The retail industry in India is rapidly growing due to the emergence of new retailers. In fact, it accounts for 10% of the country’s GDP and 8% of its employment. India is also among the top 5 global retail markets in terms of economic value and is considered one of the fastest-growing retail markets in the world.
As people require commodities on a daily basis, there is a constant need for retail stores, making it one of the most profitable businesses in India with low to moderate investments. Small or medium-sized retail stores have a high profit margin, making them an ideal choice for entrepreneurs with limited capital.
In this blog, we will explore some of the best retail business ideas that can be implemented in India. Whether you are looking for low-investment business or high-investment business ideas, this blog will provide you with valuable insights that will help you make informed decisions about your business.
So, if you are ready to explore the ideas for the best retail business in India, let’s get started!
What is Retail Business?
Types of Top Retail Business in India
How to Start Retail Business?
Low-Investment Retail Businesses in India
Medium-Investment Retail Businesses in India
High-Investment Retail Businesses in India
What is Retail Business?
A retail business is when a business sells a product or a service to the consumer for his/her use. A retailer sells the product higher price than the wholesaler. Retail businesses can be considered as grocery convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.
Types of Top Retail Business in India
The retail business is one of the most profitable industries in India, with a vast range of opportunities for entrepreneurs. Here are the types of retail businesses in India:
1. Low Investment Business: Low investment businesses typically require a smaller amount of capital to start and run, with costs of a few thousand. Examples of low-investment businesses include selling tea, opening a small grocery or fruit store, or starting a stationery or book store.
2. Medium Investment Business: Medium investment businesses require a moderate amount of capital to start and run, with costs ranging from thousands to a few lakhs (Indian currency). Examples of medium investment businesses include opening a medical store, starting a beauty salon or spa, or opening a cake shop.
3. High Investment Business: High investment businesses require a significant amount of capital to start and run, with costs in lakhs. Examples of high-investment businesses include starting an ice cream parlor, opening a vehicle showroom, or starting a large chain of restaurants or supermarkets.
How to Start Retail Business?
Step-by-Step Guide to Start a Retail Business
- Choose Your Niche: Decide what kind of retail business you want to start. Think about what you enjoy, what you’re good at, and what people need in your area.
- Do Market Research: Learn about your customers, what they like, who your competitors are, and what’s trending. Find out what’s missing in the market and how you can offer something better or different.
- Make a Business Plan: Write down your business goals, who you will sell to, how you will advertise, how much money you need, and how your shop will run.
- Arrange Money: Figure out how much money you need to start. Use your savings or look for help from banks, family, or investors.
- Get Licenses and Permits: Check the rules for running a business in your area and apply for the required licenses and permissions.
- Choose a Good Location (if needed): Pick a place that’s easy for customers to reach and has lots of people walking by.
- Buy Products or Set Up Services: Find trusted suppliers who offer good prices. Make sure your products are always available and of good quality.
- Set Up Your Shop or Website: Design your shop in a way that looks nice and is easy to move around. If selling online, make your website easy to use.
- Promote Your Business: Use social media, local ads, and online platforms to tell people about your business and attract customers.
- Give Great Customer Service: Treat customers well, help them when needed, and try to make them happy so they come back and tell others about your shop.
Top Profitable Retail Business Ideas in India
| Low Investment Businesses | Medium Investment Businesses | High Investment Businesses |
|---|---|---|
| Kirana Stores | Medical Store | Coffee Shop |
| Stationery and Books Store | Saree Shop | Ice Cream Parlour |
| Fruits Store | Gift Shop | Fast Food Restaurant |
| Flower Shop | Cosmetics Store | Car Wash |
| Altering Shop | Cake Shop | Two-Wheeler Showroom |
| Tea Stall | Perfume Shop | Beauty Salon |
| Seed Store | Sweets and Snack Store | Restaurant |
| Xerox and Printing Shop | Sports Equipment Store | Photo Studio |
Low-Investment Retail Businesses in India
| S. No. | Business Idea | Investment Level | Target Customers |
|---|---|---|---|
| 1 | Kirana Stores | Low | Local families, daily shoppers |
| 2 | Stationery and Books Store | Low | Students, office workers |
| 3 | Fruits Store | Low | Health-conscious buyers |
| 4 | Flower Shop | Low | Event planners, locals |
| 5 | Altering Shop | Very Low | Individuals, tailors |
| 6 | Tea Stall | Very Low | Commuters, daily workers |
| 7 | Seed Store | Low | Gardeners, farmers |
| 8 | Xerox and Printing Shop | Low | Students, small businesses |
1. Kirana Stores
| Business Name | Kirana Store |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 100,000 |
| Profit Margin | 60% |
India’s vast population necessitates a grocery store in every locality. Basic household supplies, such as soaps, spices, and food items, are essential for every household, and the grocery store is the go-to place for these items. As a result, starting a Kirana Store is a low-investment, highly profitable retail business idea in India.
It is important to get the items you want to sell in bulk from the wholesaler at a lower price. This will help you price the product at a competitive price.
Archana Karthikeyan
2. Stationery and Books Store
| Business Name | Stationery and Books Store |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 100,000 |
| Profit Margin | 20% to 55% (depending on different product) |
Opening stationery and bookstores is a lucrative and accessible retail business idea that requires minimal specialized knowledge. The store can offer a range of products, including storybooks, DVDs, school books, and stationery items, making it a one-stop shop for all students’ educational needs.
To differentiate your store from competitors, consider offering unique and educational gadgets or toys that are not commonly found in other stores. This will increase the store’s appeal to both children and parents, leading to increased foot traffic and sales.
Overall, opening a stationery and bookstore is one of the excellent retail and top business ideas in India that can make a significant contribution to the educational development of students in the community.
Shubham Kumar
3. Fruits Store
| Business Name | Fruit Store |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 35,000 |
| Profit Margin | 40% |
Opening a fruit store is a profitable and viable retail business idea in India. With an increasing focus on healthy eating and the rise of wellness trends, the demand for fresh fruits has been steadily increasing in the country. A fruit store can cater to this demand by offering a wide variety of fresh and high-quality fruits to customers.
The advantage of this business is that you do not require any specialized knowledge. India has the largest agricultural market in India and fruits are a primary product. If you decide to sell fruits, then you need to shortlist the category of fruits based on supplies.
Devashish Shrivastava
4. Flower Shop
| Business Name | Flower Store |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 50,000 |
| Profit Margin | 60 – 90% |
A flower shop is an incredibly profitable and best business idea when established well. Establishing partnerships with hotels and offices is a lucrative opportunity since these businesses require daily floral arrangements. By partnering with them, profit margins can increase to 80%. Additionally, offering artificial flowers and gifts can provide additional revenue streams, making it the most profitable business in India.
By selling bouquets with unique styles or taking orders for party decor and weddings, a flower shop can expand its offerings and attract more customers. Offering personalized services such as flower delivery or subscription services can also increase customer loyalty and profitability.
Jeenal Jain
5. Altering Shop
| Business Name | Altering Shop |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 35,000 |
| Profit Margin | 40% |
If you have a talent for tailoring and creating perfectly fitting outfits, starting a tailoring business can be a great opportunity for you. The business can be set up from home, making it a low-capital investment option. Offering a range of services such as alterations, repairs, and custom-made clothing can attract a diverse customer base. With the right skills, customer service, and innovation, the business can thrive and grow in the competitive market.
6. Tea Stall
| Business Name | Tea Stall |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 15,000 |
| Profit Margin | 30% |
A tea stall is a low-investment business idea that can yield high profits. As tea is a beloved beverage in India, setting up a stall outside colleges or offices can attract a steady stream of customers. To increase profits, consider partnering with offices to provide daily tea deliveries. This can be a reliable source of income and establish long-term partnerships with businesses, making it the best business in India.
With the right location, menu, and atmosphere, the tea business can thrive and grow in the competitive market.
Nitin Konde
7. Seed Store
| Business Name | Seed Store |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 10,000 – 30,000 |
| Profit Margin | 40% |
Agriculture is a crucial sector in the Indian economy, and there is a growing demand for high-quality seeds among farmers. By focusing on offering quality seeds, a seed-selling business can attract a loyal customer base.
If you live in or near an agricultural area or village, this presents an excellent opportunity to start a seed-selling business. Establishing partnerships with local farmers and agricultural organizations can increase visibility and lead to more sales.
Shubham Kumar
8. Xerox and Printing Shop
| Business Name | Xerox and Printing Shop |
|---|---|
| Business Type | Low Investment Retail Business |
| Investment Cost | INR 50,000 – 80,000 |
| Profit Margin | 40-80% |
Xerox and printing shops are always popular. Even if there are many in an area, they still get steady customers. Adding services like binding and lamination can help grow the business.
The investment is low. You just need a good printer, Xerox machine, and other basic equipment. Promoting your shop’s location is important to attract customers.
You also don’t need a big space, which keeps the setup cost low. If you want a small business in India with low investment, this is one of the best business ideas.
Medium-Investment Retail Businesses in India
| S. No. | Business Idea | Investment Level | Target Customers |
|---|---|---|---|
| 1 | Medical Store | Medium | Patients, general public |
| 2 | Saree Shop | Medium | Women, wedding shoppers |
| 3 | Gift Shop | Medium | Teenagers, tourists, event-goers |
| 4 | Cosmetics Store | Medium | Women, makeup lovers, salons |
| 5 | Cake Shop | Medium | Families, event planners |
| 6 | Perfume Shop | Medium | Women, gift buyers |
| 7 | Sweets and Snacks Store | Medium | Local residents, festival shoppers |
| 8 | Sports Equipment Store | Medium | Athletes, sports enthusiasts |
1. Medical Store
| Business Name | Medical Store |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 3-4 Lacs |
| Profit Margin | 20-25% |
There’s no doubt that the medicine store is the best shop for business and the most profitable retail business. People often require medicines during an emergency or illness. A medical store owner can earn a profit of up to 60,000-80,000 by investing 3-4 lacs in medicines. If managed properly, medical stores can earn huge profits right away.
However, it also depends on the kind of drugs sold by the medical store on how much profit it can earn. On average, the pharmacy shop owner earns up to 20-25% on daily sales.
2. Saree Shop
| Business Name | Saree Shop |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 20,000 |
| Profit Margin | 40% |
Sarees are a popular retail business in India and are worn by people from all segments of society. If you are interested in starting a saree business, it is essential to research the market and understand the latest trends. Visiting local shops and observing the demand for different types of sarees can provide valuable insights.
One of the best business ideas in India is to venture into the saree market, capitalizing on the popularity of Banarasi sarees and other sought-after varieties. However, it’s crucial to decide on the type of sarees you want to sell based on your target audience and the local market demand. Having a Saree business is one of the most successful small business ideas in India.
By providing quality products and exceptional customer service, the business can establish a loyal customer base and grow in the competitive market.
Nitin Konde
| Business Name | Gift Shop |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 5 to 10 lakh |
| Profit Margin | 25% |
Opening a gift shop in India can be a lucrative business opportunity, but it requires careful planning and execution. The profit margin in running a gift shop is relatively thin, so there is little room for error. Therefore, it is crucial to conduct thorough research and plan out the business model before investing in the best shop business ideas in India.
A gift shop typically sells a variety of personal and corporate gift items. You can differentiate your shop by offering unique and personalized gift items that are not easily found in other stores. Additionally, offering gift cards can be an effective way to increase sales and attract more customers. It can be one of the most profitable small shop business ideas.
To succeed in the gift shop business, it is essential to understand your target audience and their preferences. This can be achieved by conducting market research and analyzing the demand for various gift items in your locality.
ATHUL C K
4. Cosmetics Store
| Business Name | Cosmetics Store |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 1 to 5 lakh |
| Profit Margin | 40 to 60% |
The cosmetic industry in India is rapidly growing, and there is an increasing demand for beauty and personal care products, not just among women but also among men. If you have a passion for cosmetics and an understanding of market trends, starting a cosmetic business can be a profitable venture and a high margin retail business with the right approach, research, and execution.
By offering high-quality products, understanding the market demand, utilizing online marketing strategies, and providing excellent customer service, you can establish a successful cosmetic business in India.
Muskaan Kapoor
5. Cake Shop
| Business Name | Cake Shop |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 5 to 15 lakh |
| Profit Margin | 30% |
The cake shop industry in India is rapidly growing and becoming a high-margin business. With the rise in demand for cakes and baked goods, many entrepreneurs are starting their own manufacturing units to cater to the domestic market.
Apart from providing high-quality cakes, proper packaging and marketing are crucial to boost sales. It can be one of the best shop business ideas. It is also important to maintain high standards of hygiene and quality control to ensure customer satisfaction and establish credibility in the industry.
Vibhavari Madki
6. Perfume Shop
| Business Name | Perfume Shop |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 30,000 to 50,000 |
| Profit Margin | 40% |
The perfume industry is constantly evolving, and many people use it as a way to express their individuality. Starting a perfume business requires a moderate capital investment, but it can also be one of the best startup ideas in India, as it can be done from home with minimal investment. To succeed in this business, it is important to research and stock a variety of popular and unique fragrances that cater to different preferences and occasions. Effective marketing and packaging can also help boost your sales and establish your brand in the market. Opening a perfume store can be one of the most profitable shop business ideas in India.
Anagha S
7. Sweets and Snack Store
| Business Name | Sweets and Snack Store |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 5 lakh to 10 lakh |
| Profit Margin | 60% |
A sweets and snacks shop is one of the most profitable shop business in India that can be started with a relatively low investment. Sweets can be produced in bulk quantities, allowing you to price them reasonably, as there is no fixed rate for these products. Additionally, you can also sell snacks and other related items to increase your profit margins. To succeed in this business, it is important to maintain the quality and taste of your products, as well as to keep up with the latest trends and preferences of your target market.
Sakshi Jadhav
8. Sports Equipment Store
| Business Name | Sports Equipment Store |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 4 lakh to 8 lakh |
| Profit Margin | 20-40% |
The demand for sports equipment is always there. Professionals, kids, local sports clubs, schools, and similar groups often need quality gear. Many also look for retailers who can handle bulk orders.
Starting a sports equipment store is easy if you know about different sports, the latest trends, and good brands, and can give useful advice.
This business needs moderate investment and can begin with a small shop. Expanding is simple if you also add an online store.
9. Travel Agency
| Business Name | Travel Agency |
|---|---|
| Business Type | Medium Investment Retail Business |
| Investment Cost | INR 5 lakh to 10 lakhs |
| Profit Margin | 10-20% |
To start a travel agency or become a tour operator, you need key certifications and a well-located office. A successful travel agent ensures hassle-free travel for customers. Having good knowledge of itineraries, sightseeing, flight fares, and hotel rates is essential.
Rishi Mundra
High-Investment Retail Businesses in India
| S. No. | Business Idea | Investment Level | Target Customers |
|---|---|---|---|
| 1 | Coffee Shop | High | Students, office workers, coffee lovers |
| 2 | Ice Cream Parlour | High | Families, kids, couples |
| 3 | Fast Food Restaurant | High | Students, office goers, families |
| 4 | Car Wash | High | Car owners, local residents |
| 5 | Two-Wheeler Showroom | High | Young adults, daily commuters |
| 6 | Beauty Salon | High | Women, event-goers, professionals |
| 7 | Restaurant | High | Families, couples, tourists |
| 8 | Photo Studio | High | Families, event participants |
1. Coffee Shop
| Business Name | Coffee Shop |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 10 to 20 lakhs |
| Profit Margin | 20% to 80% |
A coffee shop is one of the most popular and profitable retail businesses in India, but it requires a significant investment. Running a coffee shop can be challenging, as you need to maintain a positive cash flow and generate high sales to keep the business going. The success of your coffee shop also depends on the location you choose, as it should be easily accessible and in a high-traffic area. However, with the right strategy and execution, a coffee shop can yield high profits and establish a loyal customer base.
Archana Karthikeyan
2. Ice Cream Parlour
| Business Name | Ice Cream Parlour |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 5 to 10 lakhs |
| Profit Margin | 40% |
Ice cream is a popular dessert loved by people of all ages, making it a profitable retail business in India. Starting your own brand can be challenging, but you can consider opening a franchise for established and reputable brands. It is a high-margin business, and you can earn good profits with the right location and marketing strategies. It falls under the top 10 retail business in India.
Apoorva Bajj
3. Fast Food Restaurant
| Business Name | Fast Food Restaurant |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 10 to 50 lakhs |
| Profit Margin | 40% |
The fast food industry in India is highly popular, and opening a fast food restaurant is one of the most profitable business ideas in the country. If you plan to open a fast food restaurant, it’s essential to conduct market research to understand the workings of different restaurants, their management, investments, and profit margins. You can also consider offering unique and innovative food items to stand out from the competition and attract more customers. A well-managed fast-food restaurant can yield high profits in India and is one of the big business ideas in India.
Sakshi Jadhav
4. Car Wash
| Business Name | Car Wash |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 25 lakhs |
| Profit Margin | 40% |
The automobile industry in India is growing rapidly, with an increase in the number of vehicles on the roads. Owning a car wash business can be a lucrative opportunity, but it requires proper planning and significant upfront investments. You need to identify the right location for your car wash, as well as purchase the necessary equipment and hire staff to provide quality services. With the right strategy and marketing, the car wash business can be a profitable retail business in India.
Rishita Jain
5. Two-Wheeler Showroom
| Business Name | Two-Wheeler Showroom |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 30 lakh to 50 lakhs |
| Profit Margin | 30% |
The motorcycle market in India is experiencing double-digit growth in sales, making it a promising industry for entrepreneurs. Setting up a two-wheeler dealership can be a lucrative business opportunity, but it requires careful planning and significant upfront investment. To succeed in this business, you need to have a solid understanding of the industry and the business model.
Mansi Maheshwari
6. Beauty Salon
| Business Name | Beauty Salon |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 15 lakh to 30 lakhs |
| Profit Margin | 10 to 20% |
A salon business is a great retail business idea for women entrepreneurs who have the right skills and knowledge in the beauty industry. With the option to operate from home, starting a salon business requires less capital investment. However, it is important to ensure that you have the necessary equipment and tools to provide quality services to your clients. Research the market to understand the latest trends in beauty and grooming services to offer a unique experience to your customers.
Ria Sahni
7. Restaurant
| Business Name | Restaurant |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 15 lakh to 30 lakhs |
| Profit Margin | 15 to 20% |
Opening a food restaurant is one of the most profitable retail businesses in India, but it requires careful planning and a significant capital investment upfront. Before starting the business, it’s important to conduct a market survey to understand the competition and determine the best location for your restaurant. It’s also essential to develop a well-curated menu and pricing strategy to attract customers and maximize profits. With the right strategy and execution, a food restaurant can be a highly successful and one of the most profitable retail business in India.
8. Photo Studio
| Business Name | Photo Studio |
|---|---|
| Business Type | High Investment Retail Business |
| Investment Cost | INR 5 lakh to 10 lakhs |
| Profit Margin | 50% |
Even though many people have DSLRs or digital cameras at home, professional photos still need special skills and equipment. Some shop ideas for starting a photo studio, offering services like school ID photos, passport photos for various forms, portfolios, events, and wedding photoshoots, and freelance photography for newspapers and journals. It is a trending business in India as the demand for various photoshoots is always in the market.
If you are good at photography and have a good camera, starting a photo studio can be a good retail business idea. This business can do well in many places, but competition is high, so picking the right location is key.
Piyush Mishra
Conclusion
There are numerous profitable retail business opportunities in India for aspiring entrepreneurs. These range from traditional businesses such as saree shops and sweets stores to modern concepts like coffee shops and fast food restaurants. However, it is important to conduct thorough market research and planning before starting any business, as the success of a retail business largely depends on factors such as location, competition, and pricing. With the right knowledge, capital investment, and hard work, entrepreneurs in India can thrive in the retail industry and achieve financial success. There will be pitfalls in the business, but remember, great things take time.
FAQs
Is Retail Business Profitable?
Yes, retail business in India is profitable not only in metropolitan cities but also in small towns.
Which shop is best for business?
The “Shopify” platform offers comprehensive e-commerce solutions with customizable features and extensive customer support, making it an excellent choice for businesses looking to establish an online presence.
Which shop is most profitable in India?
It’s difficult to pinpoint a single “most profitable” shop in India as profitability varies widely across industries and businesses. However, businesses in the technology sector, particularly those involved in software development, e-commerce, or mobile applications, tend to have high-profit potential due to India’s growing digital economy and tech-savvy consumer base.
Which retail business is most profitable in India?
Some of the top retail businesses in India include Reliance Retail, Tata Group’s Trent, Future Group, Avenue Supermarts (DMart), Aditya Birla Retail, and Spencer’s Retail. These companies have established a strong presence across various sectors like grocery, fashion, electronics, and more.
What is considered as retail business?
Retail businesses can include grocery, drug, department, and convenience stores. Service-related businesses such as beauty salons and rental places are also considered retail businesses.
Are retailers in India covered under MSME?
No, wholesale and retail trade will not be categorized as MSME.
How to start a retail business in India?
Here are some easy steps to start a retail business in India:
- Generate an idea and retail business plan
- Choose a name for your retail business
- Cover your legal basics
- Find the right location for your retail business
- Create a personalized experience
- Build vendor relationships
- Explore marketing opportunities for your retail business
- Plan for a grand opening
Which is the best business to start?
Some of the best businesses to start are:
- Consulting
- E-commerce
- Food delivery
- Writing
- Web designing and development
- Digital Marketing
- Online dating
- Courier
- Blogging
- Youtube
- Graphic Designing
- Cooking
- Handicraft
Which business is most profitable in India?
The most profitable businesses in India include pharmacy, cloud kitchen, real estate, mobile accessories, and digital marketing services, due to high demand and good margins.
