At just 26 years old, Benjamin Gsell made a significant impact on Kenya’s thriving mitumba (second-hand clothing) industry.
Born in Vienna, Austria, Benjamin’s journey into entrepreneurship began at a young age when he started selling computer accessories while still in school.
His early ventures ignited his passion for business, and he dreamt of exploring opportunities in Africa or the Middle East.
The Middle East beckoned first, and Benjamin secured a job in Dubai, gaining invaluable experience in operations, marketing, and business development.
However, after five years in the corporate world, he felt the pull of entrepreneurship once again.
Putting his entrepreneurial plans on hold temporarily, Benjamin embarked on a journey of travel and self-discovery. Among his destinations was Kenya, a country that would change the course of his life.
In March 2017, during his first visit to Nairobi, Benjamin was struck by the proliferation of second-hand clothing markets that lined the streets.
Recognizing the potential in the mitumba business, he began researching how to enter this market.
In September of the following year, he made a life-altering decision to relocate to Kenya. Just one month later, he opened his first mitumba shop in Nairobi.
From Dubai to Kenya: A Change in Course
Many might wonder why Benjamin transitioned from a stable job in Dubai to selling second-hand clothing in Kenya.
In his own words, “I was fascinated by Africa, and Kenya, in particular. After working for almost seven years in the corporate world, I had the chance to interact with a lot of startups, either mentoring them or investing in them. So after some time, I decided to apply the knowledge and experience I’d gained to start my own business.”
Benjamin’s venture began with three shops located in Nairobi’s Gikomba market, a renowned hub for second-hand clothing.
His business model primarily caters to wholesalers looking to purchase large quantities of clothing, with bales containing various items.
Depending on the contents, he sells a bale for prices ranging from Sh4,000 to Sh19,000. Additionally, to boost profits, he sells some items at retail prices.
The Entrepreneurial Leap
Starting any business requires capital, and Benjamin’s venture was no exception. He invested around Sh5.5 million, a sum he had saved and supplemented with funds from his American business partner whom he had met during his time in Dubai.
Why Kenya, one might ask? Benjamin is quick to praise Kenya’s investor-friendly environment and the vast market for mitumba in East Africa. The political stability, coupled with the widespread use of English, also played a role in his decision.
As for sourcing his inventory, Benjamin currently imports his stock from the UK.
The clothing arrives via ship at Mombasa and is then transported to Nairobi via the Standard Gauge Railway (SGR).
While he initially imported from various sorting plants, he eventually decided to sort the clothes himself to maintain consistent quality. He’s currently in the process of establishing his own sorting factory in Romania. Until then, he sources high-quality clothes exclusively from the UK.
Challenges and Triumphs
Every entrepreneur faces challenges, especially when entering a new market. Benjamin encountered hurdles such as finding reliable partners and convincing customers to trust his brand.
Despite the dominance of well-established mitumba traders, Benjamin overcame these obstacles by focusing on quality, competitive pricing, and reliable deliveries within Nairobi.
He did face logistical challenges such as port delays and difficulties with payment collections due to limited money circulation. However, these issues have improved over time.
One might question whether the discussions around banning second-hand clothing in Kenya deterred him.
Benjamin acknowledges the ongoing discussions but notes that the government has talked about it for years without implementing any bans. Additionally, millions of Kenyan households depend on the mitumba business for their livelihoods. As long as there are no alternative employment opportunities provided, Benjamin remains confident in the industry’s future.
Competition and Expansion
Benjamin acknowledges formidable competitors in the mitumba industry with strong distribution channels and extensive experience. However, he has a significant advantage. His business model involves in-house sourcing and sorting, a unique position in the market.
Despite occasional challenges, Benjamin’s business is thriving, driven by the demand for high-quality products in the market.
He plans to optimize his supply chain and expand by opening more wholesale shops and partnering with key wholesalers in cities like Kisumu, Nakuru, Eldoret, and Migori.
He also has his sights set on expanding to other East African countries, including Tanzania and Uganda, and key markets in West Africa such as Ghana, Benin, Togo, and Nigeria in 2019.
