Everything You Need to Know on How to Set Up a Retail Outlet Business in India
Retail is one of the most exciting ventures to be pursued in the business industry. Home to more than 1.2 billion people, India has one of the biggest retail markets in the world and is exponentially growing every day. With more than the US $600 billion estimated value in the retail market, India’s retail scene is heavily influenced by their beautiful and rich culture, which can be seen in its textiles and spices trade. As an entrepreneur, learning how to set up a retail outlet business in India can be beneficial and informative for you. Let’s dive right in!
What Do Retails Outlets in India Encompass?
The lucrative market entails various types of finished goods to customers. Here are some of the most profitable retails in India:
It’s no surprise that India’s leading retailers are grocers. Exceeding the US $12.8 million in groceries retail sales, traditional and modern grocery stores are popping up like mushrooms after a fresh rainfall. Apart from vegetables and fruits, dairy and milk are also a popular choice for the locals.
- General Merchandise Store
Clothing, textiles, kitchenware, beddings, decoration, household appliances are sold in general merchandise stores. Simply put, these general stores sell anything and everything under the sun, with only one exception: groceries.
- Speciality Store
These stores focus on niche product categories. Speciality stores sell a particular line of goods; they specialise and sell specific products such as automobile parts, home furnishing, electrical accessories, pet products and more.
Kickstart Your Business
Now that you have an idea on what retail businesses in India are like, let’s take a look at the processes of setting up a retail outlet.
1. Creating a Business Plan
Start your retail outlet by curating a thorough business plan. Here, jot down all the details relevant to your business—the costs, expenditures, product information, target audience and so on. Your business plan will help you to oversee all the vital elements that entail in creating a retail outlet. It will also enable you to see how your business is structured; another key thing to keep in mind is to edit the business plan as you go. Make the necessary changes to suit your retail business once you find out what works and what does not.
2. Get Legal Assistance
Take your time and pick a reputable legal firm to inform you of the procedures involved in starting a retail business in India. Legal jargons can be confusing at times; you might not fully understand and overlook certain aspects, which can result in red tape. Your lawyers will be responsible for helping you on the avoid those consequences. That’s why you need to be wary and protect yourself and your business legally.
3. Type of Store
Decide what will your store look like. Will it be in a traditional brick and mortar outlet? Or would you digitalise and opt for an e-commerce shop? If you pick the former, make sure to choose a strategic location in town where it can be seen and accessible. You will have a hard time being the talk of the town if your customers can’t easily swing by. On the other hand, if you decide to make use of the growing e-commerce platform, be sure to brand yourself well and announce your arrival on the online scene.
Whether you want to create your products, have your products developed by a manufacturer or source it from a wholesaler, it is essential that you calculate your expenses beforehand to avoid running into substantial financial risks. Make a list of everything that you need to run your retail store and filter those that are not necessary or add value to your company. Proper inventory management will make all the differences as it helps you to keep systematic bookkeeping, manage multiple locations or websites and prevents stockouts.
5. Customer Loyalty
Increased revenue and sales are contributed mainly by loyal customers. It’s imperative to keep them happy and satisfied, as it could do wonders to your business. When your customers are pleased with your goods and products, they are more likely to repeat their purchase and will not be easily swayed by your competitors. In addition, create a customer service, where your prospects can quickly reach your store, hassle-free.
It’s as Simple as That!
The bottom line, starting your own retail outlet business, can be overwhelming, terrifying even. But, with proper research, a solid business strategy and adequate knowledge on how to set up a retail business in India, you will be able to make informed decisions with minimal risks.