Let’s break down the secret of okrika business in Nigeria, a venture that has transformed the lives of many entrepreneurs.
Okrika, the Nigerian term for second-hand clothing, is more than just a thriving industry. It’s a lifeline for many Nigerians, offering affordable, quality clothing while creating profitable business opportunities.
The allure of okrika lies in its profitability, driven by high demand and low overhead costs.
In this article, we delve into the intricacies of starting an Okrika business in Nigeria. We’ll explore the nitty-gritty of sourcing, sorting, and selling these pre-loved items.
By the end, you’ll be equipped with practical steps to kickstart your venture in the lucrative okrika market.
Why You Should Consider Starting an Okrika Business
Okrika is one of the most successful businesses you can venture into. Need more convincing? Well, the following reasons make okrika business profitable:
You should consider the target market that makes trading in Okrika more lucrative. Even with the high inflation rates, the demand for Okrika still surges. This is because of its perceived durability and affordability.
You can start an Okrika business with little capital and gradually grow and expand it over time. This low start-up capital is because you can start the business in any location of your choice. This also makes it a low-risk business.
The majority of people often want to buy clothes that are in vogue and are also affordable. This cuts across different generations, depending on the category you decide to trade in.
One secret of okrika business is that your stock can last for a long time—it doesn’t get spoiled easily. Plus, there is no limit to the amount of profit you can generate.
How Much Can I Use To Start an Okrika Business in Nigeria
Another secret of okrika business is that you don’t need a lot of capital to start. With a minimum of 10,000 NGN, you can start an okrika business in Nigeria and start making a decent profit.
If you want to go a bit large scale, you can budget 50,000 NGN to get a bale of okrika. Of course, this price may vary, and quality grades may sell for more. But this budget should be more than enough to get you fully set up.
How To Start Okrika Business
When starting an okrika business, it is important to carry out market research to find out the particular category that has the largest number of buyers considering your location. You should also learn how to identify quality okrika.
The fastest way to do this is to learn from someone who is already experienced and successful in the business. This will also enable you to master the tricks of the trade, such as bargaining skills and finding a reliable supplier of okrika.
The following tips can also help you spot high-quality okrika:
The Secret of Okrika Business – Mastering the Grading System
Knowing how to identify different grades of Okrika is vital to being successful in business. The things to consider when grading include the country the goods were imported from, their uniqueness and quality, and how fashionable they are.
The different grades include:
These are high-quality second-hand goods that are usually in great shape, with or without designer labels. It is the best type of Okrika; hence, it is referred to as premium grade.
These goods are of top quality and show little evidence of damage or use. This type is known as second best.
These are of inferior quality and may show evidence of slight damage. The faults in goods of this grade are usually fixable.
Choosing a Profitable Okrika Category with Simple Methods
The Okrika business is vast. So focusing on a particular category is advisable, as it’ll be easier to manage and scale.
Let’s break down this process into simple, understandable steps:
Choose Your Specialty
One secret of okrika business is to choose a particular category to specialize in. This could be bags, clothes, shoes, etc. Concentrating on a category makes it easier to manage and grow your business.
Know Your Limitations
The next thing is to identify your strengths and weaknesses. For instance, if you are good at kids’ fashion, you could start an Okrika kids’ clothing business. If you can’t find quality kids’ clothes, that could be a weakness.
Check Out Your Environment
Look around you. What kind of Okrika clothing is likely to sell more in your area? For instance, if you live near a university, trendy, affordable clothing for young adults might be more profitable.
Consider Your Budget
Your initial investment will impact the type and amount of goods you can purchase. If your budget is small, you might consider starting with retail buying before you proceed to buying larger quantities like bales.
If you opt for the bag business, for example, consider selling different types such as travel bags, handbags, laptop bags, etc. This way, you can attract different customers and improve your sales.
Know Your Competitors
Understanding who you’re up against can help you differentiate your business and find a profitable category. You can do this by visiting their stores or checking their online platforms to see what they’re doing differently.
Create a Simple Plan
This doesn’t have to be complicated. Just jot down a few key points about what you plan to sell, who you’ll sell to, where you’ll get your stock from, and how much you think it might cost. Think also about how you’d like your business to grow over time.
Get Some Help If Needed
Don’t hesitate to ask for help if you need it. Perhaps you know someone who has started their own business and could give you some tips. Or you could consider seeking advice from a business advisor or mentor.
Start Small and Spread the Word
Begin by telling your friends and family about your new business. They can be your first customers and also help spread the word to others.
Plan for Social Media Advertising
Nowadays, social media platforms like Instagram, Facebook, and Pinterest can be a powerful way to reach more customers. Start with a plan that fits your budget and abilities – for instance, posting photos of your best items, or sharing customer testimonials.
Locating Trustworthy Okrika Vendors
The following markets in Nigeria are notable for finding reputable vendors:
You can also go to Cotonou, a nearby market outside Nigeria.
To reiterate, it is best to collaborate with someone already successful in the business to avoid getting into the wrong hands and to get in touch with reputable Okrika sellers. This will also enable you to see different pictures of okrika clothes and to master differentiating the grades.
With time, you will understand how to get high-quality bale from dealers on a constant basis, as this will determine how much buyers will agree to pay.
Also, you should work on establishing rapport with vendors in order to ensure a constant supply of your goods at a good price.
Launching Your Okrika Shop
Another secret of okrika business is that you don’t need a physical shop. You can decide to sell your goods from the comfort of your home or through social media. You can also move around to different locations to generate more sales.
Choosing between an open market and a boutique also depends on your area and where your target market is most likely to visit. This will all be part of your market research.
How To Start an Okrika Bag Business
Okrika bag business is one of the most profitable categories due to the fact that demand is always high and it is generally believed that Okrika bags are stronger than brand-new ones.
How Do I Make My Business Successful in Okrika
To manage and grow your Okrika business successfully, you need to determine the following;
- If the demand for your product will sustain anticipated growth. For instance, if you start your Okrika business on a large scale with multiple locations, you need to ensure there is consistent productivity across all locations.
- You may also consider channeling your resources to resolve identified issues or close it down. This will enable you to focus your energy on locations with constant growth and profit generation.
- Explore different marketing strategies to attract more customers. This can also require you to think outside the box. Marketing strategies could include telemarketing, discounted sales on multiple purchases, and a social media challenge to generate engagement with potential customers.
Making Money in Okrika
Profit margin is the difference between the total cost of running your business and the total revenue it generates. Did you know that the profit margin for Okrika businesses can be as high as 40%–50%? This is another secret of okrika business, and I’ll break it down now:
Assuming you start with 400 pieces of a bale of Okrika, which you purchased for 70k, selling each piece of clothing for 500 NGN will earn you 200,000 NGN (total revenue).
After removing the cost of buying the clothes, which is 70,000 NGN, you have a gross profit of 130,000 NGN. Hence, the profit margin will be approximately 50%, excluding miscellaneous expenses.
Is Okrika Business Still Profitable in Nigeria?
Looking at the current recession and worsening state of the economy today, Okrika business continues to thrive for three major reasons: never-ending demands for Okrika goods, quality, and being highly durable.
Once you are focused and determined with a well-structured plan, there is no reason for you not to succeed in this business venture.
Secret of Okrika Business – Final Thoughts
The secret of okrika business is finding the right type of okrika to sell. There are different Okrika categories, which include bags, shoes, children’s wear, men’s wear, and women’s wear.
The most successful Okrika categories are women’s wear, shoes, and bags. This is because of the high sales turnover and profit generation.
Children’s and men’s wear are less profitable as there might be a delay in sales, which can affect the generation of profit. Another Okrika category that isn’t recommended for beginners is women’s dinner gowns due to predicted poor sales.
There are other businesses you can start besides Okrika that have a high success rate. These include printing, beauty salons, logistics businesses, and the rest.