Lot of people want to learn how to start a lucrative bag manufacturing business this year.
Are you one of them?
If YES, then this article is only what you need to read today.
Bags have been used for many decades as a way by which people carry their money and other personal items.
Bags can range from simple and utilitarian to all flash and fashion, and everything in between.
Currently, lots of people are going into the bag making business and are using their creativity to manufacture colorful designs and styles of bags using different materials.
Starting a bag making business can be very profitable with good daily, weekly and monthly returns if you know what you are doing.
Buyers will buy and beg you to sell your bags to them if there are convinced your bags are quality and durable.
One good thing about this business is that if you are just starting out, you can start from the comfort of your home.
Depending on how you intend to start the business, it can be operated both part-time and full-time bases.
If you are looking for ideas to start a bag business, you can go into manufacturing, or retailing.
So, if you are thinking of starting your own bag manufacturing business, this post is for you.
This article will help you successfully start or improve your existing bag manufacturing business in Nigeria, Ghana, South Africa, UK, USA, Canada, Germany, Italy, Australia, New Zealand, India and perhaps anywhere else in the world.
Before we get into the core of this post, I’d like to tell you to grab some coffee or tea.
This is quite a long post and if you’re really interested in starting and excelling in bag business this year, you’ll definitely read to the end.
Steps to Starting a Lucrative Bag Business
1. Choice of Bag Type to Make
Bags come in different styles, sizes, colours to meet different occasions.
Since bag making goes beyond handbags for women, decide on the type of bag to make.
Who are you making your bag for? Would it be for only women, men, kids and so on?
Pick the one that is convenient for you.
Your focus can be on manufacturing or reselling:
- Belt bag
- Bucket bag
- Camera bag
- Camping backpacks
- Clutch bag
- Doctor bag
- Duffel bag
- Envelope bag
- Evening bag
- Fanny pack
- Flap bag
- High-fashion handbags
- Hobo bags
- Laptop bag
- Laundry bag
- Messenger bags
- Mini bag
- Shoulder bag
- Side packs
- Travel bags
- Vanity case
Know if you would target the regional market, national market, or international market.
Most times doing market research on the different bag making ideas is important as it will help you know your targeted audience and if the business would be lucrative.
2. Learn How to Make Bags
Bag design is one of the fastest growing areas of fashion.
There are a lot of online courses, universities and colleges offering different ways to study bag design, pattern cutting and making.
Determine whether you want to design bags as a hobby or as a profession.
To perfect your skill in bags design and manufacturing:
- You can attend skill acquisition seminars where they teach people how to make bags.
- Serve as an apprentice in a bag making company or
- Enroll in an accessory design degree program, take general art and design courses, including drawing, color theory, art history and design fundamentals, textiles, patternmaking, basic sewing skills, business and marketing acumen, production techniques, fashion sketching, general manufacturing knowledge, and proficiency in programs such as computer-aided design (CAD).
With this, you will learn the trade first hand and gain experience before you launch your own bag manufacturing business.
Depending on how far you are in learning it should not take you up to 6 months to 1 year to learn the trade completely.
While learning and undergoing training, you’ll be assessed, tested and if all goes well, you will arrive at the end of your studies with a qualification.
3. Get Your Capital (Finance)
When planning a budget for a new venture, it’s shocking to look at a total figure.
But it is always best to have a realistic framework of the expenses you could have to pay and be prepared for them.
Producing fine quality bags costs money, so to run this business successfully, ensure that you’re financially stable.
Gain enough funds to meet your routine business requirements and other expenses for many months.
The capital requires for this business may depend on the materials used for production (leather, nylon, cotton etc.) approaches, and your goals.
This capital will also be used in samples creation, website design, editorial photography, line sheets, marketing etc.
4. Business Planning
The fashion business is notoriously difficult, but if you start your own business with bags making, you may get your foot in the fashion door.
Good planning goes a long way when you open bag business startup.
Before you get carried away by the excitement of the prospect of owning a bag manufacturing business, calm down and think like an entrepreneur.
Plan and know if:
- There is a particular niche you can serve.
- There is a demand for your bags.
- The market that is over-saturated with handbag manufacturers and retailers.
Having your business plan will help you in:
- Market research/size.
- Customer demographics.
- Estimating the costs of running the business including the expected revenue stream.
5. Get a Good Business Location
Once you are through learning how to make a bag, then you can start your very own bag making business.
The good thing about this business is that you can start it anywhere.
You can start right from the comfort of your home or rent a shop where you would store your equipment and start manufacturing.
It is important to carefully select the location for your business as that decision can either make or mar your business.
You’d need to fit your store to the clientele you want to serve.
If you will sell high-end items, then you will set up a boutique-style shop in a posh area.
Before choosing a location for your bag manufacturing company, ensure that you first conduct a thorough feasibility studies and market survey.
After making sure that your shop is in the right place and among the right people, it is essential to know all about the area.
This involves knowing the demographics, the local competitors, and also knowing how customers will get to the salon.
Is there ample parking space available? Is a construction project planned on your block? Are there any security threats?
These are questions you have to know the answer to before you can consider picking the place.
6. Business Registration
If you are thinking of doing this business long term and creating a brand that would be recognized worldwide then you have to register a business name.
Pick an attractive business name as it is what most people will see not you.
If you buy purses and bags wholesale, look into getting a reseller permit that allows you to buy the wholesale product tax-free and add the sales tax when you resell it.
If you open a physical location, check with your city government to get the proper business licenses and permits.
7. Equipment’s and Materials for Production
The first thing to consider before getting any equipment of any sort would be where you would get your raw materials from.
If you are into making leather bags, then getting high-quality raw material should be your top goal.
This would involve you doing some more research where to source your materials.
When this is settled then you can start getting the various equipment’s.
- 1/4in basting tapes
- Fabric glue
- Finger presser
- Ironing board
- Machine needles
- Rotary cutter
- Sewing clips
- Sewing machine
- Tape measurement
- Thick treads
- Travel iron with steam function
- Walking machine foot
8. Start Manufacturing
Once everything has been put in place, then it’s time to manufacture your bags.
Before beginning a design for your bag, you’d need to come up with designs of the articles you want to make and have them made.
If you have knowledge about fashion designing, you can make the design yourself. If not, you can hire someone or company with such knowledge.
After you have the design, you can sew an actual product yourself, have an entire manufacturing staff do it (mass manufacturing), or you can outsource the work to a bag manufacturer.
Afterwards, adjustments may need to be made before the bag is ready to be marketed and distributed to stores and boutiques within and/or outside your country.
9. Products Pricing
Having to fix a price for your products can sometimes be difficult as you won’t want to fix a price that will be too expensive for people to buy or cheap that you will make little or no profit.
You really have to learn how to fix the right prices for your products and services if you don’t want to make a loss from your business.
For you to get a fixed price, you will have to first figure out the total amount used in producing one bag and decide how much profit you intend to make.
For example, if it costs you $20 to manufacture one bag, you can put your profit at $8 making the fixed price $28.
One other thing you should know about pricing is that if you are new to the market, it would be very difficult to sell your products at a high price.
Also, decide whether to sell your product wholesale or retail.
By selling wholesale, you sell your purses and bags directly to retailers, which mean you receive larger chunks of money at a time but a smaller profit per item – you also work directly with the manufacturers.
By selling retail, you make a larger profit per item sold, but you hold on to your inventory for longer periods of time and you only sell a few items per customer.
Assign retail prices that are appropriate for the market you are targeting.
Create a cohesive collection to present to retailers.
Be mindful of your relationship with retailers. Nurture them with personal meetings and use them to better target your designs.
10. Inventory Storage
Properly store your bag inventory as these products are your source of revenue.
This means storing them in a cool, dry and smoke-free environment.
Consider getting warehouse or inventory insurance to protect your investment.
11. Staff Hiring and Training
As you scale your bag manufacturing business, you will want to hire staff at some point.
Look for people who represent the clientele of your bag brand, as they are the first people your customers have contact with either in a retail location or in an online customer service contact.
Train them to be knowledgeable about the bags you have so they can help customers with questions about their purchases.
There should be competence and excellent customer service in your business.
Ensure that you make your clients feel valued and appreciated and focus on giving them the best experience each time.
Professionalism must be a yardstick of your business and of your staff.
12. Get an Online Presence
Once everything has been put in place and you are ready to enter the market, you can then think of various ways you can promote your products to get customers to buy from you.
You can decide to use the traditional means of opening a shop and displaying your items for people to purchase which is good or you can decide to go online and open an e-commerce website where people can buy your products online.
But the best option would be to open an e-commerce website where you can market your products to a larger audience and generate more sales.
If you don’t know how to make your own website, look into using e-commerce platforms such as Shopify.
You can also create accounts with websites like Amazon, eBay and Etsy and become a third-party seller.
These websites provide you with a well-established global customer base, ease of use and a supportive seller community.
13. Products Promotion [Marketing]
People are not just going to come to your store immediately you open up which is why you will have to advertise your business.
There are various ways you can promote your products and they include: word of mouth, advertising on newspaper, radio, TV, social media and so on.
Running a business requires that you should market your goods or services.
If you choose to launch a bag manufacturing business, then you must go all out to employ strategies that will help you attract customers or else you will probably struggle with the business because there are well-known brands that determine the market direction for the leather goods and luggage manufacturing industry.
If you want your bag manufacturing company to grow and become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.
Use online marketing strategies to advertise your business.
Social media platforms allow you to talk directly with your customers and listen to their comments and suggestions.
Attend various trade shows or fashion shows to display your work and sell it to consumers or retailers.
Having a successful bag manufacturing business is very possible.
If you are looking towards successfully launching a bag making business and maximizing profits, then you need to ensure that you get your economic analysis right and try as much as possible to adopt the best practices in this industry.