Bean Bag Making Business in India
What is this business about?
A bean bag making business involves manufacturing bean bag chairs and other bean bag products like bean bag beds, bean bag sofas, bean bag pillows etc. The key product is filling bean bags with beads/beans like polystyrene beads, PVC pellets, expanded polyethylene beads etc.
How Does this Business Work in India?
The bean bag market is growing in India due to increased demand from households, offices, hotels, colleges etc. Bean bags are preferred for their comfort, ergonomic design and affordable pricing. The raw materials like cover fabrics and filling beans can be procured from local wholesale markets in India. Bean bags can be manufactured with simple sewing machines and sold directly to customers or through retailers.
What Problem Is this Solving?
Bean bags provide comfortable and ergonomic seating options compared to regular furniture. They are especially useful for relaxing postures for reading, working on laptops etc. Bean bags are portable and space-saving. They add a fun, casual vibe to any indoor space.
What is required to start this business?
- – Sewing machines, scissors, needles, threads, sewing fabric, filling beans, packaging materials
- – Small manufacturing unit of approx 500 sq ft
- – 2-3 workers for cutting, stitching and filling bean bags
- – An investment of Rs. 1-3 lakhs for procuring raw materials, machines and working capital
Who Is Your Customer?
- – Households looking for portable, ergonomic and affordable seating options
- – Offices, hotels, resorts looking to decorate their spaces with a casual, fun vibe
- – Gaming zones, teenage/kids’ rooms, lounges, libraries etc.
What is the market size in India?
The bean bag market in India is estimated at over Rs. 100 crores and growing at 15% CAGR. The market has huge potential as bean bags become popular for residential and commercial spaces.
Who Can Start This Business?
Anyone with basic business management and sewing skills can start this business. Ideal age is 25-40 years. Both men and women can run this business successfully.
Where Are Your Customers?
- – Online – Sales through e-commerce websites like Amazon, Flipkart, SnapDeal etc.
- – Offline – Sales through retailers, furniture stores, commercial spaces
- – Urban cities and towns have the maximum demand
What Licenses are required?
- – Udyog Aadhar/ MSME Registration
- – GST Registration
- – FSSAI License if selling bean bag filling directly
Government Schemes
- – PMEGP Loan – get 15-35 lakh loan for bean bag manufacturing unit
- – MUDRA Loan – get Rs 50000 – 10 lakh for working capital
Capital Required
An approximate investment of Rs. 3-5 lakhs is required. This includes –
- – Machines – Rs. 1 lakh
- – Working Capital – Rs. 1-2 lakhs
- – Marketing – Rs. 50,000
- – Rental deposit – Rs. 25,000
- – Contingency – Rs. 25,000
Business Model
Bean bag manufacturing is primarily a B2C business model. Bean bags can be sold directly to customers through online and offline channels. A small portion of sales may be B2B to commercial clients.
Existing Players
Bean Around, Softy, Aryan Bags, Beanofy, Beanzzz India etc. Most players are localized Indian brands selling through online and offline channels.
Pricing
Bean bags are priced between Rs. 1000-5000 based on size, fabric, filling etc. Production cost is 30-40% of selling price.
Market Research
Market demand can be assessed by surveying local furniture stores, retailers, offices, cafes. Online demand can be estimated using keyword searches and competition analysis.
Timeline
It takes 2-3 months to start operations – 1 month for registration, 1 month for product development, 15 days for factory setup and 15 days for marketing plans.
Risks
- – Fluctuating raw material prices
- – New entrants in the market
- – Delay in production or delivery
- – Poor quality control
Employees
You will need 2 workers for manufacturing. Plus 1 manager for supervision and 1 employee for sales and marketing.
Getting First Customers
– Pitch to neighborhood shops, retailers and cafes
– Create social media presence and online listings
– Offer promotions to first 50 customers
Marketing Strategies
– SEO, social media marketing, online ads
– Offline marketing through pamphlets, exhibitions, sales reps
– Email and SMS marketing to existing customers
– Tie-ups with online and offline retailers
Success Factors
– Competitive pricing
– Use of quality and durable raw materials
– Good customer service
– Strong marketing and brand building
– Mechanisms for production efficiency and cost control
This covers a detailed business plan to start a bean bag manufacturing business in India.