The crisis has forced to reconsider the relation to buying shoes, experts say: due to the growth of the dollar, people are increasingly abandoning of imported goods, giving preference to domestic producers. And our shoes are not only much cheaper than foreign analogues, but the quality is often not inferior to them. “The Ukrainians can’t skimp on shoes even during the crisis, although purchasing power has declined: people can opt out, conventionally, from bread and go to the potatoes, but the shoes are no substitute for walking in than it is necessary. So like it or not, but to change the worn out shoes, at least within the minimum requirements, anyway. This situation allows domestic companies to keep the production afloat even during the crisis and gradually to stabilize the market because the demand for Ukrainian footwear is constantly growing” — explains the head of “Ukrkozhobuvprom” Alexander Borodynya. That is why “Today” has studied the prospects and risks of the launch in Kyiv of a Shoe shop.
Business plan start Shoe store
1. Project description
In Kiev opened a retail store selling shoes, “Shoes”. We sell men’s, women’s and children’s shoes. Will still be are the accessories — bags, paint, stretching, insoles, socks. To choose for trading will be exclusively the products of Ukrainian production, since this will keep prices trading in the range of 500-2500 UAH. And this the affordability of shoes is very important to our customers, because of the growth of the currency, communal and prices of food products many were not afford imports. According to calculations, if the daily 5 buyers acquire the product at an average check in of 800 UAH, our project will pay for itself in 3.2 years.
2. Start-up capital
First, we need to buy furniture and equipment. To do this, lay
48 thousand UAH for the purchase of shelves, overhead shelves, cabinets, mirrors, Ottomans, shelves, safe etc Another 54 thousand UAH needed to buy 3 laptops, printer with scanner, cash register with a terminal for cashless payments, modem, 3 mobile, as well as the installation of cameras, alarms, etc.
PRODUCT. To purchase the starting range is somewhere in the 200 models for children, women and men shoes with full grid size, accessories, lay about 400 thousand UAH.
TOTAL: 502 thousand UAH
3. Current expenses
Rent of commercial premises of 50 sq. m with renovation on Poznyaky will cost 15 thousand UAH. 3 thousand pledged HCS, mobstaz, Internet, monthly fee for alarm. 2 million will be spent on the purchase of tea, coffee, washing, and repair equipment.
TEAM. Work 2 seller through the day (at the rate of 300 UAH/day +%). The owner will be the administrator (7 thousand UAH). Part-time cleaner needed (2500 UAH), and accountant (4000 UAH).
TOTAL: 42, 5 thousand UAH
4. Marketing, advertising
Work shop need representation on the Internet. Create online store with photos of products, contacts, possibility of remote ordering. The website will cost 18 thousand UAH. Hosting, domain and tech support for a year, plant 2 thousand UAH. Will build the page in “Facebook”, “Instagram”: let creative promotions, bonuses, hand out flyers, develop a cumulative system of discounts.
TOTAL: 20 thousand UAH at the start and 4 thousand UAH per month
5. The payback of the project
In the services margin is in Kiev at least 90%. We boost 100% at the average cost of shoes in the store in the 800 UAH margin itself draws on 400 UAH. While summer loafers can cost 200 UAH, and winter boots — 1200 UAH. For normal operation of the store need to per day 5 customers bought the product on average of 800 UAH. Then in a month will earn 120 thousand UAH. Minusuem current (42,5 thousand) and marketing (4 thousand) expenditures (total of 46.5 thousand) received 73,5 thousand UAH. Pledged to update the product 15-20% of starting procurement of the range (in our case — from 60 thousand UAH). Remains 13.5 thousand. Accordingly, when the initial (502 thousand) and marketing (20 thousand) investments (a total of 522 million) the project will pay for itself in 3.2 years.
Identify the client correctly
Before you decide to start a Shoe store, it is important to examine this segment of the economy, experts say. It is important to understand the intricacies of vendor selection, target audience, space for retail outlets. “You have to understand that there are physiological needs of people in the new shoes. So, men needed annually to 3.3 pairs, woman — 3,8—4,3 pairs, baby — 6 pairs. Even if in crisis, adults can limit yourself to buying shoes, all the same they can’t buy less than two pairs per year. And the child does save does not work: children’s foot growing shoes wear out quickly, so you have to constantly update it,” explains Borodynya. This means that you can concentrate on selling mostly children’s shoes as this product is constantly in demand. Or, alternatively, to sell children’s shoes together with women: mothers with children will be able to put on shoes in one store. Well versatile option: trade for all categories of buyers, but this format requires not only substantial investment, but good intuition in purchasing, warn entrepreneurs as if you cannot guess what will be fashionable and relevant in the new season, you can not sell the new collection. “Taste of the Ukrainian women in the selection of shoes is very different from those of inhabitants of Europe. Our girls love high heel to wear even in the winter, and Europeans prefer comfortable shoes. With these and other features must be considered, when choosing the range for sales. So now select the item in such proportions: a 20% sports, 30% — youth walking shoes, 10% — high heel like stilettos or louboutins, 40% — footwear with a low heel 3-5 cm, for older or conservatives. In principle, flair with your footwear rarely fails because I do not like any cheap straziki or flashy colors and try to buy a universal model, which does not require the purchase of topicsession. In the end, the shoes tend to be actively sold during the season, and the remainder go on sale: it will always be those who “prepares sledge in the summer”, — says the owner of a small Shoe store in Odessa Olga Litvinenko.
Why is it better to choose your
In addition to defining the target audience and selection of assortment, experts recommend to budding entrepreneurs to carefully determine the pricing of future shop. According to them, the margin in retail is now a minimum of 40% in Ukraine and at least 90% in Kiev. “Many companies got burned on that one brand is sold cheaper and more expensive shoes, as this caused confusion to clients, why the same shoes are sold in various retail outlets with a large difference in price. Therefore, it is best to define a common price to attract store customers with specific income. For example, now predprochitayut people buy budget, but high-quality shoes, it can be considered even an average level. At this audience and you can navigate,” explains co-owner of a Shoe shop in Kiev Daria Chernova. According to her, on the basis of the average salary in Ukraine of 5 thousand UAH, buyers are willing to allocate for the purchase of, for example, spring, autumn or winter shoes 1500-2500 UAH. “This is a normal amount to purchase good shoes Ukrainian producers. Therefore, suppliers to the formation of the range in store is better to look among domestic companies. Because our vendors value their reputation are trying to make quality shoes, and in case of problems with the product easier to solve problems,” Chernoff continues. And although in Ukraine at the hearing are not so many Ukrainian Shoe brands to choose vendors there from whom, because the country has 1500 manufacturers. “This is a very big competition, so the companies try to produce affordable and quality shoes. Although production volumes have much to build on, because now the Ukrainian shoemakers close approximately 25% of the footwear market and the rest is imported as quality European and Asian poor. But if you talk about quality shoes autumn-winter range, then domestic production is close to half. Therefore, there is from whom to choose as suppliers”, — said Alexander Borodynya. According to him, it is better to the choice of shoes to look at exhibitions manufacturers, because there is a maximum choice of products.
Choose a place to trade
Success in litigation depends not only on the product range and price policy, but also the location of the store, experts remind. Therefore, to choose a place to trade be very careful, because the place must be massive, popular, well-developed infrastructure. “For running Shoe store can come to the market, shopping center, Central areas of the city, interchanges in the metro and even sleeping districts. Importantly, there was a good level of traffic in the mornings or the evenings, or on the contrary — the place was popular on weekends and holidays,” — said the head of the franchising Association of Ukraine Andrei Krivonos. According to him, the same markets or shopping centers are very relevant to run a Shoe store, but there may be an expensive hire, “Therefore it is possible to take for rent, for example, the room is not in the shopping center, and next — if, for example, the proposed part of some commercial property in the sublease,” explains Sergeant. And the launch of a Shoe store in a residential area may be relevant only if it is a new neighborhood where lots of young families with money. “In such places is particularly important to open a retail outlet with products focused on children and teenagers,” says Krivonos.
COMPETITORS. When an aspiring entrepreneur has decided on the future location of a Shoe store, it is important to study on the spot the competitors ‘ offers, experts say. “We need to figure out what Shoe stores and brands represented here. For example, at a distance of fifteen minutes walk generally sell expensive imports or, conversely, cheap Chinese shoes. Then the launch of the store with the products of domestic manufacturers, or even one brand is quite relevant. The prices can be either budget or medium plus. But given the fact that direct competitors in the footwear at this location is not available, point to open,” — said Krivonos. However, Alexander Borodynya recalls that when buying shoes should pay attention to a dimensional grid: “For example, if you take a woman’s Shoe size with a minimum of 35 and maximum of 41, according to the distribution curve, the most popular dimensions would be 37 and 38. Consequently, models in these sizes, you can buy more, and the steam 35 to 41 — smaller. But again, the size depends on the type of shoes and accessories, so these nuances should be considered when purchasing,” says Borodynya.