In the current era where everything is digital, millions around the world own smartphones. These users look for phone cases to protect and secure their precious phones from any damage. Some often change their phone case according to the changing trends. With the increasing demand, opening a phone case business is an attractive opportunity for entrepreneurs. Phone cases are not just to protect the phone these days; they are also a fashion statement as they reflect an individual’s preferences, style, interests, etc. There is a constant and growing need for creative and durable phone cases in the smartphone market worldwide.
The global mobile phone protective case market size was valued at USD 25.7 billion in 2023. It is projected to grow at a CAGR of 5.64% from 2023 to 2033 to reach a market size of USD 44.5 billion by 2033.
The present era has become a world where gadgets rule, so businesses should take advantage of this chance to enter the phone case industry, as it’s a sizable market to capitalise on. Considering the increasing demand for customised products on eCommerce platforms, the phone case industry is also exploring and catering to such audiences.
Let us explore more about the phone case industry and why it is profitable for entrepreneurs ready to do something creative.
Why Launch a Phone Case Business?
With the constantly growing global smartphone market, launching a phone case business is an appealing idea. The demand for phone cases is rising as they are important to protect smartphones from drops, scratches, and other damages. The phone cases come in various designs, colours, and materials as per different consumer requirements. Many phone case businesses have grown rapidly by providing customers with personalised phone cases as per their style, interests, and personalities. The rise of eCommerce platforms like Etsy, Amazon, Shopify, etc. has also made it easier for entrepreneurs to launch a phone case business by setting up online stores and accessing a global audience.
Is Phone Case Business a Profitable Idea?
Smartphone users globally are increasing, resulting in a higher demand for protective items like phone cases. According to a reliable prediction, the number of smartphone users in India will reach 1 billion by 2026 and the country will be the second-largest smartphone manufacturer in the next five years. So, launching a phone case business currently is a profitable idea. Some other reasons to think about starting an online phone case business are:
- The production costs of phone cases, especially in bulk, are lower than their selling prices, which results in higher profit margins for phone case businesses.
- People nowadays are willing to pay extra for customised phone cases that reflect their personalities and interests. Businesses that offer personalised options are more profitable than regular ones.
- Products like phone cases are not one-time purchases, so customers will purchase multiple phone cases over the lifetime of different smartphones. These repeat purchases from customers ensure sustained profit and revenue for phone case businesses.
- eCommerce platforms have made it easier for entrepreneurs to access global markets with minimal costs. This helps businesses scale operations efficiently worldwide.
- Any business can be highly profitable if consumers are loyal and addicted to the brand for its quality and services. So, focusing on such things and creating a brand’s identity can be highly profitable.
- By 2030, the Indian market for mobile phone accessories is expected to grow at a promising compound annual growth rate of 6.8%, to reach a value of USD 132.18 billion. So, businesses selling phone cases can diversify their product list by adding chargers, earbuds, screen protectors, and other phone accessories to increase their overall profitability.
Things To Think About Before Starting Your Custom Phone Case Business
Before starting your customised phone case business, it is important to pay attention to multiple factors, such as:
- Market research: You should conduct market research to understand the demand for custom phone cases. This will help you identify the target audience, their preferences, strengths, weaknesses and behaviours, and pricing.
- Planning the business: It is important to develop a blueprint for your business goals, ideas, target audience, marketing, profitability, and investment.
- USP: It is important to understand the factors that differentiate your product from those of your competitors. Having a unique selling proposition (USP) is important to attract customers and establish your unique brand identity in the market.
- Partnerships: Making partnerships with reliable manufacturers and suppliers is important to produce high-quality customised phone cases. Collaborating with such manufacturers will also help you accommodate custom designs and flexibility in pricing.
- Customisation: Decide in advance about the customisation options you will be providing to the customers, like text, graphics, personalised designs, photos, etc. Pre-deciding the facilities you will provide in the market will ensure a seamless experience for customers.
- Branding: Making a brand identity through a strong marketing strategy is important to attract customers and get sales. You can use content marketing, social media, influencer marketing, and email marketing to make your brand visible in the market.
Kickstarting Your Phone Case Business: Step by Step Process
The following are the steps you must perform to successfully launch your phone case business:
- Step 1: Determine your target market and gain insight into market trends, pricing tactics, gaps, and demand.
- Step 2: Create a business plan that details your objectives, merchandise, advertising tactics, funding, and operational needs.
- Step 3: Recognise and specify your USP (unique selling proposition) to set yourself apart from competitors.
- Step 4: Work with a manufacturer or supplier to create superior phone cases. Negotiate the price, minimum order quantity, manufacturing schedules, profit margins, and other terms when you close a contract with a supplier.
- Step 5: Create and polish your phone cover designs to match your brand’s image.
- Step 6: Make a memorable brand name and logo that resonates with the target market to establish a powerful brand identity. Make use of a variety of marketing techniques, including SEO, social media, email, and digital marketing.
- Step 7: When launching your phone cases, consider using promotions, partnerships, influencers, advertisements, or blogging as a technique to draw in customers.
- Step 8: Foster loyalty and trust. It’s critical to give customers an effective experience. Build a clientele, and offer services like simple ordering, quick checkout, and prompt delivery. Get client feedback after delivering phone cases so you may make necessary improvements.
eCommerce Platforms to Sell Phone Case
There are multiple eCommerce platforms to sell phone cases, but while considering them, you should assess different factors like pricing, user-friendliness, customisation options, and scalability. Here are some suitable eCommerce platforms for selling phone cases.
- Etsy: Etsy, as of 2021, has 90 million+ active buyers worldwide. It focuses on vintage, handmade, and unique products, which makes it suitable for selling custom and unique phone cases. Etsy offers sellers multiple tools and market features to attract customers.
- Amazon: It is one of the largest eCommerce platforms globally, with 9.7 million+ sellers. Amazon offers approximately 350 million+ products from different categories, including phone accessories, electronics, etc. Amazon provides services like FBA (Fulfilled by Amazon) to sellers to meet their logistics meeds.
- Shopify: It is a user-friendly eCommerce platform with 1.7 million+ businesses hosted as of 2021. Shopify provides sellers with access to custom templates, product customisation, and marketing automation.
- eBay: eBay has diverse products listed and 182 million+ buyers worldwide. It offers different selling formats, like fixed-priced listings, auctions, and others. eBay has dedicated sections for electronics and accessories, making it suitable for selling phone cases.
How to Fix a Rate for Your Phone Case?
Several variables are taken into consideration when determining and setting the cost for a phone case. Those include production costs, market pricing ranges, market demand, value, profit margins, etc. The following procedures can be used to determine a rate for your phone case:
- Calculate production cost: Determine the entire cost of production for each phone cover, taking into account expenses for labour, materials, design, packaging, and shipping.
- Market research: Look into the needs and wants of your target market. Analyse the prices of other companies as well to determine your own profitable and competitive price range.
- Calculate profit margin: Determine your desired profit margin for your phone case by taking into account your anticipated profitability, marketing charges, and operating costs.
- Competitive price: Determine a reasonable price for your phone cover by taking into account factors like profit margins, estimated value, and production costs. To draw clients, make sure the price is reasonable and distinctive.
- Market trends: To evaluate your rates, keep an eye on the most recent industry trends as well as client experience, feedback, and sales figures. If necessary, you can change your prices.
Example:
Let us assume the cost of producing a simple and plain phone case is Rs. 50. And you want to keep 50% as your profit margin. So,
- The production cost of each phone case is Rs. 50.
- Profit from each phone case = 50% of Rs. 50 = Rs. 25
- Thus, the total price of each phone case should be Rs. 75.
Conclusion
In conclusion, launching a phone case business is exciting and lucrative as per current market trends and demands. With the increasing number of smartphone users, the importance of phone cases is also increasing. Businesses that provide personalised phone cases are attracting more customers. Businesses further looking for the success of their phone case sales can use eCommerce platforms for the sales. By using the correct marketing strategies, entrepreneurs can create a profitable phone case business.
A successful phone case business becomes easier as we work through the complex parts of launching the business through planning, market research, product creation, designing, collaboration, and producing high-quality phone cases. By staying attentive to market trends, offering personalised covers, and providing satisfactory services, you can establish your brand’s identity in the world of phone cases.