Ceramic tiles have long ceased to be a luxury item. It is one of the most popular finishing materials in our country and has a very wide scope. The ceramic tile business requires relatively little investment and pays off quickly.
Ceramic tile market overview
Today, the sale of building and finishing materials is one of the most profitable and promising areas, which is due to the growing prosperity of the Russian population and the increase in construction volumes. According to various sources, the number of buildings commissioned increases every year by 10-13%. For several years, the activity of the population in the field of repair and construction has been consistently high. According to analysts, the volume of the domestic market of finishing materials is already about $ 6.8 billion. Although almost one third of this amount falls on the capital. The products of foreign manufacturers prevail in this segment (about 65%), and only 35% falls on domestic brands.
Among all the product groups in the market of finishing materials, experts especially highlight the segment of ceramic tiles, the annual growth rate of which reaches 25-30%! It is noteworthy that the segment of expensive imported ceramic tiles is developing most rapidly. Moreover, domestic products are also in high demand. Demand for ceramic tiles, according to the D & E Association, is increasing every year by 20%, which is over 145 million square meters. meters of production.
The ceramic tile market is segmented according to a number of signs. First of all, they distinguish tiles intended for decoration of private residential premises, and tiles used for the construction and reconstruction of commercial facilities. The share of the latter is more than a third of the total tile market. Obviously, this segment is the most profitable, but significant investments, experience and connections are required to enter this market.
Goskomstat of the Russian Federation segments the tile market by its types. In the framework of this classification, facade ceramic tiles, ceramic floor tiles and glazed tiles for decoration are distinguished. According to the commodity nomenclature of foreign economic activity (HS), all ceramic tiles are divided into glazed and unglazed. Compare the sales of tiles of both types is quite difficult. In some studies, there is evidence that unglazed tiles are sold in larger volumes than glazed, but they can be questioned when comparing “equivalent” product groups. For example, for wall cladding in residential premises, glazed tiles are much more often used, and unglazed is usually used as a floor covering.
When analyzing the market at a price, the first place in terms of sales is occupied by the low-price segment with Russian tiles (factories in Moscow, Mines, Orel, Yekaterinburg, etc.), Chinese (mainly porcelain tiles) and Belarusian production. The share of expensive products leaves no more than 10% of the market, although the growth rate of this particular segment, as mentioned above, is the highest (30% against 20% in the segment of cheap products). It is dominated by Italian and to a lesser extent Spanish products. In third place for imports is German tile.
Assortment and shop equipment
ceramic tiles
So, if you plan to open your own store of ceramic tiles, first of all, you need to determine its future "specialization" and, therefore, with the range and suppliers. The competition in this segment is quite high. For example, in large cities there are over a hundred outlets selling ceramic tiles and porcelain tiles. But at the same time, no more than a third of them are engaged in the delivery of products from abroad, including on order. Imported mainly high-quality expensive tiles. According to entrepreneurs, importing cheap tiles from Belarus or even China is unprofitable. With low quality and high transportation costs for the transportation of bulky, heavy and fragile goods, the retail cost of imported tiles of a low price category is higher than better Russian products. Therefore, for a small retail outlet, it is more advisable to purchase tiles of domestic production. About 10-15 years ago, Russian ceramics was not distinguished by either quality or a wide variety of designs. However, since then the situation has changed: Russian companies are constantly upgrading production equipment, acquire new Italian lines, develop their own designs and buy them from foreign factories.
As for product groups, for obvious reasons, tiles for bathrooms and toilets, both wall and floor, are in the greatest demand. Floor tiles are thicker and more durable, often have additional anti-slip properties and are often produced paired with wall tiles (of the same color and with repeating decorative elements). Also pay attention to unglazed floor tiles and porcelain tiles imitating natural materials (stone, wood) and used as floor coverings in hallways and kitchens. Such coatings have an attractive appearance, long service life, and are resistant to pollution. Oversized wall and floor tiles, which are suitable for facing large areas, are very popular now.
The assortment of even a small retail outlet should include at least twenty different items with different colors and textured surfaces. It is advisable that your store has at least a few complete collections of tiles. Of course, the wider the range, the better. However, keep in mind that for laying tiles in the retail space will require considerable area. Samples of tiles and porcelain tiles are displayed on special stands called exposers. Expositors are horizontal (when tiles are laid out on the “shelves” of racks one above the other with the possibility of sliding each shelf) and vertical - in the form of a book, such as a “turntable” or sliding. There are more compact stands (for example, the type of "herringbone"), on which you can place one tile or entire collections. The latter option is better, as it allows potential buyers to evaluate how this or that tile will look in its complete set, including borders, decors and floor tiles. Expositors can be made independently or purchased from tile manufacturers or their representatives. If you do not have the skills, necessary tools and materials for building stands, then it is better to invest in ready-made ones. Due to the heavy weight of ceramic tiles and porcelain stoneware, exhibition structures are assembled on a solid iron frame from a welded profile, to which holder frames are welded. You can do with the usual frames mounted on the wall, but to present in this way even a small assortment, you need a large free area. Industrial production stands are more compact, convenient to use and look more aesthetically pleasing. You can purchase standard expositors (usually black or silver and branded, that is, with the brand of a particular tile manufacturer whose products you sell) or you can order models according to your sketches (any color, size and design, as well as applying your own logo). In addition, there is also the opportunity to rent stands, which is the most profitable option for a small store.
The cost of the finished expositor depends on several factors, the most important of which are the following: format, number of rotary or retractable sheets, equipment (fastenings, etc.). The minimum cost of the simplest expositor type single "herringbone" is from 1700 rubles. For expensive tiles, which need to be demonstrated “in all its glory”, it is advisable to purchase expositions of the “book” type. The minimum cost of such a stand for 5-6 files (10-12 collections) is 25 thousand rubles. For an additional fee, you can equip the stand with a superstructure with lamps. These stands usually have ready-made layouts of wall tiles with decorative elements (for example, borders or panels consisting of several tiles). Separate expositors will be required for floor tiles. A compact rack with 60 seats with a total size of 1700x1100x500 mm will cost 21 thousand rubles. The most expensive models of expositors for a large number of backlit seats are sold at a price of 40-45 thousand rubles per design.
If you work directly with the manufacturing company, then there is the opportunity to negotiate discounts or the possibility of buying commercial equipment in installments.
The minimum wholesale batch of tiles for a new retail outlet, including retail equipment, will cost from 250 thousand rubles. In the future, the assortment can be expanded through collections of other manufacturers and new product groups (mosaics, related products, etc.).
Choosing a place for a tile store
Responsibly approach the choice of a place for opening your ceramic tile store, because the success of your business depends on its location. It is widely believed that the best place for a new ceramic tile outlet is next to new buildings or a private residential sector that is actively being built up and populated. However, this can be argued. Firstly, it is likely that in such areas there are already shops selling construction and finishing materials. Secondly, tile is not the kind of product that is sold in the format of a “convenience store”. Before making a purchase, people even with a limited budget prefer to visit several points, compare prices, assortment and choose what suits them the most. It can also be called into question the conviction of some entrepreneurs that the proximity of the store with decoration materials to the client’s house can be an additional incentive to make a purchase. In any case, your buyer will not deliver the purchased tile in his hands, even if he lives in a block from your store. And, finally, even if your client is mistaken in the calculations and he will have to buy the tile in the process of laying it, believe me, he will follow it to the other end of the city.
Thus, it is best to open a store of ceramic tiles closer to the city center (especially if high-price tiles prevail in your assortment), near construction markets, and not far from specialized hypermarkets in the “all for repair” series. It matters the presence of a parking lot near your store, convenient access to it, the presence of a transport interchange nearby it (for those potential buyers who get to you on their own). Take care of your customers and provide for the possibility of paid delivery of tiles to them at home. To do this, it is not necessary to have your own fleet and hire drivers. You can agree on cooperation with companies that are involved in the transportation of goods through the city.
The minimum area of the commercial premises should be 70-80 square meters. The rental price will be from 3 thousand rubles per square meter. meter (the exact amount depends on the area, the convenience of the location of the commercial premises and the region). In addition, you will need a warehouse area of about 20 square meters. meters. It is desirable that it be located closer to the store, but this is not always achievable. For this reason, some ceramic tile stores operate according to the following scheme: place an order, take full payment and ship the tiles from a warehouse that may be located in the other end of the city for several hours or even days.
Before starting trading, you need to draw up a number of documents. For example, in Moscow or the Moscow Region, you will need a production sanitary control program that ensures compliance with all basic sanitary norms and rules in the store and is consistent with the Federal Service for Supervision of Consumer Rights Protection and Human Welfare. You will also need to conclude an agreement with a profile company on the implementation of preventive disinfection and periodic cleaning of the air conditioning and ventilation systems of the store (for Moscow and the Moscow region), an agreement on the removal of solid household garbage and other waste types, obtain permission for placement from Rospotrebnadzor, sanitary An epidemic report that establishes the conformity of your retail and warehouse premises with the applicable norms and rules, permission from the fire inspection, etc. An accurate list will allow The full documentation for opening a store depends on the region and can be obtained at the local office of Rospotrebnadzor.
Recruiting sales staff
To organize the work of a small store selling ceramic tiles, you need an administrator who purchases, monitors the work of sellers and warehouse workers, solves issues with suppliers and interacts with customers (for example, in case of disputes, claims, etc.), an employee, working at the checkout, as well as 2-3 manager consultants. Often, the salary of employees in a trading floor consists of two parts - a fixed salary and a percentage of sales (bonuses for fulfilling and overfulfilling plans). Many managers do not pay enough attention to the selection of sales consultants. Meanwhile, your sales will directly depend on them.
Ceramic tiles are among the "complex" products. Your sales consultants must be real experts in this field. Ideally, they should be well versed in the assortment and manufacturers, in the types and purpose of this or that tile, be able to calculate the required number of tiles for a specific area, know the latest trends in interior design and the basic principles of design as such, be able to advise customers on issues of choice glue, grout, according to the technology of laying tiles.
For these reasons, large salons selling expensive tiles prefer to hire only experienced managers who have extensive experience working with ceramic tiles of a certain price category. They spend a lot of time and money on training new workers and improving the skills of more experienced ones. Representatives of western factories regularly visit salons where their products are sold, with presentations of new collections, and administrators and purchasing managers come to traditional annual exhibitions to get acquainted with the trends of the new season.
The stores that sell tiles of low and medium price category, of course, do not have such opportunities. However, this does not mean that you do not need to pay attention to the quality of service for your customers. Your customers may not be able to afford expensive tiles, but they also want a good result.
As the business develops, the store’s assortment and hours of operation increase (it’s best if your store will work seven days a week from 9.00 to 20.00, as many people go to choose tiles on weekdays after work or on weekends), you can expand your the staff, hiring additional shift managers and a designer who will be involved in the preparation of design projects for your clients.
Ceramic tile store advertisement
As experience shows, approximately half of the buyers come to your store thanks to advertising. Another 30% know about you thanks to word of mouth, and the remaining 20% are passers-by who were attracted by the sign. Traditional methods work great as advertisements. Outdoor advertising (billboards), distribution of leaflets and booklets (laying them out at partners' stands, which can be, for example, plumbing stores), advertising on the radio and in the media have proven themselves well. The choice of the latter depends on the price category of your products: expensive tiles are advertised in glossy magazines on interior design, and cheap ceramics are advertised in free newspapers with advertisements. Salons selling Italian and Spanish tiles are actively attracting independent interior designers and design studios to collaborate, conducting various events for them, offering special conditions and affiliate programs. In addition, they develop campaigns to increase customer loyalty with bonuses for regular and / or large customers.
It is advisable to give advertising during the period of the campaign, and not constantly. Although many companies hold various promotions throughout the year, in spring and summer they sell off the remains of old collections, and in the fall and winter offer discounts on individual product groups.
When planning advertising campaigns, keep in mind that tile is a seasonal item. It is most in demand from March-April to October-first half of November, and December and January are traditionally “dead” months in terms of sales. Spending money on advertising at this time is impractical: no matter how grandiose sales you make, people are unlikely to make repairs during the New Year holidays.
To summarize
With a favorable location, one small retail outlet is visited by an average of 65 people per day (on weekdays, the flow will be much less, and on weekends it will increase by 1.5-2 times). About 15-20% of visitors leave with purchases. The exact figure depends on the season and, above all, the range. The average check of a retail outlet for the sale of tiles of low and medium price categories is 7.5 thousand rubles.
The minimum cost of opening a small store is from 500 thousand rubles (for a small city). It is recommended to open a new point in late February - early March. The retail mark-up on tiles is on average 10-25%, and in the case of expensive Italian-made ceramics, it can even reach 40%.
Additional (and very good) profits can bring online store ceramic tiles with the ability to select and order goods online. It can be presented the entire range of your regular store or even a wider selection on condition of shipment from the supplier’s warehouse. The cost of creating the simplest online store with the necessary functionality will be from 60 thousand rubles. But this does not include the costs of its promotion.
The payback period of such a store is six months.
The success of the ceramic tile sales business depends on two main components - a properly formed assortment taking into account the season, fashion trends, customer preferences and quality of service. The latter includes the speed of execution of orders, the professionalism of your sales consultants, customer focus, the provision of additional services (delivery, development of a design project using the selected tiles, etc.). Many companies also offer their customers to use the services of "friendly" tile laying masters. On the one hand, it is beneficial to both parties - the store receives its percentage, and the construction and repair team - for new customers. However, if you recommend someone, you must be completely sure of the quality of their work. If something goes wrong, then angry customers will make their complaints, including to you. Is it worth it to risk your reputation - you decide.
Sysoeva Liliya (c) www.clogicsecure.com - a portal to small business business plans and guides08/18/2019