How to Start a Mall Kiosk Business in 2024: The Ultimate Guide to Success
Blog Introduction:
Do you want to start your own retail business but don’t have enough capital, space, or experience? Do you want to take advantage of the high foot traffic and exposure that shopping malls offer? Do you want to sell products or services that are in high demand and profitable? If you answered yes to any of these questions, then starting a mall kiosk business may be the perfect option for you.
A mall kiosk is a small, self-contained booth or stand that is located in the common areas of a shopping mall, usually near the entrances, exits, escalators, or elevators. Mall kiosks can sell a variety of products or services, such as jewelry, accessories, cosmetics, electronics, food, beverages, and more. Mall kiosks are also known as retail merchandising units (RMUs), carts, or pop-up shops.
Mall kiosks have many advantages over traditional brick-and-mortar stores, such as:
- Lower startup and operating costs: Mall kiosks require less investment in terms of rent, utilities, inventory, equipment, and staff. According to Franchise Direct, the average cost of starting a mall kiosk business ranges from $2,000 to $10,000, depending on the type and size of the kiosk, the location of the mall, the lease terms, and the products or services offered. In comparison, the average cost of starting a retail store can range from $50,000 to $200,000 or more.
- Higher visibility and traffic: Mall kiosks are strategically placed in areas where shoppers can easily see and access them. According to Statista, the average number of monthly visitors to shopping malls in the United States was 2.1 billion in 2019. This means that mall kiosks have the potential to reach a large and diverse customer base every day.
- Greater flexibility and scalability: Mall kiosks allow entrepreneurs to test new products or markets without committing to long-term leases or contracts. Mall kiosks can also be easily moved, modified, or expanded to adapt to changing customer preferences or seasonal trends.
- Higher profit margins: Mall kiosks can generate higher sales per square foot than traditional retail stores because they have less overhead costs and more impulse purchases. According to Retail TouchPoints, the average sales per square foot for mall kiosks was $1,500 in 2018, compared to $325 for retail stores.
However, starting a mall kiosk business also comes with some challenges and risks, such as:
- Higher competition and saturation: Mall kiosks face intense competition from other kiosks as well as from larger stores within the same mall. Mall kiosks also have limited space and inventory, which may limit their product variety and differentiation. Moreover, mall kiosks may face saturation or decline in certain markets or categories due to changing consumer behavior or preferences.
- Lower customer loyalty and retention: Mall kiosks rely heavily on impulse buying and walk-in traffic, which may result in lower customer loyalty and retention rates than traditional retail stores. Mall kiosks may also have difficulty building long-term relationships with customers due to their lack of branding or online presence.
- Higher dependence on external factors: Mall kiosks are dependent on the performance and policies of the shopping malls where they operate. Mall kiosks may be affected by factors such as mall traffic, location availability, lease terms, rent increases, operating hours, security issues, maintenance fees, marketing support, and other rules and regulations imposed by the mall management.
Therefore, starting a mall kiosk business requires careful planning and research before launching. In this article, we will guide you through the steps of starting a successful mall kiosk business in 2023.
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Step 1: Choose Your Product or Service
The first step of starting a mall kiosk business is to choose what product or service you want to sell. This is one of the most important decisions you will make because it will determine your target market, your competitive advantage, your profit potential, and your legal requirements.
When choosing your product or service, you should consider the following factors:
- Demand: You should choose a product or service that has high demand and low supply in your chosen market. You should also consider the seasonality and trends of your product or service. For example, sunglasses may sell well in summer but not in winter; novelty items may sell well during holidays but not throughout the year.
- Profitability: You should choose a product or service that has high profit margins and low overhead costs. You should also consider the pricing and positioning of your product or service. For example, luxury items may have high profit margins but low sales volume; low-priced items may have high sales volume but low profit margins.
- Differentiation: You should choose a product or service that has a unique selling proposition (USP) that sets it apart from your competitors. You should also consider the branding and packaging of your product or service. For example, personalized items may have a strong USP but require more customization; generic items may have less USP but require less customization.
- Compliance: You should choose a product or service that complies with the laws and regulations of your state and local authorities, as well as the mall management. You should also consider the licensing and permitting requirements of your product or service. For example, food items may require more compliance but have more demand; non-food items may require less compliance but have less demand.
Some of the most popular and profitable products or services to sell at mall kiosks are:
- Jewelry and accessories: These products have high demand, high profit margins, low inventory costs, and high customization potential. They also appeal to a wide range of customers, especially women and teens.
- Cosmetics and beauty products: These products have high demand, high profit margins, low inventory costs, and high differentiation potential. They also appeal to a wide range of customers, especially women and young adults.
- Electronics and gadgets: These products have high demand, high profit margins, low inventory costs, and high innovation potential. They also appeal to a wide range of customers, especially men and millennials.
- Food and beverages: These products have high demand, low profit margins, high inventory costs, and low differentiation potential. They also appeal to a wide range of customers, especially families and children.
Step 2: Choose Your Location
The second step of starting a mall kiosk business is to choose where you want to operate your kiosk within the shopping mall. This is another important decision you will make because it will affect your visibility, traffic, sales, and rent.
When choosing your location, you should consider the following factors:
- Foot traffic: You should choose a location that has high foot traffic and exposure to potential customers. You should also consider the flow and direction of the foot traffic. For example, locations near the entrances, exits, escalators, or elevators may have more foot traffic than locations in the middle or corners of the mall.
- Competition: You should choose a location that has low competition and complementarity with other kiosks or stores within the same area. You should also consider the proximity and similarity of your competitors. For example, locations near stores that sell similar or related products may have more competition than locations near stores that sell different or unrelated products.
- Rent: You should choose a location that has affordable rent and favorable lease terms for your budget and business goals. You should also consider the rent increases and other fees that may apply to your location. For example, locations with higher foot traffic or better exposure may have higher rent than locations with lower foot traffic or worse exposure.
According to Franchise Direct, the average rent for mall kiosks in the United States ranges from $800 to $2,000 per month, depending on the size and location of the kiosk, the type of mall, the seasonality of the business, and the negotiation skills of the entrepreneur.
Step 3: Choose Your Kiosk Design
The third step of starting a mall kiosk business is to choose how you want to design your kiosk in terms of size, shape, style, color, layout, signage, lighting, display, etc. This is another important decision you will make because it will affect your brand image, customer attraction, product presentation, space utilization, etc.
When choosing your kiosk design, you should consider the following factors:
- Functionality: You should choose a kiosk design that meets your functional needs in terms of storage, security, mobility, accessibility, etc. You should also consider the equipment and utilities that you need for your kiosk operation. For example, food kiosks may need refrigerators, freezers, ovens, microwaves, sinks, etc.; electronics kiosks may need power outlets, chargers, cables, etc.
- Aesthetics: You should choose a kiosk design that matches your brand identity and product theme in terms of style, color, layout, signage, lighting, display, etc. You should also consider the customer perception and attraction of your kiosk design. For example, a kiosk that sells jewelry and accessories may have a more elegant and sophisticated design than a kiosk that sells food and beverages.
- Compliance: You should choose a kiosk design that complies with the mall management’s guidelines and standards for kiosk appearance and operation. You should also consider the safety and health regulations that apply to your kiosk design. For example, a kiosk that sells food and beverages may have more strict requirements for sanitation and hygiene than a kiosk that sells non-food items.
Some of the most common and effective kiosk designs are:
- Rectangular: This is the most basic and versatile kiosk design that can fit in any location and accommodate any product or service. It has four sides that can be used for display, storage, or signage. It can also be easily customized and modified to suit different needs and preferences.
- Circular: This is a more attractive and eye-catching kiosk design that can stand out from the crowd and draw more attention. It has no corners or edges that can limit the display or access of the products or services. It can also create a more interactive and engaging customer experience.
- Modular: This is a more flexible and scalable kiosk design that can adapt to different spaces and situations. It consists of multiple units or modules that can be arranged, rearranged, added, or removed according to the needs and preferences of the entrepreneur. It can also allow for more creativity and innovation in the kiosk presentation.
Step 4: Choose Your Kiosk Supplier
The fourth step of starting a mall kiosk business is to choose who you want to buy or rent your kiosk from. This is another important decision you will make because it will affect your budget, quality, delivery, warranty, etc.
When choosing your kiosk supplier, you should consider the following factors:
- Price: You should choose a kiosk supplier that offers competitive and reasonable prices for your desired kiosk design, size, features, etc. You should also consider the payment terms and options that the supplier offers. For example, some suppliers may offer discounts for bulk orders or upfront payments; some suppliers may offer financing or leasing options for monthly payments.
- Quality: You should choose a kiosk supplier that offers high-quality and durable materials and components for your kiosk construction and operation. You should also consider the craftsmanship and professionalism of the supplier’s staff. For example, some suppliers may use wood, metal, plastic, glass, or other materials for your kiosk; some suppliers may have skilled workers, designers, engineers, or other experts for your kiosk.
- Delivery: You should choose a kiosk supplier that offers fast and reliable delivery services for your kiosk order. You should also consider the shipping costs and methods that the supplier offers. For example, some suppliers may offer free or low-cost shipping for local or regional orders; some suppliers may offer express or standard shipping for national or international orders.
- Warranty: You should choose a kiosk supplier that offers comprehensive and generous warranty policies for your kiosk purchase or rental. You should also consider the repair and maintenance services that the supplier offers. For example, some suppliers may offer one-year or longer warranty periods for your kiosk; some suppliers may offer free or low-cost repair or replacement services for your kiosk.
Some of the most reputable and reliable mall kiosk suppliers in the United States are:
- [Penbo Display]: This is one of the most innovative and creative shopping mall kiosk suppliers in China, offering unique and attractive shopping mall kiosks for a variety of products and services. They have more than 20 years of experience in providing customized delivery and support of shopping mall kiosks to clients worldwide.
- [Kiosks Inc]: This is one of the leading mall kiosk manufacturers in the country that offers custom-made and ready-made mall kiosks for various products and services. They have over 20 years of experience in designing, building, and installing mall kiosks across different states.
- [All Star Carts & Kiosks]: This is one of the most trusted mall kiosk suppliers in the country that offers high-quality and affordable mall kiosks for various products and services. They have over 30 years of experience in producing, distributing, and servicing mall kiosks across different states.
- [Cart-King International]: This is one of the most innovative and creative mall kiosk providers in the country that offers unique and attractive mall kiosks for various products and services. They have over 15 years of experience in developing, delivering, and supporting mall kiosks across different states.
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