Right from time, the jewelry business has been a very lucrative venture in Nigeria. This is due to the high demand for different kinds of jewelry from necklaces and bracelets, to earrings, rings, and even wristwatches.
Selling all kinds of jewelry is very profitable, as they usually sell for high-profit margins. Anybody can start a jewelry business in Nigeria, and make money regardless of location, or gender.
While the jewelry business is known to be capital-intensive, you can start with just a little money if you know how to go about it. That is why we’ve come up with this post to show you exactly how to start a jewelry business in Nigeria.
From the cost of start and profitability, to where to buy, how to buy, and how to sell, you’ll learn everything about the jewelry business in Nigeria. That’s not all, but along the line, we will also discuss how to buy jewelry from abroad and sell in Nigeria both online and offline.
Are you ready to know all that? Let’s get started then!
Starting a Jewelry Business in Nigeria
Starting a jewelry business in Nigeria is very easy in Nigeria. The business involves buying and selling all kinds of jewelry to make money. You can start the jewelry business in many ways including:
Small Scale Jewelry Business
The small-scale jewelry business involves buying different kinds of jewelry in small quantities and selling for profit. Small-scale jewelry sellers usually deal with gold and silver jewelry, and they use a bag to sell instead of having a shop.
Usually, small-scale jewelry sellers buy jewelry locally in Kano and Lagos, but now they can order them from abroad in small quantities, even just a piece. There’s a lot of money to be made starting a jewelry business on a small scale, and the risk is low.
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The jewelry flipping business is another easy way to start selling jewelry in Nigeria. It involves buying in-use jewelry from people and reselling for good profits.
A lot of people do buy jewelry and sell them off after some time, so as a flipper, you’ll be involved in buying this jewelry from them. You can also make a lot of money flipping jewelry, as the most flipped types are wristwatches and necklaces.
Becoming a jewelry wholesaler requires a lot of money, as it involves importing different kinds of jewelry in bulk from places like Dubai, and selling to retailers, and sometimes final consumers.
The jewelry wholesale business is very profitable, although you must be able to take huge risks to be a wholesaler. Approaching the business this way, you’ll need to have a shop, and also, employ workers.
Bead Jewelry Making
The bead jewelry making business is the cheapest way of starting a jewelry business in Nigeria. It involves making different kinds of bead jewelry such as waist beads, necklaces, wristbands, earrings, etc.
Even as a student, you can start a bead jewelry business in Nigeria, as it doesn’t require much capital, and is very profitable. All you just need to get started is to learn how to make bead jewelry. You can do this by enrolling in courses, watching tutorials online on Youtube, and reading blogs about bead jewelry.
Is Jewelry Business Profitable in Nigeria?
Yes, the jewelry business is very profitable in Nigeria. In fact, the profitability of the business is what makes people keep venturing into it.
The profit margin of a jewelry business is huge, although it depends on the type you start. Starting on a small scale, you can make up to 50% ROI, as a flipper, you can make up to 100% ROI, as a wholesaler, you can expect up to 200% ROI while making bead jewelry, you’ll keep all the profits since you’re making them yourself.
This business is very profitable because jewelry is usually purchased by middle-class to top-class people in Nigeria. As per that, they are expensive and make a lot of profits.
Also, keep in mind that the profitability of a jewelry business depends on the type of jewelry you’re selling. For example, gold is more expensive than other types of jewelry, and due to that, the profits will be massive.
How Much Do You Need to Start a Jewelry Business in Nigeria?
The cost of starting a jewelry business depends on the type of jewelry business you want to start. Not just that, but the type of jewelry you want to start selling, and your location, may determine the capital needed to start.
You can start a bead jewelry business with about any amount. Starting a jewelry business on a small scale by selling low-quality jewelry, you would need at least N100,000. Flipping jewelry may require 200,000 to millions of naira to start. While you may need multiple millions of naira to start a jewelry wholesaling business in Nigeria.
How to Start a Jewelry Business in Nigeria
1. Get to Understand the Business
Firstly, before getting into the jewelry business in Nigeria, you need to understand how the business works. Both as a product and as a business you need to understand everything about the jewelry market both locally and globally.
You must know what drives the jewelry market, such as how the exchange rate affects gold in Nigeria, and how daily trading affects it globally.
Getting to understand the business, you must be able to identify fake jewelry from original ones. Understanding every aspect of this business could take a lot of time, so you’ll learn as you start and grow.
Also, in understanding the business, you must carry out some market research. Meet someone already in the business, and make some findings including what types of jewelry sell well in your area, how to buy, and so on.
This will really help you both short-term and long-term running of the business. Keep in mind that your research should be based on the type of jewelry business idea you want to start.
2. Decide on the Type of Jewelry Business to Start
After getting to understand the jewelry business industry, the next thing is to decide on your mode of operation. Mainly, your decision should be based on the capital you would be able to raise, as well as your area.
As a student, it would be ideal to start a bead jewelry making business, as it is cheaper, easier, and sells fast amongst students. Other types of jewelry businesses can be started by anybody. Just make sure you do more offline research before settling for one.
3. Come Up with a Business Plan
Based on the type of jewelry business you want to start, come up with a detailed and working business plan. You can do this yourself or hire a professional to help you draft a good plan.
In your business plan, you need to outline your objectives, and targets. Draft a plan that will suit your budget. Also, you need to write down how you’ll operate the business, outline the type of jewelry to start with and where you’ll buy, as well as your marketing and selling strategy.
Drafting a business plan is an important step in starting any business, as it will serve as a road map to your success. So, try and keep it as realistic as possible.
4. Arrange for a Startup Fund
After drafting your business plan, the next thing is to source for capital to start your business. The startup capital you’ll source would be based on your mode of operation, and the type of jewelry you want to start selling, so, it may vary.
While sourcing your capital, make sure you raise funds that will be able to account for every operation of the business from the purchase of goods, to getting a shop, and other required equipment.
There are many ways to raise capital to start a jewelry business in Nigeria. Starting a bead jewelry business, since it doesn’t require much capital, you can do some menial jobs and save up to get started. However while dealing with gold, silvers, and diamond jewelry, if you don’t already have capital, you can seek partnerships or loans from friends and family to get started.
5. Get a Shop
You can start a jewelry business in Nigeria without a shop. In fact, a lot of people operate the business using a bag to go around and sell. However, if you’re looking to start a standard jewelry business, you’ll need a shop.
While looking for a shop to start the business, make sure you go with a place where your target audience is located. There’s a lot that goes into a jewelry shop, as you’ll need to design it to look good and attractive.
6. Get the Some Necessary Equipment
One of the things that people don’t know about a jewelry business is that you can’t just start buying and selling jewelry. You need some equipment to operate the business. These includes:
- Show glasses
- Jewelry testing device and/or chemicals
- Jewelry creating kit
- Big bag for distribution
- Jewelry packaging materials
- And so on.
Keep in mind that all these require money to purchase. So, while budgeting for stuff in your business plan, make sure you create a space for these.
7. Source Jewelry Suppliers
The success of a jewelry business in Nigeria depends heavily on where you purchase your goods from. So, you want to take your time to source the best suppliers.
Because some suppliers sell fake jewelry, you need to be careful while sourcing one. Here, it will be great to find someone at the level at which you wish to operate (e.g small-scale sellers), create a solid business relationship, and start with their suppliers. As you grow and understand the business more, you can source your own suppliers with your terms.
Although Kano and Lagos are the most popular places to source jewelry suppliers in Nigeria, you can also buy jewelry from China at cheap prices and resell in Nigeria for massive profits (up to 200% ROI). This involves using the mini-importation business model. You don’t even need huge capital, as you can start with just 10,000 Naira.
8. Get Started and Start Selling
After sourcing your suppliers and getting your goods at hand, the next thing is to start selling. To sell jewelry, you must market them to potential customers, and this can be done in different ways including:
Word of Mouth
The most effective way of promoting your jewelry business in Nigeria is through word of mouth. Tell your friends and family about your business, show them your products and let them try them out, and also encourage them to advertise the products to their friends, family, neighbours, and so on.
As a beginner, this is the best way to quickly drive sales, especially if you’re starting on a small scale. You can also advertise your business to professional workers by visiting their offices. This works well if you wish to start hawking using a bag.
Advertise on Social Media
Social media also offers you the opportunity to promote your products and drive sales. You can leverage the power of WhatsApp status to reach a lot of people through posting and seeking reposts from friends and family.
Also, post your jewelry on Facebook groups, and WhatsApp groups to drive sales. More so, do not underestimate the power of Instagram, Twitter, and Facebook pages. Create a profile for the business on those social channels to create brand awareness. Through social media, you can reach out to celebrities and advertise your product to them. They spend a lot of money on jewelry.
Sell on Ecommerce Websites
The power of ecommerce is not to be underestimated when it comes to selling jewelry in Nigeria. Websites like Jumia, Jiji, and Konga offer you the opportunity to list your products and drive sales for free.
You can take advantage of the millions of visitors these websites gain monthly to reach a wider audience and drive unlimited sales.
Famous Jewelry Makers In Nigeria
As a beginner, you may want to work directly with jewelry makers, here are some you can find in Nigeria.
- Adorned By Hadash
- Treasures By Isura
- Gbenga Artsmith Collections
- Kunbi Works
- Wura Creations
- Circa 64
- Orda Wyse
So, if you’re looking for the best places to buy jewelry at wholesale prices in Nigeria, you can start with those above.
The jewelry business in Nigeria is a very lucrative one to venture into. With a lot of opportunities, anyone can start a jewelry business in Nigeria whether as a student, a stay-at-home mom, a job seeker, and so on. With this post on how to start a jewelry business in Nigeria, I believe you’ve gotten some important things needed to start your own jewelry line.