option for you. Reselling clothes is a business where you move fast. You buy clothes and sell them for bigger prices and there is less organization needed compared to the process of starting new fashion brands.

When running this kind of business, here are steps you need to follow:

  • prepare funds
  • buy clothes
  • set a price on clothes so that is profitable for you
  • prepare items for photo shooting
  • choose selling stores, apps, or sites
  • determine payment and shipping method

The first step in this category is to prepare a budget and invest money in clothes. But, the question is “Where to find clothes to buy for the clothing business?”.

Don’t worry, we got you. There are two ways where you can find new clothes and you will be ready to sell, and those are:

  • buying clothes from consignment stores that you can find online
  • buying clothes in bulk

1.Buying clothes for reselling from consignment stores online

Customers really love shopping for products at a lower price than the usual and origin price of those products and you can bring that to them by buying clothes from consignment stores. Finding new clothes won’t be a headache for you, there are plenty of stores online like, for example, Swap.com.

This is not the only place, but we chose it because it’s great for beginners and people who want to start their business from scratch. Point is that you don’t need a big budget to start because Swap.com is offering a lot of coupons and cashback rebate stacking.

You can sort conditions on this site and focus on finding clothes “New with tags” and sell that clothes as new later on.

If you are looking for clothes to buy at a discounted price compared to retail prices, this is the right place for you. Great thing is that there is a clearance section where clothes are significantly discounted, from 10% to even 35%.

2.Buying clothes in bulk

If you’re thinking about the retail clothing industry you need to learn how to achieve the best deal for clothing with little cost and saved time. If you are not in the business of selling vintage and rare products where you need to spend a lot of time finding those products, buying in bulk is the best option. In this way, you can easily save your time and energy and in return, you get large quantities of clothing at a lower price. Great, isn’t it? Reduced costs and bigger profit.

The world of wholesale purchasing is something that needs to be learned and mastered in order to have a thriving and popular business.

Where to buy clothes in bulk? Search ecommerce websites such as eBay to find great deals. On this site, you can search “Auction” and “Buy it now” products to buy clothes at a lower price, and when you find something you like check the seller profile and availability of those products in a larger amount and various sizes. Then contact the seller and check if they are open to negotiation of a lower price in case that you buy all the products. Also, places where you can find clothes in bulk:

  • retail clothing online stores that are closing their business – the great opportunity to get clothes in bulk because this is a case when prices are the lowest that can get
  • end-of-season online or local sample sales – you can get newer styles for excellent prices
  • Clothing Island website – they are selling only in bulk and it’s a great place for starting new businesses
  • Shirtsupplier.com – this platform is offering purchase at wholesale prices and they don’t require membership
  • Wholesale Gopher site – they are dealing with overseas suppliers

2 – Starting or creating a new fashion line

If you are a fashion designer full of enthusiasm and bursting with creativity and wanting to start your own fashion line or if you want to start your own “print on demand” business, we will guide you through steps on how to do it. Our target is to create a business plan that will be suitable for your apparel niche. Keep up with us and you may find good advice for startups or updates for your current business.

Designs are the main part of this kind of business, but structure and plan are something that will lead those designs to success, so make sure not to skip any steps.

Steps on how to start a clothing business when creating a fashion line:

1) Create your clothing brand

2) Plan and create your first collection

3) Choose a business structure and deal with legal regulations

4) Put your numbers together

5) Start building a website and marketing strategy

6) It’s time for manufacturing and production

1) Create your clothing brand

This is the time where you need to express your creativity and create a unique design, garment line that will differ from others. Show your artistic perspective through your brand so that the target audience can set you apart from the crowd of fashion designers.

When creating your brand, also think about:

  • planning your business name
  • create a logo that will stand out on labels

When you are starting a clothing company it’s important to build the core of the brand and you can do that by answering these questions:

  • What is the identity that my clothing line is projecting?
  • Is my brand attractive enough that customers will stay loyal in the future?
  • Who is the customer that is going to wear my clothes? Did I choose a target demographic?
  • Is the target market saturated for my clothing line?
  • What makes my clothes unique?
  • Is my price offer right for the average customer?

2) Plan and create your first collection

Before you put the effort into details and further business plan, first you need to decide what kind of fashion clothing line you will present and manufacture. There are many different clothing business models that you can choose from and some of them are:

a. Print on demand – in this business you are putting your design on already existing garments ( like hoodies and T-shirts). For this case, you can buy your own equipment for printing or you can hire a printing company to do it for you and when products are done, they can ship them to your shoppers

b. Custom wholesale – this business is related to buying pre-made wholesale apparel and then customizing it by hand in a way of adding a print, embroider, applique, and similar.

c. Cutting and sewing and private label – this is the most used model of business. It means that you make your own clothing design and then hiring manufacturers to make it for you so you can start selling it under your private label.

d. Custom couture – This business model is the most demanding and very risky because the clothes are made by hand for each special client, and are made to fit each customer, but a least you can put a high price.

Muslim Fashion and Modest Fashion as a Niche Business Model

Muslim modest fashion

There is a big market for Muslim clothing because only Muslim countries have clothing and shops for Muslims while Muslims around the world are denied that opportunity. Modest fashion is taking the fashion industry by storm with their alternative clothing designs that are covering, yet still attractive and modern versus the body-revealing fashion of the West. According to the report, State of Global Islamic Economy Report, modest fashion represented USD277 billion of spending by 1.9 billion Muslims on clothing in 2019. Even mainstream brands, such as Gucci, an Nike, are cashing in on modest fashion.

From selling stylish hijabs, to Muslima swimwear, to just fashionable modest fashion, even the Western high street and Western brands are embracing the modest fashion uptrend. The report also noted that searches for or modest
fashion increased by 90% in 2019. As modest fashion is taking off both in Muslim countries and in the West, so this is an opportunity, in terms of business as well as in terms of helping society in general, to be able to choose more modest-wear where you can earn Allah’s SWT blessings in your business.

3) Choose a business structure and deal with legal regulations

The business structure will define your companies progress so it’s important to choose a business structure at the beginning. You can choose from:

  • sole proprietorship
  • Limited liability company
  • Partnership
  • Corporation

Also, you should check for a legal regulation domain in your country and get the permits and licenses required for your business. Find out about tax payment obligations so that your company remains “clean”.

4) Put your numbers together

This step is starting your engine. Put together your finances and prepare funds for your business. When you have the amount of money that you can invest, it’s time to put all costs into that range. Analyze how much will cost you to start your business, so let’s see what those costs are including:

  • brand design ( costs of creating a website and logo)
  • permit and license fees
  • rent for working location
  • infrastructural basic costs (internet, phone, and similar)
  • marketing
  • sewing services or tools
  • fabrics and materials for the first collection
  • payment for workers or payment to the manufacturer

If your funds are not covering all costs, don’t give up and don’t decide to take loans. Keep your business halal. Rather, borrow money from family and friends or opt for a Partnership business structure.

Also, you need to set a price for your clothing that will bring you profit.

How do you price clothes?

The best way to set a price is to analyze how much did it cost you to make one piece of clothing. Let’s see how:

  • Summarize how much the material and fabric cost you and the manufacturing costs
  • Determine how long it takes to make one piece and how much your monthly production is
  • Summarize the cost of renting a location
  • Sum up the costs to the workers

When you sum up all the monthly expenses, divide them by the number of products made during the month. That amount will be the base price of your product, and then determine its selling price, which will be higher than the base price to make a profit at the end of the month.

5) Start building a website and marketing strategy

Web presence is vital for the clothing business because when shoppers visit your website they can have a good overview of all products and offers. A good website with great traffic will bring you most of the customers and this is significantly important for startups and new businesses.

Connect your brand and logo with the website in a way to present the same colors on the website and display your logo so that it stands out.

For good marketing, send email to your subscribers about new developments.

Marketing! Marketing! Marketing! Key to success. Don’t forget this part. Use every possible way to promote your brand such as:

  • Facebook, Instagram, and Google ads
  • use social media and make accounts with your brand name
  • send press releases with attractive content
  • use professional photos for advertising
  • build a list of local fashion editors
  • Include television, radio, and blogs in your campaign
  • start creating a press kit
  • hire micro-influencers

You can also sell your clothing line on marketplaces. Check out our article on 18 Marketplaces Where You Can Sell Online Clothes

6) It’s time for manufacturing and production

When everything is ready all you need are products and you are ready to start selling. If you are not making the clothes by yourself, you will need manufacturers. Be careful when you are choosing them because they will become your partners and you need to have a nice relationship with them.

Before you reach manufacturers, be sure that your business is well planned. Be prepared with your budget to cover all costs of manufacturing. Prepare materials, fabrics, tech pack, sewn samples, and learn everything about the manufacturing process and timeline.

Search for manufacturers in your country to save money on shipping and have an interview with all of them before choosing the manufacturing company that suits you best.

Conclusion

The clothing business is a very successful business option but you need to be thorough and persistent if you want to earn your place in the market. Be determined which business model you want and put your best effort into succeeding in that field. As Muslims, we should always be aware of what is halal and what is haram to sell. Avoid selling revealing clothes and clothes that are forbidden in Islam ( for example, shorts, high heels, transparent T-shirts and dresses, swimsuits, and similar). In addition, modest fashion is taking off both in Muslim countries and in the West, so this is an opportunity, in terms of business as well as in terms of helping society in general, to be able to choose more modest-wear.

Comment Below