There
is a sector that is open to the creative minds. A sector that is open to both
the employed and the unemployed. A sector where the creativity of the entrepreneur
determines the amount of profits that the entrepreneur makes.
This
article has been inspired by the immense opportunities in starting
shoes business in Kenya. We wish to focus more on ladies shoes because a lady
will buy several kinds of shoes/ open shoes compared to a man.
For
a moment, we would like to inform you that we are not talking about second hand
items (Mitumba). We are talking about new imported items that fetch good price
in the market and earns you as a trader good profit margins.
Starting capital
You
can start a shoes business with KShs. 50,000. There are many wholesalers who are selling at a rate of Kshs. 200-300. Talk to us if you wish us to connect you with them. Please note that the information about the wholesalers depend on your location.
With your Kshs. 50,000, you can acquire more than 150 pairs of shoes at a wholesale price of Kshs. 300. However, we advise you to use about Kshs. 20,000 first to test the waters. For each pair of shoe, ensure
that the profit does not fall below KShs. 150.
Starting off
Many businesses die off at the starting point. This is mainly due to poor strategies and a low amount of capital after the draining of a significant capital during the purchase of initial stock. Don't loose hope at the start.
The best way to start off is not even to acquire a premise (i.e. a shop). Just approach a person with a shop and ask them to give you a space outside their shop (at the corridor or veranda). There you will make a small wooden table-like structure on which you will place your shoes. Now, if the corridor is always busy with people walking up and down, you are guaranteed that your business will take off within no time. Experiment for about 2 weeks using the shoes you bought at Kshs 20,000. During this time, learn about the following;
- The popular shoe size.
- The type of shoe that has highest demand.
- Comments that customers make. (If a customer tells you something about a given shoe then take note of that comment. Don't catch feelings over negative comments. Actually the comments that makes you learn the most are the negative comments.).
How to appeal to
the customer
There are small things that will
attract the customers to your business. These are;
- Proper display: It is important
that you clearly display the shoes as well as the price. Remember to indicate whether
the price can be negotiated. Some customers might be walking around with KShs.
1000 in their pockets only to see your trendy and new shoes displayed with a price
tag of KShs. 350 hanging besides them.
- Pricing: Pricing is very
important. You should set a price that will attract a customer. The kind of price
that increases the likelihood of the customer to buy the shoes. If you can
lower the cost of acquiring the stock then you can set a price lower than that
of your competitors. Although you will make less per pair of shoes, you will be
able to sell more pairs and thus your high sales volume will earn you more.
- High Quality Shoes: Now, this is where
many entrepreneurs fail the test. You don’t have to be a shoe manufacturer in
order to sell high quality shoes. The quality of the shoes is not determined by
whether or not the shoe has been manufactured using crocodile skin or the skin
of a Zebu cow. The first thing that will determine the quality of the shoe
before the eyes of the customer is how the shoe looks like. The customer will
say that this is a quality shoe if that shoe;
- Looks
trendy/ fashionable.
- Is
new (No mitumba here).
- Has
a nice look that can be a source of some pride/ prestige.
- Shoe Size: The shoe size
affects the age bracket of the customers you are dealing with. Here, we wish to
advise you to focus on customers between the age bracket of 18 to 35. People in
this age bracket want to look trendy and so they are ready to part with money
just to look fashionable. In this age bracket, the shoe size will range from
size 38 to size 45. A majority of customers in this age bracket will wear shoes
of the following sizes; size 38, size 39, size 40, size 41 and size 42. From our experience, stock more of size 41 and 42. Be cautious of wholesalers. They will mislead you by telling you that size 38-39 are fast moving compared to 41-42. remember that the wholesaler is also focusing on releasing the stock that has not been moving. You are not the person who will act as the dustbin of the wholesalers.
Setting the price
First,
in order to succeed in this business you need to have much of your shoes
selling below KSHs. 1000. Just a few of your shoes should be selling at KShs.
800. The average retail price for much of the shoes should range between KShs.
350 and KShs. 500. This price range will ensure that you have a very high sales
volume per day. This high sales volume is good for the following reasons;
- The
high sales volume will compensate for the affordable price margin that you have
set.
- The
high sales volume will earn you a lot of customers, most of whom will be
returning to buy more shoes from you.
- The
affordable price that results in the high sales volume will create an
impression in the eyes of the customers that you are not a selfish trader who
is only after money.
Let’s get down to
business
Having
read all of the above, it is time to get down to business. Start by acquiring
the stock. Once you have the stock then make effort to secure a good location
for the business. If you cannot secure a premise for the business then you can
sell the goods in the open air market. Just start small and move to greater
heights. Pesa Mashinani wishes you all the best. Bookmark this page.
Recommended: Other booming businesses.
Labels: County Investment