Own business: manufacture of textile products for newborns
The range of enterprises that produce and sell textile products for newborns is very large. It includes, as a rule, not only clothes (vests, sliders, bodysuit, anti-scratch mittens, caps), but bed linen for cots, blankets for children, envelopes for discharge and for walking, pillows for babies, crib, canopy, etc. boards. All these clothes must comply with the physical, hygienic, sanitary-chemical and toxicological indicators of sanitary rules that are currently in force.
The Russian textile market is estimated at about $ 2 billion. The domestic demand for knitwear and textile products, in general, exceeded 750 million units of various products in 2011. At the same time, in the industry the share of demand for domestically produced goods was about 25%. The number of domestic enterprises operating in the textile and clothing industry is about 650 large and medium-sized companies, as well as about 4.5 thousand small and medium-sized enterprises. In total, 350 thousand people are involved in the industry, and the volume of production is 180 billion rubles. The main trend of this market is the growth of demand for high-quality and at the same time inexpensive products, which are distinguished by modern and original design. This concerns not only the adult clothing market, but also the segment of goods for newborns and children up to three years old.
In the past ten years, the textile market in our country has been one of the fastest growing. Now its growth rate is about 25%. Before the crisis, it attracted entrepreneurs by its segmentation, richness and low level of competition. However, in the post-crisis period, according to experts, this segment remains underestimated by investors, despite the fact that the cost of textile production in the ready-made business market is on average 20-25% lower than that of a food enterprise that generates comparable profits and has approximately the same the same assets.
All participants in the domestic market can be assigned to one of four main groups.
The first includes large enterprises that produce products in a small range, but in bulk. It differs in average quality, rather poor design and low prices. The last advantage is the main and decisive for such companies. The profitability of investments in them does not exceed 25% per annum, and the equipment and marketing programs need to be replaced and updated for a long time.
Franchises and Suppliers
The second extensive group of textile market participants is foreign manufacturers. Cheap products are exported from China and other Asian countries. In terms of price and quality, it is comparable to what companies from the first group produce, but it has a more interesting design (as a rule, due to the illegal use of other people’s collections). European and American companies produce and supply high quality goods with an attractive design and at an appropriate price. This segment is the most insignificant in the market of textile products for newborns.
The third group includes Russian wholesale companies that do not have their own production and place orders for the production of their products from foreign manufacturers under their own trademarks. This is the most profitable way to work: companies do not spend money at the very beginning of their activities to buy expensive equipment and wages to employees, pay great attention to design, their goods are distinguished by good quality and reasonable prices. Over time, these companies are thinking about creating a separate production. Practically each of them has its own design studio, which contributes to a significant increase in business profits up to 30-35%.
The fourth group of enterprises is small manufacturing companies. Such a company is usually one small workshop, located in a rented room of up to 300 square meters. m. (often even less). The main part of the work is done almost by hand. It is better to open such a business in regions where the level of wages is low compared with the large Russian cities, which can significantly reduce the cost of finished products. And the market for their sales is almost unlimited: many small firms sell their products throughout the country.
So, the group to which it will be possible to assign your new enterprise for the production of textile products for newborns depends on the size of the start-up capital that you have, your ambitions and, last but not least, the products you will produce.
Buying a small textile production will cost from three million rubles. These costs will pay off in a year or two. Large-scale industries are less profitable, since the lion’s share of their costs is the modernization of outdated equipment. Therefore, it is possible to count on the return of investments not earlier than in 3-5 years.