How to Start Okrika Business in Nigeria
Okrika is a term that needs no introduction in Nigeria. Okrika business neither needs nor is introduced to the average Nigerian. However for the benefit of our international readers, Okrika business (also referred to as tokunbo clothe business) is a Nigerian term used to describe the buying and selling of second hard wears ranging from clothes such as shirts, trousers, and skirts as well as bags, shoes, belts and other accessories.
These Okrika clothes are usually imported from other countries and then sold in Nigerian markets at ridiculously cheap rates. Nevertheless, it’s a business that has made many Nigerians rich and still has the potential to make as many more that are interested and willing to invest in the business.
Though the term Okrika Business is a very known colloquial in Nigeria, many are still not aware of the high earning potential of this business. The few that have realized these are searching for ways to tap into the business and start earning from it.
If you are amongst these categories of people, then you are in the right place. Like we always do here in West Entrepreneur, we will provide you with all the details you need to know before venturing into this business. We will provide you with the cost analysis and the capital required to get started.
At this stage, I’m sure I got your attention, but you are still wondering why this business is lucrative, so I will go down to business.
How Lucrative Is Okrika Business In Nigeria
Many people often overlook the Okrika business because they often think it’s a nonprofit business thus neglecting the huge potential, let’s consider these potentials together.
Clothing is a basic necessity of man, after shelter and food, is clothing. Nigeria as a country is made up of billions of people in the population and over which 23% of the Nigerian population, according to African Development Bank (AfDB) data, Their average monthly income is in the range of NGN75,000-100,000 (according to research by Fastestbillion.com) and as such not everyone can afford to buy expensive designers clothes and as such relies on this easily sought cheap Okrika clothes made available to them by Okrika vendors.
Its been also noted that even the well-to-do Nigerians prefers Okrika clothes over the new-made clothes because of so many reasons such as:
They Last Longer: Okrika clothes are usually imported and they are usually made from strong realizable clothing material and tend to last more than the new clothes sold at a relatively higher price.
They are good, cheap, and easily sourced: Okrika clothes are better than new clothes in that, they are believed not to fade, wash, or get damaged easily. They are also cheap and more so they are easily sourced as they can be found on almost every market in Nigeria, at every corner, on every road.
Why You Should Start Okrika Business?
Okrika Business offers many advantages over other businesses due to reasons such that it’s a low-risk business, starting is easy and there is a huge market for Okrika clothes in Nigeria. This business can be started with as little as five thousand nairas and be grown into a money-making machine.
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Steps to start Okrika Business in Nigeria
With all the above points in mind, let’s walk you through the steps to start your own lucrative Okrika business in Nigeria.
1. Do Your Research and Learn the Trade:
Like other businesses, prior to investing, it’s required that you do your research and learn all, there is to learn about the business. Okrika’s business though seems simple is not left out. You need to do your homework, and learn the necessary terms in the business.
Amongst the things to learn is:
Where to get the best grade Okrika clothes: With the huge market for Okrika clothes, you are likely not to be patronized if you don’t provide quality for your customers.
How to Grade the Clothes: Okrika clothes come in grades, Grade A, Grade B, Grade C, and so on, know how to grade them, then know how to differentiate the different countries the Okrika came from.
Know how many pieces of clothes should be contained in a bale of Okrika: Know the number of clothes that a bale should contain, and what it should cost for full bail, half, or half of half.
Know your Okrika Markets: Also to make money, you need to know all the major Okrika markets in Nigeria if possible, or know the major markets and the days of operation of the Okrika markets in your state.
Learn How to Market: Okrika clothes retailing requires uniqueness in marketing. Know how to get your customers to come to your point of stand and how to equally et them to patronize you also.
2. Source for Capital:
Just like any other business, to start you need working capital to get started. Though in the Okrika business the capital is reasonably small depending on the scale you want to start. Get your funds ready, if the fund in your possession isn’t enough, seek partnership, and pair with someone with the startup.
As I mentioned you can start with N5000 and above pending the level you want to start from. If you won’t need a store that makes sit even better.
3. Get a Good Location:
Location matters, location determines the number of customers to patronize you. Get a location inside or around major markets in Nigeria or along business roads, schools, churches, etc. that way, you are guaranteed a good customer and potential customer base.
4. Choose a Niche:
Starting off I made us understand that the term Okrika covers more than just clothes, bags, belts, bras, pants, etc are all-inclusive. Even while deciding to join the sale of Clothes online, you have to also specialize, probably, specialize in children’s wear, ladies’ wear, and so on.
5. Get s supplier:
When all the above has been put in place, the next is a good supplier that will not only supply you with quality Okrika clothes but also quality at a cheap rate. Remember you are in business to make a profit so ensure you get a supplier willing to sell at the best price.
6. Market and Start Selling:
Haven followed all the steps above it’s time we start making money and this comes only through marketing and selling your Okrika clothes.
Ensure you leverage on an advantage. This can be in your packaging, try and package your Okrika clothe depending o the type of Okrika you are selling, you can iron and package them attractively and by so doing you are increasing your market price and your customers will keep coming back.
The profitability of Okrika Business:
Let’s work with actual market price figures:
With 60 – 70,000 thousand, you buy bail. Now get the logic here, I said you can start with as low as 5000 right? Yes! That hasn’t changed. You can still start with 5000 but you won’t start off buying Okrika bales. You can pair or you can buy from suppliers of any amount and grade you want then resell, make your profit, and repeat.
With 70,000 you can purchase good grade, UK, USA full bale weighing 55kg – 60kg.
A bale typically comes with 350-450 items.
So if you sell a piece for 400-N700 you are guaranteed an amazing minimum of 140 thousand.
Now, as I said earlier, depending on the quality you can sell for 1k for every piece if so, do the calculation, and that is a whopping sum of 350,000 – 400,000 am sure you are following now.
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Bottom Line:
Okrika Business is a lucrative business and yet a very easy business to start as it requires no qualification, any jack that knows one or two about business can easily start and constantly smile to the bank.
Secondly, the business is not capital intensive, you can start with as little as 5000 – 70,000 naira only depending on the scale, and still make a profit.
If You have any questions or inquiries, kindly use the comment box or contact us.
