Do you like to find new decorative objects for your house or apartment? Are you planning to open a decoration store?
The home decoration market has grown rapidly in recent years. Start a home decoration shop become many retailers' first choice, But how to start a retail home decoration shop with any experience?
In this article, we will detail the procedure with tips for making a boutique decoration business plan.
The first step in opening a decoration store is to carry out market research to assess the commercial potential of your future business. Thus, you will verify that there is indeed a demand for your store concept in the establishment area.
The market study of a decoration shop will constitute in-depth research of the trends of the sector. You will also have to study your competitors' positioning and analyze the expectations and consumption habits of your future customers.
The decoration market in France is substantial: it represented 13 billion euros in 2018. Weakened by the crisis, the home equipment sector is recovering with a turnover of up 800 million euros in 2019 for the franchise networks.
The recovery remains fragile, however, particularly at the level of very small businesses. According to the federation of Authorized Management centers, these small structures recorded stable results (-0.2% in current income, -1% in turnover) after several years of decreases. The results are less satisfactory for the tapestry and decoration activities, which saw a 2.5% drop in turnover.
The self-employed have to face competition from the Internet and the big furniture brands that offer more and more decorative items at attractive prices for consumers.
The decoration market is dominated by brands that target household equipment.
Large DIY stores, furniture stores, and garden centers have gradually diversified their activity and now capture 55% of the market. And this progress was made to the detriment of generalists (department stores, supermarkets) and decoration specialists.
To fight against this competition, they are forced to adopt a new positioning or develop new brands.
E-commerce players are also shaking up the market, which further weakens the self-employed who are already competing with the brands.
The economic recovery, although fragile, observed in the real estate market should continue to have a positive impact on the overall turnover of companies in the business.
The development of the internet market should help widen the gaps between networks and independents, who cannot compete both in terms of prices and diversification strategies. The big brands have a digital strategy (online sales), and some buy innovative start-ups to capture these new outlets.
According to a study conducted by Xerfi in 2017: online commerce already represents more than 15% of the activity, a share that should approach 20% in 2019.
To be able to open a decoration store, you will have to comply with the rules of common law applying to distribution companies: these include consumer law (in particular the rules on price labeling, sales periods, etc.), compliance with safety standards for establishments open to the public, and rules concerning company law.
For the rest, there are no specific regulations. No diploma is required.
You can nevertheless follow continuing education in establishments such as the Ecole Grégoire if you wish to develop skills in the field of interior design. Good knowledge of the management of a business is also recommended.
After conducting your market research, you must determine if you want to work independently or prefer your structure to be attached to a network by choosing to be a franchisee.
Franchises are on the rise in the home equipment industry.
The French Franchise Federation had 3,675 franchised establishments in 2015, 228 more than in 2014. The 121 franchise networks achieved a total turnover of 6 billion euros and hold nearly 50% of the franchise market.
There are two types of deductibles:
By choosing to create a franchised decoration store, you will benefit from several advantages: support and training, promotional tools, prices negotiated by the network's purchasing center, brand awareness.
But this has advantages:
Suppose you prefer to choose the products for sale yourself and want your autonomy in managing your future store. In that case, it is better to set up an independent decoration store, especially since the initial investment will be less important.
On the other hand, be aware that by opening an independent decoration store, you will have reduced means to face competition from networks, the development of decoration departments in major furniture brands, and the booming e-commerce.
It is necessary to think carefully about the choice of the location on which you will open a decoration store. The catchment area that your premises will benefit from will be decisive in the commercial success of your store.
If possible, opt for a location with a lot of traffic in an area frequented by a clientele likely to be interested in your decorative objects.
You can also choose to relocate to a less busy area, which will cost you less in rent but require investing time and money to build up a loyal following.
Also, remember to properly assess the accessibility of your location (presence of public transport and parking lots nearby, especially if you sell bulky items) and to identify traders already installed nearby, including your competitors.
What legal status for your decoration store? The question deserves time for reflection because this choice will impact your daily life and that of the company. In particular concerning administrative obligations and taxation.
Once you have chosen a concept for your decoration store, found your premises, and determined the legal structure of your business, you can move on to the costing of needs.
First of all, you have to think about the layout of the room and the equipment necessary for the sale:
You will also need computer and office equipment for the administrative and commercial part.
Finally, you will need to take out professional insurance and possibly get in touch with a chartered accountant to manage the store's accounts.
To quantify the cost of each of these items, it is advisable to request several quotes from potential suppliers to compare prices.
In terms of human needs, you will mainly need salespeople, possibly delivery people, and someone to take care of administration and marketing.
To gain a foothold in this very competitive market and attract and retain customers in your decoration store, you will need to place an effective marketing strategy.
To do this, you can consider several communication actions such as:
Writing a boutique decor business plan is the keystone of your business creation project. It fulfills two functions: to allow you to check the project's viability on the financial level and serve as a reference document to present your project to banks or investors.
Schematically, the business plan for your decoration store will consist of two parts:
Once your boutique decor business plan has been drafted, you can devote yourself to the last step: finding funding.
The investment required to open a franchised decoration store varies greatly from 60,000 euros for the cheapest up to 400,000 or even 750,000 euros for larger areas.
You wanted to know how to open a home decoration store, and we hope that this article has enabled you to see more clearly the steps to be taken. Don't hesitate to let us know if you have any questions.
Every retail shop needs store fixtures to display products. Like the home decorations stores, the typical home decor retail shop requires many display shelves in a separate division and section to display various products. To organize the full store, you should not only focus on the product display but also an attractive shopfitting selection.