Tiles Retail Business Plan
Tiles Retail Business Plan
Tiles Retail Business Plan Overview
This Tiles Retail Business Plan refers to the standard Tiles Retail Business.
What are the main types of floor & wall tiles?
- Ceramic
- Porcelain
- PVC
How are tiles classified?
- By Size. E.g. 20*30, 30*30, 50*50, 60*60,100*100
- By Texture / Material – Ceramic, PVC and Porcelain
- By Origin – Local, China and India
- By Purpose – Floor tiles, Border tiles, Bathroom tiles, Wall tiles
- By Company – Twyford, Saj and more.
Major customers For Tiles Retail Business
Individual home builders and contractors form the majority of customers. However in terms of quantity purchased, contractors buy more. For instance a contactor building a three storey building will purchase more tiles compared to an individual buying for her own house.
What are consumers looking for?
Consumers are first attracted to the design, and then ask for the price. They will then compare details such as the tiles in each box, reputation of brands, quality and such. In the end the important factors are Design , Price, Quality and Quantity.
Average purchase per customer
Rarely will a customer purchase a single carton unless for repair purposes. The average quantity will also depend on the area. For instance in an area where there are more commercial and residential buildings coming up there will be higher quantities purchased compared to an area where most houses are individual homes.
Here are samples of average purchases from tile dealers in a Nairobi area where there are more commercial and residential buildings than individual houses
Daily Sales
Case A: 20–30 boxes.
Case B: 50 boxes.
Case C: 100 boxes.
Case D: 150 boxes
Use the lower figures for planning purposes. Sales will depend on the location, competition and the variety and stock you have.
Trends in the business
- Increased competition
- Many ‘small’ specialist tile shops operating hand in hand with big hardware shops
- Increased consumer knowledge about brands and quality considerations
- Increased price based competition
- Increase in large and medium scale importers
- Constant introduction of new designs and varieties
The barriers to entry in the business are going low. The minimum quantity from wholesalers is going down. Thus competition will continue increasing. Deep pocked traders are coming into the market and squeezing small retailers by variety and prices.
Most of the tiles in Kenya are imported. China imports are the most popular because of price and quantity. India tiles are a favourite for decorative purposes, though relatively expensive. Consumers tend to trust the imported tiles more than the local.
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