Incomes of residents of large cities are constantly growing, along with them, consumer demand for a variety of product groups is growing. Demand creates supply and new ideas for enterprising people. For example, a profitable type of business is opening a dishware store. Entrepreneurs in this segment feel confident and make plans for business development. But where should you start organizing such an outlet and how to achieve the success of the store?

White dishes are the most sought after

Why is the demand for tableware growing, and why do people buy new sets of plates, cups and salad bowls again and again? Natalya Dmitrenko, director of a large china shop "Porceliana" (Poltava), believes that the growth in sales of utensils is influenced by an increase in demand for real estate, an increased number of divorce proceedings. When moving, divorces, the dishes break and you have to purchase new sets. Young families moving to a new home very often seek to acquire new dishes.

It is impossible to buy all the necessary utensils in one trip, especially since factories are constantly expanding their product lines. Stores actively use merchandising techniques, laying out dishes so spectacularly that it is very difficult to resist a beautiful teapot, sugar bowl or cake dish. Trends are also constantly changing: today rounded shapes are considered fashionable, after a while - square ones, then the most unusual colors are considered relevant. For entrepreneurs who decide to open their own dishware store, seasoned market players recommend showing some moderation when choosing a trading assortment.

According to business consultant Elena Oliynichenko, it is better for beginners to focus on white dishes - this option is considered a win-win. Any dish looks great on white dishes, and when setting the table, you can use a variety of tablecloths, napkins, and kitchen utensils. The demand for transparent dishes is not decreasing either. It is undesirable at first to experiment with expensive designer dishes, with unusual plates and cups: there is a serious risk of losing money.

Porcelain tableware is a sales leader

Ms. Oliynichenko is sure that it is better for novice businessmen to give preference to porcelain products. Porcelain has excellent hygienic performance, excellent thermal conductivity, aesthetic properties. There is a stable demand for porcelain tableware. An additional plus of porcelain: the dishes are a kind of advertising medium. Some companies purchase large batches of white porcelain cups, which have their logo applied on them and use the cups as corporate souvenirs.

Tatyana Lebedinets, head of the Serviro chain of tableware stores, which belongs to the MIRS company, believes that souvenirs, as well as tableware and cooking utensils, will be the ideal assortment for a dishware store. Each of the three segments during the year will provide a third of the income of the trading establishment.

Target audience - middle class

According to Ms. Lebedinets, the most interesting audience for an entrepreneur who owns a china shop is the middle class - people with an income of a thousand dollars a month. According to the expert, the niche of stores oriented towards the representatives of the middle class is practically empty. Cheap dishes are offered in supermarkets, there are shops selling elite models. A stratum of middle-class citizens has formed in the country who want to purchase high-quality dishes at affordable prices. Dishes are purchased not only for the home, but also for restaurants and cafes, which are often owned by the middle class. Mrs. Lebedinets is sure that it is the middle class that pays special attention to the ecological qualities of dishes. So entrepreneurs who rely on this consumer segment should take into account the environmental safety of the product.

Kitchenware store location

The location of a dishware store is the most important aspect that an entrepreneur has to deal with. The store can be freestanding, or located in a shopping center as a boutique. The main point - the outlet should be located as close as possible to the "anchor". Tatyana Lebedinets explains that absolutely all kitchenware stores need “anchors” that attract customer traffic. No matter how beautifully and correctly designed a china shop is, if buyers do not come to the establishment in sufficient numbers, the trade will go neither shaky nor roll. People want to receive trading services in a complex - to purchase not only products, but also household goods. Expert Elena Oliynichenko is sure that a dishware store can function in residential areas - the outskirts of cities are rapidly being built up with shopping centers, and in some areas there are 100 thousand inhabitants, which is quite consistent with the population of a small city.

Room selection

The premise for a complex store of tableware should have a minimum of 50-60 square meters of area. Larger retail establishments are equipped on 100 and even 200 square meters. The footage directly depends on the assortment: different dishes require equipment for shopping areas. Dishes intended for cooking are placed in one zone, used for serving - in another, souvenir models are placed in the third. If a businessman wants to work with one thing, for example, with serving utensils, it is quite possible to use a smaller room.

How to start a kitchenware business

Experts cite the following statistics: only every tenth visitor to a china shop buys dishes, the average amount of purchases is approximately $100. Trade becomes profitable only with a trade margin of at least 25-30 percent.

The multi-brand format allows you to establish contacts with well-known manufacturers of tableware. In this sense, the Frankfurt International Fair can be recommended. Direct work with manufacturers is also convenient because factories in most cases provide the client with professional commercial equipment - racks equipped with a lighting system. Foreign suppliers work exclusively on prepayment: the amount of purchases must be discussed separately.

Natalya Dmitrenko considers it unlikely that a businessman will be offered a discount when purchasing goods for a not very large amount (from 5 thousand US dollars). If the agreement provides for the purchase of dishes for several tens of thousands of dollars, the discount can be from 7 to 10 percent.

How much money do you need to open a cookware store

When starting a business, about 100 thousand dollars will have to be allocated for the formation of an assortment. Further costs for the goods will depend on the trade turnover.

1. Purchase of commercial equipment (showcases, racks) - from 80 thousand rubles.
2. 1 month rental deposit - from 50 thousand rubles.
3. Creation of a commodity stock - from 400 thousand rubles.
4. Advertising and promotion of the store (advertising sign, distribution of leaflets, advertising in the media, creation of a website, etc.) - from 70 thousand rubles.
5. Organizational expenses (registration of a business, preparation of permits, transportation costs) - from 30 thousand rubles.
6. Other expenses - from 100 thousand rubles.

TOTAL: from 730 thousand rubles.

Entrepreneurs new to the segment should not pay attention to the transience of tableware fashion and think about the need to get rid of irrelevant leftover goods. Manufacturers present new items every year, but this does not mean that everything old is immediately sent to the dustbin of history. Tatyana Lebedinets explains that changes most often affect design, production technologies practically do not change. Technological breakthroughs are extremely rare in the glassware industry, so you should look for a product that differs from others in the manufacturing process. It is precisely on innovative manufacturers who have their own "chip" that you need to bet on.

The advertisement is engine of the trade

Mrs. Lebedinets states that, despite the weak saturation of the tableware market, it is extremely difficult to occupy your own niche. By advertising, merchandising techniques, the buyer needs to be inspired with the idea that it is precisely such dishes that he needs: this is the only way to make the client part with the money.

It is much more difficult for a single dishware store to attract customers than for a chain store. Unfortunately, the culture of table decoration in our country is in its infancy. Not everyone eats with a knife and fork, and very few families use a full set of cutlery in a formal setting. Many citizens do not know what certain models of dishes are intended for: glasses, plates of various sizes. Sales consultants need to make every effort to impress the visitor with the need to purchase this or that thing. It is much more difficult for a separate store to carry out such work than for a trade institution belonging to a large network.

Competent staff is the main factor in the success of the dishware business

Kitchenware store salespeople need to be taught both sales techniques and product characteristics. Even a small shop of 50 m2 will need at least 6 salespeople who will work in shifts of three people. “The buyer is like a guest. He needs to be met in such a way that he wants to return, - says Tatiana Lebedinets. Therefore, shop assistants must be polite, friendly, attractive, they simply have to understand the dishes, as well as be able and love to cook. There is a simple truth in trading: a seller who does not like a product will not be able to sell it - the buyer simply will not believe him. Often, a person makes a purchase decision on a subconscious level. He may be embarrassed by the price and quality, but if he believes the seller, he will definitely return after a while and buy the goods.

The best shots are middle-aged women, business gurus say. Young girls do not often cook themselves, which cannot be said about the older generation, who cook themselves and can advise which dishes are better to buy. Buyers trust such sellers more.

Sellers of a dishware store often combine several functions at once - a cashier and a consultant. The average salary of sellers is about 15-25 thousand rubles, depending on the revenue indicators. Quarterly bonuses are possible, which significantly increase staff motivation.

In the competitive struggle in the "dishes" market, one can survive only due to the quality of the goods and due to a loyal attitude towards the client. “If a person bought a product from you and was disappointed, he will no longer return (if his visit is not a reason to return the product) - Tatyana Lebedinets explains. The main secret of the success of the cookware store is the feedback from the buyer and his desire to return to you again. When a client purchases a quality product, comes home, puts it next to outdated dishes and understands that a lot needs to be changed. To use the feedback to the maximum, the owners of outlets apply discounts and arrange all kinds of promotions.

Although there is a seasonality in the trade in utensils, it is very insignificant: utensils for coffee and tea are bought in the winter, for picnics and soft drinks - in the summer.

Transparent, colored, plain, with patterns, flowers, checkered and striped - today the choice of plates, cups, glasses and glasses is striking in its diversity! Previously, such dishes could only be seen on TV, and at best in expensive restaurants.

And now from any "curiosity" there is an opportunity to dine just in your kitchen. And all thanks to entrepreneurs who make it affordable to buy original dishes. Maryana Zemlyanykh has been in the dishware business for seven years, and recently she opened the Posuda store.

– What did you do before? What brought you to the ranks of entrepreneurs?

- I worked at a dairy. She went on maternity leave and after the decree she quit, and it was not clear what happened there, everyone was fired, the beginning of the 90s. I sat without work for a long time, since my husband's situation with work was better. In 2000, I got a job as a sales assistant in the Everything for the Home store. She worked there for 4 years. During this time, I very often met customers who were interested in dishes. In that store there was a selection of dishes, but not a large one, people always left dissatisfied. And then one day I thought, why don't I “shape” this choice for buyers myself.

- And what were your first steps?

- Without consulting with anyone, I began to look for ways to implement my plan. First, I asked the owner of the store where I worked how he found suppliers of dishes, he naturally reluctantly told me, but did not specify anything. And so in the newspapers, I began to look for advertisements for manufacturers of tableware. I didn’t have the Internet at home, I didn’t know how to use it at all.

It can be said that my desire to become an entrepreneur accompanied my development, I went to computer courses, bought a computer, connected the Internet over time and continued my search for suppliers on the Internet, everything is much faster there - there are contacts, phones, I called everyone, everything is detailed found out.

I sketched a business plan in a notebook, and there was little left to do. I had to take at least 10,000 dollars to start somewhere to pay the rent (there was no talk about the premises yet, at that time it was unrealistic for me), for a place in the market and to buy goods.

- Where, if not a secret, did you manage to get the funds?

- I got into a loan, on the security of my husband's car, he became my guarantor. In general, the risk was colossal! Took more than 10 thousand dollars from the bank. My husband almost kicked me out of the house for all my tricks, we swore very much at that time. But, despite this, he supported me, grumbled, but helped.

Was the risk justified? Did the investment pay off?

- Certainly! I collected a variety of types of dishes, provided customers with a wide choice. Then the colors were very fashionable - bright different monochromatic colors, white dishes, transparent from black glass. Today, a square shape prevails, transparent glass with various patterns, vegetables and fruits.

I always try not to miss new items so that my customers can get everything their heart desires. So a year later, I was able to repay the loan, but I must say, I was lucky, there were many customers, the goods sold perfectly. And then it's time to open your store. All circumstances were conducive to the fact that my store opened.

- Mariana, tell me, what difficulties prevent you from working fully today?

Probably competition! It is very difficult today to survive among competitors, but we try, I think we are doing well. And the difficulty still arises in the fact that many still do not understand why special glasses for whiskey or martini are needed, because they either do not drink these drinks, or they will calmly drink them from ordinary wine glasses. Often such goods are sold more slowly.

But even in these seven years, the needs of customers have noticeably changed, even for a family, people began to buy expensive beautiful sets and plates for the dinner table. The buyer has developed his own taste, so to speak. If earlier the French dishes "Luminark" were bought only for a gift for a wedding or an anniversary, today I already have enough customers who have purchased such dishes for themselves.

It is very difficult to maintain a store without assistants. Tell me who is helping you?

- I have a sales assistant, I pay her wages, everything is as it should be. And, of course, my husband, he has his own business, but he also devotes time to my store.

– Do you sell only table glass or enamelware?

- Mostly glass, crystal, porcelain, but enameled - also abound. Colorful pots, pans, teapots.

- Do you consider selling dishes a profitable business?

– Naturally, the dishware business is a profitable business, since beautiful, original dishes are always popular ... Even our grandmothers loved beautiful dishes, but then there was no such variety. Manufacturers, in turn, advertise their product, for example, with the help of indirect advertising in TV shows, we can see a familiar plate or glass on the kitchen table.

Here you have an advertisement, the viewer has already deposited in the memory, some wanted to have such a plate for themselves. And where can I get it? And here entrepreneurs who are engaged in the sale of dishes will help the client satisfy his need. Everything is simple!

– What is the price of your dishes?

- Prices are completely different, there are funny cups for 15-20 UAH. And there are services worth 1500 UAH. (for 19 persons).

- What do you spend profitable money on?

- For the necessary needs. And also for self-study, I recently began attending English courses, doing shaping. For my son's education. There is always something to spend on.

“You must always keep your nose to the wind!” And at the initial stage, think it over carefully, write a business plan, even a non-professional one will help a lot. After all, starting any business is a risk.

Be carefull!

The wholesale base "Posuda" began its history in the 90s. It was a warehouse and showroom, next door to a toilet paper factory. The first deliveries were from Ukraine, from where inexpensive dishes were transported in whole trucks. In 2013, the company created its online store on the platform, and in two years the site's turnover increased 30 times. How to open an online tableware store and how such a business works - this was told to us by development manager Rustam Musifullin.

How to open a cookware store from scratch and become the first in a niche

“Wholesale warehouse “Posuda” appeared in 1998, and now it is more than 15 years old,” says Rustam. - Then, in the 90s, everyone was looking for the best way to make money, they tried to sell everything in a row, up to car parts. And then we thought about the business of selling dishes.

A small dishware warehouse worked next door to a toilet paper factory. They were mainly purchased from Ukrainian factories: they were transported by trucks! Now those factories are not in sight, and the utensil business is alive. Our “horse” is domestic dishes. From abroad we carry almost nothing. Among our suppliers are such giants as the Kuban, Dulevo, Dobrush porcelain factories, Experimental glass factory ... More than 50 enterprises.

More than 20,000 items are presented in the online store: dishes and souvenirs, porcelain, faience, glass, enamel, aluminum, galvanization, non-stick, souvenir, household group, plastic. Everything a hostess might need.

We do not work for the end user

In the 90s, the company focused on the local market and some neighboring cities. Now it is export all over Russia. To the south - to the Astrakhan region. To the west - to the Lipetsk region. To the north - to the Arkhangelsk region. The main buyers are from Bashkiria, Tatarstan, Samara region. There is no region where the company would not carry dishes: there are buyers even in the metropolitan regions.

We focus exclusively on wholesalers. Clients - the same wholesale bases, markets, shops, points in the markets with household goods. And an important limitation: in the store, so that retail customers would not be interested in ordering one or two products, we set a minimum order threshold.

Our online store is not a standard store. This is a catalog store

Dishware businesses are not very fond of the Internet as a sales channel. Before creating an online store, we had a small website with product photos. So, like a catalog, nothing special: you can look - you can’t order. At that time, business trips of managers were the main way to sell goods: they traveled around the regions and looked for outlets.

They took packs of catalogs, disks with them, offered to look through the site-catalog. In general, they worked in the old fashioned way. And it worked! But in 2013, we decided to take a more thorough approach to online product promotion and created a website with the ability to order dishes.

The method, when the manager goes on a business trip and gets acquainted with the buyer on the spot, still remains the most effective. But now a potential buyer can see and order a batch of goods directly in the online store. All photos, all current balances, all discounts for customers registered in the store are in the online store.

We chose AdvantShop as a platform for creating a store website. The platform is convenient for the most unenlightened person in Internet technologies. You don't have to think: just insert pictures, edit and catalog.

We almost do not promote the online store of tableware: we do not work with contextual advertising, with SEO optimization, all this is useless. In the dishware market, everyone already knows our base. We go the simplest way: through a live dialogue with a potential client.

How to open a cookware store to stand out from the competition? The most important advantage is efficiency. The goods arrived - we immediately take pictures. Everything that is in stock immediately appears in the store.

How to work with a store client

We work like this: a store customer examines the assortment, adds the product to the basket, and the manager immediately starts working with the order. Now the order is his responsibility.

This scheme is not quite traditional for an Internet business, but we rely on personal communication with a client, even if he comes from the Internet. By phone, for example, we can resell something or offer an alternative to a product that the client needs, but we do not have it.

The manager tells the client about the system of discounts that he is entitled to depending on the volume of the purchase. The discount also depends on the distance of the region to which the goods are delivered. The farther the customer is, the more money the shipping costs will eat up. It also depends on the amount of goods that the customer is willing to buy. Now the average order in the online store is 40,000 rubles.

What departments does the dishware business consist of?

The structure of the company then and now is based on the principle: supply department, sales department, showroom, warehouse.

• Sales department. Its experts know how to sell the dishes that we buy from suppliers. This dish appears on the pages of the online store. Sales managers work with customers who come from the online store: they call, talk, place an order and monitor payment.
• Showroom serves local clients. The minimum purchase amount at wholesale prices is 4000 rubles.
• Warehouse. All dishes are delivered here and sent to customers from here.
• Purchase department works with all suppliers, factories and companies that are ready to work on barter. Suppliers consult with the sales department to understand what is most often taken and what the client needs: in order to understand how to sell dishes, you need to know exactly the seasonality of this product.

Holidays are always a surge of interest in our product: February 23, March 8. People are actively buying dishes. For men - men's sets and assortment. Women - sets, gifts, souvenirs. In summer, this is a household group: buckets, goods for working in the garden. Goods for children's camps, glassware, glasses.

How we work with carriers

The most common method is the formation of a route: for example, we gather together all the customers of an online store from Bashkiria, and the truck goes to all these points. There are other ways - for example, containers, rail transportation, air transportation.

All dishes are delivered in factory packaging. If the goods are delivered "in bulk", then we put them in boxes so that there is as little fight as possible. The fight arises - we pick up on acceptance.

How sales in the online store increased in 2 years

Photo-operation helped us to open an online store of tableware from scratch. In the first month of operation, the online store brought in a very small amount, but there were very few photos in the store.

Dishes are very reluctant to take photos of the goods, infrequently, and supplier plants provide images of their products. Many factories simply do not have photos of the goods, and the contracts do not state that they are obliged to provide them.

And we take a lot of pictures ourselves. And we do it quickly. Our difference is speed. Goods arrive - we quickly upload photos to the store.

Now sales and the number of orders of the online store are now constantly growing. We believe that the platform is a great tool for working with both new customers and old ones.

Download checklist for launching a store

Dishes are used for cooking, for serving and serving food to the table, for storing cooked dishes. These are not all functional purposes, since the dishes can be used as a gift for an anniversary, celebration, memorable date.

Since it has significant demand and is popular with consumers, the organization of a dishware store is a promising direction in business.

To organize a successful and promising retail dishware business, you should follow a certain algorithm of actions aimed at creating and developing a dishware store.

Marketing research

Before proceeding to the organizational issue, it is necessary to find out the prospects of the created business in a certain territory and with specific commodity items. It is quite simple to conduct non-deep marketing research, one has only to study the location of outlets in the place where it is supposed to create a dishware store.

If a similar trading establishment already exists there, and the assortment corresponds to the expected one, then it is better to find another place in order to avoid conflict situations. When the assortment is significantly different, and the prices for dishes will be much lower, then there is no obvious competition, so you can rent a room in this area.

In parallel with the possibility of dislocating a trading enterprise, it turns out the demand for a particular category of dishes, how much it is in demand among buyers, and what preferences the consumers have.
Having clarified these topical issues, you can proceed to the next stage - registration.

Registration of entrepreneurial activity

To date, there are no problems with registration, so this procedure does not take much time, effort, money. It is only necessary to correctly fill out the forms of the established form and submit for registration to the appropriate authority.

It is important to decide on the form of an economic entity - a legal entity or an individual entrepreneur. Retail trade is characterized by the organizational form of individual entrepreneurs, since simplified accounting allows you to effectively conduct trading activities. More complex business forms, such as LLC or JSC, are more suitable for production processes or multidisciplinary activities.

Also, when choosing an organizational handicap, one should take into account the number of founders who are ready to create and develop the activities of a dishware store. If these are two or more people, then you can use LLC, if one - then Individual Entrepreneurship.

Renting space for a kitchenware shop

The best option for a dishware store would be a separate room in a shopping center or supermarket. The traffic in such places is high, so sales will constantly increase, and the trade turnover will increase. If this is not possible, then it is better to rent a separate building near a transport interchange, metro stations or public transport stops.

The trading area must be at least 50 sq.m. to place the goods on the windows, and leave a place for the passage of customers.

The trading area must comply with sanitary standards and fire safety rules. If these conditions are not met, the owner of the dishware store may have difficulties with the relevant authorities.

Contracts with suppliers and manufacturers

To create a successful and profitable business, it is important to organize the supply of a wide range of tableware and related products. The best option is a dealer agreement with the manufacturer, when the dishes are sold at selling prices, and commissions are paid as a reward. Under the terms of the contract, the owner of the tableware store represents the manufacturer's products in a particular region, and at prices set by the manufacturer. Such cooperation opens up broad prospects, because:

• significant investments in the range of dishes are not required;
• the price of the product is significantly lower than that of competitors;
• a wide range of dishes, including new items and the most popular items.

These are far from all the preferences that can be obtained when executing a dealer agreement, however, they are quite enough to run a successful and profitable business selling dishes.

If the manufacturer is located in another state, and there is no way to establish business contacts with him, then you can purchase dishes from a major supplier, which in turn can be a dealer of a particular brand. This form of cooperation is also quite promising, since the goods are delivered to order, and its volumes can always be adjusted.

By resolving these organizational issues, you can achieve high efficiency from the activities of the store and the sale of dishes.

* Calculations use average data for Russia

1. PROJECT SUMMARY

The goal of the project is to open a tableware store in a city with a population of more than 1 million people for the retail sale of tableware and household items. A feature of the project is a promising cooperation with private craftsmen and the sale of author's dishes, which is a competitive advantage.

For the implementation of the project, a room of 50 m2 is rented, located in a shopping center.

The target audience is the female population of the city aged 20-60 with an average income level. The price segment is medium.

The initial investment is 1,000,000 rubles. Investment costs are aimed at the purchase of commercial equipment, the initial purchase of goods and the formation of working capital, which will cover the losses of the initial periods. The bulk of the required investment is in inventory, which accounts for 50%. Own funds will be used to implement the project.

The financial calculations cover the five-year period of the project's operation. Revenue and net profit forecasts are based on a sales plan of 400 sales per month and an average bill of 1,500 rubles. According to the calculations, the initial investment will pay off in 12 months of work. The profitability of sales in the first year of operation will be 9.4%, while the industry average is 8%. Integral project performance indicators are presented in Table 1.

Table 1. Key performance indicators of the project

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

Tableware is a consumer good and is valued not only as a household item, but also as an element of decor. Demand for it always remains at a fairly high level for a number of reasons. Firstly, most of the dishes are quite fragile and break easily; secondly, it is interconnected with the dynamics of real estate sales, since usually new settlers prefer to purchase new dishes; thirdly, dishes and sets are one of the most popular gift options; fourthly, the tableware is influenced by fashion trends, so many consumers want to update it; fourthly, customers spontaneously purchase dishes that they like. To date, the market is represented by a variety of products of various types of dishes and price categories, which allows you to satisfy any demand.

The dynamics of the development of the tableware market directly depends on the well-being of the population. According to statistics, household incomes against the backdrop of negative GDP dynamics in 2015 decreased by 4% and continued to fall in 2016. The decrease in buying activity led to a decrease in the volume of retail sales of tableware in various market segments. It is possible to maintain the level of sales in the tableware market due to the intensity of discount promotions in retail stores. At the same time, in 2016 there is an increase in the cost of dishes by 10%.

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At the end of 2016, the tableware market in quantitative terms reached 1.47 billion pieces, demonstrating an increase of 3%. Over the past two years, there has been a slight decline in the market, which is explained both by a decrease in purchasing power and a decrease in imported products due to the exchange rate. Tableware imports decreased by 34% in 2015, and its share in the Russian market was 46% (against 59% in 2014). Against this background, domestic producers felt much more confident, which was reflected in the growth in the production of tableware. Thus, the production of glassware increased in 2016 by 5.4%, porcelain - by 6%, while the production of ceramic tableware decreased by 3.4%.

Summing up, we can distinguish the following trends in the market for tableware in Russia:

Decrease in buying activity;

Shifting buyers between different price segments;

Reduction of imported products and import substitution policy;

Growth of investments in this industry, which arose as a result of reduced competition from foreign suppliers;

Departure of many sellers from the market;

Growth in sales of tableware in the online trading segment;

Decreased profitability of the dishware business;

Intensity of promotions in dishware retail to stimulate consumer demand;

Revision of assortment policy and decrease in product quality;

Decreased markup on crockery.

Thus, there is a downward trend in the tableware market, which, according to analysts, should change to a positive trend during 2017.

Despite the negative market trends, this type of business is still quite in demand.

3. DESCRIPTION OF GOODS AND SERVICES

This project involves the opening of a tableware shop for the purpose of retailing tableware and household items. The assortment of the store includes the following product groups: glassware, porcelain, ceramics, cutlery, tableware, kitchen utensils, kitchen textiles and decor. The project provides for a multi-brand store format, which will best meet the changing consumer demand and offer a wider range of products. The store will specialize only in retail.

The store will operate in a self-service format. As practice shows, such a system contributes to the growth of sales. Goods in the store will be divided into categories: kitchen utensils, tableware (by segments - porcelain, ceramics, glass) and kitchen textiles.

To form the assortment, a thorough analysis of the manufacturers of tableware that are on the market should be carried out. A competent approach to the choice of assortment will allow you to avoid excess inventory, reduce the likelihood of illiquid assets and increase turnover.

When forming an assortment, it is necessary to consider the following recommendations:

Give preference to white dishes - this classic option is most in demand, as it is suitable for any interior and is quite democratic in design;

For the initial stage, the optimal number of suppliers is 4-5 brands;

Take into account the interest of buyers in a particular type of dishes: the most popular is porcelain dishes, and recently the demand for glassware has been growing;

The need for a variety of assortment with novelties, catchy and bright dishes. Its share in the assortment should be small, but such dishes usually attract the attention of buyers;

The need for souvenirs, tableware and cooking utensils - each of these segments provides about a third of income during the year;

In addition to well-known brands and classic dishes, you can complement the assortment with original and original products made by private craftsmen. Today, there are many talented craftsmen on the market who make author's dishes. Thanks to the sale of such products, you can declare the uniqueness of the range and stand out in the market.

For the implementation of this project, the assortment was compiled taking into account all the above recommendations. For convenience, the entire range is structured by product type. Table 2 provides a list of products and manufacturers with which cooperation can be established.

Table 2. Planned assortment of a dishware store

	Description	Manufacturers list
China	Tea and coffee sets, dinner groups, serving plates, teapots, salad bowls, bowls, cups and saucers, mugs	Dulevo porcelain factory, Gzhel porcelain factory, Imperial porcelain factory, Kuban porcelain, Wilmax, Twist, Claret, Lequn, ChanWave, Collage, Day, CraftWhite
Glassware	Glasses, drink sets, glasses, flower vases, jugs, fruit bowls, candy bowls	CrystalexCZ,Vellarti, PromSIZ, Experimental glass factory, Pervomaisky glass factory, Arcoroc, Mikasa, Luminarc, Simax
Ware from ceramics and clay	Mugs, plates, teapots, decanters, jugs	Skopinsk art ceramics, Borisov ceramics, Dymov ceramics, Vyatka ceramics, Pskov potter
Cooking utensils	Pots, ovenware, pans, storage containers, cutlery	Aluminum Metallurg Rus, Neva Metal Ware, Enamel, Power Don, KMK, Katyusha, Demidov Plant, Pyrex, SanitetHandel, STALEMAL, Rondell, Tramontina, Gipfel
kitchen textiles	Tablecloths, towels, cloth napkins	Arloni, Toalla, Homequeen, DM Textile, TM Domislava, Slavyanochka, Wellness, MonaLiza, Belarusian linen
	Plates, mugs, cutting boards	Claystreet, Clotis, Cookeramika, Good shop

At the initial stage, it is planned to work with five manufacturers that have proven themselves in the market: Dulevo porcelain factory, Pilot glass factory, Pskov potter, Aluminum Metallurg Rus, Belarusian flax.

4. SALES AND MARKETING

The target audience of the dishware store is the female population of the city aged 20-60 with an average income level. It is assumed that at the initial stage, the main buyers will be visitors to the shopping center who accidentally entered the store, where the outlet will be located. Over time, it is planned to form a client base and advertise the store.

To attract visitors to the store, a well-thought-out marketing strategy is necessary. Before opening a store, you should place an ad at the outlet and consider event marketing. It is advisable to time the discount promotion to the opening day or offer the first visitors a loyalty card. An interesting and original option for the opening action is the drawing of a certificate for a master class at a pottery school. You can spread the word about the opening in the media or hand out leaflets inviting you to the store. An effective advertising tool will be a decorated showcase that will attract the attention of potential customers. According to market research, 70% of customers enter a store because they are attracted to a beautifully designed window display. The cost of window dressing is an average of 25,000 rubles. A bright sign will help to focus attention on the store. An advertising sign will cost around 15,000, including installation.

Competent registration of a trading floor is an important element of marketing strategy. When placing products on the shelves, the following principles of displaying goods should be observed: dishes should be displayed systematically (taking into account manufacturers, colors, etc.) and without clutter, which will reduce the perception of the assortment by the buyer.

You can also create accounts on social networks, where store products, information about discounts and promotions will be posted. You can hold a “circle” campaign for a repost - this will expand the audience of consumers. You can run a "product of the week" promotion, offering customers to purchase a certain category of product at a discount.

Another attraction tool is a unique offer, i.e. the presence in the store of a product / service that is not provided by competitors. This will force the consumer to come to your store. For example, it can be handmade dishes, unusual dishes from different countries, etc.

This project provides for the following promotional tools:

Promotion with drawing of a free certificate for a master class in pottery -1500 rubles;

Window dressing - 25,000 rubles;

Distribution of leaflets with a 10% discount coupon - 3500 rubles.

It will take an average of 3 to 6 months to promote the store and reach the desired sales volumes - during this time, buyers have time to get to know and get used to the new outlet.

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When planning the volume of sales, some seasonality of the dishware business should be taken into account - in the cold season, they often buy dishes for tea and coffee, and in the summer months - dishes for cold drinks. During the New Year and spring holidays, sales volumes increase by 2-3 times, the greatest demand is for giftware.

The planned sales volume is calculated based on the average check amount of 1,500 rubles and the number of customers - 400 people per month. Thus, the average amount of revenue will be 600,000 rubles per month. It is planned to reach the declared sales volume in the fourth month of the store operation.

5. PRODUCTION PLAN

The implementation of this project includes the following stages:

1) Business registration. No special permits are required for retailing tableware. However, the dishes are included in the list of products subject to mandatory certification by the decision of the State Standard. This should be taken into account when choosing tableware suppliers.

To open a dishware store, you will need to collect a package of documents, which includes a sanitary and epidemiological conclusion from Rospotrebnadzor, permission from the fire inspectorate, and regulatory documents for the store.

To conduct commercial activities, an LLC is registered with a simplified taxation system (“income minus expenses” at a rate of 15%). Type of activity according to OKVED-2:

47.78 Other retail trade services in specialized stores.

2) Choice of location. As with any retail establishment, location plays an important role. The location assessment of a store takes into account such components as area characteristics, ease of parking, foot traffic intensity, visibility and noteworthiness, proximity to similar enterprises. The required store area is at least 40 m2. For a store with a self-service system, an area of ​​​​at least 50 m2 is desirable. However, it all depends on the scale of the store and the assortment.

This project provides for the lease of premises in a shopping and entertainment center. It is important that there is no analogue store on its territory, which reduces the level of competition. The advantage of this location is the continuous flow of potential buyers. The main disadvantage is the high rent. A retail space of 50 m2 costs about 50,000 rubles on average.

3) Equipment of the retail space and the interior of the store. The interior of the store plays an important role in the perception of customers. The retail space should be bright and cozy, imitating a home environment. When choosing the premises for the store, the criterion for the suitability of the pavilion for the start of work was taken into account, so there are no repair costs. The decor of the room will need 15,000 rubles. In addition, you should purchase commercial equipment - racks, showcases, cash counter, cash register. Since the store operates in a self-service format, several racks will be required on which the goods will be placed. For the initial stage, one cash desk is equipped in the store, however, when the planned sales volume is reached, a second cash desk will be installed. Table 3 shows the main equipment costs, which amount to 132,000 rubles.

Table 3 Equipment Costs

4) Purchase of goods. Having decided on the suppliers, it is necessary to purchase goods for the store. Practice shows that for a small dishware store, 500,000 rubles will be enough to form the initial assortment. Based on the specifics of demand and the conditions of suppliers, it will be necessary to purchase additional goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to exclude illiquid assets and oversaturation of product shelves.

5) Recruitment. The main staff in the store are sales assistants. It is on them that the success of trading largely depends. Portrait of a sales assistant: a middle-aged woman, smiling and polite, who knows a lot about crockery paraphernalia and is able to convey information to the buyer in an understandable form. Practice shows that it is this type of seller that inspires the most confidence in the average buyer. The key criteria in the selection of personnel are communication skills, responsibility, courtesy, and the ability to work with people. For the initial stage of the store operation, two sales assistants and two cashiers will be required. A shift work schedule is provided, one sales assistant and a cashier work in each shift. The functions of a manager and accountant are assigned to the entrepreneur himself - this will save money in the first months of work.

Before starting work, the staff must be trained, having familiarized themselves with the range of products, their characteristics and sales technology.

6. ORGANIZATIONAL PLAN

The preparatory stage lasts about two months, during which it is envisaged to go through registration procedures, establish partnerships with suppliers, search for suitable premises, select personnel, purchase equipment and goods.

In this project, the entrepreneur performs the main functions of a manager - he goes through all registration procedures, recruits personnel, negotiates with landlords and suppliers, purchases goods, is engaged in strategic promotion of the store, and controls sellers.

Sales assistants and cashiers work in the store to carry out the trading process. Since the store is open daily, a 2/2 shift schedule should be established. Shift - a cashier serving the cash desk, and a sales assistant working in the hall.

The opening hours of the store coincide with the opening hours of the shopping center - from 10:00 to 22:00. Based on these conditions, the staffing table is formed. The wage fund is 106,600 rubles.

Table 4. Staffing and payroll

	Position	Salary, rub.	Quantity, pers.	FOT, rub.
Administrative
	Supervisor
Trade
	Sales Consultant (shift schedule)
	Cashier (shift schedule)
Auxiliary
	Cleaning lady (part time)
	Total:			82 000.00 RUB
	Social Security contributions:			24 600.00 RUB
	Total with deductions:			106 600.00 RUB

8. FINANCIAL PLAN

The financial plan takes into account all income and expenses of the project, the planning horizon is 5 years.

To launch the project, it is necessary to calculate the amount of investment. To do this, you need to determine the costs for the purchase of equipment, the initial purchase of goods and the formation of working capital, which will cover the losses of the initial periods. The initial investment for opening a dishware store is 1,000,000 rubles. The main part of the required investments falls on commodity stocks - their share is 50%; 30% accounted for working capital, 13.2% for the purchase of equipment, and the remaining 6.8% - for advertising, business registration and arrangement of retail space. The project is financed by equity. The main investment cost items are shown in Table 5.

Table 5. Investment costs

Variable costs consist of the cost of purchasing goods. To simplify financial calculations, variable costs are calculated based on the sum of the average check and a fixed trade margin of 60%.

Fixed expenses consist of rent, utilities, payroll, advertising and depreciation. The amount of depreciation is determined by the straight-line method, based on the useful life of fixed assets in 5 years. Fixed costs also include tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the amount of revenue.

Table 6. Fixed costs

Thus, fixed monthly expenses were determined in the amount of 179,100 rubles.

8. PERFORMANCE EVALUATION

The payback period of the project with an initial investment of 1,000,000 rubles is 12 months. The net monthly profit of the project upon reaching the planned sales volumes will be about 50,000 rubles. It is planned to reach the planned sales volume in the fourth month of operation. The profitability of sales in the first year of operation will be 9.4%, while the industry average is 8%. The return on investment is 13.6%, and the internal rate of return exceeds the discount rate and is equal to 9.72%.

The financial plan takes into account the optimistic sales forecast that can be expected due to the store's favorable location and high traffic of potential buyers.

9. POSSIBLE RISKS

To assess the risk component of the project, it is necessary to analyze external and internal factors. The specifics of the institution determines the following risks of activity:

Increase in purchase prices for goods, unscrupulous suppliers. In the first case, there is a risk of increasing costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in the trading process due to a lack of goods. It is possible to reduce the likelihood of these threats with a competent choice of suppliers and the inclusion in the contract of all necessary conditions that provide for the liability of the supplier in case of their violation;

Insufficient level of demand. This risk is one of the most probable and may arise due to both low solvency of demand and high distribution costs. It is possible to reduce the risk with careful planning of the store's activities and financial results, competent choice of retail space, holding various promotions and discounts, stimulating repeat purchases, flexible pricing;

Reaction of competitors. Since the tableware market is quite saturated and the competition is high, the behavior of competitors can have a strong influence. To minimize it, it is necessary to create your own client base, constantly monitor the market, have a customer loyalty program and create competitive advantages;

property risks. This category includes the risks associated with damage and theft. Crockery is a rather fragile item, so it is not uncommon for it to be damaged. The self-service system increases the likelihood of this risk occurring. Minimizing the threat will allow the sales assistant to check the goods that enter the store, control the situation on the trading floor.

Problems with personnel, which means low qualification, staff turnover, lack of motivation of employees. The easiest way to mitigate this risk is at the recruitment stage, by hiring employees who meet all the requirements. It is also worth considering bonus motivation for employees;

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