Minimum starting capital
from 6-7 monthsPayback
ten%Advertising budget
8-15%Profitability
Lingerie store - this may not be the most original business idea, but it is unlikely that it will ever lose its relevance. From the point of view of marketers, underwear is an ideal product on which the beautiful half of humanity will save the last resort.
Lingerie, like other toilet articles, tends to wear out, go out of fashion, lose its relevance or just bother its owner, this is the basis for the popularity of the business idea of a lingerie store. Modern Russian women with an income level of middle to above prefer high-quality, beautiful and expensive models. Thus, the demand for underwear is only increasing every year, and even the adverse economic situation in our country does not have such a pronounced effect on it.
In the lingerie market, several price segments can be distinguished: lower, middle, high, luxury lingerie. In the lower price segment, mainly “non-branded” products of Chinese and Korean production are represented. It accounts for about 95% of all products in the lower price segment. The middle segment is mainly represented by products manufactured in China by order of Russian and European companies. Lingerie in the high price segment and luxury lingerie is produced mainly by Western companies (most of which are Italian), including limited collections.
It should be noted that the culture of consumption in our country is still at a very low level. This also applies to underwear. More than half of the customers are mistaken with the choice of the size they need, but at the same time they are ready to spend much more money on linen than they could objectively afford. In addition, the stereotype of the dangers of linen from fabrics with the addition of synthetic fibers is still common.
Cost Effective Lingerie Store
If you are only considering the business idea of an underwear store, experts recommend starting with a market study (Russian and regional), as well as an assortment of your direct competitors. On the one hand, in underwear, as well as in clothes, it is important to monitor trends in this fashion area, regularly update the lineup and take into account the demand of customers. On the other hand, due to certain Russian specifics, far from all global trends "take root" among domestic consumers. Therefore, you should not risk and buy extravagant models at the very beginning of your work just because they are not represented at other points. It is possible there are certain reasons for this.
Although the business idea of an underwear store is assessed as promising, the market itself is already close to a glut. This is due to the history of its formation and development in our country. In Soviet times, beautiful underwear was considered a huge shortage. After the fall of the Iron Curtain, the domestic market was flooded with foreign-made linen, which was bought up by Russian women in huge quantities and at any prices, regardless of its quality.
It is not surprising that after more than twenty years the market was on the verge of satiation. Many representatives of the largest manufacturers note a significant noticeable decrease in sales volumes of their products. However, this applies not only to the Russian market, but to the entire industry as a whole. Russian consumers, in contrast to Western consumers, buy new clothes after the old ones are demolished, which does not happen so quickly. It also has a significant impact on sales.
There is also the exact opposite point of view on the degree of saturation of the laundry market. The main argument in this case is the inability of domestic producers to meet existing demand. But even an increase in production does not at all guarantee big sales. So far, it is difficult for Russian manufacturers of linen to compete with Western companies. To do this, you need to invest a lot of time and energy in training personnel, develop domestic production of materials and pay attention not only to quality and design, but also to educate consumers.
In the Russian lingerie market, one more trend can be noted that affects the middle price segment, where the products of well-known Italian factories are presented. Brands of average cost (in the range of 1000-1500 rubles per set) are very popular among our compatriots, so the number of outlets selling such underwear is increasing every year. The problem is that underwear of the same brands is sold both in stalls in the markets and in specialized salons. In conditions of fierce competition, both have to constantly reduce product prices.
However, there is no single pricing policy that would allow at least partial control of the upper and lower prices. Thus, the difference in the cost of the same kit in the same city, but in different stores can reach 500 rubles. In Italy, as a solution to this situation, a restriction is introduced on the number of outlets in one district. In our country, this option will not "work".
Open a lingerie store
So, what do you need to open a lingerie store? First, decide on the legal form and “specialization” of the store. In the first case, there are two main options - to register as an individual entrepreneur or as a limited liability company. For a small store, the IP option is preferable.
You can also choose the option of selling expensive underwear, underwear of an average price category or cheap underwear, underwear of non-standard sizes, corset underwear, erotic, etc. Experts recommend that novice entrepreneurs give preference to underwear of an average price category with an optimal ratio of price and quality. Such underwear is always in demand. To place it, you do not need a lot of space in the warehouse or on the window (while expensive linen requires placement on special mannequins). It is sold with a tangible margin, which is about 100%. The extra charge for expensive underwear will be three times higher, but the costs will be much more noticeable. In addition, keep in mind that high-price and luxury underwear will be sold only in large cities.
In the next step, select the format of your work. You can open, for example, an online store of underwear. In this case, no large investments are required in the rental of a retail space or salaries to sellers. However, you can’t do without start-up capital. There is also a problem with the choice of underwear: women prefer to choose it live rather than by photo in the online store. Some stores offer the service of trying on several sets of linen at the customer’s home. If none of them suits her, she pays only shipping. When making a purchase, delivery becomes free.
Lingerie store may be in the "traditional" version. The smallest investments in this case will require a retail outlet located in a crowded place and on a busy street or market. The cost of renting a small "patch" is relatively low. However, the assortment of such a point is cheap Chinese-made underwear, so its profit will also not be very large.
A more cost-effective, but at the same time costly option - a separate lingerie store of medium and high price category in a shopping center with high traffic. The minimum area of such a store should be from 10 square meters. meters. Prefer the enclosed space where it is possible to place mannequins for clothes, racks and counters, mirrors and a cash register. Whether a fitting room is needed in a linen store or not is an open question. Of course, it is important for the customer to make sure that the set of clothes she has chosen sits perfectly, especially since the purchased underwear is not subject to exchange and return under the law.
However, if the buyer after trying to refuse the purchase and the goods are returned to the counter again, this will be a gross violation of sanitary standards. Someone agrees with the checking authorities, someone calls the tried on, but not bought things “samples” that supposedly will not go on sale again. What is the best thing to do in this case, to equip a fitting room with the ability to measure the kit you like or not, it's up to you. Commercial equipment for the store with a total area of 10-15 square meters. meters will cost about 50-60 thousand rubles. This includes the purchase of hanging mannequins, racks, hangers, mirrors ...
Lingerie Store Profitability Level
The profitability level of a lingerie store directly depends on its sales volume, and the latter, in turn, is affected by the range and location of the outlet. Traditionally, its range of 90-100% consists of models of women's underwear. An insignificant part of it (no more than 10%) can be an additional assortment - men's or children's underwear. In both cases there are advantages and disadvantages. On the one hand, women, as a rule, buy underwear not only for themselves, but also for their husbands and children. Men, of course, will not go to buy their own linen in a store where the female assortment predominates. On the other hand, in the specialized stores with men's underwear, beautiful halves of humanity also make purchases. Another question is that women who are passionate about choosing lingerie for their loved ones can simply forget about other members of their family. For these reasons, even if you prefer a mixed assortment, the proportion of men's and children's underwear should not be strong large.
But even if the assortment of the underwear store is limited exclusively to female models, it will not be easy to pick it up if you do not have experience in this area. In the middle price segment, the most popular are Latvian underwear brands Rosme, Lauma, Juria, Roksa, Belarusian Milavitsa, Polish Atlantic and Key, Italian Comet, Lormar and Papillon, Korean Rosa, Rycier, Lolita and Val, as well as some brands of German, French and Russian linen. But you need to choose not only manufacturers, but also models and size range. The most common sizes are 75-85 B-D. But there should be linen of all sizes in your store, but the number of models of one size may vary. If you do not have experience in wholesale purchases of underwear, then it is better to formulate an assortment by model line at first, focusing on your direct competitors.
Do not forget that most of the customers take underwear sets. Only about 20-30% buy all items separately. It is most convenient to buy at the wholesale bases of your city. So it will be easier for you, if necessary, to purchase the missing size or item for a complete set. The purchase of the initial consignment of goods will require a minimum of 250-300 thousand rubles. You can get by with less investment, but be prepared for frequent trips to wholesalers. The most popular are kits from 350-400 to 1.5-2 thousand rubles. Buying more expensive linen in large quantities does not make sense.
Underwear for the store can be bought by manufacturers directly. Prices in this case will be lower, but the choice of models is not great, because wholesalers have a wide selection of underwear from several brands at once. In addition, the minimum consignment of goods from manufacturers will be greater than from wholesalers. Not all small shops will “pull” such working conditions.
On the other hand, linen is an optimal product that does not take up much space for transportation and storage. There are practically no illiquid assets here: fashion trends have little effect on the demand for underwear (especially in our country). The sales of underwear are almost independent of the season: the demand for it is stably high. But still, it is best to protect yourself as much as possible and open several small points around the city at once. In this case, you reduce the likelihood of going “zero” in an unfavorable season. However, it is not only a matter of seasonality. Underwear sales are affected not only by the economic situation or fashion, but also ... by the location of the store. Experienced entrepreneurs note that the same product may be in different demand in different areas of the same city. Therefore, the opening of two or three points at once allows you to "adjust" these differences.
Features recruitment underwear store
Particular attention when opening a lingerie store should be given to the selection of personnel who will work in your store. For obvious reasons, preference is given to girls. However, additional requirements are imposed on potential workers - the ability to determine by eye the size that suits the customer, select the right model (which differ anatomically), including for a particular case (for a dress of a certain model, for a romantic evening or daily wear). If the store is located in a shopping center, you will need at least two sellers who will work seven days a week every other day.
A separate direction for your own business is the wholesale of linen. Unlike retail in this case, you just should not rely on underwear of brands that are popular in our country. It is unlikely that you can compete with existing firms. Try to find a new manufacturer or manufacturers whose products are not yet so popular in the Russian market. With an optimal combination of price and quality, there will be no shortage of customers. But the initial investment in the underwear store will be much higher than in retail. For the purchase of a consignment of goods for wholesale sales, it will take from 1.5-2 million rubles, not counting the costs of renting warehouse space and an advertising campaign.
The most effective means of attracting customers is outdoor advertising, advertising on the radio, in the print media, etc. The advertising budget usually amounts to about 10% of the total turnover.
The minimum starting capital for organizing your own linen store is about 400 thousand rubles. This includes the rental of premises, the purchase of commercial equipment and the first batch of goods, as well as the initial costs of advertising. The payback period of such a business is from 6-7 months.
Sysoeva Lilia(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019