Own business: production of socks
Not only socks, but also tights, and other hosiery products have always had and will be in good demand among consumers. But today this market is almost seventy percent filled with goods coming to us from abroad. However, it should be said that every day the number of entrepreneurs who want to fill a niche in this profitable and demanded area is growing.
Idea for business
If you decide to start your own business, which will bring a good income, but at the same time do not have great financial opportunities, pay attention to the production of socks.
It seems that this product is just a trifle that is difficult to make money on. However, for a modern person, socks are an object that is simply impossible to do without.
Before you start drawing up a business plan, which should reflect all the necessary aspects of organizing a business, you should study the consumer demand for hosiery. This product has always been popular with Russian consumers.
Back in the days of the USSR, the country was in one of the first places among the states of the world in terms of sales of hosiery products per capita. As for the current situation, at present the demand for this product is not decreasing. It continues to grow, although the domestic market is mostly filled with products from Chinese manufacturers.
Fortunately, this product has begun to arouse interest among Russian companies as well. This can be explained by the fact that sock production is highly profitable. The profitability of this business can reach one hundred percent.
It should be borne in mind that the implementation of a business project involving the production of socks is not so easy. There are many challenges ahead for any entrepreneur.
It can take about ten years from starting your own business until the moment when competitive goods appear on the market. The first two or three years will be spent on starting production, and the rest of the period will need to be debugged.
The production of socks in Russia has been gaining momentum in recent years, displacing foreign firms from the domestic market, which account for half of all socks sold in the country. The harsh climatic conditions and the inconstancy of the Russian climate make socks an indispensable part of the wardrobe for both adults and children. It's hard to imagine a Russian who has never bought or worn socks. As a business, this direction is promising, but it involves a constant struggle for survival among competitors and a fairly high payback period.
Today, according to experts, domestic production meets ½ of the needs of consumers, while the remaining half is won by foreign suppliers, including countries such as:
- Uzbekistan ;
The products of the listed countries are distinguished by cheapness and low quality, but it is this group of suppliers that provides the lion's share of the needs of average Russians, for whom the price of 50 wooden rubles per pair is considered acceptable.
So-called luxury socks are imported from Egypt, Italy, Czech Republic, France and England and have a much higher price and quality. The cost of one pair of socks in this category varies from 200 to 1500 (!) Rubles per pair, so not every compatriot can afford such socks.
As for domestic production, the pricing policy and the range of manufactured products are aimed at the most ordinary consumer who does not try to buy socks at the price of trousers. Most Russian manufacturers have been operating since the times of the USSR and cannot boast of the latest equipment and technologies.
Such a situation on the market enables the manufacturer to launch the production of high-quality socks at the most affordable price for citizens and, with the right strategy, to ensure a constant flow of income into his wallet.
Assortment: what to produce and for whom?
The range of hosiery includes more than one item, and modern equipment allows you to use one machine for the production of different types of products. Analyzing the consumer market, manufacturers came to the unequivocal conclusion that most of the socks produced are for men. Therefore, a novice manufacturer should direct the main production capacity to the production of socks for men, setting the ratio of produced men's and women's socks in the proportion of 65/35, respectively. The most popular items are from 25 to 30 sizes.
As for the material for production, of all the offers on the market, the most demanded are ordinary cotton for the warm season and wool for the winter cold. Do not forget about the colors of the products. According to statistics, men prefer dark and light monochromatic socks (white or beige), while women prefer light colors and unusual patterns.
Production process and premises
It should be noted the simplicity of the production process of products, which includes only 4 stages:
Despite the fact that the production of socks does not bring huge profits, the demand for products is always high, which, accordingly, provides a stable income. Given the current economic environment, this is especially important.
In this article we will tell you in detail how to organize a full-fledged hosiery production, how much it costs, and how much profit you can expect.
Where to start
The first thing to do to create such a production is to draw up a full-fledged business plan that will take into account the entire range of costs and necessary actions. It must necessarily include a description of the product and the equipment necessary for its manufacture, a product sales plan.
What socks to produce
All hosiery products, which today are most widely represented on the market of the CIS countries, can be conditionally divided into 3 quality categories. High-quality products are imported mainly from Europe - the share of imports in this segment exceeds 90 percent, but the demand for such socks is relatively low.
The cheapest and lowest quality products are the most widespread. Import in the budget segment accounts for about 50-60 percent. The main importers are Asian countries: China, India, Vietnam and Indonesia. The demand for such products is very high, but the profitability of production is minimal, and serious income can be obtained only with a large volume of production.
Imports in medium-quality products are much lower - foreign production accounts for no more than 35 percent, the main suppliers are Eastern Europe and Turkey. In Russia, the volume of imports is gradually decreasing due to a reduction in the supply of Turkish products due to economic sanctions. It is this segment that is optimal for creating a small private production.
Men's socks are in much higher demand than women's. Plain knitted cotton socks from 25 to 31 sizes are especially in demand.
Equipment for the production of socks
For making socks, you need:
- knitting machines (devices that knit a sock from yarn according to specified parameters);
- kettle machines (devices for sewing up the toes of manufactured socks) ;
- automatic and semi-automatic molding machines (device for molding products of specified density);
- packaging equipment, including units for sewing labels to products.
Investments: from 3,300,000 rubles
Payback: from 2 years
It is impossible to predict or predict the changes in the range of clothing. Styles, cuts, sewing materials and cut change from year to year. Some details of the toilet, for example, an epancha, a shower jacket or breeches, have sunk into oblivion. However, there is a wardrobe item that has been in demand, is and will be. These are socks. A business in the production of socks can become profitable if you approach its implementation correctly and take into account the risks and features.
Entering the sock market is not easy. Shop counters are full of cheap products made in China, India, Pakistan and other Asian countries. However, there is a loophole, and it lies in the manufacture of high quality socks, "sharpened" for the needs of consumers in a particular region, taking into account climatic conditions.
The use of high quality raw materials, modern high quality equipment and original design solutions will give the necessary competitive advantages.
It is advisable to decide in advance on the assortment, because despite the outward monotony, socks differ in many ways. According to the manufacturing method, knitted and knitted socks are distinguished, and the materials are divided into 4 main groups - natural plant fibers, animal fibers, synthetics and combined.
The most popular will be men's knitted socks made of black cotton (ready-made colored yarn is used for production, so color plays a role). In addition, the design of men's socks does not require any special sophistication and is quite traditional, therefore, it is necessary to start with the line for their production. Sales markets should be looked for in advance, and only after concluding preliminary supply agreements, you should start organizing a sewing workshop.
Despite the apparent simplicity, the production cycle is quite complex and requires several types of equipment (there are no full cycle machines), although it takes at most 10 minutes in time. The sock goes through a knitting machine, then a toe sewing machine, then it goes through a stage of moistening, drying and ultimately sorted and packaged using a special molding machine.
What is required for implementation?
Entrepreneurs who decide to invest in the production of knitted socks should not expect to receive super profits. The organization of the enterprise will cost a newcomer about 3-5 million rubles. The investment will pay off in 2-4 years. But there are no rules without exceptions. There is a likelihood of a more successful development of the event if the entrepreneur can occupy a niche in this segment, where the level of competition is relatively low. The first thing to do when organizing your own business is to draw up a clear and competent business plan for the production of socks. The project is drawn up on the basis of information obtained after studying the market, includes all stages of organization and financial calculations.
Initial investments - from 2,500,000 to 5,500,000 rubles.
Market saturation is high.
Difficulty starting a business - 9/10.
Features of the hosiery business
A lot of competition is the main problem of business. Huge consignments of hosiery products are imported to Russia from China and Turkey. You can only compete with these suppliers by releasing goods of much higher quality.
When organizing a business for the production of socks, it is necessary to determine the type of goods produced by the enterprise. It is better for a beginner to start with the manufacture of standard products, eventually expanding the range.
When purchasing equipment, it is important to remember that an automated sock making machine with software is capable of producing a variety of products. The device knits not only socks, but also leggings, knee socks, headbands and other types of products. Such production will pay off in 1.5 - 2 years.
Domestic Market Research
Before you open a mini production of socks, you need to study the market, the ratio of supply and demand, trends. Today Russian manufacturers supply 50% of the total volume of socks sold on the domestic market. But the quality of products imported from China, Turkey, India often leaves much to be desired.
Russian entrepreneurs have a huge advantage over foreign suppliers: they know exactly what properties of a product can attract the attention of compatriots. For example, the production of woolen socks can satisfy the needs of the majority of the population, because this type of product is relevant for the residents of Russia.
Another advantage can be considered the fact that the domestic manufacturer will not have to pay import customs duties, overpay for the transportation of products, which will have a favorable effect on the cost of the products sold. The optimal ratio of price and quality is what each customer is guided by when choosing a product.