How to start a jeans manufacturing business?
Jeans manufacturing businesses require a thorough understanding of the latest fashions in textile. Jeans are now popular clothing for casual clothing for women, men as well as children.
The Jeans manufacturing business can be started with significant capital investment. It needs a proper business plan. Also, starting a new company requires deep knowledge of current state labor laws and regulations. Small-scale business owners can maintain regular profits by selling their produced jeans. To maintain a sustainable outflow they can create outlets for retail or deals with distributors.
Before jumping deep into how to start a jeans manufacturing business, we should have a basic business plan. If you have got the desire to launch the Jeans brand of your choice all you need to do is go through this article and you’ll be well-equipped. Initially, you can begin your jeans manufacturing business in a small town located in the United States. And if you are consistent and innovative, it won’t take long before you’re recognized as a brand.
Select A Catchy Name of your Jeans Manufacturing Business
Follow a standard procedure when picking a name for your jeans manufacturing business. You must think of something unique. Whatever name you choose to name your company will help in creating a perception of what your company represents.
Register Your Jeans Manufacturing Company
Decide first, whether you will remain a manufacturer in the future or not. If so, register your business through both Internal Revenue Service and your local tax authority. It is also necessary to register your company with the local state agency and then obtain the required permits. For a detailed process, you may go through this article: How to register your business.
Know the Potential of Jeans Manufacturing Business
Demand for ready-made clothing is constantly increasing for two reasons.
- Rising disposable incomes per capita;
- The consistent rising of the world’s population.
The global Ready-Made-Garment Manufacturing industry is actually an important part of the economy of the world. The industry is worth more than $696 billion per year across the globe.
Jeans manufacturing companies fall under the Global Ready-Made Garment manufacturing sector.
Research suggests that the barriers to gaining entry into the global ready-made garment Manufacturing industry are fewer in countries such as China, Bangladesh, and Vietnam.
Recent data indicates that North America accounts for 39 percent of all global purchases of jeans. Then Western Europe at 20 percent, Japan and Korea at 10 percent, and the rest of the world with 31 percent. The market for Jeans manufacturing business is widely open to new ventures. That is why you are sure to earn a profit regardless of where in the United States you choose to establish your business.
Experts predict the ready-made clothing manufacturing industry to expand at an annual rate of 4.5 percent annually.
Evaluate the competition in The Jeans Industry
You must agree that Branded Jeans Company, always performs better year by year. Because they produce quality jeans with high durability and try to hold the customer base for a long time.
Also, there will be some unknown brands as well in your area. Known famous brands may not be a tough competitor for you, but the unknown brands will be.
It is a fact that regardless of the degree of competition in a particular industry if you’ve taken the time to research and have branded and promoted your business or products effectively, you’ll succeed in your field. Make sure you have the tools is required to produce high-quality and fashionable products, and you are aware of how to get your message out to the people you want to reach.
Raising The Fund Required as Jeans Manufacturing Business Capital
When financing an enterprise, one of the first items you have to take into consideration is the creation of an effective business plan. When you’ve got a well-written and functional business plan that is in place, you will not need to be a thorn in the side to convince your investors, bankers, and friends to invest in your company. You may follow this guide to draw a perfect business plan blueprint.
Also, some factors you must consider for projecting your capital amount. These are:
- Premises Cost: It can be leased, owned, or let. Find the market average rent as an expense if it is owned by the owner. Even if it’s an online company (virtual office) there will be an expense for the acquisition of a domain.
- Setup & Decoration Cost: Whatever the type of business it is essential to have the expense of decoration. If you are an online company it is necessary to set up an online store. That will come with a cost.
- Equipment Cost: There must be a need for the use of equipment in your business. As we are discussing how to start jeans manufacturing business, that means, it will require costs for types of machinery and other equipment. If it’s selling online, it might have to spend money on the theme and plugins, payment gateways, and other tools.
- Staffing Cost: To run a jeans manufacturing unit, you need to employ labor and others. If you’re just beginning an enterprise of modest size and have determined to take on the entire task on your own, you need to estimate the cost of labor of your own efforts and the time.
- Raw Material Cost: As you are looking for how to start a jeans manufacturing business, it definitely requires raw materials. It is essential to research the standard market rate for the essential raw materials for your company. This will assist you in deciding on the cost of your product. The price for raw materials will determine the amount you are able to leverage your business. If you don’t have a continuous supply of raw materials your business won’t grow.
- Marketing Cost: There will be a price for advertising your product. Marketing begins with the packaging. The packaging is a reflection of the company’s morals. There will be a cost of branding, too. At first, you may need to pay for promotional costs to establish and expand your product’s reputation on the market.
- Rolling Capital: The value of your investment is contingent on the type of your business. Examine the timing of your money’s movement. It’s based on the nature of your product, the processing time, marketing strategy, and so on. If your business is based on an underlying credit policy (one-sided) this could have your money stuck within the company for a longer duration. This issue should be taken into consideration.
Machinery Required For Jeans Manufacturing Business
There are different types of equipment and machinery you need to purchase. As you are about to build a brand for your company, you must have a retail business as well. For the retail sales, you have to prepare some ready-made jeans apparel. Hence, in such a scenario, you will be requiring many types of machinery as well.
Apart from how to start a jeans manufacturing business, here we have to be more specific. Hence, the list is as followed:
- Cloth Cutting machine: You may choose a rotary blad-type fabric cutting machine or one with a straight knife. It is the most essential tool for the process of jeans manufacturing.
- Sewing & Embroidery Machine: In simple words, sewing machines are the one that helps you sew clothes in a matter of minutes. Whether you want to sew a buttonhole, fix a torn piece of cloth. Embroidery is about polishing what you have created through patterns or beautiful designs.
- Overlock machine: A sewing machine that is overlocked or serger, as it is often referred to, can trim, stitch, and cast seams when they sew. They can also be utilized to insert an opening for zippers and create stunning designs using certain stitches.
- Washing machine: It is highly required. But not such type which is used in the home. There are various types of jeans available in the market. And your business should have such versatility. Like Stone Wash, Acid Wash, Rinse Wash, Enzyme Wash, and Bleach Wash.
- Electric ironing machine: Automatic wholesale factory ironing machines are equipped with different programs and water capacity levels. You can choose from a large variety according to your potential and need.
- Printing machine: It’s a kind of heat press machine. This heat press machine works using heat and pressure and prints digital designs on the jeans. Simultaneously it can be used to print the logo on the jeans fabric.
- Logo-making machine: A logo is essential, but the machine is optional. Logo can be made through other vendors as well. Though it is essential to have a patent before allowing others to create a logo on behalf of you. Actually, the logo of your brand or your business can be fixed in many parts of the jeans cloth. It can be printed on a leather piece and strapped to the waist or on the button. As there are many varieties involved, it is better to engage vendors according to the parts or accessories of the cloth.
Raw Materials Used for Jeans Manufacturing
The main raw material used to make jeans is a dyed cotton fabric that is completed in various shades. The fabric that is used for jeans manufacturing is generally an incredibly hard blue cotton twill. It is also called denim cloth.
Twill is distinguished through its diagonal lines which are caused through an offset in the warp threads. Twill is very popular due to the fact that it is extremely robust and resistant to stains. It is extremely durable when in comparison to other kinds of fabric. That’s why it is frequently utilized in jeans clothing, chinos, furniture covers bags, furniture covers, and many more.
It will not wrinkle and creases and has a big advantage of showing less dirt and staining. One disadvantage is that the fabric made of cotton twill is heavier than other kinds of cotton and other fabrics.
The fabric can be bought locally or imported and utilized for this purpose so long as it is of the specifications and quality requirements.
Other components that are needed are rivets, threads, buttons zip, stickers labels, washing acid, etc.
For an instance, sharing details of wholesale twill company that accepts online order forms. You may contact them for a sample before placing an order with them. FabrickFinderInc, orioletextile.co or fibre2fashion.com are some sources where you can find the raw materials for the jeans manufacturing business.
The three most important factors you must consider at the time of selecting a wholesale vendor for raw materials.
- Selection of Best Quality Raw Materials;
- Selection of Reasonable Price of Materials;
- Continuation of Supply Assurance.
Hire Employees for Jeans Manufacturing Process
In accordance with what you want to achieve with your company and the size of your business, you need to plan your recruitment process and the budget. There should be different levels and positions of requirement as follows:
- As you’re launching a manufacturing-based company it is essential to hire labor to produce.
- To ensure a smooth operation it is necessary to hire an administrator in the same area.
- To sell the product or services on the market, you could require a marketing group to construct.
- In addition, you will need an accountant as will be required.
- To ensure that all units are managed to run efficiently, it is essential to have involvement from the executive team too. All of these make up a great business plan template.
Naturally, if you act on how to start a jeans manufacturing business by investing a small amount on your own and do not want to involve personnel resources, it’s entirely up to you. In this case, you could start with the help of your relatives as well.
If you have to hire employees to manage your business, the laws governing recruitment and staff welfare, and their potential security in the near future are taken into play. Create a flowchart for these facilities too.
Jeans Manufacturing Process – Core of How to Start A Jeans Manufacturing Business
When it comes to the production of jeans clothing the initial step to begin is to develop a concept. Then, you need to identify the quantities and the types (colors and sizes and the totality) of the jeans clothing to be manufactured.
Other steps that are part of the entire process include cutting materials and sewing, trimming, and finishing the process.
Following that, you need to run your jeans under quality assurance before packaging, labeling, and identifying the jeans to be distributed.
The most important unit operations of the manufacturing process of jeans include:
- Material screening for raw materials
- Work in embroidery
- Lapping and masking of the fabric
- Laying and cutting of the different pieces
- The arrangement and stitching of different pieces
- Finalizing operations such as washing or ironing, folding, and also the packaging.
Marketing Strategy to Promote Your Jeans Manufacturing Business
No business can be successful unless it is known to its customers. Business promotion plays a crucial part in getting recognition. In the past, we had a limited number of ways to advertise and promote our business, but with the explosion of internet technology and the availability of media to advertise our company.
Begin selling locally. You can also create an exclusive store to sell your product. You could also create an effective distribution system through the local clothing dealer and retailer.
Brand promotion and advertising are essential for the desired results. Promotion of brands is a method that is frequently employed in marketing to boost customer loyalty, awareness of the product, and sales.
Advertising provides the consumer with the motivation to buy. sales promotions offer an incentive to purchase. In the past, creating interest was thought to be the primary purpose of sales promotions.
Here are a few marketing strategies and ideas you can use for your manufacturing of Jeans apparel;
- Start by introducing your Jeans apparel business by sending introduction letters along with the brochure you have created to clothes stores and other retailers near the area of your manufacturing facility.
- Advertise on the web on forums and blogs as well as on social networks such as Twitter, Facebook, and LinkedIn to make your point heard
- Create an initial site for your business to establish your company’s online presence
- Promote your products directly.
- Participate in road shows on campuses and communities in particular periodically to market Ihre Jeans apparel.
- Offer discount days and promotions like buy one get one for free to your customers
- Advertise your company in a community-based newspaper, local television, and radio stations.
- Advertise your business in yellow pages ads (local directories)
- Inspire the use word mouth marketing. mouth advertising (referrals)
Selling Strategy for Jeans Apparel
You must decide on the method of selling your jeans. This can be done either via the shop directly, as well as through the retailer.
Retail Process of Selling Jeans Apparel
At first, you can begin selling your own. It could be done from your outlet or shop. If you are producing an expensive process and your product is not as good as the product you want to sell, then it’s better to offer your products on your own.
Wholesale Process of Selling Jeans Apparel
If you are looking to focus on production, and your production facility is able to create enough quantities that are that is beyond your reach it is recommended to work with dealers.
Even better, you could use both of these strategies. In this case, the price for consumers in both instances must be equal. The cost (M.R.P) that you pay for jeans clothing must not be in conflict with the products offered by dealers, wholesalers, shopkeepers, or factory owners.
Online Process of Selling Jeans Apparel
Create an online site and then create pages such as About Us Pages, Products Page, or Contact Page. Utilize social media in a way that will attune the young audience. You can register your product on the well-known online marketplace.
Measure the Growth: How Jeans Manufacturing is Profit Making?
We have finally reached the bottom of how to start a jeans manufacturing business. Market growth of Jeans manufacturing business is 8 to 12% annually. Now you have to calculate your profit margin, thus you can build a strategy and improvise that if needed.
Basically, the profit stands on a simple calculation. Profit = Selling price – (Cost of production + cost of promotion.)
The factors which will help you to calculate the cost of production are:
- Cost of Raw materials;
- Cost of Labor, Administration, Management;
- Cost of Equipment or Machinery. Apart from this, you need to calculate the machine cost per hour. The simplest way to calculate the machine’s hourly cost is its total costs minus its eventual salvage worth divided by its expected life.
For an instance, to build a Jeans Manufacturing unit, you need to invest around $5000 only to buy and set up all kinds of machines listed above. The life expectancy of the total machinery set up is about 17000 hours. And if the scrap value stands at the end is about $500, then the machine cost per hour will be as follows:
- Cost of Promotion
As we have not discussed the cost of raw materials, labor, management, and others expenses, we are not projecting a detailed profit margin here. But the procedure is needed to be followed as described above.
Upon production & promotion cost, anybody can add a minimum 30% profit margin on the basic product initially. Later you can enhance the rate after running the jeans manufacturing business for around 2 months. If the maximum retail price is found higher than other competitors, you may decrease that by offering coupons. When the company starts recognized as a brand (at least 2 years later), the company can enhance the profit margin gradually to 80%.
Final Verdict On How To Start A Jeans Manufacturing Business
Jeans manufacturing business or starting denim in line is not a product selling business at all. It is more often a brand creation. And by creating such a brand, you can establish a business in the long run; and even such business can last for generations. Hence, focusing on quality, customer satisfaction, and prioritizing customer retention over customer acquisition. Wish you a successful brand creation for the next century.