How to start a home linen manufacturing business in Pakistan

In this article, we will cover how you can start a home linen manufacturing business in Pakistan. We will highlight the essential processes with a step-by-step guide, so you are fully aware of all the key information needed before starting your business.

We will explore the home textiles market in Pakistan in more detail, highlighting data on growth, trends, and forecasts for the near future. We will also help you get started with trading on the world’s largest B2B marketplace — Alibaba.com, discussing the key benefits of using its services.

Firstly, let’s dive into the Pakistan home textiles market.

Overview of Pakistan home textiles market

Before we discuss the growth, trends, and forecasts, here are some key facts about Pakistan in relation to home textiles.

• Pakistan is Asia's 8th-largest exporter of textile goods
• It is the 4th-largest cotton producer and 3rd-largest cotton consumer
• It accounts for 46% of the total manufacturing sector and employs 40% of the total labor force
• Almost all man-made and natural yarns and textiles, including cotton, rayon, and others, are available in Pakistan. This availability of raw materials is a significant benefit to Pakistan in terms of cost and operational lead time¹

Pakistan's home textile industry is export-oriented, and the market’s expansion is fueled by the country's downstream industries. It is one of the most important suppliers for Europe, the United States, and China. The residential and hotel industries in Pakistan are projected to witness expansion in the home textile industry. Because of the increase in consumption in the domestic market, the demand for raw materials is decreasing.

The home textiles market in Pakistan is expected to grow at a compound annual growth rate (CAGR) of 4% from 2021 to 2022. The remarkable growth projected between 2020–2025 will be driven by the increasing export of textile products across the globe.

Rapid urbanization, improved standards of living, and increasing spending power are some of the key factors expected to drive revenue growth in Pakistan. Furthermore, an increasing inclination towards modernizing the interior of the households is resulting in huge demand for home textile products such as bed sheets (flat sheets, fitted sheets), pillow covers, curtains, and others.²

The floor-covering market in Pakistan is quickly expanding as a result of increased infrastructural development, changing customer lifestyles, and changing consumer desire for insulation. The need for flooring will also increase as the construction industry develops and the China-Pakistan Economic Corridor develops.

Laminate flooring is one of the healthiest and most environmentally friendly flooring options available, emitting very little formaldehyde. The carpet business, on the other hand, is one of the country's greatest cottage industries.

According to the latest report by the Pakistan Bureau of Statistics (PBS), Pakistan’s total exports were around US $2,62 million in January 2022. Compared to January 2021, exports increased by 22.05%. Overall, Pakistan’s textile exports have reached a historic high of US $11 billion during 7MFY22, up by 25% YoY (PBS).

In the value-added segment, knitwear, fitted sheets, readymade garments, and towels registered an upsurge of 33%, 19%, 22%, and 15.4%, equating toUS $2.9 billion, US $1.9 billion, US $2.2 billion, and US $615.3 million, respectively, during July–January FY22 compared to the corresponding period last year. The data highlights that Pakistan’s home textile exports are rising.³

Now that we’ve covered an overview of the home textiles market in Pakistan, let’s discuss how you can start a home linen manufacturing business in Pakistan, in 12 key steps.

12 steps for starting a home linen manufacturing business in Pakistan

Home linen, which accounts for a large portion of the entire garment market, includes everything from furnishing materials to curtains, carpets, kitchen furnishings, table coverings, bed linen, and bath linen, among other things.

Let’s go step by step on everything you need to know and do to start your home linen manufacturing business in Pakistan.

1. Do industry and market research

Conducting market research is the first step in starting a home linen business. The competition may be strong because of the ongoing demand for textiles. You must know which fabrics sell the most, as well as the target demographic, and the level of competition. It's also crucial to stay on top of market trends and foresee any difficulties that may arise in the near future.

Furthermore, analyze the competition. As a small textile business owner, you may encounter competition from both regional and global garment manufacturers. Zaib Textiles is the top textile company in Pakistan.⁴ The company created a niche in weaving and spinning, and with growing strengths in design, research, manufacturing, and product development, they have achieved a coveted position in the industry. So it’s worth doing research on how they have grown their business and what competition they pose.

If you want to sell and market your products online, you'll have to compete with established industry giants that have well-known brands and large advertising expenditures, giving them a strategic edge.

2. Find your niche

You might specialize in a single linen, such as a quilt cover, or offer your customers some creativity. Investigate market trends to see which items are in great demand. Also, know who your target audience is and what they want.

Make a list of textile company ideas and figure out which textiles to sell. The business will expand and the list can always increase, but first decide what your introductory range is and how influential it will be.

3. Create a business plan

Now that you've done your market research and chosen your niche, it's a good time to create a strategy for your home linen business. This business plan will serve as a reference for your actions as well as a description of your objectives.

It can also help you secure funding by proving to investors that your company strategy could be profitable and is deserving of their attention. The following items should be included in your business plan:

• Description of the company
• A summary of your plan and strategy
• Description of your products
• Market analysis
• Management team and personnel

4. Recruit the right manpower

Manpower affects everything in a business from production to client relationships. The lack of productivity reduces profits and affects your reputation, which may result in the failure of a business.

Whereas, the greater the manpower, the more probable the chance of high-quality products. As a result, worldwide demand for products will increase, allowing you to profit generously.

5. Procure the right machinery

There will be specialized machinery for each type of linen and product. Machines used to make home textile curtains, for example, may need to be imported from reliable machinery providers.

Hemming, lock stitching, punching, and bar tacking machines are among the machines that will have a range of capabilities when used together. Additionally, bobbins, various types of thread, and related supplies would need to be purchased.

6. Find a workspace

Whether it will be a shop that sells textiles or a factory that manufactures them, your business's location has a significant impact on the business’s success and development. It should have a reliable supply of water and power. Opening your own factory will take some money to get started, but it will help you generate more money in the long run.

In any case, you'll have to decide whether to rent or buy. Renting allows you the freedom to start small and grow as your company expands, but it does not develop equity. Buying, however, offers fewer options and needs a higher down payment, but will allow you to create equity as you pay your mortgage. For stores, the location should be in an area where your target customers visit.

7. Engage raw material and fabric vendors

You should begin contacting manufacturers and fabric vendors to choose the sort of linen you want to sell. When buying a large number of high-quality materials, you should exercise caution.

You may also look into some distinctive fabric stores or local craftsmen that specialize in hand-dying fabrics or weaving textiles if you desire. Fabrics of this nature will add value to your normal goods.

8. Obtain key capital

This is one of the most significant factors. After you've defined your objectives, you'll need money to get your business off the ground. The textile business demands a lot of equipment and raw materials, so the cost of setting up this type of business may be high.

A principal investment will be required. When it comes to saving or borrowing, it is critical to plan ahead. Because this is the core of your business, be sure it is executed properly and without errors.

Even if you have already arranged for the capital to start your small business, owning a small business credit card would allow you to take care of the recurring charges and make secure online purchases. You might even be entitled to a number of extra benefits like cashback offers on certain purchases.

9. Optimize your logistics

Before building a brand, logistics must be addressed and optimized in addition to financing. Entering the world of textiles involves important procurement — from selecting the location of your business to storage, and also transportation for the apparel. This stage is extremely crucial for launching your business.

Logistics not only builds a good reputation to your business but also opens opportunities to cut costs, keep inventory at favorable levels, control flow of goods and maximize operations – all of which can reduce overall costs while generating more profit.

10. Legalize your business

As you now have a comprehensive business strategy, take the essential steps to legalize the company. To be more specific, choose a name for your textile company that is consistent with your brand.

To determine if it's in use, look it up on online city and state directories. Now is the time to register your company. After that, decide on a business structure. Possible business structures include a limited liability corporation, a trust, a sole proprietorship, or a partnership. Bear in mind, the legal structure for your company may change as it grows.

11. Promote your business

The demographics of the target audience will greatly affect your communication strategy. A B2C business model will be promoted differently to a B2B model.

It is a good idea to create a website and have an online presence in all cases. Digital marketing is becoming the holy grail for businesses. It allows you to intentionally reach your ideal customer in a way that feels organic.

Additionally, search for ways to advertise your small textile business offline within your local community.

12. Trade on an online marketplace

A great way to establish your business online is by trading on an online marketplace. This type of e-commerce platform helps you list and sell your products/catalog at a low initial cost, enabling you to maximize your profit.

The significance of the online marketplace model cannot be overstated as it has altered the economic connection between B2B customers and sellers while also serving as a networking hub. As the trend continues to spread, conventional B2B wholesalers and distributors have a big opportunity to embrace the online marketplace model and gain a competitive advantage.

You might be wondering which platform is right for your business. One of the world’s largest online marketplaces is Alibaba.com. In this last section, we’ll discuss the benefits of trading on Alibaba.com.

Get started on Alibaba.com

Trading on a marketplace like Alibaba.com has a great number of benefits, which include:

• Sellers being given access to useful tools and resources
• Access to a large number of active buyers
• Frequently serves as a search engine (brings buyers directly to you)
• Users frequently place their confidence in it
• Aids in market expansion (on a local and/or global scale)
• Exporting is made easier
• A secure environment for managing buyer–seller connections
• Payment portal that is safe and secure
• Trade assurance and other buyer and seller protection schemes included
• Marketing requires less time and effort, as well as fewer resources

Alibaba.com is one of the largest B2B wholesale marketplaces in the world. It’s a great platform for selling globally and expanding in a cost-effective way, as there’s a low or no-take rate in most countries. This sets Alibaba.com apart from other B2B marketplaces that charge high rates, thus limiting profitability.

Start trading today and give your home linen manufacturing business in Pakistan a competitive edge!

References:
1. https://invest.gov.pk/textile
2. https://www.mordorintelligence.com/industry-reports/pakistan-home-textiles-market
3. https://textalks.com/home-textiles-the-potential-the-market-is-expected-to-grow-at-a-cagr-of-5-from-2020-to-2025/
4. https://rainbowtextile.com/best-textile-company-in-pakistan/