There’s very high demand for laptop accessories in Nigeria. I’m going to show you how to setup the right laptop accessories business, whether offline or online, and make lots of sales daily.
The key to starting a profitable laptop accessories business is quality. If you can give customers the best quality they can trust, you will grow your customer base fast, whether you are selling offline or online.
I opened a cosmetics shop last year. I have written about how to start a cosmetics business on this blog. Most people don’t know how lucrative cosmetics business is. It’s the same with this laptop accessories. My secret was to sell the best cosmetics and my customers will tell their friends and I will grow the business by word of mouth. And it worked.
The customer base for laptop accessories is larger than that of laptop device itself. And your customers will keep buying throughout the lifespan of their laptop. Also, depending on the type of accessories they require. I will be showing you the top six laptop accessories you can sell.
Nigerian Laptop Market Potential
If you want to start a business on laptop accessories, you will need to understand the market and the potential for success. It’s okay to say there is enormous demand for notebooks but one still needs to substantiate those claims before investing your money.
You shouldn’t go into business based on assumption. There should be real facts backing any claim of Market Potential before you can invest your money.
The Nigerian population is now at over 198 million. And almost half of that figure are eligible users of laptops. But you cannot base your laptop business market share on such vague statistics.
Do you need specifics like, who are the potential target for laptop sales? How many people buy laptop regularly in your target market? How many laptop accessories can you sell daily and what’s the profit margin like?
Let’s start with target markets. Who should you be looking at that would buy laptop accessories from you? And if you want to market your laptop business, who should you think of first? The answer is obvious, but we still need to prove that it’s not just a rouse.
Laptop Target Markets
There are several laptop Target markets in Nigeria. These are large groups of people who buy and use laptops for specific work requirements. Here is my list.
- Secondary schools – this figure is a bit low, due to many public secondary school students cannot afford a laptop. That doesn’t mean it’s not an essential need for secondary schools in Nigeria. However, the story is different for most private secondary schools, where it’s either provided by the school or parents are required to buy laptops for their wards.
- College of education – if you cannot be so sure secondary school students are a good target market for your laptop business, now you can be this specific college of education is your market. Although the school authority may not mandate it, it’s becoming increasingly evident that at a certain level in academic work, a student in this class can’t do without a laptop.
- University & Polytechnic undergraduates – these categories of students cannot complete their mandatory academic responsibility without the need for a computer. They form the primary target market for your laptop business. And every state in the country has one or both of these institutions. Some states even have multiples of them. Abia state such as, has a federal university, state university, and a polytechnic.
- Small Businesses and Offices – SME makes up the most significant target for laptop business. You can find these customer base in large number in every state of the country. They represent a large percentage of your target market because of the peculiar needs. Their business is primarily run on the internet. They also have the purchasing power to afford these laptops. And their revenue base is also depended on their use of a computer, which forms part of their business tools.
Laptop Market Target Statistics
Now, let’s get to some of the statistics. We have looked at the target markets but how much of these markets are indeed available for your laptop business? Let’s take a look at some of the statistics and see how they meet your expectation for business.
Nigeria presently has 40 Federal Universities, 44 State Universities, and 68 Private Universities. That’s a total of 152 universities. Although, this doesn’t give us the real potential of buyers for a laptop. This figure only guarantees a little number of 600,000 students per admission year.
That’s a small amount for a country with over 198 million people. A large number of these eligible students don’t get into the university, but that doesn’t mean they don’t fall into the market share for your laptop business.
There are 82 colleges of education in Nigeria, consisting of 22 federal, 14 private and 46 state colleges of education. The Polytechnic has over 50 schools.
But small businesses in Nigeria are in the neighborhood of 20 million SME’s. That’s a large percentage of your target market for your business.
Top Six Laptop Brands In Nigeria
HP remained the top laptop brand, maintaining its lead through every quarter of 2017. With a global shipment that grew 8.3% compared to a year ago. The volume hit more than 16 million units for the first time since the third quarter of 2011.
HP also grew its place in the U.S. market, increasing its market share to 34%.
Lenovo is the number 2 laptop brand in 4Q17. Lenovo made substantial gains growing by 3.9% year over year, outside the US market.
Dell holds it at the third place in 4Q17. With year-over-year growth of 0.7% and shipping more than 11 million units for the first time in 2017.
Competition in the U.S. market remained robust increase for the company as its U.S. share and growth both suffered. Elsewhere like Europe, the Middle East, and Africa, the company saw solid numbers.
Apple is still in the fourth place but grew its shipments to 7.3% in 4Q17.
ASUS and Acer
They both shared the fourth quarter in a statistical tie* for the fifth place.
ASUS saw its shipments decline 11.2% year over year in 4Q17.
But, Acer‘s focused more on gaming PCs and related products, as well as its presence in Chromebooks, and it helped it to close the gap with ASUS.
Hot Selling Laptop Accessories
Here is how to go about starting your laptop business. There are just a few things to consider. However, the most crucial first step is to decide the type of laptop you want to start selling.
Understanding your market will help you decide the type of laptop to sell. You should know that the massive demand for laptops must also be matched up with affordability. If people can’t afford your product, your turnover will be too low.
So, decide if you want to start with brand new or used (Tokunbo) laptops. Your target market would help you make the right choice. However, you can consider mixing things up if you are not so sure about your target market.
The market demand for new and used laptops is like 30% – 70%. And the profits margin is not the same as well. But it’s like 60% – 40%. The demand for used laptops is higher than those of new laptops. However, that is not the same as their profit margin. The new laptops win when profit is the case.
Estimated Startup Capital
You can’t pin the exact amount required to start a laptop business. But you can get an estimate that you can personalize for your need. Although, I strongly recommend you plan around your budget if you have limited fund.
I’m trying not to cage your dream with estimated figures. If it’s money for one laptop you have, you can start your laptop business. I’m only going to help you see what is required; you affix cost based on what applies in your place. But that shouldn’t deter you if you can’t raise such funds to get started.
Here are things you need money for:
- Office rent – mostly annually cost
- Office furniture – one-off cost
- website design and optimization
- Different brands of laptop accessories (new & used)
- Other Expenses – set out funds for other items within your purview
Siting Your Laptop Business
You should be strategic where you site your laptop business. Don’t just rent an office anywhere. Be sure it’s where you should have the office.
Siting the office at the right place will impact your sales and help fight competition when they start coming after you.
The best place to site your laptop business should be closer to your primary target customers. It would help build loyalty, confidence and after sales support. Because you are closer, they are confident you will be available for support, repairs and advice when they need it.
They are not just buying laptops from you; they will be purchasing a friendship as well. That would be the real commodity that you should use against your competitors. And make full proof of that friendship, by offering them the truth in all your dealings with them.
Starting a laptop business now is a profitable investment decision. But you should do it the right way. The demand for laptops will continue to increase. The insinuation that phone will kill the market for the computer is all a lie.
Laptops are solving more problems than phones. That keeps the computer in the demand market. The global laptop sales for fourth quarter 2017 in the USA is 16.5 million.
While EMEA (Europe, Middle East, and Africa) region continued to experience growth.
Finally, let us know how useful you rate this guide. And drop a comment at the comment section.