Bags are the important part of our accessories we carried and our outfits also. Bags has been carried as per the occasion and types of storage we want. Variety of bags are available as per the shape, size, colour, storage, material, brands, season etc. both men and women carried bags as per their desired and need like children’s used to carry school bags, with school girls used to like carrying bag of pink colour, while corporates preferred laptop bag with lunch accessories pouch, in parties women’s carry clutch bags and also small hand purse, while men’s used side bags while outing. With the increase in the demand of bag’s and customising of its services bags manufacturing is been in demand very much. As this business is profitable because there is cheap availability of raw material and profit margin is more in it. Thus, starting bag manufacturing business shop is good idea and bag selling is also emerging growth.
There are variety of bags available for the different uses like school bags, college bags, office document portable bag, corporate bag, side bag, clutches, totes, sack bag, travelling bag, etc.
2. CASE STUDY
The following are the case studies of bag manufacturing business:
- # Safari: The safari’s is the big name in Indian market of bags. They produce travelling bags, luggage bags, school college bags, women’s purses. They are giving tough competition to the international brand in India. There are many reasons for the success of this brand but the main reason is their designs they made designer bags as per the trend in the fashion industry and that can match the customer’s expectations. another reason for the success they offered free delivery form the online order with 30 days return policy, that makes customers full believe on them about the trust and customer support.
- # Baggit: This is also Indian brand name which is excelling its success since 30 years of remarkable progress. they have receive various awards for their success from almost 3 decades. The progress they made was only due to their quality service, and their hard efforts. Then they started selling online also. Thus customer satisfaction if done they can produce customised products for the various services. Continuos efforts in the right direction helps to achieve success.
3. BUSINESS IDEAS’S SWOT
- # Initial capital requires is less as compare to other business.
- # Bag manufacturing business is easy to set up and destroy also.
- # Employment generated in bag manufacturing and selling.
- # No extra maintenance required.
- # The bag used to sell as per the recent trend in market so old bags gets wasted.
- # The employees needed are to be experienced and highly skilled in bag manufacturing.
- # The bag manufacturing business needs many advanced machines and tools nowadays.
- # The transportation of raw material gets expenses costly.
- # There is more increase in the demand for various bags using for every different occasions as per the need.
- # Customising bags makes the customer chaos as the opportunity.
- # Online dealing is the best way to selling bags.
- # Making partnership with the local retailers is also helpful.
- # Creating retail shops for the bag selling business is also better choice.
- # Increasing use of plastic in making bags which causes cheap raw material but gets tough competition with leather.
- # Government’s taxation on import and export.
- # Market competition is also big threat.
- # Increase in the prices of raw materials.
5. SUPPLY CHAIN MANAGEMENT
- # Company order the manufacturing firms for the production of bags
- # Raw material is being demanded by the manufacturing unit for the production of bags
- # Order management is being done by the administration department along with the hiring of employees, arranging tools and machines.
- # Designing as per demand of the market and customers so that unique designs is being there for the brand which you are contracting.
- # Manufacturing unit keeps on completing the work before the deadline.
- # Company contract is fulfilled by completing demands and order in exchange of money with bags ready to send the market.
- # Wholesale distributor gets the supply of the bags from the company to entered into the retailers’ chain.
- # Wholesale supplier gets purchased those bags from wholesale distributors and they get ready to sell to retailers.
- # Retail shop purchase it to directly gives to customers with the profit margin.
- # Customer satisfaction is being made by the retailers in purchasing those long chain bags finally to destination.
6. TYPES OF BAGS:
- # Travelling bags
- # School/college
- # Women’s purses
- # Men’s wallet
- # Party hand bags
- # Grocery/shopping big bags
- # Paper bags
- # Jute/cloth/paper/plastic/leather bags
7. LEGAL NEEDS
As per the Indian Norms:
- # Gumasta
- # Municipal/Nagar Nigam Registration.
- # Registration of business
- # LLC
- # GST registration
- # Corporate license
- # Bank account of business
- # Insurance
8. FINANCIAL PLAN
- # Machines
- # Tools of sewing
- # Cutting tools
- # Raw material like leather, cloth, rekzin, zips, buttons
- # Finishing material
- # Electricity
- # Sitting arrangement
- # Storage boxes
- # Packaging tools
- # Transportation facilities