Home SMEs How to Start a Profitable Shirt Importation Business – All The Analysis

How to Start a Profitable Shirt Importation Business – All The Analysis


Gone are the days of putting on just anything that covers nakedness, everyone whats to look trendy with the latest fashion made of T-Shirts, making this product one of the choicest to import.

Apart from China mainland, other main production centers are Tirupur in Tamil Nadu, Mumbai, Kalkota, Delhi, and Ludhiana where makers of synthetic t-shirt materials like those used by Nike and Adidas for sports wears are found in India.

Fabrics could also be sourced and t-shirts made out of it in accordance with individual specifications depending on the materials and fabrics that decides many features about the t-shirt such as how well it gives its shape after wearing (loose or fitted) and washing. Selection of fabrics depends on the purpose for which the t-shirts are made, For instance,durable fashion t-shirts should be made from soft and flexible or durable heavy fabric or non-shrinkable materials like polyester or cotton blends.

Pre-shrunk and double stitched t-shirt would cost around N375 par piece if one buys up to 100 units and N312 par piece if one buys 1000 units from a wholesale market in India. But aside India, there are still other markets such as Sydney in Australia, and Shenzhen in China where this product could be sourced at great prices.

However, it is in every importers expectation to double his direct purchase cost, having provided for other expenses from total sales, thereby leaving reasonable profit margin of at least 50% of total cost in pure profit.

Cost Associated With T-Shirt Business
Space|shop rental: This is optional if you decides to supply instead of displaying it in the shop, one can attach or share with another or operate from a parking shop or cubicle to avoid huge initial operating cost.
Transportation charge: This comprising ticket fee of between N160,000 – N220,000 par trip, and visa issuing fee of N72,000 for 1 year multiple entry visa or N92,000 for 5years multiple entry visa.
Hotel accommodation charge: Cheap hotel prices ranges between N2,000 to N5,000 par night.
Cargo/ shipping/ clearing charges: depends on volume and varies across shipping lines.
Profitability Analysis
This business yields profit in proportion to the invested capital. Requiring a minimum start up capital of one million Naira (N1,000,000), unless one plans to go into partnership with a permanent resident in the importing country to eliminate transportation costs.

However, half of the initial capital goes into actual product purchase while the other half goes into re-current expenditure, After the product is imported and sold , an approximate total sales of N1.5million would be realized.

Approximate total sales = N1,500,000. Total expenditure (Approximate re-current expenditure + Approximate product purchase cost) = N1,000,000 + N500,000 = N1,500,000 – N1,000,000 = N500,000 in pure profit.

The profitability of this business on the long run depends on the rate of turnover ( how quickly stocks are sold and replaced over time). Hence the need to establish import/supply relationship with heavy consumers of this products such as: schools, churches, corporate houses, political parties and party planners, sports clubs or training centers, boutiques etc. to boost sales.

Conclusively, Boutique business is a lucrative venture for serious minded business persons, with sufficient investable capital that doubles or in the least, yields quick returns within the shortest possible time, depending on the marketing strategy and sales potential of the importer/trader.