How to Start A Lingerie Store
A lingerie store business is a fashion venture that people should invest in because of its numerous benefits. There is nothing appealing like hanging nightgowns, underwears and bras in your store for customers to buy. This business is a retail venture that is highly marketable and it is predicted to reach $59.1 billion by 2024.
According to the US Market for Women’s Intimate Apparel (Lingerie)” The industry generated revenues of $ 11 billion in 2009”. This business is a retail outlet that depends on supplies from manufacturers or wholesalers. The business is very rewarding but it has its own share of challenges. it is a venture is for both men and women but the women’s lingerie store is more lucrative.
What is Lingerie?
Lingerie simply refers to women and men’s underwear or nightclothes while a store is a shop where products are sold. Examples of lingerie are Designer bras and matching pants, thongs, Vests, Nightgowns, thermal underwear, Basques, camisoles, swimwear, loungewear, bridal lingerie, Sports bras, Maternity, nursing bras, and boxers.
Step by Step Guide on How to Start A Lingerie Store
Research the Market
Before starting your retail store, the first thing to do is to research the market. The lingerie store business is highly competitive because most people invest in it globally. The first thing to do is to research your competitors and identify their strengths and weaknesses and learn from it so that you will not stumble where they stumble. In addition, also research prospective clients, major players, and be abreast with the latest update in the industry. One vital factor is that customers of this industry is that they care about style and comfort than pricing, so make sure you sell quality and affordable lingerie to your customers to retain them. Make sure you always have the trending lingerie in your store.
Determine your Business Aims and Goals
Before you start your lingerie business, you must have stipulated goals you want to achieve; do you want your business to go global? Are you going to sell specific lingerie or all manner of lingerie? Do you want o do offline or online business? These are some of the questions you need to ask before you start your business. You have to decide where you want to start from even though you have plans to expand in the future.
It is very paramount for you to decide on what you want to sell because there are ranges of lingerie products. The factors that help you to decide on what you want to sell are: the amount of space you have in your premise, the skills and expertise you posses and the type of customer you want to attract.
In addition, if you want your business to go global then you may consider setting up an online business. Lingerie business can be done both online and offline. If you want to use the online platform you must consider factors like Paying for web hosting, Cyber security, choosing the best platform for your shop and conducting effective digital marketing. The factors you have to consider in setting up an offline lingerie store are: Demographic, fashion culture and age of female and male gender in your locality or region.
Identifying your Target Audience
The target audience for this business is very large because both Men and Women use underwear. Some people change their lingerie on monthly basis, others quarterly and others yearly so there is a high demand for lingerie globally. Millennial are the largest customer segment, as they are more receptive to new designs than older generations. They are constantly seeking innovative products with distinctive colour, print, materials and style. Each category targets a different audience, so you need to decide your target customers and adjust your marketing efforts accordingly. The Men’s underwears, for example boxers and trunks are among the best selling product while the women’s lingerie market on the other hand has different characteristics. It is very crucial for you to decide what you want to sell or what your ideal customer looks like.
Starting a lingerie store business
This is a lingerie store business, so you don’t fall into the stress of a business brand or franchising your business. It is very affordable to set up a lingerie store and sell popular brands. This business as I mentioned earlier can be done both offline and online. You can use the offline medium which involves you have your own shop or store where you put up your products for your buyers to see while online store has to do with launching a website where you can display your lingerie with price and payment tag for online sales.
Business Plan
A business plan is a comprehensive document that outlines everything necessary for the business owner, partner, investor, or potential buyer to know about the company. This document should cover all aspects of your lingerie business and the steps you want to reach out to your audience. It should also include suppliers, cost, potential opportunities and business threats. A business plan should include:
- Legal aspect (business structure, permit and licenses)
- Financial Aspect (Financial sources for your business)
- Strategy and Implementation
- Company Description
- Market and Competitive Analysis
- Marketing and Sales Strategy
A business plan secure loan from the bank and makes your business grows fast compared to other business with no business plan, In addition, it attracts financial investors. The business plan serves as a roadmap for your lingerie business and it describes the steps you need to follow to launch your store. Your business plan should also describe your store location, how it will be conducive for people, and how many people will be in charge of it.
How to fund your Lingerie Store Business
One of the crucial aspects of this business is capital. Anyone that wants to venture into a business must have a personal saving or investment. If the amount of capital you want to start up this business is not enough, you can get a loan from the bank or perhaps solicit for funds from friends and family. It is good to start the lingerie store business on a small scale and then as time goes on you can expand and diversify. The following are some expenditure you may need to consider:
- Launching an Online Store
- Payment of Rent for Offline Store
- Payment of Salaries
- Buying your lingerie Product
- Maintaining the store, cleaning
- Electricity Bills
- Taxes
If you want to run an online store you don’t need to pay for rent or workers to run your store while if you want to run an offline store you will need to pay for rent and maintenance of the store. You can run both an online and offline lingerie store, just make sure that the prices of your products are the same both online and offline.
Registration of Your Business
There are legal steps involved in starting a lingerie business. First of all, you should decide on your business structure such as Sole proprietorship, Partnership, Limited Liability Company, and Corporation. Since it has been established hat you should start small, I recommend that you chose Sole Proprietorship or Partnership but as your business grows you can change your business structure.
Getting a business name for your business is also very crucial. Think of a name that can appeal to your target audience, after you have selected a business name then register it with the state and local governments and then apply for a Federal Tax ID number with IRS. As soon as you register your business, you will get a business number, you may also need to apply for business permits and licenses which may vary across the state.
Lingerie Store Supplier
At this stage, you have to determine how to source products for your retail store. You will need many wholesalers that will supply lingerie to you. You may not need these services if you want to start a lingerie store of your own and stock it up with your products Contract with wholesalers, private-label designers, and manufacturers to purchase lingerie inventory. Purchase varieties of sizes, designs, and colors that will satisfy your customer taste. If you want to purchase wholesale stock, you may need a store to keep these products. There are different means in which the products can be supplied, you may decide to convey the products from the company to your store, or perhaps you may decide to use a delivery service. The Wholesaler can deliver lingerie to your store monthly, weekly, or quarterly but that depends on the agreement you have with him or her. Another alternative is to wait when your store runs out of supplies than you can order.
Set Up a Store
First of all, you must rent a place to set up your lingerie store. You may consider renting a shop or store but do not rent it in a busy area. Set up your lingerie store or shop in your local town or city centre where potential customers can access you. Make the location convenient for your customers where they can pack their cars and feel free and do not set up your store in an area that is full of competitors. Stock up your store with lingerie of different sizes and arrange it in a beautiful way that will appeal to the eyes of customers. . Hang your lingerie beautifully on hangers and also place them on shelves and you can use mannequin to display your lingerie items. Make contract with wholesalers, private label designers, and manufacturers to purchase lingerie inventory. In addition include additional items like perfume, lotion, jewelry stockings, slippers, for bachelorette parties, or bridal shower gifts. In addition, have a dressing room where customers can try on different items,
Setting up an Online Store
If you want your business to go global, then you have to make this incredible choice. This business can be done both online and offline and you run both providing you have the capacity. Many customers prefer buying lingerie online than in a store, they are more comfortable when the order online and it is delivered in their doorstep. Customers find it very attractive because they escape interacting with the salesperson and also shopping bags. Starting a lingerie business online has its own share of benefits which are: No payment for rent, bills, utilities, and maintenance but you may have o consider issues like choosing the best platform for your shops and digital marketing. Conduct research about your products and set up a universally accepted price for your products. In addition, make sure that the online and offline price of your lingerie items are the same so that you will not confuse your customers.
Marketing an online business is completely different from marketing a store. When you run an online business, you have to use digital marketing to promote your products and such are: Content marketing, social media advertisement and email list. It is essential for every online business to understand SEO and digital marketing.
It is paramount for you to decide where you will sell your product on the internet. These are the following ways you can make sales online:
- Launching your store on an established retail platform like Amazon and eBay
- Building an e-commerce website through a platform like Shopify
- Building an e-commerce website from scratch
Creating a seller account on platforms like Amazon and eBay eliminates technicalities and you can make sales but the challenge is that you have to pay for fees and lack of shop customization options. Worry can also linger in your heart that if the platform goes down then your business goes down with it.
Launching your own website can give you the freedom you need to design your website as you want but using Shopify can give you the technical expertise you need. The goal is in your court; decide on using an online platform or launching your own website. You may need a web host to help you manage your website.
Promote Your Lingerie Business
Anyone that wants to start a lingerie business must have strategic marketing plans that will make the business successful but as the business grows you may change your marketing strategy. These are the marketing outlets you can use to market your products both online and offline:
- Flyers and Banners: Design beautiful and colourful flyers and banner and make sure they carry pictures of the lingerie items you sell. Friends and Families can help you distribute the Flyers while the banner should be placed in front of your store because that is your first selling point.
- Billboards: Billboard is a form of outdoor advertising, since you will be pasting a banner in front of your shop. The billboard can be stationed at the road junction to your shop, make sure it is beautifully designed and colorful. Use catchy words that can attract pedestrians and other people driving in that direction.
- Website or Online Presence: if you want your lingerie business to be successful then you have to build a solid online presence. Sign up on business directories like Google Place and Yelp. A strong online presence will help increase awareness and drive foot traffic to your lingerie store.
- Social Media: Social Media platforms like Instagram, Twitter Facebook and Whatapp can boast you online presence. Set up profiles on these platforms and update your customers about the latest lingerie fashion that is trending ang give them updates about your business.
- Local Newspapers: Book pages in the Newspapers to market your business and send out press releases through this local Newspapers when launching a product or service.
- Television: A Jingles and adverts can be organized or dramatized to promote your lingerie business. As your business expands, you can sponsor a Television show or program that will give you advertisement slot and furthermore you can book an advert slot during the news hour. The news hour is watched by most people and this can go a long way to promote your business.
- Trade Fair: Trade fair is an exhibition organized in order for companies to showcase their latest product, meet with industry partners and customers and study activities of rivals and examine recent market trends and opportunities. Exhibiting or showcasing your lingerie product during Trade fairs can create wonderful awareness for your business and through this platform you can also meet investors. Another incredible benefit of trade fair is that it helps you meet potential customer and build your business data base. One great disadvantage of Trade fair is that you also get to meet your competitors who are exhibiting there product also, you may have to try so hard to stand out. Low turnout of customers can spell doom for a trade fair exhibition.
Lingerie Business Insurance
Insurance is the means of indemnity against future occurrence or disaster that might befall a business. Insurance is very paramount so as to protect your business from risk and unforeseen circumstances. Take steps to prevent as many risks as you can but ensure your business is protected with business insurance. These insurance policies can protect your business risk both online and offline and the following are types of insurance you might want to consider:
- Lingerie Store Cyber liability Insurance: Cyber liability insurance policies protect your business against internet based crimes like falsifying payment of information, fraud and stealing of data. This kind of insurance is strictly for online lingerie store. Cyber crimes can damage your reputation and your business as well and this can chase your customers away
- Lingerie Store Property Insurance: This insurance policy helps you pay for necessary repairs to the building or replacing items that were destroyed according to your policies terms. It is important to insure your lingerie store because of outbreak of natural disasters like earthquake, volcanoes and flood. Your lingerie store is also at high risk of fire outbreak because of inflammable items you sell such as perfumes and lotion. In addition, make sure you have a fire extinguisher in your lingerie store and dial the fire service number when the need arise.
- Lingerie Store General Insurance: Your lingerie shop can be at risk of legal liabilities, damage caused to customers from products and injuries incurred from your store. A clothing rack with iron or sharp edge can cause an injury which you will be liable for and all these are covered by general liability insurance. Completed operations are for damages caused by services provided such as custom made garments. Products liability also covers issues like skin reaction or infection incurred from using your items.
- Lingerie Store Worker’s Compensation: Another risk you should be concerned about is injuries to employees that occur during the job. Workers at times lift heavy undergarment boxes which could cause severe back pain and also your workers health can deteriorate as a result of too much stress. All these health challenges could cost a lot medically. With Worker’s compensation insurance, these costs are covered as benefits to your employees.
- Lingerie Store Crime Insurance: An offline lingerie store is always at risk of theft, shoplifting from customers as well as theft or embezzlement from employees. Also this can be managed with the use of surveillance or CCTV Cameras places at strategic places in your shop but insurance is still needful. For Instance if a customer goes to the dressing room with 6 (Six) Lingerie items and returns with only three, theft of the three undergarments and the resulting loss will be covered by your crime insurance policy. Make sure you balance your accounts daily or monthly to fish out employers that embezzle funds and you should employ a highly credible Accountant that will manage your business accounts.
- Lingerie Store Commercial Auto Insurance: Vehicles are used in lingerie business as a transport mechanism to convey products to the store and also for business trip and errands. Accidents, theft and vandalism can occur during the course of these trips, it is very essential to insure your automobile so that Commercial Auto Insurance will cover the risk of accidents and theft.