As per the data submitted by Deloitte's 2023 global TMT, India had about 120 crore mobile phone subscribers in 2021, of which around 750 million were smartphone users. However, global consumer spending has dipped since the coronavirus outbreak. Therefore, there has been a decline in the global mobile market. India has remained the world's fastest-growing mobile market despite this appalling situation. This will most certainly be back to normal after the pandemic, so if you're thinking about starting a mobile business, the time is now.
If you want to open a mobile shop, you need to know the prerequisites. Mobile shop operations in India are typical of a small scale. When it comes to starting a business, timing is everything. We must also consider the potential profit and adjust our plans as a result.
Did you know?
Your mobile is more powerful than spaceships! According to NASA, the average phone now has more computing power than the computers used for APOLLO 11 moon landing.
Why start a mobile shop business in India?
The mobile phone has evolved into an integral part of everyday life throughout the modern era. Apart from texts, calls, and other forms of connection, mobile phones are a vital source of information, tracking, etc. Almost every single household in India has a mobile phone today. The human race is becoming increasingly reliant on mobile devices due to their widespread use in our daily lives. When a mobile phone is damaged or lost, the user is forced to repair or buy a new one. This is because once a person uses it, they become accustomed to it. This is why mobile shops in India have a huge potential to give you a steady income for many years to come, just by looking at the numbers and market size.
Also Read: How To Open a Mobile Repairing Shop?
How to start a mobile shop business in India?
To start a mobile shop in India, you will need a small investment to do so. You may need an investment of at least ₹10,00,000 to set up a small-scale mobile shop. Please follow the steps below on starting the mobile shop of your dreams.
Find a good shop location for rent
A small mobile phone shop typically requires 10 to 15 square feet of space, which can be shifted around depending on the city. You will also need to get an ideal location where the footfall of your customers is high. Places like shopping malls, small complexes, and business centres are ideal locations for your mobile shop. Since most smartphones are now purchased online, business owners should ensure that their shops are placed in a good location to compete with the online stores as they are your biggest competition.
Mobile shop design ideas
Many items are needed to decorate a mobile phone shop, including a counter, shelves, a glass drawer, a chair, a computer, and air conditioning. More and more customers will be drawn in if the store is not only decorative but also attractive and transparent. It is possible to illuminate the counter and add nice ambient lighting to the shelves to improve its aesthetic appeal. Therefore, it is best to get help or hire an interior designer and tell them your needs to get a beautiful store ready.
Licences and GST
To do any business in India, you will need to register your company and get a GST number. An Indian business licence, DBA Certificate (Business Name Registration), Certificate of Occupancy and Federal Tax ID are all required to open any shop. Make sure you've done your research, completed all of the paperwork ahead of time, and have it all in one place before setting up shop.
Deciding on the brands and Distributors
As the business owner, you must decide the different brands you will be stocking in your store. The market demand must be researched properly and defined. Popular brands must be in higher quantities, cheaper and affordable brands must be kept in larger quantities than more expensive and premium brands because the sub ₹20,000 segment is the quickest moving product. The next step should be to find a distributor for the mobile shop business. According to the demand, the delivery of mobile phones and accessories can be easily made at his shop at low or reasonable prices. By buying mobile phones from the distributor, business owners must decorate the store in such a way that they can attract customers. Here is the list of the top 10 smartphone companies of 2021- Apple, Samsung, Oneplus, Xiaomi, Lenovo, Vivo, Oppo, Redmi, Realme and Motorola.
Studying the competition
It is very important to study your competitors before starting any business. As a business owner, before investing money into a mobile shop, it is paramount to research the existing mobile shops in the area or the town where you are located. Locate an area where there are not too many mobile shops present and where there may be a high demand for mobiles or their accessories.
Deciding on the accessories
A good mobile shop does not only sell brand new mobile phones, but they also service and repair old ones. Some shops also sell refurbished mobile phones. It is also important that you stock mobile phone accessories because they sell a lot more than mobile phones themselves. Accessories like tempered glasses, phone cases, earphones, designer covers and speakers are all fast-moving products that sell with mobile phones.
Promotion and Marketing plan
Put together a marketing plan that demonstrates your familiarity with the current economic climate and your goals for attracting and retaining customers. If you don't already have a good idea of how much rent and other representational costs will cost, you should do some research. It would help if you had a promotional strategy before you decide to open a mobile shop, as the product you are selling is a highly commoditised product with a high level of competition already existing in the market. Depending on your budget, you can also invest in advertisements in a local newspaper and radio.
Setting up an online presence
E-commerce has made it very easy for consumers to sit at home and order their daily necessities and luxuries. E-com giants like Amazon, Flipkart, Snapdeal and many more. Therefore, as a mobile business owner, one must be prepared to have a battle with the people who are ordering their products from e-commerce stores. Almost everyone on the planet makes use of some form of social media. Setting up a presence on social media like Facebook and Instagram is very important as multiple brands have grown to become million-dollar brands just by using the power of social media. Just starting a page on Facebook and Instagram and requesting your friends and family to share the page as much as they can have a huge impact on your sales.
Similarly, you could also try out influencer marketing on social media, where you pay people with a large following to educate their followers about your brand and products. Placing ads with special discounts and deals is also a good idea.
You can also try setting up a photo booth for a week and encourage customers to take photos, share them on social media and tag your store. Make sure to show your appreciation to loyal customers by offering a discount on their next purchase or some free accessories every time they share a story about your mobile shop.
We're amid a pandemic and an ongoing war, and if it has taught us something, it is that the times are uncertain. With such a high amount of uncertainty looming over us, it is very important that you ensure your business and the stock you are holding and hedge your risk against natural disasters and artificial disasters.
Retail giants sometimes catch off small independent dealers in the cell phone retail industry guard because the industry is so lucrative. It is very important to be competitive and have customer retention plans to survive and thrive in this highly crowded space. However, with all these challenges, there are also opportunities available. Use every single piece of information out there to the advantage of your business and give your mobile business a chance to fight for the top spot. We hope the above information has been useful for your decision making and Khatabook wishes you and your business all the luck.