Sunglasses
The weather here in Taipei is starting to improve, which means it is changing from cool and damp to warm and wet. Being in the tropics we are starting to get more sunny days as well and when the sun is out it is pretty bright.
My parents live in Europe and the story is the same there, people are starting to plan for summer; and thus now is the time to start planning your summer season related business ideas.
There are two approaches here, both of them valid but the economics are very different. We all know that we need to look after our eyes and only buy accredited sunglasses, but whilst some of us are happy with generic brands providing we like the style and know they are safe, some of us are swayed by the big marketing budgets of the more expensive branded pairs.
Don’t be swayed into thinking that everyone thinks the way you do, but be aware that if one of your marketing goals is to use your existing network then you should understand how they shop for sun glasses. Both business models have healthy margins, but naturally the branded market is harder and more expensive to get started in. We’ll talk about finding stock in the next section as usual.
Marketing your product may depend upon what you choose to stock but the same principles will apply regardless of whether you have chosen to go the branded or generic route: -
Network
Ebay
Website
Shops
Direct Response
Shop
As we mentioned above, your network is important in as much as we generally choose to spend time with people who have similar values to us. This is positive as it will help you to explain the benefits of what you are selling, whether they are the hottest new style as worn by <insert cool singer’s name here> or simply “unbelievably low priced considering they are accredited”. Tell everyone what you are selling, be enthusiastic, and never be seen without a pair.
Ebay has over 3000 results on a search for <sun glasses> but only 14 for <rayban sun glasses>. In other words it is a competitive market place but if you can find a niche product or service that people are likely to search for then you can sell your product here. The other alternative is to set up an Ebay store and promote it offline so that your customers actually go into Ebay looking for you.
Google is even more flooded with Sunglasses than Ebay. A simple search gave 33 million results, and the Rayban search that we used above still yields more than 1 million results. As we have discussed before this does not mean that you can not be successful, it simply means that you will have to work harder at on and offline promotions to drive traffic to your site. The set up cost is low, but you will need to study marketing techniques and work hard to build your business. Used in conjunction with other strategies this can definitely help to make your name though.
Using other shops to sell your products is a great way to get started. Sunglasses are a great product for this, because they are a fashionable item and can be linked to small fashion boutiques, as well as more practical outlets such as tourist shops in a beach area, gas stations, and even all night nightclubs. Offer your sunglasses on consignment terms and check how they are going every couple of weeks. If a location is not working for you then simply take back your stock and the cost of any that have been sold, or gone missing. You will need to persuade business owners to carry your wares but a healthy share of the margin and some enthusiasm should be sufficient; after all there is minimal risk for them.
Direct response can work here either by advertising in newspapers and magazines, and on other websites; or you could run a direct mail type campaign and start leafleting households in your area with an offer for super quality/ branded sunglasses at way below shop prices. Stress that your product is fully guaranteed and can be returned undamaged for a refund if the customer is unhappy with the quality. Typically response rates will be between 0.5% and 1% so you need to post a lot of flyers, and when you start you are likely to need to work on your copy writing skills. Buy a couple of books and test your new flyers on 200 houses at a time to see whether you are improving. Don’t ask family and friends to critique what you wrote as they are unlikely to be your typical direct response customers.
If you choose to carry branded stock then you have no choice but to approach the brand owners directly or through their agents in your market. Explain what you are doing and how you plan to market the sunglasses. Ask about minimum order sizes and volume discounts. Start out talking to some smaller brands that you are less interested in as you will learn a lot in your first few conversations. Prices will be high and you may need to invest a chunk of change in getting started.
Going the non-branded route, whilst cheaper may be more problematic. You can find suppliers of sunglasses on www.alibaba.com and in all the other usual listings for suppliers. What you need to find is a supplier who is already accredited in your market and is used to shipping there. When you do they are likely to ask you to make large order sizes of what is ultimately a fashion item and subject to rapid changes in popularity. IN other words you don’t want to sit on boxes of them for years.
Regardless of which route you take, talk to as many suppliers as possible and play them off against each other in order to get the best possible terms. There are plenty of small sunglass operators, at worst you can buy from a wholesaler in your home country and you will still make money, until you are ready to move up to larger order sizes.
There is a temptation to sell copy products, don’t do it. Whilst you can make some quick money you will ultimately end up getting caught. The big brands guard their trademarks jealously and the last thing you need is a high profile court case, criminal record and a fine.
This can be a fun business, margins are not huge and you need to sell a lot to make any real money, but you will of course always have smart new shades and am sure you can find a way to make time t the beach part of your marketing strategy.