The immense economical value of the business is testament to the global boom and social acceptance of second hand fashion items. The growth of the second hand clothing market can be attributed, not only to the fact it provides affordable clothing to all classes of people, but also because it promotes sustainability and inclusion.
Okrika as a business model and employer of labor is not a new venture, in fact, hundreds of millionaires have been made through this business over the past 30 years. The interesting part about this is, you are never too late to get into it, the reason being that there is always a steady market for Okrika.
What Is an Okrika Business?
Okrika is a popular Nigerian term for describing pre-loved clothes, shoes, and other fashion accessories. Okrika business is the business of buying quality second hand clothing at a very low cost, and selling at an even affordable retail price.
This business is open to just anybody and is very profitable because the Okrika industry is one that thrives everywhere in Nigeria, and all of West Africa at that.
Benefits of Starting an Okrika Business
As a serial entrepreneur, new graduate, an unemployed person, or even employed but you need other sources of income, the Okrika business is one you should consider investing in. This business has several significant benefits, the major ones are highlighted below:
Low Startup Costs
The Okrika business is open to people with all kinds of financial capabilities, this is because it is generally low-capital intensive. You do not need millions to start an Okrika fashion business, with as low as 20,000 Naira, you can start small.
While 20k will not get you used clothing bales, it is just enough to get leftover sales from bigger sellers, then you sell for higher.
High Profit Margins
The difference between the cost of running your business and the total amount generated is what we call profit margin.
One of the most attractive benefits of Okrika business is the relatively high profit margins that it lets entrepreneurs have. When you get your stock from a major second hand clothes supplier, it provides you the advantage of selling for very competitive retail prices.
Sustainability and Eco-Friendliness
Over the past decade, the thrift industry has boomed globally due to the public sensitization of this advantage of engaging and patronizing second hand fashion businesses. When you go into Okrika business, you contribute your own quota in promoting recycling, reducing the pollution of landfills, and ultimately saving the earth.
Step #1: Conducting Market Research
For people who are new to selling Okrika clothes, and have little to no knowledge about the dynamics of it, carrying out market research is the first stage of establishing yourself in the industry.
Conducting a well informed research of the Okrika market in your location is very necessary, as it will help to lay a strong foundation for your business. If it is going to be a success, most of the determining decisions will be made at this stage.
Your market research should help you identify what niche of Okrika is in-demand where you live, could be second hand clothes for men or women, sportswear, work garments, children clothes or school shoes. Certain Okrika products sell faster in some locations than others.
Market research also helps you to identify what sellers are doing good that helps them sell faster, and what they are not doing well so that you can improve on that with your own business.
Step #2: Developing a Business Plan
Up next, you have to develop a business plan. Endeavor to not skip this step as it will be of great value as you go into the Okrika business.
A business plan does not have to be something complex, you can simply get a special note for your business records and write out some key points that would serve as guides for you along the line.
In the business plan, lay out the kind of Okrika you intend to sell, where you will get your shoes and used clothing bales from, how much you have to invest, your target market and how best to reach them. Basically, most of the things that will go into your business plan are things you realize after conducting market research.
Step #3: Sourcing Okrika Products
After developing your business plan, the next step is to begin acting on it, which would bring us to the part you source for Okrika products that will make up your inventory. Your main goal here is to source Okrika products of the best quality that would not put a hole in people’s pockets.
Where to Source Okrika Products
Where you source for Okrika products is as important as the moment you made the decision to go into the Okrika business, probably even more important. The reason for this is, it is where most of your capital will go into, hence, the need to be very meticulous and calculative when doing so.
Places you can get Okrika products from include:
- Local Markets: there are markets where a bulk of the country’s Okrika products are put up for sale, they are often cheaper here than sellers in areas of residence. Examples of these markets are Tejuoso Market, Aswani Market, Army Arena, Katangora, etc., all in Lagos State.
- Second Hand Clothes Suppliers: sourcing your Okrika products from a major second hand clothes supplier that takes quality control of used clothing bales seriously is the best decision if you hope to achieve a much higher profit margin. A typical example of such reputable support is Zagumi.
Inspecting and Selecting Used Clothing Bales
Before completing your purchase of Okrika merchandise, be sure to inspect and confirm the quality of what is contained in the bales. It is expected by now that you have already identified your target market, and as such, will want to buy Okrika products that strictly fit into that.
Step #4: Setting Up Your Business
This is the most practical step as your Okrika business will swing into full motion after this is completed. If you are wondering how to start Okrika business in Nigeria and how to go about it, please pay attention to this very step and the information divulged in this section.
Legal Requirements and Permits
Usually, there are no legal requirements for starting a second hand clothes and okrika shoe business in Nigeria, you are not even required to register your business name, if you do not want to.
However, there are permits that must be gotten if you want to sell Okrika products. If you sell by the roadside, a shop, or stall in a local market, you must obtain a permit from the local governments. You might also be required to pay some tax and levies, as the case may apply.
Choosing a Business Location
Choose a location where there is a ready market for second hand clothing and shoes, typically a low or middle income area. There are two major factors that must be considered when choosing a physical business location:
- Accessibility: choose a location where you can be easily found in case someone asks for directions to your store.
- Surrounding businesses: buildings, institutions, and businesses in a location can help you determine if it is a great environment for business. Examples of things to look out for include churches, ministry offices, schools, markets, etc.
On another hand, Okrika business in Nigeria can be set up online, you do not need a physical shop to start or succeed in the long run. You can take your business fully digital with the power of social media, and sell from the comfort of your house. The only aspect that would require physical contact is delivery.
Step #5: Pricing Strategies
Every business is required to have a pricing strategy that helps to sell faster and maximize capital, Okrika business is not an exception. The pricing strategies that you set will guide you in selling efficiently.
Determining Product Prices
Your pricing strategy must include pointers that help you determine what befitting price to place on your Okrika wares. Since you are getting your Okrika in bales, what will determine the price of its content is the grade, season of the year, demand for that particular item, name brands, and their general condition.
Offering Discounts and Promotions
At several intervals, inform your customers of promotions that’s currently going on where they can either get items for cheaper, or with a freebie. Also, include the offer of discounts in your pricing strategy, for instance, when customers buy several things at a time.
Step #6: Marketing Your Okrika Business
To be successful in the Okrika business, you must map out and utilize a marketing strategy. Marketing is what separates a successful business from a failing one. Examples of ways to market your Okrika business include:
- Attend open market exhibitions
- Take high quality pictures and share on social media
- Advertise your wares on websites like Jiji, OLX, Nairaland, etc.
How Much Is a Bale of Okrika?
There is no definite price on how much a bale of Okrika will cost you, because this will mainly be determined by the weight of the bale, the kind of clothes, and the grade.
Buying Okrika in bales is highly recommended because it offers the most profit margin. Reach out to a second hand clothes supplier to request a quotation on how much a bale of Okrika will cost you.
How to Make Money in Okrika Business?
Making money in Okrika business is not very difficult, neither is it totally easy. However, with the things mentioned in this article put in place, and connections to the right supplier, you can make a lot of money from Okrika business.
For example, you purchase a bale of clothing for 300k, and it contains about 400 pieces of clothes. If there are 200 grade A clothes which you sell for 2,000 Naira each, and 200 grade B clothes which you sell for 1,000 Naira, by the time you sell the entire bale you would have a total of 600k.
Conclusion
Starting an Okrika business in Nigeria today is relatively easy because of the abundance of information on how to run and succeed in it. This business is feasible for everyone for its low-capital entry and due to the undying demand for second hand clothes and shoes. Make the decision to venture into Okrika business today and be on your way to self employment.
