How to Start a Diaper Business in Nigeria
When a person asks of a business idea and you suggest diapers to them it seems a bit awkward. I am almost certain that you reading this article might have though the idea awkward till you were exposed to certain underlying truths about the business. Before I go on let me share a little secret with you. There is something about dealing in consumables. They always sell, you will always make profit except you do not handle the business well.
What I am trying to say is starting a diaper business in Nigeria is one of the most profitable ventures to indulge in. There are several reasons for this conclusion and I will make them known to you later in this article. For starters statistics show that at least 255 babies are born per minute worldwide. Of course you know Nigeria has one of highest birth rates in the world. This means that at least every minute a baby is born in Nigeria.
Diapers are mainly used for babies and with the number of babies born yearly you can be sure there will always be buyers for your products. Let us pause here and take a brief survey. Can you just take a mental picture of your immediate environment dating back the last one year? Ask yourself how many women gave birth that you can remember? Also ask yourself how many women are currently pregnant and are likely to give birth within the next year?
Snap back to the present. Do you see that opportunities abound around you to make some good profit if only you can take advantage of them? Well do not feel bad if you have not made use of the opportunities till now. You can begin now. When we were younger most of our parents used nappies for us. Technology has caused a drastic change and now we use diapers for children. One child could use between 4 to 6 diapers daily. It could even be more. The global market for diapers reached a peak of $33 billion in 2017. This figure is expected to increase geometrically in 2018 and possibly double within the next decade.
One major aspect of any business is properly understanding the business and being able to decipher the right products to sell. A wrong choice could make you lose so much money or run down the business altogether. Let us check out a few reasons why you should start a diaper business in Nigeria.
Why you should start a diaper business in Nigeria
To be sincere there are a million and one reasons why you should start a diaper business in Nigeria. Okay maybe that was an exaggeration but there are several obvious reasons why you should invest in this business. Let us take a look at a few that are most obvious.
- There is a constant high demand for diapers. Regardless of the class of an individual in the society they will always need diapers as long as they have a baby. To observe this you can visit a departmental store or anywhere diapers are sold. You will notice the number of people flocking to buy diapers. A major reason why this occurs is that diapers are not reusable. Once the baby messes them up the diaper needs to be changed. It is either the diaper is changed or the parent puts up with the babies cries for a change which is most unlikely.
- Diapers are affordable. Yes some diapers can be quite costly but there are diapers for every class of the society. This means the rich can afford diapers and the poor can also afford diapers. A major reason why is because the demand is very high by all classes of the society. To this end different products are available at different prices. Parents make their choices depending on their pocket rates. You can easily choose what kind of diapers you plan to sell depending on the environment your store will be situated.
- There is no need for much marketing. This is one business which does not require rigorous marketing. This does not mean you would not spread the word about your business. However you do not need to go about looking for customers to buy your diapers. Once people know that you sell diapers they will come to your shop as soon as the need arises. The market is all around you. All you need to do is sell.
- It does not require a huge capital outlay. Capital is key to starting any business and we know that one of the reasons why people are scared to start businesses in Nigeria is lack of capital. Well if you are planning to start a diaper business you do not need to be too scared of raising capital. Except of course if you are planning to start on a very large scale. You can start the diaper business in Nigeria with as little as #15,000. Did I hear you say Amazing? Yes it is. The idea is start small and grow big. With proper management practices in no time you can grow that business to a million naira empire.
- There are so many fake products on the market. To tell you the truth parents are sick and tired of buying fake and substandard products. What annoys one more is that the fake products end up being so expensive. People are in search of affordable diapers that are of proven quality. There is no point spending on fake products. To capture the market you just need to find a reliable supplier and stock your store with qualitative and affordable products. Once you can achieve this be sure that your patronage will be high.
At this point, if you are still reading my guess is you beginning to develop some interest in the diaper business in Nigeria. If I am right then you are on the right path. Let us move to the next segment of this article.
Different ways you can make money from the diaper business in Nigeria
The diaper business is one those businesses that have several facets. These businesses are known as multidimensional businesses and it means you can make money from the businesses in different ways. To make it simpler the diaper business is more of an industry. You can be involved in this industry in different ways and still make good money. This section will expose you to different ways you can make profit from the business.
- Become an importer of diapers. To achieve this you will need to have some good capital. I am sure you know that to be an importer there are several conditions that must be met. You need to find out these conditions, meet them and then start out your business. The best way to import your products is firstly study the market to know what products are most in demand. Find a reputable supplier online or find out from existing diaper importers. When choosing a supplier or manufacturer online be sure to choose one who offers you considerable rates both for sales and shipping.
- Become a distributor of a particular brand in the country. You may want to focus on a specific brand of diapers. You can work out a pact with the parent company to their distributor to your local community, State, or throughout the federation. This will mean you will sell the products at a commission on behalf of the parent company or you will purchase from the company and sell at your own prices. Regardless of the method you choose the process could be quite capital intensive even though you are sure to make a lot of profit at the end of the day.
- Become a local vendor. This is the most common method especially for people who do not have access to huge capital. You can buy from a supplier and resell in your neighborhood. This might not make as much money as the earlier to methods but it also does not require a huge capital base. As stated earlier to can begin this aspect of the business with just #15,000.
A few tips in starting your diaper business in Nigeria
To start any business it is required that follow certain steps. These steps will ensure that you surmount impending hurdles easily. The truth is this, there will always be hurdles on the way to success but learning from other peoples’ experiences is far better than learning from yours. There are certain established steps you could follow in starting your diaper business in Nigeria. You do not necessarily have to follow them but it is advisable you do.
- Conduct a feasibility study. A feasibility study will help you know what is obtainable in the business. It will help you know who your prospective customers are. It will also keep you abreast of information regarding what kind of diapers you prospective customers prefer. It will be wise to also visit already existing diaper vendors to find out their challenges and the secrets to their success. All of these information will help you properly plan your business to avoid unnecessary pitfalls.
- Write a business plan. Several business people in this part of the world take this aspect of starting a business for granted. Writing a business plan is almost nonnegotiable for any business. The business plan is a map which offers direction to the entrepreneur on the best way to run the business. A business plan will also be helpful when you want to expand or when you want to raise capital from investors or even get a loan from the bank.
- Raise capital for the business. They say ideas rule the world but ideas run on cash. Capital as we know it is the money required to start or run a business. The capital requirements for this business depends on which aspects of the business you want to be involved in. There are several ways of raising capital which include personal savings, loans, gifts from family and friends, investors, etc. You can avail yourself of any of those methods to raise money for your diaper business.
- Get a shop. Except you want to sell from home you will need to get a shop for your sales. In getting a shop ensure that it is in close proximity to your prospective customers. The shop must be accessible and as much as possible be in the public eye. Since you are selling a product that is used by nursing mothers consider a place close to where they are most found.
- Make a decision on your supplier. Carry out detailed research and find yourself a reliable supplier. Your supplier should be trustworthy and able to deliver goods right when you need them the person must also not sell to you at exorbitant prices. You can also decide to buy directly from the manufacturers if you can gain such access. It is always cheaper.
- Focus on fast selling brands. From your feasibility study you should have an idea of what brands sell fast. To grow your business and get quick returns on investment it is wise to invest in fast moving brands. Some of the fast moving brands in the Nigerian market include Pampers, Dr. Brown’s, Toujours, Huggies, Johnsons, Tescos, etc.
- Market your products. You must know that your products will not sell themselves. You will to proclaim them to the world. There are several methods of marketing today. Technology has made marketing very easy. Simply think outside the box and utilize all of the marketing media within your reach.
I believe this article has been helpful to your quest for knowledge about how to start a diaper business in Nigeria. Go and make some good profit. Good luck.
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