How to open a costume jewelry store

Store costume jewelry as a business has several advantages: the relative ease of organization, small start-up investments, quick payback and unlimited shelf life of goods.

This step-by-step instruction will help you quickly organize a successful business on costume jewelry, bringing a good profit. Let's see how to open a costume jewelry store from scratch and how much money you need to start.

Business registration. Selection of OKVED and taxation system

According to the latest classifier of commercial activities, a costume jewelry store would be best suited to code 47.78 Other retail trade in specialized stores. If you plan to sell watches as well, add code 47.77.1 Retail trade in watches in specialized stores. For other goods, you will need to add the appropriate codes. Keep in mind that costume jewelry is not jewelry.

To open a store, you need to register an IE or LLC. For a small shop, it is better to sole proprietorship. You can register a business as an individual entrepreneur in 7 days by paying 1000 roubles of state duty. Documents are submitted to the tax authority at the place of registration. The taxation system is simplified (simplified taxation system).

Step-by-step business startup plan

Let's break down what you need to do opening your outlet selling costume jewelry.

Room

It is enough to rent 10-15 meters for selling costume jewelry². In an area of 5 meters² can accommodate 2,000 costume jewelry samples. But at the same time you should not forget about the need for space for customers and the seller. Therefore, the optimal area of the store is 15-20 meters². It is best to open such a business in places with high footfall. These are shopping centers or crowded places, such as downtown streets.

Assortment

You need to decide what exactly you are going to sell. In addition to costume jewelry (pendants, earrings, bracelets, necklaces, rings) it can be:

• handkerchiefs,
• belts,
• umbrellas,
• gold-plated and silver-plated jewelry,
• bags,
• other accessories.

Equipment

To open a store you need to buy specialized equipment - a branded module for costume jewelry. It can be bought for 100,000 - 200,000 rubles. You will also need additional stands, furniture, and a cash register. This will take another 150,000 - 200,000 rubles.

Search for suppliers

Suppliers can be Chinese or European stores or local craftsmen. The pluses of Chinese suppliers are low prices and a huge selection, the minuses are long delivery times and not always high quality goods. European costume jewelry is much higher quality, but also costs many times more. Perhaps many of the buyers, taking into account the trade markup it will not be affordable. Analyze your target audience and look for the best combination of price and quality. For your first purchase, choose several suppliers and buy goods from them in small batches. This will allow you to immediately assess demand and understand what sells better. You can sell products from several suppliers in different price categories.

Recruitment

You will need 2 salespeople working in shifts. They are usually paid a small salary and a percentage of sales, which encourages staff to perform better. Sellers should have a good understanding of the range and costume jewelry in general, have a sense of style and be able to advise the customer on the choice of jewelry. Attractive appearance, politeness, punctuality and stress resistance are mandatory qualities.

In addition to salespeople, the store needs an accountant and a cleaner. They can be outsourced.

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Costume jewelry is not a necessity, so it is very important to attract the attention of potential customers. The key factors - a competent choice of location with good walkability and transport accessibility, as well as bright attractive signage, which can be seen from afar. Read also, How to choose a good title.

Signage and decorating the store will cost the following 50,000 - 100,000 rubles.

Advertising options:

• handing out flyers and leaflets,
• promotion in social networks (you can hold raffles with costume jewelry as a gift).

How much money you need to invest in a business

The average cost of renting retail space in Moscow is 2500 rubles per 1m²in the provinces - 500 rubles per 1 m². Accordingly, for 20 meters² monthly fee 30,000 rubles. This is an approximate price - it may be higher or lower. You will also need equipment and furniture (on average for 250,000 - 350,000 rubles), advertising costs (50,000 - 100,000 rubles). The initial purchase of goods (costume jewelry and accessories) will cost the sum of from 100,000 to 300,000 rubles. 

It turns out that opening a store will require at least 400,000 roubles. Depending on the size of the store, the choice of suppliers and the location of the point, the costs may be several times higher. You should not forget about running costs: rent, payment of wages, accountant's fees, tax deductions. This can take up to 100,000 roubles a month.

Business Payback. How much you can earn from costume jewelry

The minimum payback period for a costume jewelry store is 1 year. But practice shows that on average it takes about 18 months.

The normal indicator of the store's activity is a turnover of 100,000 rubles, where the net profit is 50%, that is, 50,000 rubles per month. At the same time, the average check is about 500 rubles. To reach such indicators, the average attendance of the store should be about 67 people a day.

Business tips

The main nuances of running a business:

• You have to love and understand costume jewelry so you don't buy junk jewelry and products that won't be in demand.
• It is advisable to conclude individual supply agreements with suppliers. This will ensure the arrival of exclusive samples of goods. Such terms of cooperation are offered by European manufacturers. On Chinese products to get a high income will not work. Although its cost is not great, but the market is literally swamped with costume jewelry from China, which significantly reduces demand. The only working strategy when working with Chinese goods is to earn on volume. To do this, it is essential to choose a passable place and a range of products that will attract customers to you.
• You can dilute the assortment of the store with handmade jewelry. Such goods are realistic to make independently, using accessories: stones, beads, locks, ribbons and so on. Read, how to make money on handmade jewelry
• You can also sell accessories: neckerchiefs, umbrellas, gloves, ladies' hats, belts, ties.
• Costume jewelry and accessories are most in demand in December, February and March. Therefore, it is better that the opening store jewelry took place in one of these months, which will shorten the payback period.
• It is necessary to look for reliable suppliers who will provide favorable terms and discounts. The average level of markup leaves 300% of the initial cost of goods.
• New costume jewelry collections appear every 3-4 months. Do not cling to stale goods - it is better to sell them off by organizing promotions. This will attract customers and allow you to regularly update your assortment.

We've looked at the stages of discovery businesses. For more information, check out the video:

Now you know how to open a costume jewelry store from scratch and how much money you need to start.

We also recommend reading:

• The business of selling women's handbags
• How to open a women's clothing store
• How to make money selling Chinese goods
  Where to start a business selling costume jewelry?

  Start by selecting a range of products, finding suppliers and analyzing your target audience to understand customer preferences.

  What are the best jewelry items to include in the assortment?

  Include basic jewelry such as earrings, bracelets, and necklaces, as well as unique designer pieces to attract attention.

  How do you calculate the cost of costume jewelry for sale?

  Factor in the costs of purchasing, transportation, packaging and add a margin to make a profit.