Profitable Clothing Business projects in the UAE

clothing business in the uae

Have you ever thought about the size of clothing business in the UAE? and how many business owners strive to build their brands from barely nothing there! The first idea might come up to your mind that setting up your clothing business might be complicated or need millions! Actually, this is a huge misconception. In the business world today your success in the clothing industry, depends on the market profile. You are going to release your merchandise in it, and to what extent your brand could penetrate the market.

The UAE market stands out for its diversity of nationalities, popularity, and ability to accept and support new small businesses, beside the encouragement and facilities the government offers for foreigners, to set up their businesses and be members of the largest business hub in the MENA region.

According to Statista

  • The fashion segment in the UAE is expected to generate $4.86 billion in revenue by 2022.
  • Revenue is expected to grow at a 9.92 percent annual rate (CAGR 2022-2025), resulting in a predicted market volume of US$6.46 billion by 2025.
  • The majority of revenue is generated in China, with a projected market volume of US$312.20bn in 2022.
  • The number of users in the Fashion segment is expected to reach 6.1 million by 2025.
  • User penetration will be 51.5 percent in 2022, rising to 59.1 percent by 2025.
  • The average revenue per user (ARPU) is expected to be $936.80 USD.

With the vast options and fields in the clothing business, you could start setting your feasibility study now and choose between one of those options we will illustrate in this article:

Thrift Shops in Clothing Business

Sustainability fashion is the trendiest now among youth, and whoever is interested in minimalistic life style and, eager to save the planet. Despite that, the UAE distinguishes by its fancy and luxurious malls, but thrift shops and second hand brands, with good quality and low prices, are popular among a large number of potential customers. Therefore, the successful niche of clothing business can be found easily!

You could establish your thrift shop from scratch with a low budget, by promoting your store on online platforms firstly, for example Instagram.

You can work in selling and promoting the clothes pieces through the Internet, brand yourself and build the vision of your brand, make customers aware of it, use Instagram ads to attract more clients. in the beginning of your start-up, using digital marketing in the clothing business is a useful tool to gain experience and break the barrier of fear of failure, as it does not require a large capital, and will cost you nothing compared to the revenue.

Read more about why is recommendable to do business in Dubai.

Feasibility Study of Clothing Business project:

Before setting up any project, you must make a clear feasibility study for all aspects of the clothing business project to ensure success and profit by a large percentage. Therefore, you must follow simple steps to make a feasibility study, which are:

  • You have to specify the amount to be used as capital for the project.
  • Determine the appropriate place for the project, such as a room in your home or any place that you think is suitable for the project.
  • Calculating the costs of the project site equipment, including paint, shelves, and places for storing clothes.
  • Do a search for the surrounding places of sale, prices and the best available materials.
  • Good planning and knowing the right goods for each season and the appropriate tastes of the surrounding community, the rural community differs greatly from the cities in terms of tastes, materials and even the preferred colours of consumers.
  • Searching for the best wholesalers and factories in terms of prices, product quality, and the best methods of dealing, such as buying on credit or the possibility of exchanging goods.
  • Using a variety of advertising methods is one of the most important foundations of good marketing.
  • In the beginning, you must choose an appropriate and distinctive name for your project, make publicity through the Internet and social networking sites, and talk to family, acquaintances and relatives to announce the project.
  • Calculate the costs of equipment and deduct it from the capital to find out the amount of the goods.
  • Make a sheet for expenses and revenues, the monthly cost of electricity, water and labour, if any, and deduct it from the project’s revenues, to get the net monthly profits.

Retail Clothing Business

The UAE updated an Oracle point system for those who are interested, or already have their business in the fashion retail field. If you are thinking about setting up your fashion retail online store, or a physical store you would enjoy all the perks of Oracle system in your retail company. The fashion business is one of the biggest businesses in the UAE. According to Commerce chambre reports, clothing business sales in the UAE totalled approximately $12.3 billion in 2018, representing a 4.8% increase over 2017. The retail fashion sector is expected to grow even faster from 2019 to 2023.

You could start by establishing your store in Amazon also, and design the persona of your clients, making your marketing plan, and with a bit of hard working, you will be on the top of retail traders within years.

National Brand

Original fashion designs, and authentic clothes have a vast popularity in the UAE. The mix of Middle Eastern culture, Asian nature, and modernity touch could inspire you to release your clothing business, and be one of the designers who show up their fashion collections in Arab fashion week in Dubai, beside enjoying all the capabilities of setting up your business in the free zone. As it also predicted that Dubai will be the fifth destination of global fashion week not only the Arab world, launching your brand there in the city of celebrities will put your business on the successful map.

For setting up a clothes business you will have many options in the UAE. Masar Al Ameen business consultation group is always ready to help, with the most practical and efficient business solutions. In case you are decided to move to Dubai and bring your family with you, contact one of the best business setup companies in Dubai Masar Al Ameen – they will facilitate you in all the process along your adventurous way!

You could also read more on: How to get a small business license in Dubai – affordable costs and requirements.

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