If you’re thinking about starting your own mobile phone accessories business, there are a few things you’ll need to do first. In this article, we’ll outline the steps you need to take in order to get started and make money from your venture. So read on and get ready to launch your own mobile phone accessories business!
Is Mobile Phone Business Profitable in Kenya?
There is no doubt that mobile phones are ubiquitous and have become an essential part of modern life. As a result, there is a growing market for mobile phone accessories, including cases, chargers, speakers, and headphones. In fact, the market for mobile phone accessories was expected to grow at a rate of 4.5% year on year (YoY) in Q1 2022 and it did.
So, what does that mean? It means that Kenyans are buying phones. How does that answer if the mobile phone business is profitable?
Why else would shipment to Kenya increase?
If you’re thinking of starting a mobile phone accessories business in Kenya, there are a few things to keep in mind.
First, it’s important to understand the competitive landscape. There are a number of established players in the market, including brands like Makarim Phone Shop, phone store Kenya, and Calcare, as well as smaller independent companies.
It will therefore be difficult to get ahead of the competition if you don’t have a strong product offering and an easy-to-sell brand.
Another important factor to consider is a marketing strategy.
If you want your business to be successful, you’ll need to invest in advertising and promotion campaigns.
Overall, starting and making money from a mobile phone accessories business in Kenya is definitely possible – provided you put in the hard work necessary to make it successful.
How Much Does it Cost to Start a Phones Shop?
Before you start your own mobile phone accessories store, you’ll need to know the basics. Here’s a breakdown of what it will cost to get started:
1. Business license – Ksh. 15,200
2. Inventory – Ksh. 1,000,000
3. Advertising – Ksh. 100,000
4. Staff – Ksh. 10,000 (depending on experience)
5. Startup costs (rent and other expenses) – Between Ksh. 100,000 and Ksh.150,000
6. Profit – Ksh. 30,000 to Ksh. 250,000 on average
How to Start a Mobile Phones Accessories Business in Kenya
To start a mobile phone accessories business in Kenya, you will need to identify your target market.
You can target local residents, expatriates living in Kenya, or tourists visiting the country.
Once you have identified your target market, you will need to follow everything else in this guide to achieve success.
a). Carry Out a Market Research
Before investing in any new product or service, make sure you have an understanding of your target audience and what they are looking for. This will help you stock products that meet their needs and interests.
Beware of the following mistakes when conducting market research through:
1). Not being aware of current trends
2). Making generalizations
3). Not considering customer requirements
4). Not being able to differentiate between types of customers
5). Believing your own opinion is the gospel
6). Forgetting to take into account the competition
7). Being too narrow in your focus
8). Focusing purely on revenue rather than profit
Once you have completed your market research, it is time to come up with a plan of action.
This will outline how you will go about reaching your target audience and selling your products or services.
More on all that on the next subtopics.
b). Write a Phone Accessories Business Plan
When starting a mobile phone accessories business, it is important to have a business plan in place.
A business plan can help you understand your goals and objectives for starting your own mobile phone accessories business, as well as outline the steps you will need to take in order to reach those goals.
To create a successful mobile phone accessories business, you’ll need to determine your target market.
Are you targeting consumers who already own a mobile phone, or are you looking to attract new customers?
Once you know your target market, you’ll need to develop marketing plans that will appeal to them.
Another key component of a successful mobile phone accessories business is inventory management.
More on that at the end of this post but first,
c). You Need to Identify a Location For Your Cell Phones Business
While getting the best location for such a business may seem like common sense, it is always not common to everyone.
If your phone and accessories business is to succeed then you’ll need to set up a shop somewhere with enough space to store your inventory, as well as space for repairs.
Consider locations near major shopping districts or business centers or near popular tourist destinations.
Make sure the space you select is comfortable and easy to work in, as you’ll be spending a lot of time there.
d). Get Relevant Business Licenses And Permits
Have both a business plan and a business location already? Now it’s time to get relevant business licenses and permits.
This includes things like a business license, business name or registration certificate, and tax ID.
You’ll also need to get an insurance policy, as mobile phone accessories businesses are typically high-risk enterprises.
e). Get a Reliable Supplier
You don’t want to open an empty store to the public?
And now that we have a store and all the required licenses to run our business, it’s time to stock our store. Find a reliable supplier.
There are many suppliers out there, but it is important to choose one who has a good reputation and who can provide you with high-quality products.
You also want to make sure that the supplier is able to meet your delivery deadlines since this will be an important factor in your success as a mobile phone accessories business.
How do you get a mobile phone supplier in Kenya? You can seek them on listing sites or talk to similar businesses to recommend their suppliers or better yet, import phones from Asia or the middle east.
Once you get a supplier, ask for their catalog and pricing and if everything checks out, move to the next step.
f). Stock Your Mobile Phone And Accessories Shop
This may be the easy part in theory but it is also the most difficult part in practice.
How do you tell which phones and accessories to stock at the beginning? It all depends on your target market.
For example, if your business specializes in mobile phone accessories, it is important to stock your shop with products that appeal to your customer base.
This means having a variety of cases, covers, straps, and other accessories for different phone models.
Additionally, it is beneficial to have a selection of brand names that your customers are familiar with. This will help you attract more customers and build trust between you and your customers.
Also, be sure to consider all the other possible needs of your target audience.
For example, if you are selling cases for the iPhone, make sure to include models from several different manufacturers so that you have enough variety to choose from.
And if it makes economic sense, offer discounts on case purchases if customers buy multiple items from your shop. This will incentivize them to return in the future and increase your chances of making sales.
g). List Your Phones And Accessories on eCommerce And Listing Sites
And what’s the need of starting a business if you can’t get clients to buy from you?
Here are a couple of tips to help you get started with both direct and indirect sales:
- List your phones and accessories on eCommerce and listing sites. This is the easiest way to get started because you can build a comprehensive inventory of your products and easily list them for sale.
You’ll need to create listings for each product category, and make sure you include accurate product specifications, images, and pricing information.
2. Create an online store with an eCommerce platform. This option is more advanced but allows you to manage more aspects of your business.
You’ll need to find a suitable eCommerce platform (such as Shopify or WooCommerce) and create an online store that reflects your brand and style.
You can also use these platforms to manage orders, track sales, and create complex marketing campaigns.
Whatever route you choose, starting a mobile phone accessories business can be fun and rewarding.
Investing in high-quality products and providing outstanding customer service will ensure success.
What’s The Cost of Starting a Phones And Accessories Business in Kenya?
The truth is that starting a mobile phones and accessories business in Kenya can be very profitable and also very expensive.
With a bit of research and careful planning, you can easily set up shop and start generating revenue.
However, before you jump into the fray, it’s important to know just how much it will cost you to get started. Here are the costs of starting a mobile phones and accessories business in Kenya:
- Business registration: This is definitely the most important cost of owning a mobile phones and accessories business and it is also one of the lowest in Kenya.
Without proper paperwork in place, you won’t be able to operate your business legally.
If you already have a business name, go ahead and reserve it on eCitizen.
Business name registration only costs Kshs 950 in Kenya but it will cost you Kshs 25,000 to register a Limited Liability Partnership, Kshs 10,650 to register a Private Limited Company, and Kshs 10,650 only to register a Public Limited Company.
2. Equipment costs: Believe it or not, one of the biggest expenses associated with owning mobile phones and accessories business is hardware – specifically, the equipment needed to run your store.
This includes computers (with internet access), printers, storage space for inventory, and more. You’ll need to factor this cost into your overall budget when estimating your startup costs.
Overall, Ksh. 2,000,000 would be ideal to start a successful and well-equipped phone store in Kenya in 2022.
Which Phones And Accessories Sell Fast?
This is a very important question.
And yes, before stocking any phone/accessories you need to ask this question, which phones and accessories are popular right now?
Because popular phones and accessories tend to sell fast.
Here are some of the most popular phones and accessories right now:
a). Phones with large screens: People love big screens on their phones, and there are a lot of big-screen phones on the market. Some of the most popular big-screen phones include the iPhone XS Max, Galaxy S9+, and LG V30.
b). Phones with dual cameras: People love taking pictures and videos with two cameras, so phone manufacturers are including more dual-camera phones in their lineups. Some of the most popular dual camera phones include the iPhone XS Max, Galaxy S9+, and Huawei P20 Pro.
c). Phones with wireless charging: Wireless charging is becoming increasingly popular, and there is a lot of wireless charging phone options on the market. Some of the most popular wireless charging phone options include the iPhone XS Max, Galaxy S9+, and Huawei P20 Pro.
Overall, it is costly to start a phones and accessories business in Kenya in 2022 and it is also profitable if you find the right market segment and stock what sells.