Businesswoman Shiquo HiiStyles has taken Kenya by storm, gaining popularity for her budget-friendly products imported from China.
From shoes and handbags to kitchen equipment, blankets, and suitcases, she offers these items at nearly half the price, sometimes even lower, of what many other importers and retailers charge.
This has sparked a frenzy on social media, particularly on TikTok, where Shiquo shares her journey, showing Kenyans the places she sources goods from in China and her pricing strategy.
Business people see Shiquo HiiStyles as a threat
Her approach has led some to affectionately call her the new China Square, while fans humorously urge her to start importing wigs, airplanes, and even vehicles.
While her followers are delighted with her affordable offerings, not everyone is pleased. Some Nairobi-based business owners accuse her of diluting their market, even suggesting her low prices result from selling counterfeit goods.
However, Shiquo’s store remains busy, sometimes so packed that she has to ask customers to return another day.
Business expert’s perspective on Shiquo’s strategy
Ray, import business coach and experienced importer, sat down with Lynn Ngugi on october 27, to discuss the import business. Ray explained that Shiquo appears to be combining the roles of importer, wholesaler, and retailer, allowing her to sell directly to consumers at lower prices.
“I’ve been reading comments where people feel threatened by Shiquo,” Ray noted. “Why would you feel threatened when she’s just doing something others have done for years? The difference is that business people in places like Eastleigh or Kamukunji aren’t active on social media. Shiquo is doing a good job, and if you feel threatened, maybe it’s time to up your game.”
Everything you need to know about starting an import business
Importing goods is a complex field that requires significant capital, knowledge, and strategic planning.
According to Ray, understanding the actual cost of an item in China is essential. “The price of an item in China is often just the factory price,” he explained.
For instance, an item that costs Sh600 at the factory may end up costing around Sh1,000 by the time it reaches Kenya due to various additional expenses.
Costs involved before goods leave China
When importing goods, there are specific charges incurred even before they leave China:
- Freight charges: These are paid to the shipping line and can range up to 4,000 US dollars, depending on the chosen shipping line.
- Certification charges (Bill of Lading): This serves as a ticket from the shipping line and contains all the necessary container information.
- Inspection charges: These fees vary depending on the contents of the container, often going up to Sh2,000.
Charges when goods land in Kenya
Once goods arrive in Kenya, several additional fees apply:
- Import Declaration Form (IDF): This is a 2.5% charge based on the total cost of goods, insurance, and freight, paid to the Kenyan government.
- Taxes: Importers pay Value-Added Tax (VAT) on imported goods.
- Import Duty: Calculated per item, the import duty ranges from zero to 100 percent depending on the type of product.
There is also a four-day window for importers to collect their goods from the port before storage fees apply.
Key factors affecting prices of items imported from China
For anyone interested in getting into the import business, Ray highlighted a few critical factors affecting pricing:
- Local market price: The local retail price of an item plays a role in pricing strategy. Importers sometimes find that locally available items are cheaper than imported goods due to various factors, making it important to assess demand and competition carefully.
- Bulk purchases in China: The cost of an item can significantly decrease when purchased in large quantities. Ray explained, “The rule in China is simple—the more you buy, the cheaper it becomes.” Some businesses that import as many as 10 containers can access even lower prices for their goods.
- Quality of products: Quality can vary even within the same brand, depending on the factory. Some importers cater to the demand for counterfeit products by having popular brand names stamped on lower-quality items. Ray explained that many consumers prefer familiar brand names, even if the quality isn’t guaranteed, allowing importers to meet this demand while keeping costs low.
The reality of the import business
Ray emphasised that while Shiquo’s approach has won her many fans, the import business is not without challenges.
Importing involves numerous expenses and risks, and succeeding in this field requires knowledge, patience, and adaptability.
He praised Shiquo’s use of social media, noting that her openness has created a loyal customer base that values her transparency and competitive pricing.