You may know how to make a DIY phone case by yourself according to a video guidance, but do you know how to start a phone case business? What is needed and what you have to prepare for?
It is not so easy to start a business, the good news is that if the trend hold steady, there will be estimated 6 billion smartphones in the world by 2020. That is a great opportunity to whom wants to break into this market. For that reason, there are some suggestions for you to start a phone case business.
Why should you start your own phone case business
It is obvious that starting your own phone case business is profitable. You can run the business online which does not require you to open a physical store. So you do not need to pay extra rent or have a location. The customers can choose a design as well or you can make your own unique designs for a niche market near you.
There is a need for attractive iPhone cases and Samsung phone cases that is only going to get bigger. Almost everyone is using a smartphone or an iPhone! You have a lot of scope to earn by having your own phone case business.
Make a market research report
If you want to enter the phone case market, the first thing you have to do is making a market research report about this market. Phone cases market research report is the basis for all business, through its long term’s tracking and monitoring to analyse the market demands, supplies, industrial chain and value chain.
Integrating information resources of market, company and the consumer, to find out the investment values and investment opportunities, avoid the business risks and improve operational capabilities.
1.What is the growth potential for a phone case business
As mentioned before, if the cell phone is still the most important communication equipment of human, phone cases will always be needed as new phone sizes or models are debuted.
But sometimes people want to get a new cell phone case because of they want to change a style or just want to make some changes. Absolutely, it has a huge growth potential in this market, however, there are lots of competitions as well.
In that huge growth potential market, what you need is not only just seeing the value, but also need to catch up with the trend of the market and the trend of consumption. In addition, gathering the data of recent years sales and margins of the phone case market will help you understand the values and risks of this business.
2.What is the target market
Different types of product have different consumer groups, the same is true for phone cases market. Your ideal customer is a man who is looking for a case that can protect his phone from damage and breakage.
Those who just want to make their phone case look magnificent will not to pay as much, so it is hard to mange your profit margins if you are not aiming for one target market of your phone case business. For that reason, you need to start identifying your demographics.
If you want to focus on animation features phone cases, such as Spiderman and Peppa Pig, your ideal customer must be in high school or college.
Perhaps you want to produce some cases that can have an effective protection for your smartphone, your ideal customers may be someone cherish their property and who is willing to buy a high-price smartphone such as iPhone and Samsung. There are lucrative opportunities in every consumer group, so long as the customer understands their phone’s value.
3.Which devices to focus on
According to the report of TrendForce, Samsung still has the highest share during the first and the second quarter of 2018. Apple’s share in the smartphone production market has decreased 5% from the first quarter to the second quarter, on the contrary, Huawei share rose to 12.0% and beyond Apple’s market share in the second quarter.
Of course, there are some brands share increased in recent years, such as LG, Nokia, Xiaomi and so on. In this huge phone production market, it is important to choose a devices brand to focus on, that will make your business more professional and delicate.
There is no doubt that to choose the Samsung phone to focus on maybe a smart decision, but you should investigate the consumption habit of consumer in local or in your target market and what device is more popular.
4.How much do you need to invest?
Some places may need to require a license to start a phone case business, with fees varying per area. So the suggestion is that you can start your phone case business online, a start-up kits may cost around $3,500.
These kit come with some tools needed in producing phone case, you can draw or print any patterns you like. If you want to perform large-scale penetration of the market, you will need $30,000 or so to build a factory with a business partner.
Besides, the payment on hiring employees is necessary, they will be responsible for the sales online, packaging and shipping or something people need to do with the sales chain.
5.Who is your competitor?
As the old saying goes, If you know your enemies and know yourself, you will not be imperiled in a hundred battles; … If you do not know your enemies nor yourself, you will be imperiled in every single battle.
When we plan to start a business, we should know all the business competitors in the market. Only know your competitors and their strategies can we work the business well. For the phone case market, the competition of brands and prices is very intense.
For example, the old brand, OtterBox has a huge popularity in the world. OtterBox is well known as a company producing high-quality of iPhone cases, especially the Defender series.
Because of better protection from water immersion, drop and shock for mobile devices, which has a lot of shares in the US market.
Anker and Spigen also are the magnate in phone case brands, Aker is looking to serve the market for high-quality, affordable replacement laptop batteries and phone case.
Spigen is a popular mobile phone accessory maker based in the United States that makes cases, screen protectors and other accessories for popular smartphone models.
Apparently, there are lots of phone case company in the market, try your best to make your business survive and make money in this crowd.
What else you need to prepare for
After you have full understanding and preparation about phone case market, you might suppose to design your models and start to produce your unique phone case. If you are about to selling online, such as selling on Amazon, E-bay and AliExpress.
Whatever platform you choose, you need to select a company name, get a dedicated bank account to collect payment and apply for a brand registration. Besides, before you upload your items on the platform, you should prepare your product descriptions, images and other listing details.
Find a way to distinguish yourself from your direct competitors, either by price, designs, or accessibility. Just like RANVOO Make sure to reply every message from customer, which should be fast and clear, try to satisfy them and make them have a good shopping experience on your store.
So you have to read every feedback and review from your customer, improve your item’s quality and design, listen to the customer what product pictures they would like to see.
Advertise product and brand on SNS
Advertise your product and brand on SNS is an effective way to grow your business, but there are lots of types of social media ads, such as Facebook ads, Instagram ads and YouTube ads.
The major platform of social networks offers advertising options, some are not, so not all the platform will greatly fit for your business. When thinking about which social networks to use for advertising your business, look at which ones are performing well on your target market.
Make a budget for your advertising fees, some social network may need to build a collaboration with some popular bloggers, pay commissions to them for advertising your business. Apart from this, an official website will make your business professional, try to run your official website.
Building out your own a fully functioning and nicely designed website isn’t rocket science. It’s quite easy actually, even for a complete novice who has not had very much experience with computers.
Anyway, easier said than done, when you start your business, you will meet a lot of difficulties you have never met. But there are always much more approaches than difficulties, never be scared of the challenge and problem. Life is always ups and downs, just keep working, you will never lose.