There are a lot of options for creating a children’s store, due to the wide range of goods that a children’s store can sell.
The specialization of a children’s store increases the chances of attracting customers of the target group, and also allows, without expanding the assortment, to make the business idea of a children’s store profitable.
For the successful identification of the target group of buyers, the selection of the range and the right choice of specialization, it is necessary to conduct a marketing research.
Choosing the right niche in a competitive market will allow you to succeed and recoup your investment.
Marketing research: where to dig?
A children’s store can specialize in the sale of a wide variety of goods, ranging from baby food and juices, children’s medicines, hygiene items to children’s clothing, shoes, toys and stationery.
As for the sale of food and pharmaceutical products, the requirements of the supervisory authorities for opening such stores are quite high, and obtaining a permit requires additional funds and time. In turn, the sale of children’s clothing and footwear requires specific retail equipment and is highly dependent on seasonal demand.
The simplest option for a children’s store is to create a toy store combined with the sale of a limited range of educational aids, children’s books, stationery, and possibly a reduced range of children’s clothing.
Marketing research and a careful study of the range of products offered by competitors in the immediate environment will tell you what kind of product to fill the shelves of a children’s store.
It is also important to determine the age category of children for whom the children’s store will be opened. Attempting to cover all ages, from infancy to high school age, is likely to result in very large floor space requirements and drastically reduce the competitiveness of a children’s store.
Children’s shop: choice of premises
Having determined the main assortment of goods based on the results of marketing research, you need to proceed to the selection of premises for the store. The sales volumes of a children’s store will be the higher, the more visited the place the store is located.
Even a small store located in the center of the city, or in places with a large crowd of people, will bring higher profits than a large store located on the outskirts.
Children’s store: what’s inside?
The interior and commercial equipment of the store will depend on the selected range of goods. The best option is to divide the store premises into areas for selling goods for boys and girls, taking into account age groups.
It is imperative to provide for the allocation of places for the sale of educational products, teaching aids, which will be of interest mainly to parents. These products can be placed on the upper shelves, leaving the lower shelves for the smallest.
It must be remembered that parents usually buy those toys and goods that their children like. Therefore, when decorating the interior and placing commercial equipment, it is necessary to take into account the psychology and needs of children.
Children’s store: what will you have to spend money on at the start?
The initial costs of implementing a business idea for a children’s store will consist of:
— the cost of purchasing, repairing and decorating the premises of the store;
— expenses for the purchase of commercial equipment;
— initial batches of goods;
-from the cost of purchasing cash registers, software.
An important condition for the successful start of the project is the correct choice of suppliers, which should be part of the marketing research.
1. Commission agreement
It is highly desirable at the first stage to conclude contracts on the terms of the commission sale of goods, or deliveries with deferred payment. This will save working capital during the difficult period of the store’s formation.
2. Supply contract
The conclusion of supply contracts allows to reduce wholesale prices, however, it can lead to the appearance of illiquid goods in a period of insufficiently studied demand. It is also very important when concluding contracts with suppliers to have a guaranteed availability of quality certificates for the goods supplied.
Often, the supervisory authorities, and the parents themselves, require the presentation of certificates that guarantee the safety of children’s products for children’s health.
The current costs of the children’s store will consist of staff salaries, rent and utilities, the cost of purchasing consignments of goods, transportation services, as well as advertising campaigns.
Children’s store: business idea calculation
The mark-up for children’s goods is usually quite high and can range from 50 to 200 percent. Such a high margin can quickly bring the business idea of a children’s store into the profitability zone, provided that the target group is correctly identified at the marketing research stage.
You can order accurate calculations and a ready-made business plan for a children’s store on our website , especially if the implementation of a business idea for a children’s store requires borrowing credit.