Cost Of Starting A Boutique Business In Kenya
Starting a boutique business in Kenya costs Sh.10,000-Sh.500,000 on average. The cost of starting a small boutique business is Sh.10,000-Sh.50,000 on average. A large boutique business costs more due to the high rental costs and the high number of boutique merchandise. We will show you the cost of renting a boutique business store in Kenya. We also explain how your store’s size and location affect the rental costs.
Starting a boutique business in Nairobi costs Sh.70,000-Sh.500,000 on average. Starting a boutique business in Kisumu and Mombasa costs Sh.50,000-Sh.500,000 on average. In small towns and rural areas, starting a boutique business costs Sh.10,000-Sh.100,000 on average. The cost of starting a boutique business depends on the store location, and we will tell you why.
What boutique item are you planning to specialize in? The cost of starting a boutique business depends on the type of item you desire to specialize in. Starting a general boutique business is highly expensive. Therefore, most Kenyans prefer to specialize in one or two boutique items. Below are some boutique businesses you can specialize in and how much each costs.
Types Of Specialized Boutique Businesses In Kenya
1. Footwear boutique business
Starting a footwear boutique business in Kenya costs Sh.20,000-Sh.200,000 on average. A boutique business owner can choose to specialize in women’s footwear, men’s footwear, children’s footwear, or all three. A boutique business can also specialize in casual or official footwear.
2. Official wear boutique business
Starting an official wear boutique business in Kenya costs Sh.50,000-Sh.300,000 on average. The cost is high because official wear is more expensive than other types of items of clothing. Official wear cannot be purchased from public markets like the Gikomba market. An official wear boutique business can be further classified into women’s official wear, children’s official wear, and children’s official wear.
3. Casualwear boutique business
Starting a casualwear boutique business in Kenya costs Sh.10,000-Sh.150,000 on average. Suitable casualwear clothing can be found in public markets at very affordable prices. This explains why starting a casualwear boutique business seems affordable. A casualwear boutique business owner can specialize further in the following:
- Womenswear casual clothing.
- Menswear casual clothing.
- Childrenswear casual clothing
- Footwear casual boutique business.
4. Bags & purses boutique business
Starting a bags & purses boutique business in Kenya costs Sh.50,000-Sh.250,000 on average. A bags & purses boutique business can be classified further to:
- Bags for men’s boutique business.
- Bags & purses for women’s boutique business.
- Bags & purses for girls’ boutique business.
- Bags for boys’ boutique business.
5. Beauty products boutique business
Starting a beauty products boutique business in Kenya costs Sh.50,000-Sh.500,000 on average. The range of beauty products and their quality will affect the startup costs. Beauty products are mainly sold to women, but you can expand your business by including products for men e.g Lotions for men, perfume for men, hair dyes for men, and shampoo for men, among others.
Cost Of Setting Up A Boutique Business In Kenya
1. Cost of renting a store for a boutique business
On average, the cost of renting a store for a boutique business in Kenya is Sh.10,000-Sh.250,000 per month. The rental costs for a boutique business vary from county to county. On average, the cost of renting a store for a boutique business in Nairobi county is Sh.40,000-Sh.250,000. On average, renting a store for a boutique business in Mombasa and Kisumu counties costs Sh.15,000-Sh.100,000 per month. In small towns, the rental costs for a boutique business store are Sh.5,000-Sh.50,000 per month on average.
The cost of renting a store for a boutique business in Kenya depends on the store’s proximity to a central town. The closer your boutique business store is to a significant town, the more the cost of the rent.
2. Legal requirement cost of a boutique business
The cost of a single business permit for starting a boutique business is Sh.8,000-Sh.15,000 per year on average. The cost of a business permit varies depending on the county location of your boutique business. The cost of a single business permit for a boutique business is relatively higher in urban centers compared to small towns and rural areas.
3. Boutique business equipment cost
When starting a boutique business, you need some necessary equipment. Below is a table of the cost of boutique equipment needed to start a boutique business in Kenya.
Boutique Equipment & Cost
|Set of hangers||Sh.400-Sh.1,500|
4. Cost of boutique merchandise
The cost of importing boutique merchandise is the value of your merchandise plus a 10%-25% taxation of the value of your goods. A bale of used clothes (mitumba) and shoes costs Sh.15,000-Sh.50,000 per bale on average. This depends on the type of clothing you are purchasing.
5. Labor costs
The cost of hiring labor for a boutique business is Sh.10,000-Sh.100,000 salary per month on average. The cost depends on the person you hire’s skill level. The cost of labor also varies from county to county. Hiring labor in major towns is relatively expensive compared to small towns. The profit margin of a boutique business is high in major towns compared to smaller towns and rural areas. This is attested to high traffic of customers in major towns. The selling prices of boutique merchandise are also higher compared to small towns.
Cost Of Setting Up An Online Boutique Business
1. Branding and marketing costs of an online boutique business
The cost of setting up social media accounts for your boutique business is free. The cost of running ads for your online business varies depending on your chosen platform. The following is a list of advertisements prices on popular social media platforms:
- Youtube – The cost of getting 500 views on youtube is Sh.50-Sh.100 on average.
- Facebook & Instagram – The average cost of getting 100 impressions on Youtube is Sh.500-Sh.2,000. An ad on Facebook simultaneously runs on Instagram so long as you set up an Instagram account.
- Twitter – The ad cost of getting 100 impressions on Twitter is Sh.5,000-Sh.15,000 on average.
2. Cost of boutique merchandise
On average, the cost of buying boutique merchandise from public markets (mitumba) is Sh.15,000-Sh.50,000 per bale. If you wish to import boutique items for your online business, you will first pay the price of the value of the goods you wish to buy. The government charges a 10%-25% tax on the total value and the value price of your goods.
3. Internet costs for an online boutique business
You require a steady internet supply when starting an online boutique business. On average, the cost of setting up a Wi-Fi connection in Kenya is Sh.1,500-Sh.10,000 per month. A steady internet supply is essential to avoid missing out on delivery requests. Prompt responses in an online boutique business are necessary for success.
4. Cost of delivering boutique merchandise to customers
On average, the cost of delivering boutique merchandise to customers is Sh.50-Sh.100 per 5 Km. The cost depends on the number of goods ordered by your customer. The more goods are ordered, the more costs you will incur to have them delivered. The best means of transport for boutique merchandise is a motorbike. A motorbike can beat traffic and can access remote areas with ease. The cost of a motorbike in Kenya is Sh.30,000-Sh.150,000 on average.
5. Cost of merchandise storage for an online boutique business
On average, the cost of storing merchandise for your online boutique business is Sh.5,000-Sh.50,000 per month. This option is only preferable when you have excess merchandise that does not allow you to have them stored at home. The best storage for your online boutique business merchandise is at home.
Where To Buy Clothes To Start A Boutique Business
1. Public markets
On average, the cost of buying clothes in a public market for starting a boutique business is Sh.15,000-Sh.50,000 per bale. The cost depends on the types of clothing you will buy. Clothes for adults cost more compared to children’s. Public markets like Gikomba are the best option for buying clothes for your boutique business.
2. Importing clothes for a boutique business
The cost of importing clothes for your online business depends on the value of the clothes you want to buy. First, you will pay the total cost of the value of the clothes you want to be imported. You will then pay a 10%-25% tax on the total value of your merchandise. The final cost will be decided by the value of your merchandise plus the tax payments.
How To Make A Boutique Business Successful
1. Buy quality merchandise
For a successful boutique business, you must deal with quality merchandise. The target market for boutique businesses aims to get quality items that cannot be easily located elsewhere.
2. Promote your boutique business to your target market
There are many ways to promote your online boutique business in Kenya. You can run advertisements on Tv or in newspapers. This is, however, an outdated means of marketing. The easiest option is to market your merchandise on social media at affordable prices.
3. Have good customer service
You should pay close attention to your customers. Ask your customers what they intend to buy and direct them to where they can locate this in a boutique store. Offer suggestions of alternatives that your customer might not have come across before.
4. Open your store consistently
A successful boutique business should plan the days and the timeline it will open. In the future, you should ensure you are always open on these stipulated days, even with low prices. Customers appreciate a boutique store that is always open during scheduled opening hours.
5. Design an attractive display for your merchandise
To have a successful boutique business, you must set up an attractive display for your customers. The display should be neat and definite in terms of item type and item size. Choose the best collection of your merchandise and set them in front of your boutique store.
6. Set fair prices for your merchandise
Do not overprice merchandise in your boutique to earn more money quickly. A successful boutique business has fair and reasonable prices. In this age, customers can confirm the actual price very quickly. When you shortchange your customers, you will lose them very quickly.
7. Select a strategic location to set up your boutique
A strategic location for your boutique business will bring in more customers and increase your profits. Pick a location that is frequented by the market you are targeting. The door to your boutique business should be in plain sight for interested parties to be able to spot it with ease
50 items is a steady number to start with on average. With these items, you can sell some and keep restocking your boutique business with profits.
Yes. A small boutique is profitable when planned out properly. Setting up a small boutique is more profitable when you are working with a low budget. A large boutique will bring losses if you do not have enough capital to maintain your boutique business.
3 months-1 per year on average. This depends on the location of your boutique. A boutique business set up in a place with high traffic will start making profits earlier. Location, however, is not the only determinant. The marketing strategy and boutique display also significantly affect how fast you will start generating profits.
Yes. With 50k, you can start a boutique business with items from public markets like Gikomba. With a bale that costs Sh.15,000, your business will be ready to kick off. The remaining amount can be used to get a permit and equipment and pay the initial rent for your boutique store.
First, brand your boutique business with a logo that says you are running a boutique. Second, open accounts in frequently used social media platforms around your area. Make sure you add your contact details. Third, hire a professional photographer to take quality images of your merchandise and post them. The last step is marketing your boutique business by running ads or paying well-known influencers to spread the word about your business venture.
The success rate for a boutique business is high. To be successful in this venture, however, active involvement in every step is essential. One needs to pay attention to every detail related to a boutique business. Deep research on the requirements for starting a boutique business will raise the probability of success in your establishment.
Step 1: Rent a small room.
Step 2: Buy enough equipment and merchandise to start with.
Step 3: Get a business permit from the authorities.
Step 4: Set up a simple but attractive display inside and outside your boutique business.
Step 5: Open social media accounts and ask close friends to share these accounts.
Step 6: Begin selling as you keep on marketing your business.