A huge investment is the biggest barrier to starting a new business on a large scale, and that’s why, if you do not have a huge capital of investment, you should start with a small business in India.
There are several best retail business ideas in India which you can start with a very low investment, and later on convert them into a large business model.
There is a specific reason behind starting a retail business, there is a huge class of population in India who still prefer to buy the products from the retail shops in place of ordering from ecommerce online stores.
Another thing for the business of retailing is the retail business model is the bridge which connects the manufacturer and the consumer.
Manufacturing business and wholesaling business can not survive without the retail business models, because local shop business passes products to the consumer on demand.
How to Start Retail Business Ideas in India
Starting a shop business idea is not as difficult as it seems, there are only three aspects that you need to consider while starting up a retail business idea anywhere in India.
- Your Budget in terms of the investment
- Demand of products
- Location selection
First, do the proper market research around your area, and analyze which products are in demand in your area and there is not a frequent supply of them.
Make a proper business plan for retailing, how much investment you will need to start that retail business model, and the other most important aspect is the location.
You are not supposed to be lazy in the location selection, choose the location where you can consume the maximum customers.
Arrange an investment according to the requirements, hence it depends on which retail shop business you are going to start.
If you do not have enough budget, but have a proper and strong business plan, you can also borrow the loans from the banks, like mudra loan.
Retail business plan needs the daily goods transaction, so that you will have to tie up with your nearby agencies of product supply on a daily basis.
What are The Best Retail Businesses in India
Is it really tough to choose the best retail shop business idea? If you are thinking so, let me know that you are going in the wrong direction.
If you have followed the above steps, you can find the best idea for the retail business in your local area.
Choosing the profitable idea for retail business contains some very basic fundamentals like availability of agencies in your nearby area from where they can deliver you the products on demand.
If you want to start a retail business, then you should start a small shop for a particular category of product, or else you can also start a multi-category shop of the multi category products, whichever is suitable for your territory.
On the basis of my deep micro research, here are some very profitable retail business ideas that you can execute with a medium scale of investment.
So, without wasting time, let’s explore the best retail business ideas in India that hold the capacity of changing your life.
According to IBEF, the Indian retail sector produces $6.2 Billion USD from retailing including all retail sectors, and private firms, which is a very big figure and stats that there is a golden chance to scale up a profitable business model by starting a retail business in India.
1. Grocery Store
Whenever a person thinks about starting a shop for daily routine products, the thought of starting a grocery store comes up in his mind.
And it should be, because humans can not survive without the daily routine products like salt, soap, sugar, tea, and many other daily routine grocery products.
This is one of the best retail shop business ideas in India, and do you know what is the main reason behind it?
Because there is a very high competition in this business, and despite the high competition, you will not find any grocery retail shop owner bearing a loss in his business.
As the demand for grocery items can never be stopped or saturated, and that is why, if there are 10 grocery retail stores around you, you will start earning from the first day of starting a grocery mini store in your area.
Yes, the profit margin per each product does not exceed a significant amount, but the overall sales of a month returns you a very high profit amount.
So, if you are willing to start a retail grocery shop, don’t consider the daily profit ever, figure out the monthly profit which will make you happy at the end of the month.
On the other hand, you can expand your business idea by starting the home delivery of grocery items business.
If you are not willing to invest to establish the service for delivering the grocery items to the doorstep of the customers, there are several apps businesses that can do the same for you.
2. Stationary Products and Book Stores
After a long period of corona pandemic, schools and colleges are opening slowly module wise, and here is a great opportunity to start one of the best retail businesses around your location.
If there is not any school or college around your location, even if you should find an appropriate location far away from your home, and start a stationery shop.
Because, the education will never end, and the demand for stationery products will continue.
Talking about investment, you will have to arrange a medium capital amount as an investment, the stationary items are not too costly, but the infrastructure asks for one time medium investment.
If we focus on profit margin, same as the grocery shop, the profit margin per product is not too high, so that in this retail business also, you need to consider the monthly profit revenue.
3. Retail Garment Store
Yes! This is one of the most profitable retail business ideas which is not affected by a corona pandemic as well, and has caught the consistency as before.
Opening a garment store is not quite easy, it needs a little bit of huge investment, proper location selection, and you will have to fight with competition as well.
Garment industry is also involved in the online selling businesses, that you will have to manage parallelly.
Talking about the investment, then I strongly suggest that you don’t start a garment retail store if you do not have a minimum investment of 4 lakh rupees.
Considering the profit margin for garment retail stores, the profit is more than 40% per sale, and you can also implement the upsell marketing strategy for this business.
Along with the local garment shop, you can also list your garments on the third party ecommerce stores like amazon, meesho, shop 101 who can sell your garments all over India.
You will have to pay a very small amount as a commission to those apps, and they will be bringing several sales for you from all India locations.
4. Tea and Coffee Shop
If you are considering the tea and coffee shop as a very common and non profitable business, then I want to open your eyes by sharing that a person is generating the revenue of 100 crore rupees per year by selling the tea and coffee.
Yes, I am talking about the chai sutta bar, which is one of the biggest tea and coffee shop businesses which is spread over India and out of India as well.
If you have good skills to make tasty tea that can encourage people to visit your tea and coffee shop daily, the tea and coffee shop business has the potential to change your life.
There is a little bit of investment required to start this best retail business idea in India, which is around 80,000-1,00,000 to set up the best tea and coffee shop with enough infrastructure.
While starting a tea and coffee outlet, you must be attentive while selecting the location for the shop, because this retail business idea is based on the daily walk-in consumers only.
In order to expand the business, you can tie up with the multinational big companies to provide the tea and coffee service on a daily basis.
At the other end, the shops, banks, and other commercial centers can be your permanent customers with providing the best taste and service.
Considering the profit margin of the tea and coffee business idea, you can earn around 30k per month if you are having at least 200 regular customers.
This is a calculated figure, it may vary with your strategy of business in terms of quality, taste, service and behavior with your loyal customers.
5. Food Truck Business Idea in India
The food truck business idea seems quite a new retail business model, but in fact, it is not a new business idea, but the business of the food truck was underestimated by the people by considering the low profit.
It’s not mandatory to have your own vehicle like a truck to start this best retail business idea in India, you can borrow a mini truck on the rent, and start this low investment business idea in your local territory.
Here you have two options, either you must have a good sense of making the tasty food, or you need to hire a good quality chef who can make the tasty food for your customer.
The biggest benefit of the food truck business is that you will not be dependent on the location barrier, you can move your truck anywhere and continue the business.
If you select the location, and with hard luck, the location does not get proved right, you can change the location of service immediately.
The required investment is not pretty high, if you have the medium range of investment, you can start the food truck business very easily.
You just have to collect the raw materials like buns, spices, paper dishes, paper bags, and other accessories.
The profit margin in food business is very high that everyone knows, the making cost of good quality of pizza is around 30 rupees and selling price is not less than 80 rupees generally.
So, if you have good skills of making tasty foods, or you are willing to hire a good quality chef, you should never ignore this best reselling business idea in India.
6. Vegetable Shop Business in India
The vegetable shop is one of the most profitable business ideas in India, and this is one of those businesses which never see the face of recession in any condition.
Even the corona pandemic could not break the market, demand and supply of the vegetables, because a human can not survive without the vegetables.
There is a very huge scope to make a massive revenue from the vegetable retailing business idea by expanding it in various ways.
You will require a very small amount of investment to start the vegetable retailing business idea in India.
Because you will not have to invest the huge amount for the inventory, you will be purchasing the vegetables on a daily basis according to the demand and selling stats.
Along with the retailing business of vegetables from shops, you can start a vegetable home delivery business as well, which will generate a revenue beyond your expectation.
Talking about the profit margin of vegetable retailing business, there is over all up to 40% of profit you can cover by selling the vegetables.
You are supposed to earn the maximum profit in the summer season, because it is the season when the vegetable cost is high, and in the monsoon and winter, your business runs on the average speed.
Conclusion on Retail Business Ideas in India
There are hundreds of business ideas in India that you can start, but many of them differ with the locality and culture, so you need to select that retail business idea that can be run anywhere in India with the same flow.
The business ideas for retailing mentioned in this article are some of them, which can be executed anywhere, they are barrier free, and all of them have the same profitability with the variance of location as well.