Want to know about best retail business in India? Well you have landed on the right article.
India is the second-most populous country globally and has a GDP of $2.6 trillion. Retailing is an essential industry in India and accounts for 10% of its GDP.
Retailers in India face a lot of challenges adapting to the changing consumer preferences and needs. Even this can be the high profit margin business in India.
However, it's not all bad news, as some retailers have found success by using omnichannel retailing and adapting to consumers’ changing needs.
Retailers are struggling with adapting to the changing consumer preferences and needs, but some retailers have found success by using omnichannel retailing and adapting to consumers’ changing needs.
Here, we have provided some retail business ideas in India that you can considered.
In this guide, we ranked and reviewed the 17+ best retail business, along with our top 3 choices, so that you can pick the best one for you.
Kirana Stores
(Best For Low investment businesses)
Overall Rating: 4.5/5
Kirana Stores is a low investment business that can be started with very little investment, and it is a great way to start a side business.
Medical Store
(Best For Medium investment businesses)
Overall Rating: 4/5
They make money by selling medical equipment and supplies to hospitals, clinics, and other healthcare facilities.
Coffee shops
(Best For High investment businesses)
Overall Rating: 4/5
Coffee shops are one of the most popular places to socialise and have a cup of coffee. It is also a place for people to work remotely, read books, or enjoy their day.
Best Retail Business In India
Want to jump straight to my top picks? My favorite retail business is Kirana Stores and Medical Store.
What is a Retail Business
A retail business is a type of business that sells items or services to customers for their consumption, use, or pleasure. Retail businesses are the backbone of many economies around the world.
They help consumers find what they want and need at an affordable price. Retail businesses can either be brick-and-mortar stores or online stores. Brick-and-mortar retailers are usually located in a shopping mall or main street.
Retail businesses can be classified into two major categories :
Specialty stores and department stores. Speciality stores are usually small businesses that sell niche products.
Types of Top Retail Businesses in India
1. Low investment business : This type of business is the most common, and it doesn't require much investment. It is usually a small-scale retail store that sells products and services to customers.
2. Medium investment business : This type requires a higher investment, but it provides better returns than the low-investment one because the customer base is larger.
3. High investment business : This type of high-end retail store offers expensive goods sold at a premium. A high investment business is a business where the investment is high, and the profits are low.
Low Investment Businesses
1. Kirana Stores
Kirana Stores is a low investment business that can be started with very little investment, and it is a great way to start a side business.
It has different types of stores, thus catering to customers' needs. The word Kirana is derived from the Sanskrit word for market.
The stores can be set up in any location, as long as it is an area where people would need to go shopping, and there are enough people in the area.
Some examples of Kirana stores are stationary and books stores, fruit stores, flower shops, altering shops, tea stalls and seed stores.
2. Stationery and Books Store
Most of these shops are low-investment businesses and can be set up in a short period.
With the help of these shops, you can make your living space look more attractive.
Stationery and Books store is an excellent business for people looking for a low-investment business that doesn't require much work.
The only thing you need to do now advertises your business by putting up posters in strategic areas. This type of business can be started with an investment as low as $1,000-$5,000, depending on how many products you want to offer.
3. Fruits Store
Fruit stores are also a great business choice if you're looking for something that's low-investment but has high returns.
You can buy fruits from wholesalers or local farmers at cheaper rates and sell them at higher speeds to customers who have a sweet tooth.
A Fruits Store sells fresh fruits and vegetables. They also sell dried fruits, canned fruits, fresh fruit juices, jams etc.
These stores are usually found in large cities or towns. A Fruit store is also one of the cheapest ways to start a business.
4. Flower Shop
A Flower Shop sells flowers such as roses or tulips, etc., and other related products like vases or pots for planting flowers.
These shops are usually found near the entrances of a mall or at the entrance to a residential area.
There is an initial investment to get the necessary inventory, but it doesn’t need much space.
This is an excellent choice for people who want to start their own business but do not have a lot of money. They are also ideal for people who want to work from home.
5. Altering Shop
This is a good business for people who enjoy sewing or have skills in tailoring clothes.
You can purchase ready-made clothes at wholesale shops and alter them according to the customer's requirements before selling them to make a profit.
It can be started anywhere, but the only need for this type of shop is that it should have a good location and the best location is one with high foot traffic.
The best part about this business is that it doesn't require any prior skillset or experience.
6. Tea Stall
A tea stall is a low investment business. It can be set up in any location, and it is a great way to earn money from the comfort of your own home.
The cost of setting up a tea stall ranges from Rs. 3000 to Rs. 5000. This includes all the necessary items such as cups, plates, spoons, water heater, tea packets and sugar packets.
The only things you may have to buy separately are the chairs and tables, which cost around Rs 500 each.
- Low initial investment
- Easy to make and sell
7. Seed Store
The seed store is accessible to a start-up business. It does not require a lot of investment. All you need are seeds, pots and some gardening tools for the store.
A seed store is a business that sells various types of seeds and offers advice on how to plant them.
These seeds can be purchased by the packet or in bulk. They are typically used to start a garden or farm and often have other supplies such as gardening tools and fertiliser available for purchase.
Medium investment businesses:
1. Medical Store
Medical stores are a medium-level investment business.
They make money by selling medical equipment and supplies to hospitals, clinics, and other healthcare facilities.
Opening up your medical store is not as difficult as you might think. It is similar to opening up any other retail store but with minor differences.
To run a successful medical store, you need to understand the industry and experience in the retail sector. You also need to manage inventory effectively and provide excellent customer service at all times.
2. Saree Shop
Saree Shop is a medium investment business in the retail industry.
It is a fashion store that offers customers high-quality Indian sarees and other related products.
Saree Shop was founded by two childhood friends who shared a passion for Indian culture, fashion and design.
They were driven by the desire to provide an alternative to the old-fashioned, Westernised saree shops prevalent at the time.
The company specialises in traditional Indian attire for women and men. The range of products includes wedding, evening, formal, casual, and accessories such as jewellery and shoes.
The company has two stores located in New York City. It also sells its products online through its website, accessible from anywhere in the world with internet access.
3. Gift Shop
The gift shop is a medium investment and an excellent business idea.
It can be started with a small amount of money and provides various opportunities to make a profit.
The gift shop is an enterprise that sells goods, souvenirs, and novelties that are often given as gifts.
The products are typically selected to match the tastes and interests of the intended recipient. Gift shops may also sell other items such as wrapping paper, cards, or ribbons for use in presenting the items as gifts.
4. Cosmetics Store
The cosmetics store industry is a medium investment business. It is not too expensive, but it also requires a lot of work to ensure that the products are always in stock.
One of the best ways to do this is using AI assistants for inventory management.
This will help you save time and money by eliminating human error and ensuring that your products are always in stock.
The average startup cost for a cosmetics store range from $500,000 to $1 million. The most expensive part of the process is the lease, ranging from $50,000 to $150,000 per year.
5. Cake Shop
The Cake Shop is a medium investment business. It requires minimal start-up costs and can be started with a small amount of money.
Small businesses have always been an essential part of the American economy, but they’ve become even more crucial in recent years.
As large corporations have grown, small businesses have taken on an outsized share of the country’s economic activity.
In fact, according to data from the U.S Census Bureau, between 1997 and 2016, the number of small businesses in America increased by 46%, while the number of large firms shrunk by 6%.
6. Perfume shops
A perfume shop is a medium investment business. It will require an initial investment of $50,000 to $250,000 to open and operate a store.
The cost of the inventory varies depending on the type of fragrance you are selling.
This is not a low-maintenance business and requires at least one full-time employee to run it.
Perfume shops are often small businesses operated by individuals interested in fragrance or fashion. These shops can be found in malls, department stores, and large retailers that sell fragrances for men or women.
Perfume shops make up about 40% of the fragrance market in the US alone, so it's no surprise that this is one of the most profitable businesses you can start with medium investment.
7. Sweets and Snack Store
The sweets and snack stores are a medium investment business that can be started with a small amount of money.
The business has high growth potential, and it is an excellent opportunity for the person who wants to start their own business.
There are many different types of sweets and snacks available in the store. It is possible to find anything from chocolate bars, ice cream, and cookies.
The store also offers other products such as chips, chewing gum, candy bars, etc. This type of store can be found in almost every city worldwide.
High Investment Businesses
1. Coffee shops
Coffee shops are one of the most popular places to socialise and have a cup of coffee. It is also a place for people to work remotely, read books, or enjoy their day.
With so many different purposes for coffee shops, it can be challenging to find the right one that suits your needs.
This is where this article comes in!
We will discuss some common factors to consider when choosing the perfect coffee shop for your needs.
- Location
- Price
- Ambiance
- Taste
- Wi-Fi
Another way to make money at a coffee shop is by hosting events or doing private catering for weddings, parties, and other events. You can also partner with local businesses to provide them with office space in your space when they need it.
2. Ice Cream Parlour
The ice cream parlour is a high investment business that requires much time and money to start. The ingredients, equipment, and labour can be costly.
Due to this, the ice cream parlour must be located in an area with a high population density to get as many customers as possible.
Investing in a high investment business is one way to get a good return on investment.
However, not all high investment businesses are profitable. Some high assets businesses have a higher risk than others and are not always successful.
With the right management, research and careful planning, you can do your increased investment business work for you.
3. Fast Food Restaurant
Fast food restaurants are one of the most popular and profitable businesses globally. They are a part of our culture, and we can't imagine life without them.
The first fast-food restaurant was opened in the late 1940s, but McDonald's made fast food popular.
In 1955, Ray Kroc opened his first McDonald's restaurant in Des Plaines, Illinois.
The company soon grew to have over 36,000 restaurants worldwide with an estimated value of $110 billion. Today there is a huge competition between different fast-food chains.
They all try to be more attractive than their competitors by investing heavily in advertising campaigns, new products and services etc.
4. Car Wash
The car wash industry is a high investment business. The car wash machine alone can cost $100,000.
This is why many entrepreneurs are hesitant to start a car wash business. Fortunately, there are ways to cut the cost of starting a car wash business without sacrificing quality.
For example, you can buy used equipment or rent equipment instead of buying it outright.
The car wash industry is worth $8 billion in the United States alone. People are willing to pay more than it costs for a car wash because they want their cars to be clean and shiny.
5. Two-Wheeler Showroom
A two-wheeler showroom is a shop where customers can come to buy bikes and scooters.
The first challenge faced by these businesses is the low margins on their products which make it challenging to invest in inventory.
The second challenge these businesses face is that they have to pay taxes on their profits which makes it difficult for them to grow their business.
The solution to this problem is that they need to expand their market shares, such as through acquisition or branding, or else find new ways of generating income, such as through advertising or franchising.
6. Beauty Salon
Beauty salons are high investment businesses with a high turnover, and it is important to maintain the salon in good condition.
A good salon should have all the latest equipment, cleanliness, and qualified staff.
They need to keep up with the latest trends, which can be time-consuming and expensive.
In the last few years, the salon industry has seen a shift towards more organic products, which are better for both customers and staff. The beauty industry is one of the most competitive industries globally, with low-profit margins.
7. Restaurant
Restaurants are one of the most high-investment businesses that you can start.
You will need a significant amount of money to purchase the right equipment and supplies and pay for rent and utilities.
What are the benefits of opening a restaurant?Restaurant businesses provide a unique opportunity to make money while also enjoying your work.
If you have an entrepreneurial spirit, owning your restaurant could be the perfect business. The food, the décor, the location, and the staff all have to be perfect for a restaurant to succeed.
Conclusion
The best retail business in India is those that can adapt to the changing market conditions. A retail business should be able to identify emerging trends and implement them in its operations.
With many international players entering the Indian market, local retailers need to keep updated with the latest developments.
I hope you liked our article on retail business ideas in India, if you have any comments or suggestions do share them in the comments below.
frequently asked question
Q1. Which type of retail business is best in India?
Below we have listed 2 of the best retail business ideas in India.
1) Grocery store
2) Bakery
Q2. What retail business is the most profitable?
There are number of business that are profitable in India:
- Coffee shop
- Pet grooming and boarding
- Clothing boutique
- Bakery
Q3. Which business has the highest profit margin in India?
If you are looking for the most profitable business with highest profit margin in India, then here is the list:
- Travel agency
- Organic farming
- Food and beverage business
- Cloud kitchen
- Home based bakery
- Virtual event planning
- Online tuition
- Online saree business
Here are my best picks:
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