Have you been thinking of starting a phone accessories business in Nigeria?
You seem to know much about phones than the average Nigerian and you have some capital hanging around to start? This article is for you.
After reading this article, you will be able to comfortably start a phone accessories business in Nigeria and be able to make profits from it despite the fact that you are new to the business.
Phone accessories business is not like computer accessories business in Nigeria because unlike computers everyone has a phone.
Phone accessories business is lucrative in Nigeria because about 90% of Nigerians use mobile phones whether android or Chinese phones – what we popularly call palasa.
If they are not using it to browse the internet or to connect with others online they are using it to make calls and send text messages.
But today the average Nigerian phone user has gone beyond these major things. He or she has seen owning a phone as a fashion statement and also to declare class or status.
This is one major reason why despite the fact that many Nigerians use good phones they still spend a lot to make their phones stand out and buy expensive gadgets to declare different statements.
So it can be that phone accessories business is very profitable because you are selling to a larger market if not the biggest market.
Phone Accessories to Sell in Nigeria
There are many phone accessories you can sell to the Nigerian population. These are:
- Phone cases
- Phone chargers (Indoor and Car chargers)
- Power banks
- Memory cards
- Tamper glasses
- Bluetooth speakers
- Smart watches
- USB (Universal Serial Bus)
How Profitable is Phone Accessories Business?
Phone accessories business is a profitable business in Nigeria for many reasons.
A. It is a profitable business because many Nigerians use phones. Earlier I said those that are not using it connect online (chat) are making calls and sending text messages with it.
B. Another reason why it is a lucrative business is that Nigerians are very fashionable and trendy. Yes, Nigerians like fashion, and because of this they extend their fashion to their phones buy accessories that match with the clothes or personalities.
If you are starting this business you will be selling to a very large market in Nigeria with unquenchable needs.
Types of Phone Accessories Business in Nigeria
There are 2 major types of phone accessories business in Nigeria and these are:
1. Wholesale Phone Accessories Business
This is a kind of phone accessories business in Nigeria where you are at the top of the business. You import the phone accessories directly from China from websites like Alibaba.com and Made-in-china.com into Nigeria.
To start this kind of phone accessories business you must have a huge capital of about #1M because to really make big profits you have to buy your phone accessories in bulks may be a container if possible.
After importing the phone accessories to Nigeria you will now sell them to retailers in the markets.
2. Retail Phone Accessories Business
This is a type of phone accessories business in Nigeria where you buy phone accessories from the wholesalers (importers) and sell to individuals (Nigerians).
In this kind of phone accessories business, you don’t need to spend too much on capital to start. With a capital of about #300,000 – #500,000 the business can be started.
But the profits you make from the business will not be as much as selling as a wholesaler.
How to Start Phone Accessories Business in Nigeria
1. Decide Kind of Phone Accessories Business
The first step to starting a phone accessories business in Nigeria is to decide the kind of phone accessories business you want to go into.
Although this decision usually depends on the capital you have you still need to think it through to be sure it is the business path you want to follow.
No one will do this for you; it is a decision you have to make by yourself.
You need to if you want to be the supplier of the phone accessories that is; importing the accessories to and sell to distributors or be at the bottom chain where you sell to consumers directly.
2. Write a Business Plan
A phone accessories business plan is important just like writing any other business plan for business start-ups in Nigeria.
The business plan is important because it points you to many grey areas you should take note of and be aware of.
A good business plan lets you know if the capital you set aside is enough or you need more. It lets you know all is needed to start the business (registration and others).
It lets you know who your target market will be. It let you know how you will make profits from the business and so much more.
A good business plan helps you to see into the future of a business you have not started.
3. Get Capital or Funding
Depending on the kind of phone accessories business you want to start you need to get capital to start the business.
If you are coming into the business as a wholesaler/distributor you will need more capital to start the business than if you are coming in as a retailer.
As for how you can get the capital, you need to be heavily loaded to start this business because I will not advice you to borrow money in starting.
4. Rent a Warehouse, Space or Shop
The kind of place you will get here depends on the kind of phone accessories business you want to go into.
If you are going the business as a wholesaler you will need to rent a warehouse, not a shop. This warehouse does not need to be necessarily big but it has to be secured with CCTV and guards.
Yes, to avoid been robbed and to stop your workers from stealing from you.
If you are going into the business as a retailer then you can rent a shop. Make sure when it is time to rent a shop you are renting a shop in the right location.
A place that is easy for your customers to access you and to locate you.
After renting the shop, furnish it to taste and make it ready for your first batch of goods.
5. Buy Phone Accessories
After renting a place for your phone accessories business the next step is to buy the phone accessories.
If you are going into the business as a wholesaler you should try to import them from China – the 2 websites I mentioned earlier make things easy.
And if you are going into the phone accessories business as a retailer you can simply buy your phone accessories from the major computer electronics markets in Nigeria which are computer village Ikeja and Alaba Market.
These 2 Markets are where you can buy your phone accessories in bulk in Nigeria at good prices.
When buying from these 2 computer Markets in Lagos make sure you take your time and do your proper findings so as not to be sold substandard products.
6. Furnish Shop or Space
If you are going into phone accessories as a retailer you need to furnish your shop and make it look nice.
Put display glasses and good lights as this will make the phone accessories look more attractive than they are when you arrange them in your shop.
7. Start Sales
When it comes to selling your phone accessories do not restrict yourself to sell to the consumers in your area alone.
You can also advertise and sell your phone accessories online in Nigeria on e-commerce platforms like Jumia, Konga, and Jiji.
Jumia and Konga are almost the same in terms of the registrations and the process to start selling your goods but Jiji is different and it is totally free except you to decide to do paid ads to reach a wider audience.
However, they all perform the same functions which is to expose you to more customers online.
Your friends and family can also your first loyal customers. Inform them about your new business and convince them to buy and order from you anytime they are in need of accessories.
8. Challenges of a Phone Accessories Business
There are some challenges you could encounter in starting a phone accessories business in Nigeria.
Some of these challenges I will be listing below.
A. Forex (Foreign Exchange)
The rise in dollars as the day goes by makes phone accessories business expensive in Nigeria.
You can import phone accessories into Nigeria today and the next few months pay almost double amount to import the same quantity.
This has made the business sort of risky because you do not if you buy them expensive you can be able to sell them expensive.
B. Import Duties
This is a challenge you will face as an importer in this business.
The import duties on products in this country is still extremely high that sometimes its effects can extremely affect the prices of your phone accessories thus making the profits in the business not as much as it should be sometimes.
However, this cost can be passed down to your buyers.
Phone accessories business is a profitable business in Nigeria whether you are coming into the business as a wholesaler or a retailer.
Because it is under the tech industry it never runs out of innovation and improvement thus making the business always evolving. The only disadvantage is that the business does not play well with foreign exchange which I have mentioned earlier.
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Image Credit to Made-in-china