Starting Okrika business in Nigeria is a profitable venture. Okrika business involves selling second-hand clothes, shoes and bags. The demand for second-hand clothes is high since many Nigerians fall in the category of low-income or middle-income earners. Okrika clothes are by far cheaper compared to new clothes, making is a lucrative business to start. To make it in the business, you need to select fast-moving and quality Okrika clothes. In this article, I will show you how you can start a profitable Okrika business in Nigeria.
Find a Reliable Business Location
To start a profitable Okrika business, you need to set up your business in a busy location. Okrika business is best suited for areas like markets and towns. You need to decide whether to open a shop or to sell clothes in an open air market or sell clothes from your house. Choose what is convenient for you, and you can always expand your business with time. With a good business location, there are higher chances of buyers locating your business.
Decide Okrika Niche to Deal With
Once you have established a suitable location for your Okrika business, you need to decide the kind of Okrika clothes to sell. There are different categories of wear for Okrika clothes. They include:
- Children’s clothes
- Adult clothes
- Shoes and bags
- Women clothes
- Men clothes
When choosing a category, you need to go for fast moving Okrika clothes that are in high demand. It would be best if you had carried out market research to identify a category in high demand. You can ask customers and business people on what clothes are in high demand.
Okrika Clothes Grades
Okrika clothes are graded depending on quality. These grades determine the price of Okrika clothes. These grades include:
- Grade A. They are high quality, durable and do not have any defects, only that they could have been worn before.
- Grade B. They usually have small defects like a stain but are in good shape.
- Grade C. They usually have major defects, but they can still be mended. For instance, they may be torn.
Identify Reliable Source for Okrika Clothes
The next important thing to do is to identify a cheap and reliable source of Okrika clothes. Make sure that you get high-quality Okrika clothes. Go for dealers with bale categories of your choice. There are many markets in Nigeria where you can buy Okrika clothes at a cheaper price. They include:
- Yaba Market
- Katangua Market
- Idumota Market
- Balogun Market
Set Prices for Your Okrika Clothes
You need to set fair prices for Okrika clothes. The prices shouldn’t be too high than those of your competitors. Otherwise, you will lose your customers to competitors. On the other hand, the prices shouldn’t be too low to deprive you of your profits. There needs to be a balance.
One of the best ways to set prices for your Okrika clothes is to determine the buying price of each cloth in the bale. For instance, if a bale costs N70,000 and has 350 clothes, it means each clothe costs N200. From this, you can set a selling price of N300 for each cloth. You can also sort out high-quality clothes from low-quality clothes in the bale and set prices for each one of them instead of selling all clothes at the same price.
How much Does it Cost to Start Okrika Business in Nigeria?
The cost of starting Okrika business depends on the category and grade of clothes, business location, and whether or not you are renting a shop. The following is a breakdown cost of starting Okrika business in Nigeria.
- Bale price – N70,000
- Renting a shop – N20,000
With this, you can calculate how much it would cost you to start an Okrika business in Nigeria.
Is Okrika Business Profitable in Nigeria?
Yes. The demand for Okrika clothes is high in Nigeria. A large population of Nigerians is in the low-income or medium-income bracket that prefers Okrika clothes since they are affordable. The profit margin for Okrika business in Nigeria is between 40% and 60%. Therefore, the more sales you make, the higher the profits.
You can make a profit of at least N35,000 from a single bale. Strive to sell more clothes to generate higher profits from Okrika business.
Read more: Small business ideas to start in Nigeria.
Summary of How to Start Okrika Business in Nigeria
To start the Okrika business in Nigeria, you need to first identify fast-selling Okrika clothes. Then look for a suitable business location to set up your Okrika business. Sort out clothes in different categories and set prices for each one of them. Then market your business and you will start attracting many customers. The secret in this business is to identify fast-moving and high-quality clothes. If customers like the clothes, they will refer their friends to your business.