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How much capital does it take to open a wood flooring business?

Many people are in need wooden flooring business. This is an item widely used in construction projects of houses, offices, shopping centers and hotels. What are the things you need to know before opening a wooden flooring business? Kosmos will summarize for you right here!

Wood flooring dealer.
Wood flooring dealer.
1

Why should you become a wooden flooring dealer?

There are 2 reasons why you should become a wooden flooring dealer:

  • Vietnam's wooden flooring market is growing rapidly.
  • The demand for wood flooring for interior decoration is increasing.

Vietnam's wooden flooring market is growing rapidly 

Vietnam is located in the Asia-Pacific region, the region that is predicted to have the highest growth rate in the wooden flooring market. This creates opportunities for wooden flooring dealers to expand and develop in this field.

The global wooden flooring market is on the rise. It is expected that by 2023, the total value of this market will reach 23,41 billion USD. In the period from 2023 to 2028, the market is expected to continue to grow steadily at an average rate of about 5,39% per year (reaching 30,44 billion USD in 2028).

Asia - Pacific is the strongest growing region and is expected to have the leading growth rate in this period (2023-2028) - Source: Mordor Intelligence market information analysis organization

 

Mordor Intelligence – Wood Flooring Market size Market share analysis – Trends & Growth Forecast (2023 – 2028)
Mordor Intelligence – Wood Flooring Market size Market share analysis – Trends & Growth Forecast (2023 – 2028)

 

Trend in the furniture industry - Market demand is increasing

Currently, wooden floors are a popular trend, and the demand for them is increasing. This creates a great opportunity for wood flooring dealers. Not only appreciated for its aesthetics, but this item also has many features such as: anti-scratch, color fastness, bearing capacity, easy to install, safe and long life, ... bringing a good experience to users. when using.

Laminate flooring is a trend in the interior industry because of its quality and aesthetics.
Laminate flooring is a trend in the interior industry because of its quality and aesthetics.

The wooden flooring market has diversification in product types and applications. Businesses can take advantage of this to provide wooden floors to suit customers' needs in various construction projects.

2

What do you need to prepare to be a wood floor agent?

The following are the basic, but very important, steps to become a successful wooden flooring dealer.

Research the market before doing business

It is imperative to analyze and determine the real needs of the wood flooring market in the area where you want to do business. Survey our customers and get to know our competitors in this field.

Participate in a wooden flooring workshop to learn about market needs.
Participate in a wooden flooring workshop to learn about market needs.

Find a reputable product supplier

Consider famous and reputable wooden flooring distributors nationwide to contact for cooperation. The reputation and supply ability of partners will greatly affect the store's business operations.

Especially that partner must diversify products from which we will expand the market to increase revenue and optimize shipping costs.

>>> See more: Top 5 most prestigious genuine wood floor warehouses in Vietnam

Choose quality products

Focus on selecting quality wood flooring products that suit the needs and desires of customers. Ensure that products meet quality and design standards.

Users prefer wooden floors that are water-resistant and easy to clean.
Users prefer wooden floors that are water-resistant and easy to clean.

Choose the ideal business location

Choose a business location that is convenient and accessible to customers. Consider locating on a major road or near areas with high demand for wooden floors.

Professional store decoration

Invest in professional store decoration to make an impression and attract customers. Display products aesthetically and make selection easy.

Stores should display wooden floors so that customers can easily see samples.
Stores should display wooden floors so that customers can easily see samples.

Determine capital sources

Determine the amount of money needed to start a wooden flooring business based on size and business plan. Don't forget to carefully plan your finances to manage your investment capital.

3

How much capital does it take to open a wooden flooring business?

Determining the amount of capital needed to open a wooden flooring dealership depends on many factors such as:

  • Business goals.
  • Premises rent (if any).
  • Product quantity and stock size.
  • Salary for staff.
  • Expenses for marketing and advertising activities.
  • Many other expenses.

Business Goals

First, we need to clearly define our business goals. Will it be a large building materials store or one that focuses on interior wood flooring? This goal will affect the amount of capital required.

Wood flooring dealers can also sell plastic flooring, plastic wood flooring, and panels.
Wood flooring dealers can also sell plastic flooring, plastic wood flooring, and panels.

Premises rent (if any)

If we have an existing store to sell wooden floors without needing to rent, we're lucky. But if we have to rent space, we need to calculate the monthly rent payments. This depends on the area and location of the store. Renting space in expensive areas such as the city center will require more capital than suburban areas.

Warehouse Size

The quantity and type of products you want to store in your warehouse will determine the warehouse space needed and the capital to make the purchase. Make sure you have enough wood floors to meet your customers' needs.

Large warehouse ensures the ability to supply good wooden floors.
Large warehouse ensures the ability to supply good wooden floors.

Expenses for marketing and advertising activities

In order to attract customers and build a brand, a laminate flooring dealer needs to invest in advertising and marketing. This may include online advertising, print advertising, and industry exhibitions such as Vietbuild.

You should participate in exhibitions about the wooden flooring industry to reach potential customers.
You should participate in exhibitions about the wooden flooring industry to reach potential customers.

Other expenses

Working capital

Agents will need to have a sufficient amount of working capital to ensure the operation of the store in the initial period, when there is no significant revenue.

Technical Costs

If the dealer offers additional wooden floor installation services, it is necessary to invest in the necessary tools and technical equipment.

Employee Salary

If you plan to hire employees, you need to calculate their salary and benefit costs.

Anticipate for Risks

You should budget an amount of money for risks and emergencies.

There are many things that need to be calculated to come up with the capital to open a wooden flooring business.
There are many things that need to be calculated to come up with the capital to open a wooden flooring business.

In general, determining the amount of capital needed to open a wooden flooring dealership is a complicated process and requires careful calculation.

As a supplier to more than 500 agents across 63 provinces and cities, Kosmos Vietnam can estimate that the investment capital to open a wooden flooring business usually falls into the amount of 100.000.000 – 300.000.000 VND.

4

The place to provide reputable wooden flooring for agents – Kosmos Vietnam

Kosmos Vietnam is a warehouse supplying decorative materials that launched on the market in 2012. With more than 11 years of dedicated and professional operation, the name Kosmos has had a strong foothold in the hearts of many dealers. We provide a variety of products including: wooden floors, plastic floors, plastic wall panels, plastic wood, molding, etc. and special is NO SALE.

With a no-retail policy, Kosmos is determined to be a long-term companion and protect the absolute interests of Agents.

General warehouse of prestigious decorative materials Kosmos Vietnam.
General warehouse of prestigious decorative materials Kosmos Vietnam.

Once it has begun to grow, a wood flooring dealer can expand its products and services, such as Outdoor wood floors (plastic wood floor), wood plastic floor or even open a second store. Kosmos Vietnam with a diverse source of goods can help dealers have many choices. In particular, Kosmos agents do not need a warehouse because they can import goods as soon as they are needed.

As for laminate flooring, Kosmos warehouse can supply its agents with up to 6 brands with guaranteed quality:

Kosmos Vietnam has a large warehouse with many diverse products.
Kosmos Vietnam has a large warehouse with many diverse products.

To become a wooden flooring distributor for Kosmos Vietnam, you only need a business license or a product display store. We always ensure the correct implementation of the warranty policy and a stable supply source thanks to more warehouses 10.000m2. In addition, the return and shipping policy is public and transparent, in order to ensure the interests of the Customer.

>>>> See more: Kosmos Vietnam agent policy.

5

Summary

Wood flooring business has high profit potential. Laminate flooring dealers can provide additional installation services to create a dual source of income. Just by providing quality products and good service, agents can build long-term relationships with customers.

Agent Gia Hoang distributes wooden flooring for Kosmos Vietnam warehouse.
Agent Gia Hoang distributes wooden flooring for Kosmos Vietnam warehouse.

Kosmos has provided all the necessary information so that you can open a wood floor distributor when you need it. If you still have any questions, you can leave a comment for Kosmos below or call the Hotline: (+84) 903 093 221 for quick advice.

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