How to Start a Disposable Diaper Retail Business

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Disposable Diapers otherwise known as nappy are handy underwear worn by babies. The material is highly absorbent preventing outer soiling.

Most diapers are made using rugged materials such as cotton and several fabric layers. Also present within the fabric or synthetic material and absorbent chemicals.

The global market for disposable diapers is projected to surpass 57.3 billion by 2021. Reasons for this astronomical increase is based on expanding infant population, high birth rate in rural areas and changing trends.

Although poor developing countries grapple with low wages diaper penetration is on the increase. The baby industry is very lucrative irrespective of the sector you wish to operate.

Baby cloths, shoes, hats, bags and accessories attract premium prices. Same applies to disposable diapers business.  To setup a disposable diapers business you need to put a few things in place.

Start with writing a business plan to determine the retail structure. Other important things to consider are funding, registration and sourcing the product.

Although the business is slightly challenging it is not difficult to execute. Here are a few ideas on how to start a disposable diapers business.

Starting a Disposable Diapers Business

Write a Business Plan

If you are not conversant with writing a business plan hire a professional to do the job. The plan should factor funding, management structure, goals and product.

Other parameters should cover market analysis, labor costs, utility and fixed assets. Once you have written the business plan carryout a feasibility study of diaper stores in your community.

Find out what brands they stock, price range and customer preferences. Survey available shops to let and secure a good location.

Locating the Diaper Store

Locate your store in a bustling commercial area to attract huge patronage. It is a known fact that Businesses selling the same type of items usually gravity towards each other.

Despite locating the business close to a competitor patronage will remain high. This is because the area builds a reputation based on the number of stall selling same item.

 A good example is arts and craft markets, vehicle spare parts markets or antique stores. Another ideal location is around residential areas that have heavy pedestrians and vehicular traffic.

Setup a Diaper Store

You need to setup your store ready to display your products. Use an interior decorator to design a friendly welcoming store for patrons. You need equipment such as cash registers, shelves, checkout counter and computer.

Retail Type

There are many types of retailers in the diaper market. The sourcing of your product determines which category you fall.

Some retailers prefer purchasing stock from importers or buying abroad. Others approach manufacturers or wholesalers.

The choice of business model should be based on availability of product, competitive pricing and high quality brand. Importers are required to have import license while direct from factory purchase are bound by a partnership agreement.

Registration and Licensing

Register your disposable diaper business as a limited liability company. Then choose a memorable business name that depicts your products.

You need tax identification number, insurance and trade license. The product will attract value added tax and standardization. Although standardization is the headache of the manufacturers make sure the product you choose is compliant.

Funding the Enterprise

You can start a small diaper retail outfit with $7000. Funding is required to lease property and secure a trade agreement from a manufacturer.  Majority of the funds will go on purchasing the items, furniture, signage and labor costs.

Apply to your local commercial or trade bank for loans. You can try a partnership business structure and share startup cost with an investor. Try target saving or borrow money from family and friends.

Diaper Supplies

It is important to understand market trends, growth drivers, see opportunities and purchase innovative products. Buy an extensive product range or focus on only one brand.

Approach manufactures for contractual agreements and purchase orders. If you buy directly from wholesalers your profit margin reduces. Before stocking your shop you need to understand the different types of diapers in the market and customers preferences.

Marketing the Diaper Business

Retailers need to develop a good market strategy to attract patronage. Disposable diaper business is highly competitive and there are many companies in the business.

To differentiate your enterprises create a brand for your company. Use commissions based sales representatives and do community marketing.

Provide discounts, coupons and fun promotions. Print flyers, banners, posters and billboards to attract customers.

Create a Website

Build a targeted website and use social media channels such as Google+, Facebook. Makes sure the website is highly responsive, fast loading and attractive.

Offer your customers e-commerce solutions and payment portals. Accept credit cards, debit cards and PayPal payments. Starting a Baby Food Dealership Business