In this article, we’ve covered how to start okrika business in Nigeria. Okrika business in Nigeria is one of the lucrative businesses you can venture into. And the business is one of those businesses you can start with little capital. But as a business, it has its own success secrets. That which we’ve exposed in this page. So if you’re looking to start a profitable Okrika Business, you’re at the right page.
What is Okrika Business?
Okrika business involves buying and selling of second- hand or fairly used wears like clothes and bags. In Nigeria, second-hand clothes popularly known OK or bend down select clothes has received a lot of market attention because an average Nigerian fall within a low income earner or middle class, and the general notion is that some of the Okrika materials are of high quality and great design. These in fact, have actually made Okrika fast selling products in Nigeria.
The clothing market is always open to those who want to start a new business like the Okrika business. Hardly will you go to any open market without seeing buyers gathered around those selling Okrika, especially if the stock had just arrive the market. A lot of passersby are usually attracted to okrika wears shop or stand because with little money they can get as many second-hand clothes as they want.
Those who sell Okrika wears buy them in a bale and sell retail. And because the Okrika sellers buy in bale, it is usually difficult for them to ascertain the grade of okrika wears within a bale. This has been one of the major challenges facing Okrika business. And if you must start and succeed in Okrika business in Nigeria, it best to tackle this challenge by buying bales from trusted dealers.
Bales and Categories of Bales to Trade on
In Case, you don’t know what a bale is? A bale is a collection of wears wrapped together. It usually contains 300 to 450 pieces of clothes or other wears. A bale may contain the following wears: Shoes, Polo shirts, Trousers, Women’s clothes, Children’s clothes, Men’s clothes, Caps and so on.
Bales are categorized into grades:
- 1st grade or grade A: These are collections wears that are relatively new with very few stains and torn.
- 2nd grade or grade B: The 2nd grade or grade B are those wears that you can still find stains and sometimes, some may need minor repairs
- 3rd grade or grade AB: The third grade contains a mixture of 1st grade and 2nd
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All that being said, let’s look at how to start Okrika business in Nigeria
Step to Start Okrika Business in Nigeria
Here are steps you can follow to start Okrika Business in Nigeria:
Learn Okrika trade
The first step to start okrika business is to learn the rules of the trade. Every business has its own rules or tricks, Okrika business is no exception. Attaching yourself to already established Okrika business dealer or doing Apprenticeship in Okrika business for 3-6 months is usually the best option of the learning intricacies, rules and tricks in Okrika business. It is important you have a good knowledge of the business you’re going into to avoid uncostly mistakes that may ruin your chances of success in the business.
Get a location
The first step is to get a good location. Where you locate your Okrika business will determine the number of customers that will patronize your business each day. A good location increases the chances of buyers locating your business. For the Okrika business, you can:
- Rent a shop: If you have the capital, you can rent a shop in the market or around the street where there are a lot of passersby and commuters.
- Rent an open space: In the market, you can use an open space to retail the okrika bales. It only requires a very small amount of money which you will have to pay as a market levy.
- Use your house: You can also sell your Okrika from your home. This one should be your last option because customers may not want to always come to the house to get what they want. But, you can also go around selling in public places like schools, offices and even the homes of those that you know.
Choose category of Okrika Bale to deal on
The next step is to choose the category of okrika wears you will deal on. You have the choice to select from different categories of clothes or wears.
- Children’s clothes
- Adult clothes
- Women’s clothes
- T-shirts and polo shirts are some of the categories that you can select from.
Make sure you choose the categories of wears that are in high demand in your location. You can only know this by carrying out a market survey or feasibility study. So, move around your business location and ask people who are already into similar business the type wear that sell fast.
Decide on where to buy Okrika Bale from
The next is to decide on where to buy bales from. There are different markets and places in Nigeria you can buy bale from. The following markets are the notable places to try: Yaba market, Balogun market, Idumota market, Katangua market. You can also go to Cotonou nearby market outside Nigeria.
It is best to partner with someone who has been in the business if you are just starting, to avoid getting into the wrong hands and also to get connected to trusted dealers.
Again, it is best to buy from a trusted dealer or liaised with someone who has experience in the business. This will greatly help you to understand how to get a high-quality bale from dealers because the quality of the wears will determine how much buyers would want to pay.
On the other hand, if you are starting small, select the best wears from those who have the bales of the category of your choice.
Determine how much to sell each wears
Your selling price should not be too high or below cost price because at this stage your number one goal is to sell-off your stock and go for another one as quickly as possible. The steady flow of new stock will attract more customers. For example if a a bale cost ₦90,000 and it contain 350 wears. Then the cost price for each wear will be ₦200. Your selling price should be any amount from ₦400 and above.
Advertise/promote your okrika business
There is no business that can succeed without a strong advertisement and promotion. The best way to advertise and promote your Okrika business is by:
- Selling high-quality wear.
- Giving discount.
- Employing the use of social media.
You should also remember that the best mode of marketing is still through the word of mouth from your satisfied customers. When you give them what they want, they will tell others about your Okrika business.
Maintain good sales record
Finally, it is good you keep record of every sale that you make because it will help you to understand how much you are making. Recording your sales will also you track your stocks and to know when to stock.
NB: Please do as much to avoid selling on credits to customers. This will always drag your record backward.
How much does it cost to start Okrika Business?
The cost of starting an Okrika business varies depending on:
- The current exchange rate of naira to dollars.
- The location of the market you want to sell the clothes.
- The grade of the bale you intend to start with.
However, on average of cost of starting an Okrika business in Nigeria is as follows:
- Cost of a bale – On average, you can get a bale at the price of seventy thousand naira (₦90,000) and above. This contains 300 – 450 pieces of clothes. The cost of buying a bale depends on the grade and the location it is imported from. Bales from the US and UK are relatively on the high side when compared to bales from China.
- Cost of renting a shop (optional) – You can sell your clothes from any location of your choice. Renting a shop is optional because it comes with an added cost to your budget. You can check out the cost of renting shops in your intended market.
- Transportation: Since most bales of Okrika are gotten from Lagos, you will have to bear the cost of transporting it to your location which varies from place to place.
The three costs above are the minimum costs that you need to bear when starting your Okrika business.
It is very important to note that someone in Kaduna may spend more on transport than another person who is based in Lagos even though they are both starting the same Okrika business. While the cost of renting a shop in Lagos may be a little higher than renting one in Kaduna.
Make sure you do your analysis with your location in mind.
Is Okrika Business in Nigeria Profitable?
Yes. Okrika Business is a lucrative business because you can make over 300k per month as profit. How? Let say you started with a bale of 400 pieces of cloths which you purchased at ₦90,000, by selling each piece of cloth for 500 (most times the selling price may exceed this amount), you will earn ₦200,000. Removing the cost of buying the clothes, you will be left with a gain of ₦110,000 for each bale.
If you can sell three bales per month, you will be making at least ₦110,000 X 3 which is ₦330,000.
Apart from the gain you stand to make in the business, the following are part of what makes it lucrative and evergreen.
- The younger generation will always want to get new clothes that are in fashion at an affordable price because they are low on income.
- You don’t need to rent a shop if you are just starting. This cuts out the initial cost of renting a shop from your start-up capital.
- You can sell them both in the cities and villages. You are not restricted by the location of the buyers as it is readily affordable by everyone regardless of location.
- There is minimal loss in the business if you do all diligence from day one. Remember that in business, you need to gain a proper understanding of how things work in your chosen business. Make sure you avoid clothes that are out of fashion and too old for usage.
- With the high rate of population growth in Nigeria, you can rest assured that there will always be growing demands in Nigeria.
- You can get Okrika wears of men, women, boys, girls, and children. This means you can focus on the particular category that will bring more returns.
- You can choose to either start small by buying from those who have bought bales, this will help you to understand the business from day one or you can start big by purchasing the bales directly from the dealers. The choice is all yours.
- The better the wears, the more sales you will make because buyers will always go for the wears that are relatively new and are in fashion.
Now, we’ve shown you how to start Okrika business in Nigeria. And also what it takes to start an Okrika business in Nigeria. We hope you will take advantage of the lucrativeness of the business and kick-start yours.
Do you have any questions? You can use the comment box below, ask and you will receive a response from us.