How to Start Your Mobile Shop?

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Planning to start your own mobile shop?  Read along to know all about running this business.

Smartphones have really taken over all over the world and all our lives. Everything has been made so easy, and all thanks to smartphones. From photos to video calls, managing meetings, health and much more, there is nothing that you cannot do on them.

From phones, tablets, laptops and computers, technology has definitely made a big impact on all our lives.

Steps To Start Your Mobile Shop

The following steps would help you in making a plan and make important decisions about your shop:

  • Finding a good location for your shop
  • Design ideas for mobile shop
  • Deciding distributions and brands you would keep
  • Knowing your competition
  • Deciding accessories to sell
  • Marketing plan for the business
  • Having online presence
  • Getting insurance

How to Start your Mobile Shop?

In this fast-moving era, where smartphones are not only a need but a habit, what is more, fruitful than a  mobile shop which requires the minimum investment a business venture can require for such a  demanding market.

What is the Investment Required? 

The investment required to open a mobile shop can vary depending on the location and demography.  However, a minimum investment of about 5 to 10 lakhs will be required based on the location of the store, size, and inventory to be stocked. 

But proper research of the concerned location is required before jumping to any conclusion. Mostly,  mobile stores do well in metropolitan areas where there is a lot of people traffic. Vicinity of malls, bus stands, railway stations, shopping complexes, etc., tend to do a lot better than a place with less demography.

The investment required includes:  

  • Area and property charges 
  • Distributorship 
  • Licenses and registration 

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What is the Space Required? 

It’s a good thing that smartphones are so handy. Even a shop with limited space can do the work.  Generally, a capacity of about 10 x 15 square feet or about 150 square feet is enough for setting up a  mobile shop. However, retail design & shopfitting should be eye-catching. 

When it comes to renting a place for opening a mobile shop, it again depends on the location. If the capacity is present in an urban area, the rent will be relatively more than that in a rural area. In many cases, the place providers lease the premises for a certain period. A person willing to open a mobile shop can either pay rent or lease as per their need.

As many mobile shops are coming into the act, your mobile shop must stand out from the crowd. Only then customers will entertain the business premises. From the cash counter to the display case, a design that is wise and efficient can make your space functional. A stunning mobile shop interior design that is unique and appealing can help go a long way.  

There are various service providers to make your mobile shop looks great. They provide modular shop fittings, merchandising store fixtures & retail boutique display furniture for the products display.

If you own the place and do not need to worry about the lease or rent, then it’s a cherry on the top as you can invest even more in the interior. Just find service providers who specialise in providing customers with low-cost, practical solutions in line with customers’ brand identities and you are good to go. 

Also Read: All You Need to Know To Set Up a Hardware Store in India

How to get Distributorship for a Mobile Shop? 

Upon deciding and finalizing the space and interior, it’s important to strike a relationship with mobile distributors in the area for stocking mobile phones, display models, mobile accessories, and other mobile products.

In addition to mobile phone distributors, it’s also important to obtain and offer the  following items or services that are sold at mobile stores: 

  • Mobile SIM cards 
  • Recharge Cards 
  • Mobile Repair Services 

First of all, decide whether your mobile shop will be a retail operation, selling to phone users? Or do you want to become a distributor, selling to retail stores?  

If your mobile shop is more local, you can contact big agencies of the area, of brands you want to sell products of. Distributorship from a big agency rather than the manufacturer can be easier as all manufacturers have their procedures and requirements for granting distributor status to prospective applicants. 

The companies need someone to commit to a minimum volume order to qualify and the territory should be available. Cell phone distributors occasionally grant territory to distributors, and they may not grant you a distributorship if you are in direct competition with another nearby outlet.  

The following steps can be followed to get a distributorship from agencies of mobile phone brands:

  • Talk to local cell phone providers and research the service providers. 
  • Select a service provider and the agency from which you want the dealership.
  • Provide them with your business plan and the documents in support of fulfilling your eligibility. 
  • Upon getting the permission, purchase the inventory and marketing materials (the majority of which will be purchased and supplied by the cell phone provider).  
  • Purchase display cases and marketing materials such as business signs, promotional displays,  and brochures. 
  • Now that all the necessities to open the shop are fulfilled, set up your store. Place your inventory in display cases and hang signs and promotional displays for customers to see.

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How to Register your Mobile Shop? 

All shops, big or small, need to be registered. To register your mobile shop, visit the labour department website and sign up with your credentials.

The entire registration process takes place online in many states, while others are semi-online. Every state’s labour department has a website with an online registration form and instructions. 

How to Register your Mobile Shop
Image Source- https://www.thechennaimobiles.com/index.php?route=information/showroom&place=mobile-showroom-old-bus-stand-tirupur

Follow the following steps: 

  • Visit the labour department website and log in with your credentials. 
  • Fill up the application form with information about your business. 
  • Upload documents that are required to complete the process (Note: In a few states, physical submission of documents and a printout of the application form is required). 
  • Pay the fee requested by the authorities (Note: Many states have an online payment option, but  DD/cash payments may also be made offline). 
  • An inspection will be held by the concerned authorities to check the premises and if the documents submitted are valid (Note: In the majority of cases, Inspection is not required). 6. Upon satisfaction of the authorities, approval will be provided. 
  • The applicant will get the license in a stipulated period. 
  • The license will generally be valid for one year and is subject to renewal. 

The registration for the mobile shop and application of distributorship can be done simultaneously.  However, the distributorship application may need a license for the shop. Hence, the registration of the shop should be a priority. 

Also Read: 15 Top Most Business Ideas in Kolkata

What are the Registration and Licenses Required for your Mobile Shop? 

Business Registration 

Depending on the capacity of the mobile shop, one can decide the type of business registration required.  However, it is best to start the store as a Limited Liability Partnership (LLP).

In case there are plans to establish larger mobile stores in places like malls or to sell online through e-commerce portals like  Flipkart, Snapdeal, or Amazon, it’s best to incorporate a company. 

The difference between LLP and corporation is given below for better decision making: 

Limited Liability Partnership (LLP): In a Limited Liability Partnership (LLP) all the partners share a limited amount of personal responsibility for the business and all partners can participate in management tasks and operations if they want to.  

Corporation: Corporations are more complicated business structures than LLP to set up and maintain.  They require extensive record-keeping, reporting, and tax requirements.

They cost more to operate. Like partnerships, there are various types of corporations one can form. It’s up to you and your partner(s) to decide which structure works best for you, given everyone’s interests. 

VAT Registration: In addition to the business registration, any business that is sales require VAT  registration. Those selling goods worth over Rs.5 lakhs in a year are required to obtain VAT registration in almost all the states. Hence, VAT registration would be a mandatory registration for all mobile stores. 

Service tax registration: Service tax registration may also be required for those mobile stores which have a good mobile service centre and are earning over Rs.9 lakhs of revenue in a year. 

Import Export Code: Nowadays, most of the big mobile shops or stores import accessories of mobile phones directly from countries like China, owing to cost advantages. In such cases, in which import of goods is intended, it’s preferable to obtain Import Export Code also. 

The IE Code registration is permanent and is valid for a lifetime. However, any store which is not undertaking import of any kind of mobile-related goods for sale purposes is not required to register for IEC.

Also Read: भारत में 10 सबसे ज्यादा कमाई वाले बिजनेस

How to Attract the Customers? 

Whatever the size of a business is, customers are the most important part of it. After all, they are the ones buying your product. Foot traffic is very important for a small retailer like a mobile shop. For that, a  marketing strategy will help go a long way.  

Nowadays, social media is used by all. So, creating and making pages on Instagram and Facebook and asking young people in the locality to share the news of your mobile shop amongst friends can help bring customers around

Also, having a strong SEO and using offline marketing can help get you a good audience attraction.

You can set up a photo booth or rent a photo booth for a week and encourage customers to take photos, share them on social media and tag your store. Don’t forget to reward customers who do with a kind gesture like giving some discount on their purchase. 

Put up discount ads and give amazing offers. With online, spend time on offline methods to grow your business. If required, you can also hand out pamphlets to passersby. With an offline store, you can hand out your business cards to your customers.

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Doing things differently will make you unique and most customers will save your number for future reference. Have WhatsApp Business and use its marketing tools to propagate your business. 

Add a little bit of personal touch by handing out your email ID as well. Always greet your customers with a smile and give them attention. Remember, “a little bit of kindness goes a long way”.

The following are some key points to take away that can help your mobile shop business start and keep running: 

  • Start a website and social media pages for your mobile shop, which are the least expensive.
  • Depending on the budget, you can also invest in advertisements in a local newspaper.
  • Target the local prospects in the first few months. 
  • As your business grows, try to expand your business. 
  • Do not compromise the quality of products to bring in extra revenue. 
  • Think about your customers’ needs. 
  • Make sure that you accept online payment methods in exchange for your products and services.
  • Studies have found that, except for education, demographic factors have little influence on the adoption of digital payment.  
  • If possible, offer additional services to attract and engage prospects. 
  • Try to gain a competitive edge with contests, promotions and freebies. 

Is Retail Mobile Shop Worth It? 

Coming to the elephant in the room, are retail shops still worth it? Many people will ask why are you opening a mobile shop in today’s time. It’s not their fault, after all, retail has endured one of its most difficult spells to date because of the pandemic.

The epidemic has ripped through the heart of the retail sector, severely reducing customer footprint and forcing periods of closure for stores not deemed essential. 

However, for a product like a mobile phone or related accessories, the retail market will never die(hopefully!). Even if mobile phones are being bought online, there are plenty of offline mobile shops and people are visiting them like before.

Even in the worst case, there is always an option to sell  online through e-commerce portals like Flipkart, Snapdeal, or Amazon, 

However, it is human nature to do things they are more familiar with. People tend to buy products they have touched with their hands and are satisfied with them. 

People will always trust a local person more than a distant distributor. These psychological factors impact diverse consumers across different regions and drive the process of purchasing offline by consumers.

How Can Lio Help In Starting your mobile shop

Lio can help you run it and even start this business in a variety of ways. Lio is here to help you make your life more organised and hassle-free. Having all the things in one place will make everything convenient and you will not lose your data.

All the important contacts, information, money-related things like transactions, and Udhaar can all be done with just this one application.

Upload your own documents along with images, everything is possible. You can also collaborate on a sheet with other people.

Not downloaded the Lio App yet? Here is how you can start with Lio App.

Step 1: Select the Language you want to work on. Lio for Android

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Step 2: Create your account using your Phone Number or Email Id.

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Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

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Step 4: All Done? Share and Collaborate with your contacts.

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Frequently Asked Questions

How much does it cost to start your own mobile store?

It depends on the amount required to start and operate a mobile shop varies, but usually, the shop vehicle is the biggest expense. After some research, it was found that the total investment of a mobile shop is around Rs. 3,00,000 to Rs. 4,00,000.

Is selling Cell Phone/ Mobile Phone accessories profitable?

Starting a cell phone accessory business is a great business idea for Indians and it can be highly profitable and highly competitive.

Some of the ways to make it profitable are having an online presence and having a store in a place with limited or equivalent to no competition.

Which is the best smartphone company of 2021 in India?

Here is the list of the top 10 smartphone companies of 2021-

Apple
Samsung
Oneplus
Xiaomi
Lenovo
Vivo
Oppo
Mi

What is the average investment required to start your mobile shop?

An average of INR 5 to 10 lakh is required to set-up your mobile shop in India.

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About the author

Ashutosh Bhatt

Ashutosh joined Lio as the marketing manager and has played a significant role in our growth. A traveler at heart, you might just catch him on a flight to any exotic countries around the world when he isn't busy ranking websites.

10 comments

  • I recently started a mobile store. Please provide some tips on convincing a customer to purchase a phone.

    • Hello Nidheesh,

      I clearly understand your need. Here are some tips for getting customers to purchase from your store:

      Never use pre-written conversation scripts; customers are more likely to buy if they feel an emotional connection to a consultant. Take the initiative to start the conversation, ask open-ended questions, and give the other person time to expand the subject.

      You can also utilize this psychological tactic called FOMO (Fear of Missing Out Fear). This phrase refers to a worry over missing out on the chance to acquire or accomplish something. When you’re genuinely unsure of how to persuade a buyer to purchase your product. An example of this might be as follows: Instead of only focusing on the benefits of the goods, frame your offer as something that a potential buyer will miss if they don’t buy. 
      I hope this is useful.

  • Thank you so much for this wonderful article. You have explained every detail, including the required space, distributorship, and more. Continue your wonderful work!

  • May I know what all comes under the mobile accessories category? My brother and I are planning to open a mobile accessories store because we are both interested in it..

    • Hello Goutham,

      Mobile accessories are any gear that is not essential to the operation of a mobile smartphone as designed by the manufacturer. Some examples of mobile accessories include cases, anti-lost gadgets, phone charms, mass storage, chargers and external batteries, photo accessories, selfie sticks, smartphone tripod mounts, HDMI, and projectors.

      Best wishes for your new venture!!

  • I recently launched my mobile store. Please mention a few effective advertising platforms for promoting my store.

    • Hello Anya,

      Some of the top advertising channels to market your mobile store include Google Ads, Bing Ads, Facebook, Instagram, Millennial Media, Apple Search Ads, Twitter Ads, AdColony, and AppLovin. Please conduct additional research and make appropriate decisions.

By Ashutosh Bhatt