How to start a gift shop from scratch
Opening a gift shop means investing in a profitable, developing and not complicated business. People love to give and receive unusual gifts, and there is always a reason for a gift. The demand for souvenirs and gift products is quite high; such a store will bring income all year round. The only drawback of such a business is fierce competition, so you need to hook customers with something, lure them into your store.
Online Gift Shop
Business on gifts can be quite successfully conducted with the help of an online store. When you launch such a shop, you can save a lot on renting premises and collecting permits from authorities. This method does not require special start-up investments. Required:
- Rent a warehouse for storing products.
- Buy or rent a site.
- Purchase an assortment of goods.
- Purchase consumables.
With the help of the online store, it is convenient to offer handmade goods to order, as well as unusual souvenirs. When ordering, you can offer customers holiday gift wrapping.
It should be borne in mind that the online store limits the target audience, middle-aged and older people are used to buying gifts in stores, not online.
The best solution would be to open such a store in addition to a regular outlet, thus advertising and offering the range on the Internet. People will be able to view products without leaving home, order them, and pick up the order in the store.
Is it profitable to open a gift shop?
Opening a souvenir and gift shop in a large or small city is a profitable and promising business. The craving to give gifts is very strong in people, the tradition is unlikely to become obsolete soon, so the demand for such products has been, is and will be. The relevance will largely depend on the location of the outlet, the traffic of people.
Holidays borrowed from abroad, such as Halloween or Valentine's Day, are gaining more and more popularity. Customers want more than just a frying pan or a kitchen service as a gift, people crave something extraordinary, fun and memorable. A store with unusual gifts will help you give happy memories to loved ones.
The gift shop has rather blurred boundaries, there are many categories of goods for sale. It should be understood that it is simply impossible to purchase the entire list of goods, as well as to satisfy the needs of all customers. At the start of a business, it is important to decide on the topic.
There are options:
We don't know you personally. But we know for sure that you have 4 close relatives, 2 good friends, 6 colleagues. All of them need to give gifts. The volume of the gift products market in the Russian Federation is about $ 10 billion per year. The indicator continues to grow. In the article we will tell you how to open a gift shop from scratch, talk about the amount of profit and possible costs, and give a business plan for a gift shop.
Industry Brief and Competition Analysis
In 2021, the import of gifts decreased. But the number of their manufacturers has increased. The market is approaching the European one. The consumer demand for gifts is growing. Requirements for the quality of the gift and design are increasing. Previously, the average check for gifts was 3-4 thousand rubles. In 2021, this is the minimum figure. The maximum amount reaches 30,000 rubles. and aims higher.
Gift trade as a business is carried out by large retail chains and small souvenir shops. Competition is fierce and sales volumes depend on the season. 40% of souvenirs are sold on New Year's Eve.
Souvenir business - which format is better?
Gift shop can be of one of 3 types:
- Gift shop. A distinctive feature is a wide range of souvenirs. The client will be able to find gifts for representatives of different age categories, for men and women. Additionally, gift wrapping, balloons and other attributes of the holiday are sold.
- Handmade gifts. Hand-made is implemented. This format is suitable if the entrepreneur himself has needlework skills.
- Experience Market. It sells certificates for participation in unusual events. In the experience store, you can book a parachute jump, training flight on an airplane, a visit to a spa, an expedition to the mountains, horseback riding, hot air ballooning. The entrepreneur acts as an intermediary, receiving a percentage of sales.
Features of the online gift shop
When launching an Internet project, you save on rent. You only need a warehouse for storing souvenirs. The coverage of clients with this scheme of work increases. You can arrange delivery to any corner of the world.
However, part of the target audience does not use the Internet. These are mainly people of the middle and older generations. The entrepreneur will have to think about the dissemination of data in the conditions of information dominance. Another disadvantage is that buyers are deprived of the opportunity to view souvenirs before purchasing. But for many, a personal examination is very important.
How to open a gift shop: starting a business from scratch, choosing a direction, advantages and disadvantages, evaluating the profitability of a store, sales statistics, an example of a successful business selling gifts.
To say that gift shops are popular in our country is to say nothing, because in Russia there are 8 state and more than 30 other secular and religious holidays, and for each of them it is possible, and even necessary, to select and give gifts.
Such a business as gift shops is gaining great popularity lately, and it's not about the versatility or versatility of the institution - the very well-being of citizens is increasing, many trendy things are becoming desirable and demanded presents.
No matter how difficult this business may seem, opening a gift shop will be much easier than it seems, and today the readers of this article will find out why this is so.
Advantages and Disadvantages of a Gift Shop Business
No matter how attractive a business may seem from the start, here, as in many other endeavors, you can unmistakably highlight the main advantages and disadvantages of such a store.
What is the reason? Primarily due to the fact that the gift shop is similar in format to a "seasonal" business - that is, the institution receives the greatest traffic on specific days: holidays, vacations, major cultural and sports events.
Hence the advantages and disadvantages of the store, therefore, we suggest that you familiarize yourself with the table below for a detailed comparison.
Advantages Disadvantages Very large profits from purchases on holidays and other major government events. a kind of "seasonality" of income, a sharp decrease in profits on inter-holiday days. the ability to open a gift shop online, therefore, avoid spending on premises and staff. Additional costs for organizing the dispatch of goods, the assortment of the store must be more diverse. A large selection of directions - gifts for men, for women, for children and youth, a variety of jewelry, hand-made products and food. orientation to a specific direction, when choosing several trading niches, not only the quantity of goods suffers, but also the choice of gifts, the volume of the warehouse increases. low competition. A small store, due to its "uniqueness", can easily compete with large retail chains. The assortment of stores is often repeated, it is possible to surprise customers less and less. "Combined" store - a traditional store in tandem with an online store. The job opportunities are much wider. the cost of opening a gift shop is 1.5-2 times higher than when opening a "classic" option. The need for accounting for online and offline products. provision of additional services - creation of beautiful gift wrapping, home delivery, registration of congratulations. A significant increase in costs and cost of goods, the need for cooperation with a courier service.
The table aptly describes all the advantages and disadvantages of opening a gift shop, but in order to maximize the benefits and, therefore, profit, when setting up a business, the following points should be guided:
- Choose your niche in business. Gifts for men, women or young people - be guided by one thing;
- Avoid cluttering up the shopping arcade, this will disorient customers and make it difficult to find the right gifts;
- Special offers during the holidays days. This will further increase sales in the most profitable moments for the store;
- Immediately decide which type of store is most suitable - online or “classic”. In the second case, the "online option" should be exclusively as an addition to a regular store;
- Follow the trends on the Internet. The assortment should include gifts that are popular today, especially if you are going to open a shop aimed at young people. Selling previously popular, but already outdated things will not pay off, moreover, they scare away buyers well.
But this is just a fraction of the rules that will allow you to open a gift shop from scratch and effectively organize its work. Next, we will consider a step-by-step option for opening a gift shop using the example of a "shop for men".
Step-by-step guide on how to open a gift shop
Good afternoon, friends! We never forget about seasonal business ideas, because they give huge profits in a short time, but still stability is more interesting for us. This time we propose to combine both options and open a gift shop with delivery. With the right organization, the initial investment will be small, but future profits will delight even experienced businessmen.
The gift shop with delivery is an original business that interested us very much. Its principle of operation is completely different from traditional sales, which is the main secret of the manager. It is he who attracts numerous buyers who prefer to refuse other offers. What are we talking about? About delivery carried out not only by a regular courier, but also by animators.
Staged opening of a gift shop with delivery
We are not going to describe a simple online gift shop with delivery. Of course, opening it will require less effort. It is much more useful to pay attention to traditional sales, then to compare the available opportunities. For this, we will first analyze the process of launching a business idea in stages.
Traditional gift shop or online shopping?
A gift shop with delivery can seem like a complicated organization, which is why some entrepreneurs today are paying more attention to online shopping. However, this approach is only reasonable in certain cases. If you want to make the right decision, you should compare the pros and cons of both options.
First of all, an online store strongly limits the audience. Unfortunately, even in Moscow, not everyone is used to using catalogs on websites. Moreover, when choosing a suitable gift, you usually want to not only look, but also touch the original goods. Because of this, shoppers are more than happy to go to small and cozy places to appeal to a wide selection.
Secondly, the online store does not always receive trust from suppliers, so they do not provide goods for sale. Accordingly, you have to invest a lot of money in the initial purchase of goods. Yes, there is an alternative, which is dropshipping, but such a sale excludes original delivery services, which is one of the attractive secrets of our business idea.
Third, confidence in the online gift shop with delivery remains low. For this reason, many visitors will probably refuse the order. Accordingly, the audience of potential buyers will sharply narrow. Especially, this is clearly celebrated on the eve of a major holiday, when huge profits are lost. In many cases, before March 8 or February 23, it is possible to fully return the money invested.
Putting an end to her corporate career, Valeria Yermak, in the midst of the crisis, decided to go into business and opened a store of unusual gifts from Siberia. Through early trial and error, she prioritized development and focused on corporate orders.
How the crisis affects business development, why there are no sales in shopping centers and what determines the success of an entrepreneurial business, Valeria Ermak told Kontur in an interview. urnal.
Start in crisis
Before starting my own business, I worked for several years as a presenter, as an editor at a TV channel, then as a PR manager in a large company and as a director of a media company. At some point, I realized that what I was doing did not bring me joy and satisfaction. There was no desire to stay in my previous job: there was nowhere to move on - I started out as a journalist and reached the position of a manager. So, at the age of 33, an absolute understanding came to me that I needed to go free floating and stop working for hire.
For two months after my dismissal, I was just resting and thinking about what to do. At the same time, I wanted to be in harmony with myself, closer to nature. We have very beautiful forests in Siberia, I went to the river, collected herbs in the forest, and then dried them. Gradually, I realized that I want to develop in the eco-direction.
I opened my own handmade gift shop "Ermak" in September 2021. It was the most difficult period in the economy for starting a business, but at the same time it was interesting for its specifics, when you are looking for unusual moves, going through the school of entrepreneurship.
Having opened a store in a shopping center, I checked the purchasing power. It turned out that shopping center visitors are not ready to give money for gifts, flowers, baskets and all other eco-style souvenirs.
I had to move from the shopping center to an ordinary office building in the center of Kemerovo just a month later, but here we lasted only about two months.
Now my products are presented in a more suitable place - the Kemerovo Museum-Reserve "Krasnaya Gorka", which acquaints guests with the development of the mining industry in Kuzbass.
After analyzing the situation, I decided to switch to work with legal entities. I started sending out commercial offers, meeting with heads of large companies. I saw that they are showing interest in my products, because everyone is already pretty tired of corporate gifts in the form of diaries, pens and notebooks, and for a person who has everything, it is very difficult to come up with a gift. Guests from Moscow and abroad often come to Kemerovo for excursions or business trips. Surprising them with something in Kuzbass is not easy - you need to find several places and specific people with an exclusive product. For example, you can't buy pinecone jam in a store just like that, but in my online store it is. The assortment for "Ermak" was collected bit by bit, so I can offer my clients various options for decorating unusual gifts. Once I was fulfilling an order for a company - I was collecting a basket with teas, jam, honey. The customer's wish was that the gift would be useful, tasty and delightful.
As practice shows, now customers are interested not only in eco-style gifts, but also in unusual confectionery. For example, we produce Truffle handmade sweets. The Krasnaya Gorka Museum displays dolls dressed as mining engineers of the 18-19th century. We photographed them and developed an exclusive series of sweets and chocolates for the Miner's Day, which is celebrated in Kemerovo at the end of August.