Shoes are essential for comfort, safety and as a fashion
accessory. They come in different sizes, shapes and functionality.
The application of the footwear depends on the design and
material used in the manufacture. Billions of footwear is sold worldwide yearly
making the industry highly lucrative.
To enter the industry you choose between manufacturing, wholesale
or retail. The manufacturer produces the shoes and sells to wholesalers/retailers
or directly to consumers.
Shoe
Making Company
To run a shoe making company you need moderate startup
funding. You could run a small scale enterprise or decide on automation.
The manufacturer creates a design and uses a template to
make the footwear. They use basic tools, semi-automatic or automatic equipment.
Large companies invest in conveyor powered production.
To establish the factory you need adequate warehouse
space for equipment, van, factory workers and company registration. To succeed
the manufacture should network with wholesalers and departmental store.
Shoe
Types
There are hundreds of shoe types based on the design and
material used in the process. Common shoe types are ballet shoes, Chelsea boot,
derby shoe and high heeled footwear. Others are slip-on shoes, loafers,
sneakers and fashion boot.
- ballet shoes
- Chelsea boot
- derby shoe
- high heeled footwear
- slip-on shoes
- loafers
- sneakers
- fashion boot.
Shoe
Wholesale, Retail Business
The wholesale needs to find a credible source for the
product. They network with manufacturers and sell to retailers or general
public.
As a wholesaler
you need a shop with adequate storage facility. Select quality or popular
brands, purchase a delivery truck and register the business.
The job description is to buy in bulk and the move volumes
rapidly. They earn income based on small
margins.
Types
of Shoe Businesses
- Wholesale
- Retail
- Manufacturing
- Affiliate Programs
Shoe
Retailers
Sell directly to consumers and make money on margins. The
retailer needs a commercial store, lots of advertisement and store branding.
To reach customers the store should be located in a
commercial area with heavy human traffic. The retailer needs to determine the
preferred customer demography.
You could stock female shoes male shoes or both. The
price and quality of your stock determines the appropriate store location.
Steps
to Establishing Your Own Shoe Company
Choose
a Business Name
It is essential you choose a memorable business name. Make
sure the name has the keyword element of your products.
Register the business as a limited liability company or
sole proprietorship. Obtain a tax identification number and value added tax.
The shoes generally attract sales tax and insure the
company. You need a trade licenses and manufacturers license if you go into
production. It is essential you join shoe making associations in your locality.
Write
a Business Plan
Write a shoe company business plan and carry out a feasibility
study. The plan should focus on niche industry, startup funding, location, and
business structure.
List your management team, mission statement, vision,
goals, profit/loss and products. Use the feasibility study to evaluate your
competitors. Understand their business model, customer demography and types of
product the stock.
Networking
Manufacturers, wholesalers and retailers depend on their
network to succeed. The value chain can only work if each sector performs their
basic functions.
A retailer can find wholesalers through directories,
yellow pages and other online resources. Same applies for wholesalers looking
for manufacturing partners.
Some retailers prefer going abroad to shop for footwear.
They purchase the items from established stores and import the goods.
Build
a Website
You will double your sales if you have an online
presence. Millions of shoes are sold through ecommerce websites.
Build an ecommerce store and include images of your
products. Make sure the website has a shopping cart for online orders. You
could stock the shoes in your store and ship to customers around the world or
locally.
Another format is selling shoe through a third party
arrangement. You don’t have physical assets but sell through an affiliate
arrangement.
You earn very small commissions on every purchase made
through your website within 30 days. The provider also performs the drop
shipment of the purchased shoe.
Shoe
Making Equipment
Shoe makers use a variety of equipment to manufacture the
product. The equipment are either manually operated or semi/fully automated.
Basic equipment’s are splitting machine, skiving, cutting
and sewing machines. More are die-cutting machine, scissors, steel rule cutting
dies, finishing, sanding and polishing.
Leather sewing machines include Post machine, harness
stitcher and cylinder bed. Cutting, splitting, skiving machines are trimmer,
leather splitter and Fortuna Skiver. Construction/repairs include shoe patch
open arm, baser Lock Stitch and chain stitch.
Equipment's
- skiving
- scissors
- steel rule cutting dies
- finishing
- sanding
- polishing
- Post machine
- Harness stitcher
- cylinder bed
- skiving machines
- trimmer
- leather splitter
- Fortuna
- Skiver
- shoe patch open arm
- baser Lock Stitch
Marketing
The shoe industry is highly competitive and challenging.
You need serious marketing to attract customers.
First make sure your store is very visible and in
commercial area. Use traditional print media such as flyers, billboards, sign
boards and business cards. Use classified websites, popular fashion magazines,
and teen magazines.
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