How to Start a Hair Extension Business Online in Nigeria

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Hair extensions are a hot-selling product currently in Nigeria. And it’s not farfetched because women love to look good and take care of themselves. Right after fashion items and skincare, hair extensions and accessories are some of the items that women love to purchase the most. According to BusinessDay NG, at least 26 million Nigerian women use hair attachments, wigs and weavons ranging from N1,000 on average, to N250,000.

That’s a lot of women, automatically making the industry a lucrative one to start a business in. But the bigger question then arises; how do you start a hair extension business in Nigeria?

In this article, we’ll be dissecting:

1. How profitable the hair extension business is in Nigeria

2. Capital needed for starting a hair extensions business

3. Step-by-step guide for starting your hair extensions business

4. Setting up your hair extensions online store with Bumpa

Is the Hair Extensions and Accessories Business Profitable in Nigeria?

The answer is yes, and here are a few reasons why!

1. There’s a growing demand: Nigerian women, and even men, place a high value on hair aesthetics and often seek hair extensions to enhance their styles or the styles of the women they know. This demand for hair extensions has consistently increased over the years, indicating a lucrative market opportunity.

2. Fashion and beauty consciousness: Nigerians are known for their fashion-forward and beauty-conscious culture. Hair is seen as an essential part of personal style and self-expression. Many individuals are willing to invest in high-quality hair extensions to achieve their desired looks. This opens up avenues for businesses to cater to diverse needs and preferences.

3. Influence of celebrities and influencers: Nigerian celebrities and social media influencers have considerable influence over fashion and beauty trends. Often, they showcase different hairstyles using hair extensions, which sparks the interest of their followers. The endorsement of these influential figures can significantly boost the demand for specific types of hair extensions, driving profitability for businesses that offer such products.

4. Versatile market segments: Hair extensions cater to various market segments, including women who desire length, volume, or protective styles. From braids and weaves to wigs and clip-ins, the possibilities are endless. Businesses can target specific segments, such as natural hair enthusiasts, working professionals, or individuals attending special occasions, to develop niche offerings and maximise profitability.

5. Potential for Expansion: Given the population size and diverse hair needs of Nigerians, there is ample room for business growth and expansion. With effective

   marketing hacks, quality products, and excellent customer service, a hair extensions business can establish a strong brand presence and capture a significant market share.

How Much Capital Can You Use to Start a Hair Extensions Business?

The amount of money you need to start a hair extensions business largely depends on the scale you’re starting on, and also the type of hair extensions you want to sell. For example, if you’re starting your business online, you won’t need as much capital as someone who also wants to set up a physical store. Writing a business plan can give you some guidance on what to sell, and how to go about setting up your business.

Related: Free Template for Writing a Winning Business Plan!

Here’s a list of the capital you’ll need to set up a hair extensions business for any of these types of hair extensions and accessories.

1. Human Hair: N1,500,000

2. Synthetic Hair: N500,000

3. Crotchets and Locs: N500,000

4. Wigs: N1,500,000

5. Hair attachments: N150,000

You could always apply for a business loan to ease the burden of starting your business with your own money. Alternatively, you could choose to start an online dropshipping business for your hair extensions where you do not need to actually buy the products with your money!

How to Set up Your Hair Extension & Accessories Business in Nigeria

So, you’ve decided to finally set up your hair extensions business. What next? Here’s a simple guide on how to set up your hair extensions business, step by step.

1. Educate yourself about the industry

The first and most important thing is to be familiar with different brands, their specific names, lengths in inches, and country of origin. Customers will frequently have questions about specific brands and variations of hair extensions and you need to know the answers. Also, being informed helps you avoid scams like buying fake hair and ruining your business’ reputation. Lastly, it’ll help you curate the perfect content that will attract the right customers.

2. Identify your target market

To tailor your products or services to the specific needs and desires of your customers and increase your chances of success, knowing your target market is necessary. When it comes to the Nigerian hair extension market, getting to know preferences and trends is key. Nigeria is known for its diverse population and vibrant culture, so it's important to consider factors such as age, gender, income level, and lifestyle choices.

3. Conduct market analysis

Next is understanding the competitive landscape and identifying opportunities for your business. When it comes to analysing your competitors, it's important to study their offerings, pricing strategies, and marketing tactics. This allows you to gain insights into what works well in the market, what’s trending, how people are shopping and how you can differentiate your business. Additionally, researching market demand is essential. You can use surveys or focus groups to understand customer preferences and trends.

4. Decide on a business model and write a business plan

Defining your business model is a crucial step that sets the foundation for your operations. Several key considerations come into play here. Firstly, you need to decide whether to set up an online store, a physical store, or both. Understanding your target market's preferences and behavior will help guide this decision. Secondly, you'll need to determine whether to focus on wholesale or retail. This decision involves considering factors like production capabilities, scalability, and profit margins. Lastly, you'll need to decide whether to offer specialised hair extension products or a diverse range. Understanding your unique selling proposition (USP) and how it aligns with your target market's needs and desires is vital for success.

By carefully considering these aspects, you can develop a business model that not only caters to your target market, and write a winning business plan that will help guide you to setting up, growth and profit.

5. Source for hair extensions

This is one of the delicate parts of setting up your hair extensions business. Finding reliable suppliers that you can trust is very important for your business; you need dependable suppliers who won’t sell fake items and will always deliver on time. Whether you're looking within Nigeria or abroad, there are a few key tips to consider.

1. Start by conducting thorough research, reading reviews, and seeking recommendations from industry professionals or fellow entrepreneurs.

2. Look for suppliers that offer quality products, as this will impact customer satisfaction and the reputation of your business. Variety is also important, as it allows you to cater to diverse customer preferences.

3. Ensure the supplier can provide a consistent supply to prevent any disruptions in your operations.

When you finally start getting stock, managing your inventory is also very important. Use inventory management software like Bumpa to track stock accurately, and implement effective inventory management techniques, such as regular audits and just-in-time practices to avoid the pitfalls of overstocking or understocking. This way, you can confidently meet customer demands while maximising profitability and minimising waste.

6. Create your online store and equip your business

When it comes to establishing your presence, you have two main options: physical stores or e-commerce platforms. Physical stores provide the advantage of a tangible shopping experience, allowing customers to see and feel the hair extensions firsthand. They also offer opportunities for personalised customer interactions and immediate gratification. On the other hand, e-commerce and online selling platforms offer convenience, a wider reach, and the potential for lower overhead costs.

When creating an engaging website, focus on clean and intuitive design, high-quality product images, and clear product descriptions. Ensure a user-friendly interface and seamless navigation to enhance the shopping experience. Also, prioritise a secure payment gateway, efficient shipping logistics, and clear return policies to build trust among customers. For physical stores, consider factors like foot traffic and accessibility. Equip your business with essential items like displays, mannequins, and salon chairs for physical stores, providing a visually appealing and comfortable shopping environment.

Pro tip: You can create your online store/website with Bumpa in minutes! Simply download the app, sign up with your store details and that's it! Copy your website link and start selling immediately.

Related: Need a Solid Delivery Company? Here’s our List of the 5 Best Delivery Companies in Nigeria!

7. Develop a marketing strategy and promote your business

Effective marketing channels for the hair extension industry include social media platforms like Instagram, TikTok, WhatsApp, Twitter, Snapchat and Facebook. With the right social media marketing strategy, you can showcase your products through engaging visuals and interact directly with customers. There are also other marketing strategies like email and SMS marketing, retargeting, paid ads and influencer social media campaigns.

Participating in beauty events or trade shows also allows you to connect with industry professionals and potential customers face-to-face. Collaborations with complementary businesses, such as salons or fashion boutiques, can also help you tap into new customer bases.

Create a comprehensive marketing plan that combines these channels, aligns with your brand identity, and generates excitement and desire for your hair extensions. Remember to monitor and analyse your marketing efforts to make informed adjustments for optimal results.

8. Add complementary products

Adding this to your hair extension business is a smart strategy to increase customer satisfaction and revenue. Think about products that go hand in hand with hair extensions, such as hair care products like shampoos, conditioners, and styling serums, styling tools like brushes, flat irons, and hair straighteners, or accessories like headbands, scrunchies, and hair clips. By offering complementary products, you not only improve the overall shopping experience but also create opportunities for upselling and cross-selling, boosting your business's profitability.

9. Manage and expand your business

To effectively manage your business, focus on streamlining operations, monitoring and managing finances, and nurturing customer relationships. Implement efficient inventory management systems, optimise your supply chain, and analyse sales data to make informed business decisions. Continuously evaluate and adjust your strategies based on market trends and customer feedback.

As for expansion, consider scaling your business by exploring new markets, expanding product lines, or opening additional locations. Maintain a strong online presence, engage with customers through social media, and invest in targeted marketing campaigns. Keep an eye on emerging industry trends, stay innovative, and adapt to changing customer needs.

Setting up Your Hair Extensions Online Business with Bumpa

Setting up your hair extensions business online can be as simple as the tools you use, and that’s where Bumpa comes in! And if you're still doubting us, check out this insightful interview with MTL Wig and Hair Care! With the Bumpa app, you can:

1. Create your online e-commerce store and start selling in minutes.

2. Track your inventory quantity, and record and track your sales across multiple channels.

3. Store customer data permanently on your app; you’ll never lose it once stored.

4. Connect your Instagram DM to the Bumpa and process orders faster, without needing to login to Instagram.

5. Send invoices and receipts to your customers.

6. Remarket to your customers by sending them emails and SMS campaigns right from the app.

7. Create discounts and coupons whenever you want to run sales. They’re instantly applicable!

8. Manage your orders neatly; track pending and completed orders.

9. Add staff members, assign roles to them and have them manage your business.

10. Get business data to help you make better business decisions; best-selling products, best-performing channels, most returning customers and more!

It doesn’t end there. Bumpa is your all-in-one tool that ensures that setting up your hair extensions business online will never be a hassle! Download the app, sign up and subscribe at N2,500 for the Starter plan or N5,00 for the pro plan!

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