In Nigeria, Christmas gift hampers is always in high demand between December and mid-February of the new year. It’s a lucrative venture that guarantees good profit during the festive season.
RequirementsTo excel in the business, here are the requirements to fulfill.
Research
A thorough research of the gift market will help you understand your competition and your prospective customers.
In your research, you want to know the common practices and what you can improve. For instance, using a more attractive wrap and basket will attract customers because it’s not what they are used to. Research will open you up to more possibilities.
The beauty of a hamper often draws buyers/users of gift hampers before going further to check the content. So, learning how you can be artful with your package comes handy.
Business Plan
Christmas gift hamper market in Nigeria is porous, so, you need a solid plan that will set your business apart from others. This will provide you with strategies to penetrate the market and win customers over.
The plan will also help you carve a niche for your Christmas hamper business. For example, you could decide to sell to businesses (B2B) or individuals (B2C). You could also choose to have an online-only, onsite-only Christmas hamper store or both.
Initial Capital
A medium scale Christmas gift hampers business with 2 to 3 workers require between N400,000 and N1 million as its initial capital. A larger scale one requires N1 million and above, hence, having a sure source of funds is crucial.
There are many ways to raise funds for the business. The best way is to rely on your personal savings to start. Similarly, you could take a loan from the bank or seek funding from investors with your designed business plan.
Moreover, you could involve your family members and friends as investors in the business.
Branding
The gift hamper business in Nigeria is huge, but yours could stand out with unique branding. You shouldn’t make the mistake of going with the flow. From choosing your business name down to your logo, colour and graphics, your Christmas gift hamper business should be attractively different from others.
Similarly, timely delivery of gift hampers will make your customers feel valued. A Forrester research found that 71% of customers say that valuing their time is the most important thing a brand can do to provide good customer service.
Marketing
Both onsite and online gift hamper business require aggressive marketing. Though advertising methods change with time and trend, there are basic strategies for it. The marketing strategy for your Christmas gift hamper business will be what will stand you out.
Profitability
It is believed that you can make between 50 to 70 per cent profit compared to your initial investment capital. In this regards, if you invest N1 million, your profit could be between N500,000 and N700,000.
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