home Credit Business selling branded sneakers. Where and how to sell shoes: practical recommendations and effective methods

Business selling branded sneakers. Where and how to sell shoes: practical recommendations and effective methods

Our business is a city Instagram store of branded sneakers. He represents an Instagram account through which, thanks to our negotiation technologies, sneakers are sold. Our store's assortment includes original sneakers from Nike, Adidas, Reebok, Puma, Asics, New Balance, Skechers, Vans, Converse, Timberland and other brands. To run this business you do not need a warehouse or even an office. It is enough to have a phone with Internet access.

Your customers’ orders, as in traditional online stores, are delivered after the buyer makes an advance payment. This allows you to minimize the cost of doing business.

During our work, we have developed connections with suppliers and manufacturers of sneakers. This allows us to purchase fully certified running shoes from factories at unbeatably low prices.

We offer our franchisees to open and operate an online store in their city.

Falco sneaker store format

An Instagram store is a working Instagram account in which promotions are held, the assortment is updated, and communication with customers is carried out. The account, thanks to advertising efforts, generates applications from potential clients; all you have to do is advise the client and place an order for the supply of the product chosen by the buyer.

Franchise offer for Instagram sneaker store “Falco”

Investments required to open a Falco franchise business

Starting investments: 45,000 rubles
Payback period: from 1 - 2 months
Average turnover per month: 100,000 rubles
Royalties: none
Lump sum fee: 45,000 rubles
Other current payments: none

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Falco success story

2015– an online sneaker store was opened in Tomsk

2016– the point’s profit increased 10 times

2016– the first franchise store was opened in Astana (Kazakhstan)

As of December 2017– the network has increased 3 times, 22 franchise partners

As of January 2018– first partner from the United Arab Emirates (Dubai)

As of March 2018– 34 franchise partners

As of July 2018– 43 franchise partners

As of November 2018– 61 franchise partners

As of February 2019– 92 franchise partners

Everyone needs shoes, and most of us buy even more than we need. But how do you sell shoes to people who already have them? In a store or online? (we will consider both options). The answer is with knowledge and a smile. With the help of our advice, you can attract new clients who will become regular ones, thereby ensuring the success of your business.

Steps

Part 1

Selling shoes in a store

One of the most popular types of goods, shoes, can generate significant income. At the same time, unlike everyday shoe models, sneakers are presented on the market much more modestly, which will allow a novice entrepreneur not to be afraid of competition. According to this industry assessment, sneaker wholesale is the most profitable industry that allows for maximum profitability.

How to open a sneaker wholesale business: initial stages

Sports shoes belong to the category of highly specialized products that require preliminary study of the selected market sector. Modern sneakers come in a wide variety of types and models that have different purposes. In addition to sneakers designed for outdoor activities, running and other sports, there are universal models suitable for daily movement around the city. It is these models that are most in demand and popular, especially among young people in large cities. Before starting the wholesale sale of sneakers, you should calculate the ratio of demand for each type of sports shoes for the most accurate purchase of goods. It is also important to analyze the level of competition in the chosen industry in your city and region.

The main features of the wholesale sale of shoes of various classes are the following:

large volumes of product sales;
low cost assortment;
fast turnover of goods;
The main category of clients are entrepreneurs and organizations engaged in retail trade in goods of a selected group.

For the greatest success, it is worth including in your assortment the maximum number of types of sneakers, their models and styles. It is advisable to focus on the most current and popular shoe brands, offering customers both budget options and luxury models.

The business plan of the future wholesale trade company will become the basis of the new enterprise. In it, you need to calculate the starting investments in the business, foreseeing which varieties and models will become the main ones in the assortment, as well as what financial investments will be necessary at the very beginning and in the future.

Typically, the main expenses calculated in a business plan will be as follows:

registration of the enterprise with the tax office;
purchase of goods;
costs of renting premises - for a store, if wholesale sales will be carried out in the store, and a warehouse for storing goods;
employee salaries;
advertising campaign expenses.

In each specific case, the business plan will differ significantly. When planning future activities, it is important to take into account such a factor as seasonality: despite the fact that sneakers are the least seasonal type of footwear, in summer and winter the demand for goods of this kind decreases, which means that purchase volumes may decrease. To avoid such a risk, wholesale buyers should be offered the most favorable terms of cooperation.

Based on the results of the business plan drawn up and an assessment of the existing market situation, it is necessary to make a decision whether the activity will be large or medium-scale or whether preference should be given to small-scale wholesale trade. In this regard, you should determine whether it is worth opening an entire trade pavilion or whether it is better to first choose wholesale trade via the Internet.

An online store for wholesale sales of sneakers will be of definite benefit, which will allow you to save a lot on initial investments at the stage of opening a business. In particular, when starting an online business, there will be no additional costs for renting premises, paying for utilities, and hiring staff will be much cheaper, since only one or two employees are enough for an online store.

In addition, saving time spent on servicing a retail outlet will also be important. True, a selling website must be functional and occupy a leading position in the search engine, which is achieved by special work on optimizing the resource. In order for the site to work as efficiently as possible, its development and maintenance are entrusted to specialists.

Thus, if, based on the calculations made in the business plan, it turns out that the start-up investment is not enough to open a full-fledged store, it makes sense to start a business at home, managing the online sales process.

Stages of starting a sneaker wholesale business

The main stages of starting a sneaker wholesale business will be the following:

rental of premises for a warehouse and sale of goods, equipment of the premises;
search for suppliers and purchase of goods;
hiring employees;
registration of one of the existing organizational forms - individual entrepreneur or LLC.

Regardless of the format of wholesale trade in sneakers, you will first need to rent a warehouse to store purchased quantities of goods. The only option when you can refuse to rent a warehouse space is to arrange direct deliveries from the manufacturer to the customer. However, for a start-up business, a simpler option would be to rent a small warehouse space. In order for the company to be in demand for wholesale buyers, it is important to select the widest possible range: the sale should include both elite sports shoes and economy-segment sneakers. Having found suitable suppliers, the business founder must enter into formal contracts with them that will protect against fraud and violation of the agreed terms of cooperation.

The employees who need to be hired must first of all know the range of products, the features of various brands, and also master sales techniques. The number of employees of the enterprise should depend on the format in which trade will be carried out: if you plan to open a wholesale store, there should be 1-2 sellers per shift, in addition, warehouse and delivery workers will be needed.

When conducting online sales, the staff may be smaller: the main work can be done by the entrepreneur himself, with the support of 1-2 specialists. Regardless of the chosen format for the wholesale trade of sneakers, be sure to contact the services of a professional webmaster who will develop a website and also fill it with relevant information and product illustrations.

The development of an enterprise is closely related to the implementation of its advertising campaign: since the main focus will be on owners of small and medium-sized retail stores, it is important to select suitable advertising methods. Thus, contextual advertising on the Internet and posting information on thematic websites are effective. Cold calling of enterprises in this industry also works well - as a rule, wholesale companies attract a considerable part of new partners precisely thanks to active offers of cooperation.

How to open a business: wholesale of sneakers. Registration

When starting a business selling sneakers wholesale, you should find out in advance what tax methods are available for wholesale trade in general. Thus, the law provides that in this case it is possible to design a simplified taxation system, or simplified taxation system, and UTII (payment of a single income tax). Each of these taxation systems has its own pros and cons, so before applying for registration, you should find out what these features are and choose the most advantageous form.

When submitting an application for registration of one of the possible organizational forms - an individual or a legal entity, it is necessary to determine the type of activity that will be official for the new enterprise and on the basis of which reports must be submitted and taxes must be paid. To do this, indicate the OKVED code in the registration application - for wholesale trade, including shoes and sneakers in particular, it will be code 46 (Wholesale trade, except for wholesale trade of motor vehicles and motorcycles).

When determining the most suitable organizational form for a new enterprise, the scale of the enterprise should be taken into account. If wholesale trade is carried out in a small format or via the Internet, and the main partners are small and medium-sized retail stores, individual entrepreneurship will become a simpler and more profitable form. To promote a company to a serious market that involves cooperation with large networks selling sports shoes, it is better to register an LLC, which will allow it to take its rightful place in its industry.

Taking into account the difficulties and financial costs that await the founder of a business when creating an LLC, it is generally more rational to open a business from scratch in the wholesale of sneakers by registering an individual entrepreneur. In order to register an individual entrepreneur, you must fill out an application according to the form proposed by the Federal Tax Service, pay a state fee of 800 rubles and submit an application, copies of your passport, tax identification number and receipt of payment of the duty to the tax service. As a rule, no other documents or certificates are required. The period for consideration of the application and issuance of the individual entrepreneur certificate is no more than 5 working days.

Most sneaker buyers value the quality of the goods they purchase, so retail stores and individual entrepreneurs selling shoes choose reliable wholesale suppliers who offer goods that meet all existing requirements. Therefore, before starting a business from scratch in the wholesale of sneakers, you should study the assortment, determine which brands and models will be the most popular and of high quality. Having selected suitable manufacturers, you should enter into long-term contracts with them, allowing you to make purchases at a minimum cost.

May 12, 2017 Sergey

Here we will look at an article about how to open a shoe store, what is needed to open it, how to start selling shoes - children's, women's, men's, and consider a ready-made example of a business plan. But, before you start studying the information presented here, you need to understand some very important points in the shoe trade, namely:

The hottest times for shoe sales are spring and autumn.
The most popular product is children's shoes.
The least popular is men's.

If you decide to sell (in addition or mainly) only children's and teenage shoes in the store, then your busiest time will be the pre-school period, i.e. before the start of September 1st.

Why is it necessary to sell children's shoes?

Parents will deny themselves the pleasure, but they will buy it for their child.
We buy shoes for ourselves for 1-2 years, and for the child as his feet grow. Children enter the winter season with size 36, and end it with size 38, so sometimes during the winter it happens that they take 2 pairs, and plus, don’t forget about shoes for slides - felt boots.
What you bought in a shoe store in the spring is no longer enough in the fall, which means shopping again.
Children's shoes, unlike adult ones, are not sent for repairs, but simply bought new ones.
Count how many pairs of shoes your child has and how many you have (street: boots - spring, boots - winter, boots, low shoes or shoes, sandals, sandals, sneakers, slates; for home and kindergarten/school: slippers, change of shoes, shoes for holiday, sneakers/sneakers, Czech shoes). And this is the minimum set.
Children's, unlike adult's, never goes out of fashion, i.e. she doesn't have trends for every season. That's why you don't need to have sales.

Example of a business plan

So, let’s look at a ready-made example of a shoe store business plan for those who don’t know how to open their own store.

Overview section

The goal of this project is to open a shoe store intended for a wide range of consumers.

The form of doing business is an individual entrepreneur. This is due to the fact that consumers of the goods are private individuals, the tax rate is also reduced and accounting is simplified. When conducting market monitoring, we took into account a large number of shoe stores in this category and assess the degree of success of the project as average, but with the right choice of niche, the degree can be assessed as high.

Description of the enterprise

The store specializes in selling men's and women's shoes from foreign and domestic manufacturers of different price categories. The shoe store's operating hours are from 10.00 to 20.00, seven days a week.

Description of services

The business plan provides for the implementation of trade and purchasing activities, the opening of a store selling shoes that provides the following services:

Sale of men's shoes;
Sale of women's shoes;
Sale of children's shoes;
Sale of accessories;
You can also additionally sell socks and stockings.

Market analysis

In this section, you should give a detailed description of the shoe business in your region, select a profitable location for a shoe store, taking into account the lowest level of competition, describe the mistakes of competitors in order to eliminate them in your business.

Production plan

A business plan for a shoe store should contain the following information: location, choice of premises, type of store, i.e. Now we will consider the question of what is needed for it. Options:

Shoe store in a shopping center;
Shoe pavilion at the market;
The store is in a separate building.

The choice of option depends on many factors, including your financial capabilities, personal wishes, the specifics of the shoe market in your region, and the target audience. Each of the presented options has its pros and cons; first of all, you should focus on the financial capabilities of your target audience. To ensure good display of goods, it is necessary to use a premises for a shoe store with an area of at least 50 m2. In addition, utility rooms for staff and a warehouse are needed. Necessary equipment: cash register, mirrors, chairs, sales racks, counters.

As recent trends show, buyers prefer to buy more expensive and high-quality shoes and shop in comfortable conditions.

Also, when choosing an assortment for a shoe store, you need to focus on the preferences of the residents of your city and the climate.

When looking for a shoe supplier, you can limit yourself to one supplier, a franchise, or open a multi-brand store (which will expand your options).

Store personnel should be selected very carefully. For a small shoe store, four sales assistants and a manager are usually enough. People with good appearance should be hired as salespeople. It is also advisable to spend time training them, because a good salesman is the key to your successful sales. Salespeople must be able to operate cash registers and know the basics of product display. If the budget is not large enough, then you can work as a manager for the first time. Another important factor in a successful business is advertising and marketing; special attention should be paid to this. About a month before the opening of a shoe store, you need to place advertisements in local newspapers and magazines, in crowded places, order several banners, if possible, you can order advertising on regional TV. Ad text should be informative and attractive. The day when a shoe store is opened should not go unnoticed; you need to organize a bright reception of guests, distribute discount cards, and you can also hold drawings for coupons and discounts. Stores that constantly support customer interest with various discounts and promotions have a steady flow of both old and new customers. It is important to pay attention to the quality of the product and fashion trends. Seasonal sales and constant updating of the assortment will ensure high productivity of the store.

Financial plan

This section of the business plan for the shoe trade will provide the financial component of the project.

Purchase of shoes – 2,000,000 rubles. in year;
Rent of premises – 1,500,000 rubles. in year;
Advertising – 100,000;
Store staff salary is 960,000.

Total: 4,560,000 required starting capital.

4,000,000 rub. in year.

The payback can be completely different, because... markup on shoes usually ranges from 100% to 300%. It can also be less - about 50%. It all depends on seasonality, the pricing policy of your competitors, fashion, etc. factors. Also, the payback period fluctuates due to various factors, including an increase in purchase prices and an increase in rent. However, this type of business is considered very profitable, and this despite the emergence of large chain shoe stores. For a shoe selling business to be successful, you must have information about suppliers, shoe brands and know the latest fashion trends. Don't forget that any wholesale purchases can now be made online.

Sale of shoes is a very profitable business; if you find a good supplier of high-quality and fashionable shoes, you can mark up from 200 to 500%. But in this idea we will place more emphasis not on the usual ordinary shoes, but on youth sneakers and sneakers. The fact is that on average a pair of cool youth sneakers costs 3,000 rubles. And teenagers change their sneakers very often, I know first-hand, I helped a friend with a business plan for a shoe store.

What to sell? What sneakers? What brands? It is necessary to sell both the latest hits of the fashionable sneaker industry and the classics that are familiar to everyone. The classics include sneakers and sneakers from Nike, Adidas, Reebok, while the new ones include brands little known in Russia and the CIS, for example Jordan (expensive, but very cool basketball sneakers), Saucony and so on.

Also, in order not to lose customers, it would be a good idea to sell sneakers in women’s sizes, as well as high-quality men’s, preferably branded shoes (shoes, winter boots).

Where to sell? There are two ways: in the store and on the Internet, but you can and even need to combine them.

Price. A complex and ambiguous question. Since you sell high-quality and original products, you need to carefully select suppliers, preferably first-hand ones from the factory. As a rule, there are many of them, the main thing is to look for them. Next you need to take into account several nuances: the city where you are going to sell shoes, the price of purchase and delivery. After this, calculate the markup; as a rule, branded original sneakers sell from 2 to 20 thousand rubles, it all depends on the model and manufacturer.

Conclusion: the business of selling youth shoes is highly profitable and does not require large start-up investments.