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How to Start a Boutique Business in Kenya

clothes business plan in kenya

Boutique business in Kenya is a trending business due to the love of fashion, especially by women. It is a profitable business if you get a good business location. The type of clothes your boutique is selling is a factor in the success of your business.

Women's clothes are in higher demand compared to those of men. Therefore, selling women's clothes can generate more sales. Boutique business is best suited in towns where there are a high number of potential customers. 

Research the Market

It is crucial that you carry out market research before venturing into the business. It will help you identify clothes that are in demand and a good business location. You also get to know where to get clothes at cheaper prices. It will also help you identify business risks and find ways to mitigate them. Talk to people who are in business and learn the dos and don’ts.

Write a Boutique Business Plan

Once you have researched the market, you can now put the facts down on paper. A business plan states the goals of any business. It should include startup costs , business location, type of clothes to sell, target customers and where to source them at cheaper prices, and the costs of running the business. 

Identify a Target Group

Targeting the right customers will help you stock clothes in demand. Market research will help you identify fast-moving clothes. In a business location with a youthful population, you should stock young people's clothes. Also, the clothes your business will be selling, like men’s wear, women's clothes, and baby clothes. 

Identify a Boutique Business Location

Before launching your business, find a good business location. Target high-  or middle-income areas . It is because people in these areas tend to buy clothes more often. By any chance, they work in offices and need to have a bigger wardrobe.  

If you are planning to set up a boutique business in Nairobi , consider Moi Avenue, Village Market, Tom Mboya Street and Westlands as suitable boutique business locations.  

Find Reliable Boutique Suppliers 

Finding a steady and cheaper clothing supplier is a great deal for your business. It is because it will leave you with higher profit margins and also put you in a better position to compete favorably with your competitors. Where to source your clothes depends on your business location.

Where Can I Buy Clothes for a Boutique Business in Kenya?

If you wish to set up your business near Nairobi, you can source new clothes from Eastleigh at relatively cheaper prices. Other places you can source clothes include Gikomba Market and Kongowea Market in Mombasa. If you are dealing with imported clothes, you can import clothes from Dubai and Turkey.

Acquire Business Licenses

To operate any business in Kenya, you need to get a single business license and permit . Its cost varies from one county to the other. On average, it goes for Ksh 10,000 a year. You can get it from the county offices or the county council offices.

How Much Does it Cost to Start a Boutique Business in Kenya?

The cost of starting a boutique business depends on its size, business location and type of clothing. If you are dealing with locally made clothes, the startup cost will be less compared to that of imported clothes.

You can start a small boutique business selling locally made clothes with about Ksh 200,000 in smaller towns. In towns like Nairobi downtown, you will need over Ksh 500,000 startup costs. The cost of starting a boutique, apart from rent, is relatively the same regardless of location.  

How to Arrange a Small Boutique

The way you arrange your boutique determines its success . Neat and well-arranged boutiques tend to attract more customers. The kind of clothes you sell will determine the arrangement. For instance, if you are dealing with all types of clothes, you can have a separate area for women's clothes, men's clothes, and baby clothes.

With that, categorize specific clothes to make it easy for customers to locate them. For instance, in the men’s clothes area, you can have an area for trousers, coats and shirts. It makes your boutique look organized.

Finally, make sure that your boutique has a changing area. It would be best if you had separate changing areas for men and women. It gives your customers the confidence to fit clothes comfortably before buying. Finally, ensure you have mirrors to help customers see how they look when fitting clothes.

Read also: How to Start a Salon Business.  

Market Your Boutique Business

Business marketing is important, especially for a newly opened business. Tell people about your business, its location and what you are selling. You can market it through social media , posters and banners, and business cards.

You can also use word of-mouth marketing through your customers. If they like your services, they will spread the word about your business.

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call 0728 621 138,   WhatsApp , or email: [email protected]

Is Owning a Boutique Profitable in Kenya?

Yes. A boutique is a profitable business if you find a good business location. On average, if your business is in a busy location, you can make a profit of between Ksh 1,500 and Ksh 3,000 in a day.

If you target the right group of customers and get a reliable and cheaper clothe supplier, your business will make higher profits. The boutique business tends to make more sales during Christmas festivities . As such, you need to have a huge stock during the month of December. Unfortunately, the boutique business may not do well if it is located in a low income area. If you wish to start selling clothes in such an area, consider the mitumba business .

To start a boutique business in Kenya, you need to research the market, plan your finances and other resources, identify a good business location, get high quality clothes from reliable suppliers and then launch your boutique business. 

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How to Start a Boutique Business in Kenya 2023 (Comprehensive Guide)

Starting a boutique business in Kenya can be a rewarding and challenging endeavor. Boutique businesses offer unique and specialized products or services to customers and can be a great opportunity to tap into local or international demand for fashion, home decor, or other niche markets. In this article, we will provide a comprehensive guide on how to start a boutique business in Kenya, covering key steps and considerations to help you succeed.

Conduct market research

Before you start your boutique business, it is important to conduct market research to understand the demand for the products or services you are planning to offer. This can help you identify opportunities and potential challenges in the market, as well as inform your business strategy and marketing efforts. Some key things to consider when conducting market research for your boutique business include:

  • Identify your target market: Who are the customers you are targeting with your boutique business? Consider factors such as age, gender, income, location, and interests to understand the needs and preferences of your target market.
  • Assess the competition: Who are the other boutique businesses in your local market, and what products or services are they offering? Understanding your competition can help you differentiate your business and identify opportunities to stand out in the market.
  • Evaluate the demand for your products or services: Are there customers in your target market who are interested in the products or services you are planning to offer? You can use a variety of methods to assess demand, including online surveys, focus groups, and customer feedback.
  • Determine the pricing and profitability of your products or services: How much will it cost to produce or acquire your products or services, and what will you charge customers? Estimating your costs and pricing your products or services appropriately can help you understand your potential profit margins and make informed decisions about your business.

Develop a business plan

A business plan is a detailed document that outlines your business goals, strategies, and resources. It serves as a roadmap for your business and can help you attract investment, secure loans, and manage your operations effectively. Some key elements to include in your boutique business plan are:

  • Executive summary: A brief overview of your boutique business, including your mission, product or service offerings, target market, and financial goals.
  • Market analysis: A detailed analysis of the local and global market for your products or services, including an assessment of your target market, competition, and demand.
  • Marketing and sales strategy: A description of your marketing and sales efforts, including how you will attract and retain customers, and your pricing and distribution strategy.
  • Operations plan: A description of how you will run your boutique business, including your organizational structure, policies and procedures, and logistics.
  • Financial projections: A detailed analysis of your financial projections, including your revenue, expenses, and profit margins.

Choose a location and setup your boutique

After you have conducted market research and developed a business plan, the next step is to choose a location and set up your boutique. Some key things to consider when selecting a location for your boutique include:

  • Proximity to your target market: You will want to choose a location that is convenient and accessible to your target customers.
  • Rent and other costs: Consider the cost of rent and other expenses, such as utilities, insurance, and maintenance, when choosing a location for your boutique.
  • Visibility and foot traffic: Choose a location with good visibility and foot traffic to maximize your chances of attracting customers.
  • Zoning and other regulations: Make sure the location you choose is zoned for commercial use

Once you have chosen a location for your boutique, the next step is to set up your business. This includes designing and decorating your boutique to create a visually appealing and inviting atmosphere, organizing your inventory and displays, and purchasing any necessary equipment and furnishings. Some key things to consider when setting up your boutique include:

  • Design and decor: Choose a design and decor style that reflects the aesthetic of your products and target market. Consider factors such as lighting, color scheme, and layout to create a cohesive and appealing look for your boutique.
  • Inventory and displays: Organize your inventory and displays to showcase your products in an attractive and visually appealing way. You may want to consider using displays and fixtures such as racks, shelves, and mannequins to showcase your products.
  • Equipment and furnishings: Purchase any necessary equipment and furnishings for your boutique, such as registers, security systems, and signage.
  • Legal considerations: Obtain any necessary licenses and permits to operate your boutique business legally. This may include a business license, tax registration, and other approvals. To register your business, you can do a business name registration from eCitizen which costs Kshs 950 then obtain KRA Pin Number using the business registration number. After this, visit county offices for a business license which averagely costs Kshs 5,000 for small boutique businesses

Promote and market your boutique

Marketing and promoting your boutique business is key to attracting and retaining customers. There are many different methods you can use to promote your boutique, including:

  • Social media marketing: Use social media platforms such as Facebook, Instagram, and Twitter to promote your boutique and engage with customers. Share photos, updates, and special offers to attract interest and drive sales.
  • Email marketing: Use email marketing to send newsletters, promotions, and other updates to your customers.
  • Advertising: Consider advertising in local publications or through other media outlets to reach a wider audience.
  • Events and promotions: Host events or promotions in your boutique to attract customers and generate interest in your products or services.
  • Word-of-mouth: Encourage customers to spread the word about your boutique to their friends and family

Manage your operations and finances

Managing your operations and finances effectively is crucial to the success of your boutique business. Some key things to consider when managing your boutique include:

  • Inventory management: Keep track of your inventory levels and restock as needed to ensure you have a sufficient supply of products to meet customer demand.
  • Customer service: Provide excellent customer service to attract and retain customers. This can include things like offering personalized recommendations, providing helpful and knowledgeable assistance, and resolving customer complaints or issues.
  • Financial management: Keep track of your finances and manage your budget effectively. This includes things like monitoring your revenue, expenses, and profit margins, and making informed financial decisions to support the growth and sustainability of your business.
  • Legal and regulatory compliance: Stay up-to-date on legal and regulatory requirements and ensure that your boutique business is compliant with all relevant laws and regulations.

Starting a boutique business in Kenya can be a rewarding and challenging endeavor. By conducting market research, developing a business plan, choosing a location and setting up your boutique, promoting and marketing your business, and managing your operations and finances effectively, you can increase your chances of success. While there are no guarantees in the business world, by following these steps and being proactive and adaptable, you can rest assured that you will have a successful business journey

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How To Start A Boutique Business In Kenya Easily For Profits

How To Start A Boutique Business In Kenya Easily For Profits

Fashion is what most people love. Dressing up in a modern style builds confidence in everything and improves your smile. Fashion outfits are always available in boutiques.

Therefore,starting a boutique business in Kenya will make you earn more income on a daily basis because people dress up daily.

In addition, I would advise you to majorly sell ladies and children outfit because they are always into trendy fashion than men although you should also have men’s wear at a minimum.

Are you wondering how to start a boutique business in Kenya? This article will be an eye opener for you because I am going to show you how to start a boutique business in Kenya:

1. Thorough research of the market as it will help you know the types of outfit in demand.

2. Write a strategic boutique business plan as this will help you achieve your profit goals. Remember,how to start a boutique business plan determines your level of success.

3. Choose your target market for example women, children, youths.

4. Select your preferred strategic position to set up your boutique business plan.

5. Find yourself trusted suppliers.

6. Get a boutique business license to avoid being disrupted by the lawsuits.

7. Rent a space at that strategic location.

8. Hire few personnel that will help you run your boutique.

9. Buy the necessary items for the start and you will top up more staff with time.

That is how to start a boutique business from home without spending much money.

In addition, you may also want to know how to start a boutique business online which is very simple. Simply have your own website where you can advertise your products online.

Cost Of Starting A Boutique In Kenya

How much do you need to start a boutique in Kenya? It cost an average of Ksh.50,000 to Ksh. 100,000 to start  your boutique business in Kenya.

Besides, you can still invest more money depending on your budget.

Profitability Of Boutique

You may be wondering, is boutique business profitable? Yes, boutique business is highly profitable as you will purchase clothes at a relatively lower price and sell it at a higher price thus earning more profits.

Places To Buy Clothes

Are you wondering where to buy clothes to start a boutique? You can buy from merchants who import their clothes from overseas such as the sellers in Eastleigh specifically in Garissa market for new clothes, shoes, bags, and accessories.

These sellers sell bulk clothes in at a cheaper wholesale price. Also, Kamukunji in Nairobi have new clothes.

If you are dealing with mtumba, then Gikomba is a good place for you. For baby clothes, you can also check out Toy market.

Ways To Arrange A Small Boutique

Are you worried that your boutique is too small.  Worry less because I have an idea that will help you. This is how to arrange a small boutique:

Firstly, ensure your boutique is neat enough to attract more customers.

Separate outfit like ladies outfit on one side, children’s outfit on the other side so as to avoid confusion.

Let classy clothes appear first to attract people so as to be able to sell more clothes.

Changing area is also key in your arrangement so that people can try outfits before buying. Separate male changing area from females.

New Boutique Checklist

Opening a boutique checklist involves having:

1. A business plan.

2. Decorations.

3. Racks and shelves.

4. Payment system.

5. Merchandise.

In brief, boutique business will help you become successful in life in terms of money due to high incomes at the end of the tunnel. Invest today in your boutique and enjoy the fruits in future.

Kenyans Consult

At Kenyans Consult, we are proud Kenyan writers. We write anything that pertains to Kenya and is worth sharing. We hope to share more about Kenya with the world through our writing. Check our articles to learn more about Kenya.

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Pivot, Adapt, Grow: Building a Fashion Brand in Kenya

April 4, 2023

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Starting a business is hard enough. But growing it can be exponentially harder — especially when crossing borders and continents and in a business as fickle as fashion. Wandia Gichuru is experiencing it all as founder and CEO of Vivo Fashion Group, based in Nairobi, Kenya. Gichuru thinks about her business beyond simply selling clothes. We can be “warriors for economic growth,” she explains. Hear her story of lucky breaks and quick pivots, strategic growth and purposeful passion.

Wandia Gichuru began her career in international development. Today, she sees her business in a similar light, and with even more passion. She believes the fashion industry has the potential to transform economies on the African continent because, as she explains, “They haven’t found a way for robots to stitch clothing. You need to hire people.” And, she continues, “It’s not just the people behind the machines, it’s also the designers, the cutters, the bundlers. It’s the models, the makeup artists, the photographers. There’s just an entire industry that I believe could contribute a significant percentage to our GDP.”

When Gichuru started her business, it was focused on selling dance and fitness clothing online to meet her own needs. Ultimately — by default, not design — she chanced upon a huge gap in the market: good-looking, comfortable, well-fitting clothes for African women’s body shapes and sizes. Luckily, she had a built-in focus group to identify customer needs. “When ladies spend an hour in your store trying on 20, 30 different things, they talk a lot. That’s where we got our market research,” she says.

She began by importing clothes from Asia, but quickly pivoted to designing and producing locally. “The local fashion industry had become almost nonexistent. We got flooded by all the secondhand stuff. And so the local textile mills that existed in the ’70s and ’80s, one by one, they all shut down,” she explains. The production move was a big decision that not only differentiated her brand, but also improved her bottom line and impacted her community.

After seven years, Gichuru had six stores and 70-plus employees. But, she admits that she didn’t have a proper strategy, an effective board, or the right systems and processes to truly scale. She admits, “I was completely overwhelmed.” Gichuru got help from the Stanford Seed Transformation Program, a 10-month program for CEOs and founders of established businesses in Africa and South Asia to help them grow and scale their companies. “One of the first things we did was the business model canvas, which asks you to articulate your value proposition and answer key questions like who are your customers? Who are your suppliers? What is your marketing? What are your channels?,” she reflects. This exercise gave Gichuru the start she needed to build a foundation for expansion. Today, Vivo has 20-plus stores, has expanded to Rwanda, and has plans to grow across East Africa — and one day, hopefully, across the Atlantic.

“I would love Vivo to get to that level. I think for so long, you know, people see Africa as a place you get your raw materials from and then you do your value add somewhere else, and then you either sell it back to us or wait till you use it and send it back here as a used thing. I just think we need to prove to ourselves and to the rest of the world that we’re just as capable, and actually we can come up with solutions, products, and services that people outside of Africa will benefit from and need as much as we do,” she says with passion.

Listen to Gichuru’s entrepreneurial story from startup to scaling and hear how she’s growing both her impact and her bottom line.

Listen & Subscribe

Grit & Growth is a podcast produced by Stanford Seed , an institute at Stanford Graduate School of Business which partners with entrepreneurs in emerging markets to build thriving enterprises that transform lives.

Hear these entrepreneurs’ stories of trial and triumph, and gain insights and guidance from Stanford University faculty and global business experts on how to transform today’s challenges into tomorrow’s opportunities.

Full Transcript

Wandia Gichuru: But I think the “why” for me is also really important because you can have all these revenue goals, expansion goals…

Darius Teter: Growing a business on your home turf is hard enough, but what does it take to expand into other countries or even across the world?

Wandia Gichuru: …but it’s sort of: What are we trying to do, and why does this matter, and how are we trying to be part of changing this industry and lifting this economy and creating employment and giving people more dignity and generating livelihoods? I mean, to me it’s so much more than getting to 30 stores.

Darius Teter: Welcome to season three of Grit & Growth from Stanford Seed, the podcast where Africa and South Asia’s intrepid entrepreneurs share their trials and triumphs with insights from Stanford faculty and global experts on how to tackle challenges and grow your business. For the first episode of the season, we’re staying true to our name and bringing you a story of growth. I guess, in some ways I’m surprised you haven’t done a podcast before. You’re like the perfect podcast guest, so maybe there’ll be more. That perfect podcast guest I’m talking to? That’s Wandia Gichuru.

Wandia Gichuru: My name is Wandia Gichuru and I am a Kenyan entrepreneur and I founded and am the CEO of the Vivo Fashion Group, which is a fashion business based out of Nairobi, Kenya.

Darius Teter: Wandia has spent 12 years building Vivo into a nationally recognized brand, and now she wants to expand beyond Kenya, across East Africa and, potentially, across the Atlantic.

Wandia Gichuru: So right now we have 21 stores in Kenya, one in Rwanda. So that’s our first — we only opened that beginning of this year — and it’s our first store outside of Kenya. We plan by the end of next year to have 30 stores in total, and I think out of the eight that will open, probably four will be outside of Kenya. So we’re very determined to expand through our own stores in other parts of East Africa.

Darius Teter: But we’re not going to start with that first store outside of Kenya. I’m going to take you back to the very beginning, because the foundation of Vivo’s expansion was built long before they crossed any borders. In fact, many of the lessons that brought them here are the same ones that will get them there, to Rwanda, America, and perhaps around the globe. We’ll hear about the needs-finding, brand building and adaptability that put Wandia on the map, plus the many pivots that made Vivo the company it is today. Actually, Vivo itself was something of a pivot. Was it always your dream to create a fashion brand?

Wandia Gichuru: Absolutely not. I have no background in fashion or in design or in retail or in manufacturing. So no, not at all. I studied economics at university and then went into international development. I was a policy adviser for almost 20 years before I went into business.

Darius Teter: How did we go from that to — is the correct name Vivo Active?

Wandia Gichuru: Well, Vivo Activewear is what we initially called the company because we started it — and I say “we” because I started with a good friend. While I was trying to figure out what I wanted to do next, she had just left her job and we were doing a ton of dance classes and yoga and Pilates and all this sort of fun, healthy stuff, and realized that there just wasn’t merchandise. We wanted to buy dance shoes and proper Pilates equipment and stuff like that, and that just didn’t exist in the market.

And so we were like, “Oh, okay. Well, if we’re looking for it and can’t find it, I’m sure there are other people who must be experiencing the same thing.” And that was the original idea for Vivo, to supply dance and fitness. And we were going to do it online only. And within a couple of months, my house had turned into the store, because no one wanted to buy anything they hadn’t seen and tried on. And so it was crazy. I didn’t have a living room, there were boxes everywhere with inventory, and so we decided at that stage that we would open a physical store. And when we did that —

Darius Teter: Well, before we go to the physical stores — sorry, I should warn you, I tend to interrupt people.

Wandia Gichuru: That’s good!

Darius Teter: And it’s because I want to dig down into certain things, because one of the things that frustrates me about entrepreneurial podcasts is there’s always this leap, like, “Well, we had this idea that there’s a need here we needed to fill.” And then the next sentence is, “And then we started selling this product out of the living room.” And I want to understand: you’re an international development economist. How did the clothes get made? Who designed them? I understand spotting a white space.

Wandia Gichuru: So to start with, we literally just bought stuff from other countries. So I ordered a bunch of stuff out of the UK, a bunch of stuff out of South Africa and then China. So those were the three places we sourced from and made tons of mistakes. So for example, before I tested any of the product, some of the suppliers said, “Well, if you buy this volume, you’ll get a better price.” So I just bought more than I should have because I thought it would end up being cheaper and I just assumed everything would sell. And of course, some of it didn’t sell at all, and I was stuck with a ton of dead stock.

Darius Teter: While Wandia made plenty of rookie mistakes, she also benefited from some beginner’s luck.

Wandia Gichuru: When we decided that my house wasn’t going to be the option in the medium term and we should open a store, we went to one of Nairobi’s largest malls, which happened to be really close to where I live. And they had just built a second wing. And we walked into the management office and said, “We’d like store space.” And they’re like, “Oh, so what’s your business?” And we sort of gave the name and they’re like, “Oh, that sounds really interesting. Actually there is one space left.” And they said, “Look, put an application in quickly. We’ll need your business plan.” And we didn’t have a business plan. So I came home and downloaded a template from the internet and just threw numbers in and went back the next day and said, “Here’s our plan.” And they said, “Great, you can have the space.” And it was only a couple of years later that I met people who said they’d been on a waiting list for a year waiting to get a space at the mall and hadn’t gotten one.

So sometimes it’s just that luck and timing and who you meet and who likes your story. Because that location ended up being the best thing that happened to us. If we had opened at another location, I don’t know that the business would’ve generated enough income for us to keep investing. Because I blew all my savings on this one investment. Getting that store took almost $80,000 to set up. And then we panicked and we were like, “Oh my God, we’ve just signed a six-year lease. Rent’s going to go up every year by 10 percent. What if there are not enough people to buy dance stuff?” And so that’s when we decided to introduce a clothing line that would complement the dance stuff. So then we picked stretchy fabrics, things that looked like you could almost exercise in them, but were also sort of more regular clothing. I just did a trip to Bangkok and went to the wholesale markets and just bought a whole bunch of stuff.

And when we opened the store, that’s what everyone loved. Hardly anyone bought any of the dance stuff and people just loved the clothing. But the reason people liked it so much is not because they were into the leisure look, but because the clothing was super comfortable and it fit better than a lot of the clothing that was available on the market, because of the kind of fabrics that we chose. But we didn’t choose those fabrics for that reason, we chose those fabrics because we thought they went along with the fitness stuff. And so we kind of — not by design but just by default — stumbled upon a challenge that a lot of people were facing, which was finding clothes that look good and were comfortable and fit well on African women’s body shapes and sizes. And so once we understood that that’s what people loved, we started bringing all kinds of other clothing that isn’t necessarily linked to fitness but is designed specifically for this customer in mind, which is a woman of color, basically.

Darius Teter: Wandia had chanced upon a real gap in the market, a gap that she soon discovered was no accident.

Wandia Gichuru: I would say 95 to 98 percent of all the clothing in Kenya is imported, the bulk of which is secondhand. But even the 20 percent that’s new, it was not made for this customer. So when people in North America and Europe and other parts of the world get rid of their clothes, those clothes get sold to agents or organizations. There are at least 50,000 people employed in logistics companies, that’s just in the U.S., that do nothing but bundle these clothings into packages and then sell them.

The volumes are out of this world — the amount of clothing that gets thrown away, given away. And it’s only gotten more because of fast fashion, because of social media. A lot of people want to only be seen once wearing an outfit. They’re buying super cheap fast fashion stuff. And so all of that has to go somewhere. And most of it is synthetic, and so it’s not even that easy to get rid of. So it ends up coming in massive container loads to countries like Kenya. And that is what 80 percent of Kenyans wear, many people down to their underwear. There are many Kenyans who have never bought a new item of clothing in their lifetime.

Darius Teter: I really hope there’s nobody running around in my underwear.

Wandia Gichuru: Yeah. And, unfortunately, about 30 to 40 percent of what ends up here is not even sellable. It’s like soiled, dirty, torn, and ends up in landfills. It becomes garbage on this side of the ocean.

Darius Teter: Decades of these cheap imports took their toll on Kenyan clothing manufacturers.

Wandia Gichuru: The fashion industry, the local fashion industry here, had become almost nonexistent. We got flooded by all the secondhand stuff, and so the local textile mills that existed, I think in the ’70s and ’80s, there were about 20, 25 pretty large textile mills. One by one, they all shut down. And it just became harder and harder and harder to compete because the secondhand products are very cheap.

Darius Teter: The destruction of the local textile industry left Kenyans with the scraps: cheap, ill-fitting, and sometimes secondhand clothing. With her stretchy fabrics and eye for color, Wandia had accidentally stumbled upon that gap in the market. And now that she understood the root cause, she could address those needs even better. So she adapted her business once again.

Wandia Gichuru: So the second big pivot then was when we decided to start making and designing, producing, locally. And that’s because the clothing that we were buying from Asia was just too limited. A lot of clothes that when you buy stuff off the wholesale market in places like Thailand, literally come in one size because 70 to 80 percent of Thai women are within a really narrow sort of height range and weight range and stuff like that. So I mean, that was only catering to a very small percentage of Kenyan women. And so when we decided to start designing and manufacturing locally, we took all the lessons that we’d learned from what we’d offered for the two years before that and just expanded it now. And so we were able to introduce a much wider size range and many more colors and prints and things that, again, may not seem so obvious, but a typical Caucasian may not be as comfortable wearing bright orange or bright yellow dresses, whereas on dark skin tone, it just pops.

And it was weird, because in the beginning a lot of people said, “Oh, Kenyans don’t really like local. They think imported products are better, so don’t tell anybody, don’t advertise it.” So because at that point I think we had four or five stores, we literally just started producing and putting stuff on the racks without saying that it was made in Kenya. And no one could tell the difference. We were buying the same sort of fabrics that the products we imported were made from, were using. So the sewing machines are Japanese or Chinese, the threads come from… You know what I mean? So why would it be that different? I’ve never bought into that “local is inferior” argument.

Darius Teter: It turns out that many Kenyans felt the same way. So what started as a practical decision became a differentiator and a story that propelled Vivo forward.

Wandia Gichuru: What we also then realized was, actually, sentiments are changing, and maybe my generation and older, my parents’ generation, might have felt that way, because they lived through colonialism and all that, but younger generations don’t feel like that at all. In fact, they’re quite proud to buy local and wear local. And then we started to talk about it more, and then the story really got exciting, and in fact we got a lot more media coverage. Journalists wanted to write about it, TV stations wanted to come and interview us. We definitely started getting a lot more local coverage in the press and a lot of PR. And so there was a lot of excitement. And I’d like to think that we also have been instrumental in sort of opening the doors for others, because we’ve seen a lot more local brands come up in the last six, seven, eight years.

Darius Teter: Vivo had two major pivots in its first few years. Those pivots were successful because they focused on customer needs. And the way you discover those needs doesn’t have to be some big formal operation. Vivo is a great example of how that process can be baked into your company’s DNA. You talked about the sort of lessons you learned over two years of selling this clothing that you had sourced in Asia. Did you ever — going back to standard marketing, good best practice — did you ever do a focus group or customer need-finding exercise? Was there any sort of formal process where you tried to elicit a better understanding of the customer needs?

Wandia Gichuru: Nope. None. I mean, we listen to our customers. And when ladies spend an hour in your store trying on 20, 30 different things, they talk a lot. So that’s where our market research was, just real-time listening to the customers, listening to what they liked, what they didn’t like, what they asked for and we didn’t have.

Darius Teter: In our previous marketing master class with Stanford professor Jonathan Levav, we spoke about the importance of knowing your customers. Here’s what he had to say.

Jonathan Levav: People think that their task is to make a product, their task is to understand customer needs and to create a product that meets those needs. And I think that if you’re a CEO of a company and you don’t speak or interact with customers at least once a week, you’re not doing your job. I had a participant once, she had some company that made rice. She needs to go to a grocery store and watch people choosing rice, see how much time are they spending, what are they looking for? Intercept somebody and say, “Hey, why do you choose this rice over this rice?” See what kind of answer you get. Maybe they say, “Oh, I like this one better than this one because it’s cheaper.” Or, “I buy this one because my mom used to buy it.” Or, “I buy this one because I like the color pink and the packaging is pink.”

It gives you a lot of information that then you can follow up on and sort of study more systematically. So you got to get out of the office. You’re never going to solve these problems staying in the office. And by the way, you, the boss, need to get out of the office, not just your underlings, not just your marketing person. You need to feel it on your flesh. Maybe you don’t go out that often — as often as the marketing person does — but you need to feel it on your flesh. Unless you feel it on your flesh, it’s not going to work.

Wandia Gichuru: In the years later, I’ve tried a couple of focus groups, and it’s great. But I mean, it’s 10 people and it’s 10 different opinions. But we have, in any given month, several hundred if not a thousand customers that come in. And so the data now that you can get and use, if you’re able to attribute different aspects of your product in your data, then you can start to see, “Well, when you do these kinds of styles in this fabric, it works really well. It sells out in a couple of weeks. And when you do it in this fabric, it doesn’t move.” So the data tells you a lot as well.

Darius Teter: If you were to describe the customers for Vivo, how would you describe them?

Wandia Gichuru: Well, it’s typically a woman in her 30s and 40s, but we do have customers in their 20s and in their teens and in their 50s, 60s, 70s. So it just depends. I mean, my mother wears Vivo. A friend’s mother who just turned 84 bought a jumpsuit last week at a Vivo store. So it really depends on the individual. But a lot of our clothing is casual, smart casual, very versatile. So it’s stuff you can wear to work, dress it up, dress it down, a lot of basics. And people like the versatility, they like the fact that you could buy something and wear it three different ways and lots of different types of occasions. But yes, so typically, it’s a more mature professional woman. Our price point in Kenya would be considered medium to high. In the US it would be low, we’d be considered in the lower, not the lowest of the low, but our average product is about $30, $35.

Darius Teter: So one of the things that they also cover in marketing here is describing your customer, not by demographics but by needs. And you actually did that naturally, because you started out by saying, yeah, 30 to 35, but also 60, also 70, even 85. And then you describe the actual need, which is comfortable, colors that are popular in the African context, a fit that’s more shaped to our bodies, and versatile, you could wear it to work, you could wear it casually. Those are all customer needs and they defy the age segmentation. So I think you’ve naturally gotten to that place, which is “I’m fulfilling specific needs, not specific age demographics.”

Wandia had carved out a nice little niche for herself, but she was still new to running a business. I want to talk a little bit about your business growth story. So you had a couple of stores. I understand by year six you had seven stores, you had 70 employees, and you kept on growing. And as somebody who never imagined they would be an entrepreneur, what were some of your challenges as an entrepreneur?

Wandia Gichuru: I think at the stage, by year six and the stage you’re referring to, I still had a very thin management team. So I had stores with sales staff, I had a couple of designers, we had maybe 20, 30 people on production. But I still didn’t have a proper strategy, I didn’t have an effective board. We were building it without a foundation, if that makes sense. I didn’t really have proper systems and processes. And so I was completely overwhelmed.

I mean, I remember discovering that we had had a theft at one of the stores, and it was some of our own team that was every day, instead of banking the full amount of revenue, they would just take a little bit off the top. But it took almost three to four months for me to even realize that, because I was trying to do the reconciliations myself. I didn’t even have a full-time finance person on the team. And at some point, I just was too overwhelmed to even do that. So I let a couple of months slip by and then realized, “Oh my God, there’s all this missing money.” When you say what was the challenge? It was a lot.

Darius Teter: Wandia had reached a plateau. She’d created a strong business, one with a lot of potential, but didn’t know how to grow it further. And that’s a point where many entrepreneurs get stuck, and that’s also when Wandia crossed paths with us at Stanford Seed. So your business is growing so fast, you don’t have a management team. At what point did you enter this Seed Program in that journey?

Wandia Gichuru: Yeah, right around then. I mean, I think literally, year six or seven. And I knew I needed help, I knew I needed to step back from just the day-to-day craziness and sort of think this through. I wasn’t sure what exactly was out there and what sort of programs I could apply to. But Kenya has a couple of business schools, there were a few other incubator type programs that people had talked about. And then somebody forwarded me the flier for Seed. And immediately, I was like, “Oh my God, this is exactly what I need.” And I had an MBA, but I had done my MBA 20 years before. I had hardly worked at all before that and never had my own business, and so I’d forgotten everything.

Darius Teter: In many ways, growing a business is completely different than starting a business. You’ve got to build and formalize structures, communicate your vision, and empower others to fulfill it. That’s exactly what the Seed Transformation Program helps you do.

Wandia Gichuru: It was just looking at the business in these different segments. One of the first things we did was that business model canvas , which sort of asks you to articulate: What is your value proposition? Who are your customers? Who are your suppliers? What is your marketing? What are your channels? Even just being able to organize the business into a framework that you can then start to see, “Okay, well actually, yes, there’s a lot we can still do there, but it’s not that bad. But in this other area — wow.” So that was incredibly helpful. I think I had also just hired a finance person maybe the year before, so after the theft that really highlighted the need for somebody to be looking at the numbers on a daily basis. We also got a better auditing firm. And then one of the first things I did, either during or immediately after the Seed Program, was establish a real board. And I even invited one of my Seed participants to join the board.

Darius Teter: Advisory and fiduciary boards are another subject we covered on this podcast before. On the episode “ Brain Trust ” back in April 2022, we spoke about the value they can bring to your business and how to build one yourself. Assembling a board quickly paid off for Vivo.

Wandia Gichuru: Once we then got this board in place, and they pushed me to be more ambitious, so I remember sort of one year presenting a plan for the next year, and we were going to open two stores only using retained earnings, which is what we had done for the first seven years. And they said, “Why are we only opening two? Why not open five?” And I’m like, “Well, where are we going to get the money to open five?” And they said, “We raised it.” And so I think we raised $300,000 or something like that by the directors and by friends and family, literally. And since then, we’ve done two other small raises. So I think in the history of the business, we’ve raised a million dollars in total, and our revenues this year will probably be close to $7 million and by next year should be at the $10 million mark.

And that’s just with the East African expansion. That’s not including the U.S., that’s not including anything outside of Kenya, Uganda, Rwanda, maybe Tanzania. By the end of the Seed Program, when we had to do the transformation plan, which was, I think in my case, I did a six-year plan that has shaped pretty much the direction that we’ve taken over the last six years. It’s incredible. I mean, I dusted it off the other day because I hadn’t looked at it since COVID. And I was very, very happy to see that we’re pretty much on track to get to where we had said. We wrote that in 2016, 2017. And so we had goals up to 2023. And our goals for 2023 are pretty much aligned to what we had said where we’d want to be in the T [transformation] plan.

Darius Teter: Armed with what she learned in the Seed Program, Wandia is ready to grow Vivo, and that means expanding beyond Kenya’s borders. But expansion brings its own challenges. You’ve got to deal with a whole new set of laws and a more complex supply chain, not to mention a different cultural context. And while there are various strategies to address these issues, you’ve got to find the one that works for your business. Have you considered a franchise model for this expansion that’s more asset-light?

Wandia Gichuru: We haven’t considered franchise, and I’ll maybe say a bit about that, because we watched the experience of the South African brands that came into Kenya through franchises, the clothing brands. And that includes Mr Price, Woolworths, Truworths, and a number of other ones. And they all ended up buying back their stores. And I think part of the challenge with clothing is, if you’re not sourcing your clothing locally, it becomes very expensive because you have to import it into the country. And if you want to price competitively, the margins just get smaller and smaller. And then if you’re sharing that between the franchisee and the franchiser, then it doesn’t really work that well for either side. So what we’re looking at outside of having our own stores is a sort of wholesale or consignment model. So even now we have people in South Sudan who have just placed an order and they want to sell Vivo in their boutique. So rather than going to Turkey or China and sourcing product from there, because they don’t make their own designs, they’re like, “Oh, why don’t we carry the Vivo brand in our store?” So that’s exciting.

Darius Teter:  Another avenue for expansion is through the internet, which can make your product visible to everyone regardless of geography. But it’s not as simple as just opening an online store and raking in the cash.

Wandia Gichuru: Even though we’ve invested heavily online, at least in our experience, 90% of our revenue still comes from our stores. But we believe online drives a lot of that traffic into stores as well. So online is not just selling, we don’t just see it as the selling channel, we see it as how to raise brand awareness, how to entice people about particular collections or particular products. And I think the omnichannel way of thinking about it is, to me, where the magic lies. It’s how these different channels reinforce each other.

Darius Teter: To gain traction, Vivo has approached the online market a little bit differently. In fact, they’ve spun off a whole new business. And as I understand it, you’ve launched an online fashion platform, Shop Zetu?

Wandia Gichuru: Yes.

Darius Teter: That includes other local brands as well.

Wandia Gichuru: Yes. So we started to explore what’s out there for fashion, what’s happening in the rest of the world. And we realized that even in countries where there’s incredibly successful marketplaces like Amazon, you will still find other marketplaces that are purely dedicated to fashion. And the thesis there is that it’s almost the difference between going to a supermarket or going to a boutique department store. So people don’t necessarily want to go to a website and have to comb through electronics and food or whatever and see dresses sort of in the middle.

And so the more we researched around the sort of success of fashion marketplaces, we realized there wasn’t anything like that here, and especially not anything that was targeted to the African consumer, the local consumer. So there are some marketplaces that sell African fashion brands, but they do it promoting it to the rest of the world. So they’re sort of like, “Oh, U.S. customer, Europe customer, if you want to buy African brands, shop through us.” Whereas we’re saying there are 50 million Kenyans, 200 million East Africans who get up and get dressed every day and buy new clothes. And where online can you go to find what’s on offer, what’s out there? And that’s sort of where the idea for Shop Zetu came. We currently have about 180 brands listed on the platform and that number’s growing all the time.

Darius Teter:  Wow. So 180 fashion brands. Are these local East African fashion brands, are these your competitors?

Wandia Gichuru: Yes. I mean, they’re Vivo’s competitors, but Shop Zetu is a platform, so it doesn’t really own the clothing. But we try to push brands because I am such a believer in the power of brands, and we need African brands to become household names, to become very strong.

Darius Teter: This is fascinating to me because, in a sense, you’re promoting the whole industry. I mean, you’re helping others go on your journey that you started 12 years ago. And I guess the business model is you get fees for sales commissions, something like that, or some sort of package deal. So anyone who wants to list on your platform, you’re getting some cut of the business.

Wandia Gichuru: So we take a 20 percent commission on sales, and then we’ll also charge for the different value-added services.

Darius Teter: To find success abroad, Vivo is turning to the same strategies that help them thrive at home.

Wandia Gichuru: One of the things we’re realizing, though, and this is through even just the Rwanda experience, is, you can’t just assume that because these are the styles that work in Kenya and this is the price point that works in Kenya, that that’s necessarily what’s going to work in Rwanda. So there’s some things that are hugely popular here and don’t sell there at all. And I mean, there was one particular dress that was doing so well in Kenya and we sent it there and it just wasn’t selling. And I happened to… We had hosted an event for Shop Zetu and invited a Rwandese fashion designer to come and speak at the event.

So she happened to be in town, and she came and visited us at Vivo as well. And so because we had her in the room, I was like, “Can you help us understand why this style is not doing well in Rwanda?” Because it was a full-length dress, it was in bright yellow, and it was in a particular kind of fabric. And my team said, “Oh, Rwandese people just don’t like yellow.” And this lady said, “Not at all. The problem is that it’s off-shoulder.” The design, the shoulders were bare. And she said, “Rwandese women are conservative. They’re more conservative than Kenyans around what skin they’ll show.” They’ll wear something sleeveless, but very few will want to wear something that sits off your shoulder. So it’s things like that.

Darius Teter: I mean, this tells me that you have more work to do for your regional expansion. I mean, so, obviously, Ethiopian, another body type altogether and color preferences, style preferences. I mean, this is the meat and potatoes of customer needs-fulfilling or solving problems. So it sounds like you kind of need to formalize this research project into these new markets.

Wandia Gichuru: One of the things that, again, it goes back to one of your earlier questions around focus groups and stuff like that. I’m a big believer in just sort of testing. The mistake we made with that dress in Rwanda is we sent a lot. And if we had sent fewer, it would’ve been a cheaper lesson to learn. We opened in Rwanda in COVID, so we weren’t even able to visit and spend a lot of time there and talk to people or anything else. But I think with other countries, we will do more talking and testing and also bring people in on the design side and on the production side.

So even now I’m looking for a Rwandese designer that can help us, work with us on a collaborative project, come up with a collection, and also just to engage more so that you are not just a foreign brand. Yes, we may be Kenyan and we’re neighbors, but Rwandese people are still very proud of being Rwandese and they have their own designers and their own… So how do we partner with them on that sort of thing and bring some of their designs to Kenya? And when I think of Vivo in the next five, 10 years, I see it being Pan-African and seeing having the best of the sort of Nigerian designers and Ghanaians and South African designers and having their product sold in Vivo stores all over the continent.

Darius Teter: Vivo is taking the lessons they’ve learned from their regional expansion and applying them to grow their reach even further.

Wandia Gichuru: That’s the Africa ambition. I mean, you sort of touched on this other ambition, which is the U.S. market. And we’re going to start small, but the thesis is that the African American consumer probably faces similar challenges to the Kenyan consumer, in the sense that there are very few global brands that make for the body shape, size, skin tone of a woman of color. And so, again, we’ve had anecdotal evidence of this, we’ve had people, African Americans or Caribbeans, come into our stores and go crazy. And I’m always like, “Where do you live?” And they say New York or Atlanta. And I’m like, “But why are you buying so much Vivos?” “Because we don’t have a place like this. We, there are very few stores that we can walk into and feel like, Oh my God, this store was made for me. The products here speak to me and at a price point that I can go nuts.”

Darius Teter: It’s exciting, actually. I mean, why not have a Kenyan brand that’s well-known in the U.S. and doing well in the U.S.? I love that ambition.

Wandia Gichuru: And Zara started in a tiny village in Spain, and most people who buy it now —

Darius Teter: I did not know that.

Wandia Gichuru: Yeah. Most people probably think it’s an American brand. No. I would love Vivo to get to that level, not from an ego point of view, but just because I think for so long people see Africa as a place you get your raw materials from and then you do your value add somewhere else, and then you either sell it back to us or wait till you use it and send it back here as a used thing or whatever. And I just think we need to prove to ourselves and to the rest of the world that we’re just as capable, and actually we can come up with solutions and products and services that other people outside of Africa will benefit from and need as much as we do. So in the fashion space, we want to be part of that story.

Darius Teter: Wandia’s story illustrates so much of the entrepreneurial journey. Your success may not derive from your first idea. Being able to learn from your mistakes and pivot quickly is key. I often remind our listeners that Uber started as a limousine service, not a ride-sharing business. And the same is true of so many of the largest companies in the world. Wandia also recognized that as her business grew, she could no longer manage it like a startup. She needed to build a team and systems to get beyond that founder’s plateau. So many businesses get stuck at this crucial inflection point.

Adding a board was also important. It brought a measure of accountability, but also challenged Wandia to be more ambitious and helped her raise capital. And while there was some good luck along the way, I’m reminded of Stanford professor Baba Shiv’s comment that, “We make our own luck.” At every stage of her entrepreneurial journey, Wandia sought out and listened to her customers. And that needs-finding is pivotal. Not only will it give you the foundation you need to grow, it can guide your strategy when you’re in new and unfamiliar territory.

Whether It’s serving an overlooked population or combating fast fashion or igniting pride in African craftsmanship, Wandia is focused on growing her impact, not just her bottom line. Even now, as she sets her sights across borders and oceans, she’s thinking about what expansion makes possible at home in Kenya.

Wandia Gichuru: But I think the “why” for me is also really important. Because you can have all these revenue goals, expansion goals, but it’s sort of: What are we trying to do and why does this matter and how are we trying to be part of changing this industry and lifting this economy and creating employment and giving people more dignity and generating livelihoods? I mean, to me, it’s so much more than getting to 30 stores. I want to see a Kenya and an Africa where anyone who’s buying secondhand clothes is doing it by choice, not because they have no other option. This shouldn’t be the only way that 80 percent of Kenyans can get dressed. All that tells me is that people don’t earn enough money. And so we need to get people earning more and having more choices. One of the biggest challenges that we face in this part of the world is the fact that there is so much unemployment and so many young people who come out of school, and if they’re lucky, they go to university and even those come out and don’t necessarily find any employment.

And right now in Kenya, we have 4 million unemployed people. And so the same passion… The reason I went into development, international development, whatever, was because I want to see a world where more people have easier lives, have opportunities, have fulfillment, and now — this is so tiny in terms of its scale — but I still come to it with the same sort of purpose. And I think where I’ve landed now is because I’ve realized, I know what potential the fashion industry can have to transform the economies on this continent if we just recognize the pieces that have to come together. Because making clothes is still one of the most labor-intensive manufacturing processes. Actually, making fabric, you don’t need that many people; 90 percent of it is done by machines. But they haven’t found a way for robots to stitch clothing. So you must hire people. That alone is, to me, a huge opportunity.

If we made more of the clothing that Africans wear on the continent, we could hire so many more people. And it’s not just the people producing behind the machines, but it’s the designers, it’s the cutters, it’s the bundlers. I mean, there are all these stages. It’s the people who create the content, it’s the models, it’s the makeup artists, it’s the photographers. I mean, there’s just an entire industry that I believe could contribute a significant percentage of our GDP. And so I see ourselves as warriors for economic growth as much as we sell clothes, but underneath that…

Darius Teter: I love that.

Wandia Gichuru: Yeah.

Darius Teter: I want to thank Wandia Gichuru. You’ll be hearing more from her in an upcoming episode. This has been Grit & Growth from the Stanford Graduate School of Business. I’m your host, Darius Teter. If you like this episode, follow us and leave a review on your favorite podcast app. Erika Amoako-Agyei and VeAnne Virgin researched and developed content for this episode. Kendra Gladych is our production coordinator, and our executive producer is Tiffany Steeves, with writing and production from Andrew Ganem and sound design and mixing by Alex Bennett at Lower Street Media. Thanks for joining us. We’ll be back soon with another episode.

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clothes business plan in kenya

Starting a Mitumba Business in Kenya: All You Need To Know

Money254

Imagine getting into a business venture with just Ksh500 early in the morning, buying 10 second-hand clothing articles at Ksh50 each and flipping it into Ksh1,500 at the end of the day.

Sounds too good to be true, but if done the right way, there’s a lot of money to be made in the mitumba business.

The 200% profit (Ksh1,000) realised from the example above is not something that can be achieved in most comparable businesses. If you then double your daily capital input to Ksh1,000 and still sell each item at Ksh150, this then turns into Ksh3,000 gross from 20 items. 

This can then be scaled even further to a point where you are actually importing your own consignments from China, Australia, Canada, or the UK - as opposed to buying from a middleman in Kenya. 

However, as is the case with all roses, there are thorns, and with every business comes risks. The secret is taking calculated risks and accepting that losses are just part of the process/business.

When it comes to mitumba business in Kenya, you’ve probably heard of ‘kuchomeka’ which is simply slang for taking a major loss.

There are also several other funny tales that have done the rounds regarding the mitumba business e.g. a vendor opening a bale expecting baby clothes only to find football jerseys from the Chinese league or something along those lines.

The goal of this article is to demystify all the stories surrounding the mitumba business in Kenya by getting to understand what it takes to be part of this industry.

How to Start a Mitumba Business in Kenya

Let’s start by looking at what it takes to actually get in the business of second hand clothes in Kenya.

Despite being often overlooked, selling used clothes in Kenya has proven to be very profitable for most people. However, one must have effective strategies and the willingness to do things differently.

Let’s start with the basics.

There are several reasons why selling mitumba is more popular in Kenya than selling new designer clothes. These include:

  • More options: Customers can choose from a large selection of secondhand clothing
  • Low initial capital requirements: A mitumba business can be started for as little as Ksh 1,000.
  • Flexibility: To sell mitumba clothing, you do not need a permanent business location.
  • Steady customer base: Because mitumba clothing is less expensive than new clothing, most Kenyans prefer it. 

To start a mitumba business in Kenya, you will need anywhere from Ksh1,000 to Ksh 500,000. It all simply depends on how much stock you are willing to take and consequently, how much risk you are willing to take on as well.

The capital required to kickstart a second-hand clothing business will vary depending on your location, type of bales, and business model (that is, hawking or selling in a permanent location) etc.

With Ksh500, you can visit markets such as Gikomba in Nairobi and Kongowea in Mombasa and hand-pick outfits one by one. Early morning visits are preferred as this is when most suppliers open a bale to get the good stuff.

Get a bale if your budget isn't too tight and you have at least Ksh30,000. One advantage of buying mitumba is that the more you buy, the less you pay.

Ladies' and children's clothing bales are the most in-demand in the market.

Market Research

According to Grace Wambere, founder and CEO of Mitumba Chap Chap (a thriving community of individuals engaged in the mitumba industry), the majority of people ‘chomeka’ in the mitumba industry after opting not to carry out proper market research.

Going into anything blindly more often than not leads to pain and regret - this also applies in the world of selling second hand clothes.

You need to study your market, identify its needs as well as any gaps that can be filled by your business. For example, if your base of operation is in Limuru, importing a bale of swimwear wouldn’t be the smartest thing to do.

You need to be willing to bend to the rules and demands of your particular market. 

Some items are seasonal e.g. warm weather clothing. All these need to be factored in prior to putting your money into the business.

Simply put, the ideal location to sell mitumba clothes is one that is strategic, with high-foot traffic and has your target market. This means that it could be online as well, where you can find clusters of communities with similar interests.

As a rule of thumb, your location will make or break your business and should therefore be treated with utmost care.

If you opt to sell your clothes in an open-air market, you will have daily county taxes to consider.

If you open up a shop or stall, you'll  need a business permit.

The only free location is on social media platforms, but then again, we now have the Digital Service Tax to consider - it is however, yet to be applied to Kenyan taxpayers. 

The ideal location should be extremely busy with a large number of potential customers. Consider a town centre, busy city/estate street, or a location near higher education institutions. The goal is to expose your product to as many potential customers as possible.

Once you have your preferred location on lock, it’s now time to secure a credible supplier.

Finding a Reliable Mitumba Supplier

With so many shady dealers in the mitumba market, it is highly recommended that you do your research and choose someone with a proven track record.

This can be done by joining Facebook groups focused on the mitumba industry where sellers and buyers discuss everything about the business and expose cons.

This way, you can easily get contacts and remain updated on the latest stock arrival.

It is always prudent to sample a few suppliers for starters, look at the price differences, check and see who among them has the best customer reviews or recommendations etc.

Okay, now that you know what you want to sell, where you want to sell it, and already found yourself a good supplier, it’s time to polish up on all the terminologies you’ll come across everyday in the world of mitumba .

Let’s start with the various mitumba bales available in the market.

Types of Mitumba Bales in Kenya

Mitumba bales prices in Kenya vary depending on the type of bale, and your supplier.There are 5 basic types of bales that you need to understand

  • Grade D bales
  • Grade C bales
  • Grade B bales
  • Grade A bales
  • Creme bales

Grade D Bales - Clothes in Grade D bales have significant flaws that you may not be able to correct.

They are the cheapest mitumba clothes and do not make a good profit because you may be forced to sell some pieces at throw-away prices. This particular grade should be avoided if possible.

Grade C Bales - This bale contains mitumba clothing with minor flaws such as ink spills, small tears, faded colour, or leather dents.

Fortunately, most of these flaws can be fixed before hitting the market. However, these corrections come at a cost that eventually translates to a higher selling price which could in turn make it hard to sell such items.

Grade B Bales – Almost as good as Grade A but not quite good enough. The defects are visible and need some little work before taking to market.

The most expensive pieces in this particular grade retail for about Ksh200 to Ksh300. 

Grade A Bales - These are made up of high-quality clothes that have been lightly worn and have few flaws.

You can get a good Grade A Bale with about Ksh25,000 – Ksh28,000 depending on the items you are looking to procure such as baby clothes, women’s clothes etc.

According to industry experts, when you buy this particular grade, you need to sort the clothes by quality.

You can then sell the best, also known as cameras , in your shop or online store as single pieces. The rest can then be taken to an open-air market and sold at a discount.

Crème Bales – As the name suggests, this is the best of the best when it comes to the types of mitumba bales in Kenya, the crème de la crème of bales if you like.

They contain new clothes which are made or bought, never worn, and consequently donated. As such, this bale is the most expensive. You will need at least Ksh30,000 or more to get one for yourself.

Other Common Mitumba Terminologies

Fagia - These are the remnants of a bale after customers pick most of the best outfits. The clothes are sold at throwaway prices to make room for a new bale.

Camera - These are the near-new clothes and the clothes of good quality. Second camera is just a grade below this one.

Pricing Mitumba Clothes

Now, pay close attention as this may not immediately make sense but it should in the end.

Let’s say you get your hands on a bale of Grade A kid’s clothes at Ksh20,000 (hypothetically).

When it comes to pricing, most people just end up dividing this buying price with the quantity of the clothes.

For example, if  the bale had 200 pieces, it means that they could sell the items at more than Ksh100 to make a profit. This is mathematically correct but it would also be a very bad business move.

Instead, they should select the camera clothes, then pick the second camer a, then the third bunch etc and price them differently.

As an example, if that particular bale had 50 first camera pieces, they could price them at Ksh 400 per piece and thus recoup their entire cost of securing the bale, any sale after that is just pure profit, simple, but effective.

Now that we have a basic grasp of the mitumba business in Kenya, it’s time to look at the actual business environment and any laws that we should know about.

Mitumba Business in Kenya

According to data from the Kenya National Bureau of Statistics (KNBS) the value of mitumba went up to Ksh9.2 billion in the first half of 2021 from Ksh5.1 billion in corresponding time in 2020.

The Kenya Bureau of Standards had in late March 2020, suspended the importation of used clothing after Covid-19 made its way into Kenya.

The government had previously backed down from plans to impose a total ban on second-hand clothing, claiming that doing so would leave local textile dealers at the mercy of market forces.

According to the government, maintaining the flow of these garments into the country will allow both importers and domestic producers to remain in business.

On the other hand, the Kenya Association of Manufacturers has previously called for punitive duty to be imposed to discourage increased imports of new clothes sold at low prices in local retail stores.

However, as it stands, the mitumba business is now back and thriving as it was prior to the Covid-19 imposed ban.

Eddy Mwanza is Creative Consultant living and working in Nairobi, Kenya. His areas of focus are Content Creation, Creative Writing, Research and Photography. When he is not writing in his favorite coffee shop, Eddy spends most of his time reading, cooking, and traveling. He is also a sports fanatic. Connect with Eddy on LinkedIn .

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How to Start a Boutique Business in Kenya

Last updated on March 2nd, 2024 at 05:41 pm

Starting a boutique business in Kenya can be a profitable venture with the right planning and execution. Here is a step-by-step guide on how to start a boutique business in Kenya.

Starting Cost Breakdown

Also Checkout: How to Start an Electronic Business in Kenya

Choosing the right location is crucial for the success of your boutique business. Ideally, you should look for a location that is easily accessible, has high foot traffic, and is in an area where your target market resides. Additionally, the location should be secure and have adequate parking.

Requirements

To start a boutique business in Kenya, you will need to fulfill the following requirements:

  • Business registration: Register your business with the Registrar of Companies or Business Registration Service.
  • Licenses and permits: Obtain licenses and permits from the county government, including a trading license, fire safety certificate, and public health certificate.
  • Tax registration: Register your business for tax purposes with the Kenya Revenue Authority.
  • Bank account: Open a business bank account to manage your finances.

Market size

The Kenyan fashion industry is growing rapidly, and there is a significant demand for quality clothing and accessories. Your target market may include young adults, working professionals, and fashion enthusiasts.

Earnings per Day

The earnings per day for a boutique business in Kenya can vary depending on the location, size, and pricing strategy. On average, you can expect to earn between KES 5,000-10,000 per day. However, during peak seasons or special occasions, such as holidays, the earnings can go up significantly.

Pros and Cons

Here are some pros and cons of starting a boutique business in Kenya:

  • High-profit margins: With the right pricing strategy and customer base, you can earn high profits.
  • Creative freedom: As a boutique owner, you have the freedom to curate your collection and express your creativity.
  • Growing market: The fashion industry in Kenya is growing rapidly, creating more opportunities for boutique businesses.
  • High competition: There is stiff competition from other boutiques, both online and offline.
  • High initial investment: Starting a boutique requires significant capital investment, which may not be feasible for everyone.
  • Inventory management: Managing inventory and keeping up with the latest fashion trends can be challenging.

Starting a boutique business in Kenya requires a significant investment of time, money, and effort. However, with the right strategies and planning, you can build a successful and profitable business.

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IMAGES

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  3. [36+] Sample Business Plan Pdf In Ethiopia

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  5. 18+ SAMPLE Clothing Business Plan in PDF

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  6. How to Write a Business Plan for an Ethnic Clothing Store

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VIDEO

  1. How To Start Small In Second Hand Clothes Business ||Hustle Yangu

  2. How to Start Your Own Clothing Business

  3. How to Start a Tailoring Business in Kenya ||Hustle Yangu

COMMENTS

  1. How To Start A Clothing Business In Kenya From Scratch(Update 2024)

    Starting any business requires an upfront investment, and a clothing business in Kenya is no different. Here's a rough breakdown of the costs you might expect: Rent for the shop : Depending on the location, this can range from 30,000 to 50,000 KSH.

  2. How to Start a Boutique Business in Kenya

    Boutique business in Kenya is a trending business due to the love of fashion, especially by women. It is a profitable business if you get a good business location. The type of clothes your boutique is selling is a factor in the success of your business. Women's clothes are in higher demand compared to those of men.

  3. Fashion Business Plan Pdf Kenya 2024 [UPDATED]

    This profitable fashion business plan PDF Kenya offers marketing and operational strategies for growth. Download now! ... market research, financial projections, and operational strategies. Perfect for entrepreneurs looking to establish a clothing line or boutique, this plan offers practical solutions for success in Kenya's competitive ...

  4. Boutique Business in Kenya

    Boutique Business in Kenya: A Complete Guide Introduction to Boutique Business in Kenya. The fashion retail industry in Kenya is growing fast. Boutique businesses are doing especially well. From 2020 to 2023, Kenya's fashion retail market grew by 35%. Boutique businesses made up 40% of this growth.

  5. How to Start a Boutique Business in Kenya 2023 (Comprehensive Guide)

    Starting a boutique business in Kenya can be a rewarding and challenging endeavor. Boutique businesses offer unique and specialized products or services to customers and can be a great opportunity to tap into local or international demand for fashion, home decor, or other niche markets. In this article, we will provide a comprehensive guide on […]

  6. How To Start A Boutique Business In Kenya Easily For Profits

    Fashion is what most people love. Dressing up in a modern style builds confidence in everything and improves your smile. Fashion outfits are always available in boutiques. Therefore,starting a boutique business in Kenya will make you earn more income on a daily basis because people dress up daily. In addition, I would advise you to

  7. Build A Profitable Boutique Business In Kenya In 2024

    The initial capital of a boutique business in Kenya varies depending on the location, size of your store, and type of clothes. Typically, you will spend Kshs 100,000 to Kshs 200,000 in small towns. In contrast, cities like Nairobi and Nakuru require a capital of Kshs 500,000 and above.

  8. Pivot, Adapt, Grow: Building a Fashion Brand in Kenya

    Starting a business is hard enough. But growing it can be exponentially harder — especially when crossing borders and continents and in a business as fickle as fashion. Wandia Gichuru is experiencing it all as founder and CEO of Vivo Fashion Group, based in Nairobi, Kenya. Gichuru thinks about her business beyond simply selling clothes.

  9. Starting a Mitumba Business in Kenya: All You Need To Know

    The Kenya Bureau of Standards had in late March 2020, suspended the importation of used clothing after Covid-19 made its way into Kenya. The government had previously backed down from plans to impose a total ban on second-hand clothing, claiming that doing so would leave local textile dealers at the mercy of market forces.

  10. How to Start a Boutique Business in Kenya

    The earnings per day for a boutique business in Kenya can vary depending on the location, size, and pricing strategy. On average, you can expect to earn between KES 5,000-10,000 per day. However, during peak seasons or special occasions, such as holidays, the earnings can go up significantly.