The baby clothes industry is always growing and since birth rates are going up in most places, there will always be a demand for baby related items. Profitability changes based on what type of business you’re looking at. A large corporation that sells in big name department stores and their own chain stores will have huge profits. They own their own factories, allowing them to mass produce, and in a short amount of time. They have exceptional advertising budgets and a seemingly endless supply of product. An international department store can make upwards of $5 million annually, per store.
A small business owner may have a boutique or online shop and/or might sell handmade clothes at craft shows and seasonal markets. They will have a harder time selling their clothes since they can’t compete with the giant retailers. That being said, there is a big market for handmade items as society moves away from supporting big conglomerates. Hand-made items are in demand. If you are a small business owner or make baby clothes as a side hustle, you can do well for yourself if you keep your costs low and your quality high, advertise and do shows. You can also network with other local businesses to get more customers and take advantage of “word of mouth” sales.
Baby items are always in demand. A trick garage and yard sale folks use is to add “baby items” to their posters to get more people to their sale. Since babies cost a lot of money people are looking for second hand items all of the time. This is an opportunity if you are looking to sell baby clothes second hand. It might prove profitable since you can shop thrift stores and garage sales, buy, clean and repair the clothes and sell them for more money with less effort than making them yourself.
Either way, if you are making the clothes yourself or buying them second hand and reselling them, it is a time commitment and financial commitment just as any other business and can be very profitable.