Bijouterie belongs to high-margin goods with the possibility of margins in the range of 100-500%, which indicates the profitability of the business. These products look aesthetically pleasing and spectacular, not inferior in beauty to jewelry, but they are much cheaper. This is especially true in times of crisis when the economy is unstable. Starting such a business from scratch is within the power of not only an experienced entrepreneur, but also a beginner.
Business pros and cons
Jewelry trading has its own strengths and weaknesses that are worth considering when starting out.
The benefits include:
- Small investment at the start;
- Ease of opening;
- The presence of a minimum area and commercial equipment;
- Different formats of activity;
- Trade margin on average 200-300%;
- Increase in purchasing activity for the holidays: New Year, Valentine’s Day, March 8, graduation party;
- Return on investment within the first year of operation.
The disadvantages include:
- Sufficiently high level of competition;
- Seasonality of demand.
THE PREDOMINANCE OF POSITIVE POINTS OVER NEGATIVE ONES MAKES A BUSINESS IDEA ATTRACTIVE FOR IMPLEMENTATION.
How to open a jewelry store – a step-by-step business plan
Planning should provide for a phased solution of organizational issues: what range of jewelry and to whom you will sell, where the store will be located and the outlet format, its equipment and paperwork, hiring staff and implementing an advertising campaign, calculating the required investments and profitability, risk assessment.
To open a jewelry store, you will need start-up capital from personal or borrowed funds. Its size will depend on the size of the store, the type of jewelry and the chosen location. The study of the domestic market will help to form the assortment list correctly.
Demand and competition analysis
According to the data, the share of the jewelry market accounts for 4% of the total volume of fashion retail. In our country, domestic-made jewelry occupies a smaller part with a predominance of imported products from China, Turkey and Korea. High-quality bijouterie of the middle price segment is in demand.
The main competitors are numerous online stores offering a variety of products at an affordable cost. Therefore, a wide range of jewelry with a focus on the target audience will be the key to a successful business. When forming it, you need to rely on the number of closest competitors, their offer and prices.
It is important to rely on originality and competitive advantages that can make your store stand out from the crowd:
- following fashion trends and product relevance;
- attractive design of the outlet;
- convenient location and work schedule;
- quality and high service;
- targeting target audience with different income levels;
- customer loyalty.
Decide on the range and format of the business
The optimal format for a mono-assortment is a small department up to 20 sq. m. or an island of 5-10 squares in a shopping center with a product list of five hundred units, approximately 100 units each. for each position.
The range can be represented by several price groups:
- economy class – products up to 500 rubles / unit. Chinese or Syrian production;
- middle category – inexpensive jewelry from 500 to 1.5 thousand rubles. from Europe;
- elite – jewelry worth 1.5-4 thousand rubles. famous world brands.
IT IS RECOMMENDED TO FORM THE BASIS OF THE ASSORTMENT LIST OF JEWELRY OF THE MIDDLE PRICE CATEGORY WITH A SLIGHT INCLUSION OF ELITE AND CHEAPER PRODUCTS.
The outlet can sell the following products:
- jewelry sets;
- earrings of various shapes and sizes, made to look like precious metals;
- clips from different decorative materials;
- all kinds of pendants, beads, necklaces;
- brooches made of metal and plastic;
- elastic band and frame bracelets;
- rings and chains;
- hair accessories.
The assortment can be supplemented with other related products: watches, gloves, belts, wallets, etc.
Search and repair of suitable premises
The client flow and sales volume depend on the right location, so its choice should be approached with all responsibility. It is better to place a jewelry store in the city center, on busy streets with developed infrastructure, first-line houses, next to other retail outlets, a market, or directly in a shopping and entertainment center on 1-2 floors.
The required area of the premises is from 5 to 20 square meters. m. This is enough to arrange the necessary equipment and convenient display of goods. In the store, it is important to create a cozy atmosphere in a minimalist design with good lighting and a noticeable sign. Renting such a room will cost 20-40 thousand rubles.
Purchase of commercial equipment
For a jewelry store, you need to purchase the following commercial equipment:
- Mirrors – 8 thousand rubles;
- Racks for jewelry – 16 thousand rubles;
- Showcases with illumination (halogen or LED) – 80 thousand rubles;
- Demonstration equipment – 10 thousand rubles;
- Cash register – 20 thousand rubles;
- Chair for the seller – 2 thousand rubles.
In total, you will need to spend 136 thousand rubles. For the island format, it is worth purchasing a ready-made module from 100 thousand rubles, protected by a shockproof edge, glass film and decorated with decorative elements. All equipment must be reliable, of high quality, easy to assemble. When placing products on it, you can use three methods of grouping: by type of jewelry, by theme or by color. Buyers should be able to easily navigate the proposed layout and find the right product.
YOU ALSO NEED TO DECIDE ON THE SUPPLIERS OF JEWELRY. YOU CAN CONCLUDE SEVERAL CONTRACTS ON FAVORABLE TERMS WITH BOTH RUSSIAN AND FOREIGN MANUFACTURERS, AS WELL AS PRIVATE CRAFTSMEN.
When choosing them, one should be guided by such characteristics as work experience and duration of presence in the market, partner reviews, availability of documents for each batch of products and own production, product quality and low purchase cost.
When determining the volume of purchases, one should focus on the density of placement of goods, which depends on the cost of jewelry. The higher it is, the less tightly the showcase should be filled. And vice versa, the cheaper the products, the more closely they should be placed to each other. At the same time, it is necessary to provide a small supply of jewelry for the timely replenishment of the showcase.
Registration of permits
Entrepreneurial activity selling jewelry must be registered as an individual entrepreneur by submitting to the tax office an application P21001, a copy of the TIN and a passport with the original, a receipt for payment of the state fee.
Form of tax reporting – USN at a rate of 6% of total income or 15% of net profit. Since the classifier does not provide separate codes for costume jewelry, codes 47.1 and 47.78 should be indicated for retail sale in specialized stores. In addition, you will need to register with the pension fund and social insurance, open a bank account.
Additionally, you will need a contract for maintenance by public utilities and for the lease of retail space, permission from Rospotrebnadzor and the fire service, certificates for the goods. No license is required for this type of business.
Selling jewelry does not require a large staff. At first, you can trade on your own, and later on, hire one or two sales assistants with the function of a cashier, and keep accounting on your own or outsourcing.
The store staff must understand fashion trends, know the product range well and be able to offer this or that decoration to the buyer. Existing experience of similar work, friendliness and sociability are also welcome.
An effective marketing policy plays a huge role in attracting and forming a customer base.
Effective advertising methods are:
- Good location with appropriate design and signage;
- Standers, banners and billboards;
- Distribution of leaflets and business cards in high traffic areas of the target audience;
- Advertising in the media, elevators, transport;
- Groups in social networks and bulletin boards;
- Website for a jewelry store with contacts, opening hours, photos, product descriptions and prices.
A loyalty program in the form of sales and discounts for regular customers, various promotions, gifts, lotteries, etc. will help promote business and retain a circle of customers.
How much to invest at the start
So, let’s calculate the one-time investment for starting a business:
|No. p / p||Name of the item of expenditure||Amount spent|
|one||Paying rent||40 thousand rubles|
|2||Purchase of commercial equipment||136 thousand rubles|
|3||Purchase of the first batch of goods||280 thousand rubles|
|four||Advertising campaign and store design||50 thousand rubles|
|5||Permits and contingencies||30 thousand rubles|
|Total:||536 thousand rubles|
Monthly expenses will amount to about 150 thousand rubles. to pay salaries to staff, replenish stocks, pay utilities, rent and advertising.
Now let’s look at the estimated revenue. Suppose that the number of buyers reaches 15 people per day with an average check of 450 rubles. Therefore, the store will earn 6750 rubles per day, and per month:
6,750 x 30 \u003d 202 thousand 500 rubles, of which net profit is 202,500 – 150,000 \u003d 52,500 rubles.
Thus, the initial investment will pay off in the first year of operation. The figures are average, as income may be higher, taking into account holidays and weekends.
It must be said that there are few characteristic risks in the trade in jewelry. This is, first of all, an increase in competition, which will help to cope with a diverse assortment, reasonable prices and quality products.
Another unfavorable factor is the seasonality of demand. Usually the peak of sales falls on the holidays, after which the buying activity drops sharply.
The situation will be corrected by a loyal attitude towards customers with incentive promotions and sales.
Well, the third risk is dependence on fashion trends and preferences of the target audience, which is fraught with deposits of unsold goods on time. There is only one way out – the alteration of the product by the master into an actual thing or sale at the purchase price.
Owning a jewelry store is a popular business that has stood the test of time. The success of the direction lies in its skillful organization and diversity of the assortment with the ability to create your own unique list that can satisfy the taste of even the most demanding customer.