Are you contemplating to open a business in Africa’s clothing industry? In this article I want to tell you why targeting some concrete niches may be your best bet. And here is some good news for those of you with small starting capital in hand: You can get started in your own garage!
Now first some market facts and why you need to take a small niche approach
With a population of about 1.2 billion, which is projected to double by 2050, the demand for clothing in Africa will grow along with its huge population. Whether you’re interested in high fashion, locally-made textiles, imported designer clothing, fashion accessories or footwear, everywhere you look, yes, the apparel industry in Africa is brimming with potential!
Having said that you also need to be aware of the fact that Africa’s textile and apparel industry has suffered major losses in the last two to three decades, so much so, that blooming textile industries in South Africa, Nigeria, or Kenya have at large collapsed during the 80-ies and 90-ies. Most of it was due to the influx of cheap garments from China, a growing second hand clothing market also based on imports, and national instabilities. But Africa’s textile industry is slowly recovering – growing wages in China, new policy focus by African governments, and a fast rising demand for made-in-Africa products and fashion contribute to this shift.
Did you for example know that Kenya was one of the largest importer of second hand clothing in Africa? This is probably about to change! In February 2015 it was reported that East African countries are set to place a ban on the importation of used clothes and shoes into the region. The second hand industry that is believed to be worth billions of dollars, was a point of discussion among East African Community heads of states: second hand clothing was clearly viewed as a major threat to the booming local textile industry and there are plans to halt it. (Note: So it may be a good idea to skip any business concept around second hand clothing if you had that ever in mind!)
Well, in short, Africa’s clothing industry may not experience the apparent dynamic growth as other sectors in Africa do, but the opportunities are clearly there and now visibly growing for the reasons just stated. And this means it’s a great time to position yourself now early on by carving out a distinct niche!
Where to set up your business in Africa’s apparel industry
Marching in the front is currently Ethiopia followed by Kenya. Both countries have put the growth of the apparel industry somewhere in the top of their economic growth agenda and seem to be driving it more visible than other states. And this does not go unnoticed: The first large textile firms are already showing interest in moving part of their production to Africa. The Swedish label H&M is for instance building a factory in Ethiopia. The Turkish garment manufacturer Ayka, which produces textiles for the German company Tschibo amongst others, has also opened a branch in Ethiopia, in which it has invested US$ 160 million.
The US company PVH, which produces labels like Calvin Klein and Tommy Hilfiger soon plans to start production in Kenya. But much of it can be expected to be produced for export.
If you have a considerable amount of start up capital at hand, a textile production and printing company could possibly be a great investment in Western and Central Africa. Africans love traditional African prints, but you will be surprised to hear that in some cases even most of this is imported, too – from the Netherlands for example and from China, of course. This is a major problem for Africa’s fashion industry. African cotton gets exported and then comes back from China or Europe at more than three times the price.
As Africa Jumpstarters, however, we want to know how we can get into this lucrative market fast considering the state of the industry and recent developments, and we love approaches that require small start up capital and are based on a simple concepts. Don’t we ? 🙂 Look out for niches that would work in the current environment.
I would say Ethiopia, Kenya, South Africa, Mauritius (major exporter to South Africa!), Nigeria, Ghana, and Mozambique are currently among your best markets in Africa if you are planning to do business with textiles or clothing, including foot wear, because you will find positive and enabling dynamics happening there already. Being based locally, is of advantage, with Ethiopia offering the cheapest labor and operational costs.
Let’s have a look at some niche markets.
#1 Produce buttons for Africa’s fast growing fashion industry
This is a very simple and creative business concept: Africa’s fashion industry is making itself a name and growing rather rapidly, receiving finally international recognition. It needs buttons in all forms, shapes, sizes for terrific trousers, delightful dresses, shiny shirts, and juicy jackets. You can produce those accessories! Teach some local women to produce beautiful simple or African inspired wooden buttons for you, make a journey to the port towns and see if you can get access to perlmut for glittery buttons from Africa’s coasts, or pearl buttons for Africa’s bridal designers. Get some more buttons woven with traditional threads and patterns or using local leather. Once your business grows, you could even produce luxury buttons in silver, with golden coating, or using precious stones for luxury fashion brands….and of course get creative and throw some beautiful plastic buttons in, too. I think important is that you understand your market is the local or regional up-market fashion industry, which is a highly dynamic, growing, and creative industry – your product range, company brand, and online presence should reflect that. You need excellent finishing and designs that stand out. Do your research locally – of course, there may also be scope to produce in bulk for local clothing manufacturers.
#2 Produce soles for shoes, Kenyan entrepreneur tells me
I was made aware of this overlooked niche by a Kenyan entrepreneur and business man in the leather footwear industry. He had gone into the footwear business relatively recently and was growing his leather shoe outlets rather fast – he had eight stores across Nairobi when I spoke to him last November. Our meeting had been arranged by the Kenyan Leather Development Council and over a cup of fresh mango juice in one of his bars (he was in the restaurant business, too), he explained to me how happy he was about the fast growth of his shoe factory, but that a major obstacle was the access to soles. He had to import them from China and he pointed out it was a great opportunity for local entrepreneurs to take this up. With local footwear production growing in Africa, the production of soles made of different materials could be a very lucrative business idea for you if you get the profit margin and the retail price right.
#3 Create a women farmer cooperative for profitable silk production
If you are following my blog regularly, you will know that I absolutely love this niche idea. And it is proven to work: Women farmers in Rwanda have abandoned their traditional crops because they make so much more money from silk production with silk worms! What you will need however are the planting of mulberry trees as the worms feed from their leafs. The trees need around 3 years to grow. You could set up a women cooperative, while you establish a little processing factory in your garage or a local workshop. Africa’s fashion and apparel industries are growing – local silk will be in demand and you can be sure to have little competition. Get started now, it is the best time and will certainly give you a first mover advantage for years to come!
#4 Lady underwear…..produce for African tastes and body shapes
Women underwear is largely cheaply imported from China and there is often a lack of good quality, beautiful, affordable underwear that is produced locally. This is especially true if you want to buy matching sets, as the imported products simply do not fit the needs, shapes, and sizes of African women. It is for example very difficult to find skin-coloured underwear for black women, or maternity bras, so this is something for you to consider. Also, black women in Africa are often pear shaped, with a relatively smaller bust and wide hips. I think there is definitely a huge market waiting for you if you get the design and pricing right. The good news for you is that it is clothing that needs very little material, space, or shipping cost – which makes it the perfect item for a small start up in your garage or living room. Of course you will need to determine who exactly your target market is – starting with professional middle class women may be a good starting point.
#5 Men ties and bows for African professionals or the Diaspora
Among the high quality ties and bows you will usually find those made of silk and it is therefore no wonder that this is yet another niche product that is widely imported, although it is an accessory that is produced by an increasing number of African fashion houses. But with the right approach you will always be able to find buyers and you can also use traditional fabrics, microfiber and other materials to produce ties, bow ties, and other men clothing accessories. If you give it all an African inspired, neat look, you will find great market potential in Africa’s large cities and the USA. The company Africaimports.com with a solid customer base in the US is doing very well in this regard, check them out.
Tips for increased success for your business
Exhibiting at a couple of Africa’s fashion and apparel trade shows may be one of your best investments to get the attention of relevant buyers fast.
The African Diaspora, especially in the US, can be an additional lucrative market
Sell in bulk, to save time and become more cost-efficient
Now, go out there and get started. Putting your ideas into ACTION is the only way to achieve your dream of leading an entrepreneurial lifestyle. Africa is waiting for you. And we are waiting for your comments below! Share your thoughts with us!
Title image credit: Zano Sithetho’s menswear brand, SKORZCH
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hello there Dr. Harnet, excellent post. I had a quick question regarding how to start a clothing retail business in Africa.
This is an industry I am very passionate about, and I really believe there is a massive opportunity to make money in this market. I am not really 100% sure the best way to approach this type of business. Am sure you have heard of companies such as Primark, and H&M, who are global fashion powerhouses, they have a board of designers who design there clothes, who they then send to their manufacturers, who manufacture the designs in massive quantities.
Thing is I am not a designer but I really am interested in the industry. my plan was to:
1. work on my business plan
2. collect funding (from savings or a loan)
3. contact the right suppliers and manufacturers in Africa
4. find a good location (primarily in Kenya, as this is were I wish to start this business
My problem is that I don’t really now if this is the best approach, let alone my knowledge of suppliers and manufacturers being non-existence.
can you please advice, if this is a good approach, and do you know any suppliers and manufacturers in Kenya?
p.s. my clothing business will sell women’s, men’s and children’s clothing ranges. sorry, if I didn’t clarify this?