At the youthful age of 26, Benjamin Gsell left an indelible mark on Kenya’s flourishing mitumba, or second-hand clothing, industry.
Hailing from Vienna, Austria, Benjamin’s voyage into entrepreneurship commenced during his school years when he began selling computer accessories. These initial ventures ignited a fervor for business within him, and he harbored dreams of exploring entrepreneurial prospects in Africa or the Middle East.
His first stop was the Middle East, where he secured employment in Dubai, gaining invaluable experience in operations, marketing, and business development. But after five years in the corporate realm, the allure of entrepreneurship called him once more.
Temporarily shelving his entrepreneurial aspirations, Benjamin embarked on a journey of self-discovery and travel. Among his destinations was Kenya, a nation that would profoundly alter the trajectory of his life.
In March 2017, during his inaugural visit to Nairobi, Benjamin was captivated by the abundance of second-hand clothing markets that lined the city’s streets. Recognizing the potential in the mitumba business, he commenced researching how to enter this burgeoning market. By September of the following year, he made a life-changing decision to relocate to Kenya, and just one month later, he inaugurated his first mitumba shop in Nairobi.
Transitioning from Dubai to Kenya: A Shift in Trajectory
Many may question why Benjamin transitioned from a secure job in Dubai to the world of second-hand clothing retail in Kenya. In his own words, “I was intrigued by Africa, and Kenya, in particular. After nearly seven years in the corporate sector, I had the opportunity to interact with numerous startups, whether through mentoring or investing. So, eventually, I decided to apply the knowledge and experience I had acquired to initiate my venture.”
Benjamin’s venture commenced with three shops nestled within Nairobi’s famed Gikomba market, a hub renowned for second-hand clothing. His business model primarily caters to wholesale customers seeking to acquire large quantities of clothing, packaged in bales containing various items. The pricing of these bales varies, ranging from Sh4,000 to Sh19,000, depending on their contents. Additionally, to enhance profitability, he retails some items at individual prices.
The Entrepreneurial Leap
Initiating any business necessitates capital, and Benjamin’s venture was no exception. He invested approximately Sh5.5 million, a sum he had saved, supplemented with contributions from his American business partner, whom he had encountered during his tenure in Dubai.
Why Kenya, one might inquire? Benjamin is quick to extol Kenya’s investor-friendly environment and the vast mitumba market in East Africa. The country’s political stability, coupled with widespread English language usage, also factored into his decision.
Regarding his inventory, Benjamin currently imports his stock from the UK. The clothing arrives via ship at Mombasa and is subsequently transported to Nairobi via the Standard Gauge Railway (SGR). Although he initially sourced from various sorting plants, he has opted to personally oversee the sorting process to ensure consistent quality. Currently in the process of establishing his own sorting factory in Romania, he continues to source high-quality clothes exclusively from the UK.
Challenges and Triumphs
Every entrepreneur encounters challenges, particularly when venturing into a new market. Benjamin confronted hurdles such as finding reliable partners and building trust among customers for his brand.
Despite the dominance of well-established mitumba traders, Benjamin surmounted these obstacles by emphasizing quality, competitive pricing, and dependable deliveries within Nairobi. He did encounter logistical issues, including port delays and payment collection difficulties due to limited cash circulation, but these challenges have gradually improved over time.
One might ponder whether the discussions surrounding the ban on second-hand clothing in Kenya deterred him. Benjamin acknowledges these ongoing discussions but points out that the government has been debating the issue for years without implementing any bans. Additionally, millions of Kenyan households rely on the mitumba business for their livelihoods. As long as alternative employment opportunities remain scarce, Benjamin maintains confidence in the industry’s future.
Competition and Expansion
Benjamin recognizes the formidable competitors in the mitumba industry, boasting strong distribution networks and extensive experience. However, he holds a significant advantage due to his unique in-house sourcing and sorting model.
Despite occasional challenges, Benjamin’s business thrives, driven by the demand for high-quality products in the market. He envisions optimizing his supply chain and expanding by opening additional wholesale shops and collaborating with key wholesalers in cities such as Kisumu, Nakuru, Eldoret, and Migori.
Moreover, his expansion plans extend beyond Kenya’s borders, targeting other East African countries, including Tanzania and Uganda, as well as prominent markets in West Africa such as Ghana, Benin, Togo, and Nigeria in 2019.
