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10 Things You Should Know Before Starting a Cosmetics Business



The cosmetic industry is growing at a rapid pace. The demand for cosmetic product will always exist. Cosmetic business has many new and established competitors in any market.


New cosmetic products are emerged and launched frequently based on the customer’s needs. So, a wisely crafted marketing strategy becomes essential part of starting the business. If you are planning to start a cosmetic business, there is an immense scope for growth. For this, planning wisely plays an important role.


I do have my own cosmetic brand and we do manufacture, packaging and shipping too Based on my own experience(3-4 years) in running a company, 10 thing have to be considered while running a cosmetic business or while planning for a cosmetic business.


Click the link ( Video Format )


10 GUIDED STEPS:

1. Spacing and license.

2. Packaging

3. Focus on world problem

4. Solution oriented manufacture

5. Advertisement

6. Digital business

7. Minimize inventory cost in packaging

8. Maintain brand theme and brand color

9. Mass marketing

10. Niche market


I. SPACING AND LICENSE:

Enough spacing is highly essential for a cosmetic industry. For manufacture of any

cosmetic product, getting license from “Drug and cosmetic department” is mandatory. A detailed video on drug and cosmetic act(1:16 – 1:20) is already uploaded in our you tube channel. Click on this to know in detail regarding the license.


II. PACKAGING:

The primary aim of packing is to protect the product from air, light, heat, cold,

moisture, dust, dirt etc.. 50% on packaging. Equal importance has to be given for both product and packaging.


Most of them will concentrate more on product only rather than packaging. But actually speaking more importance should be given for packaging. Regarding packaging 3 key elements has to be maintained. They include convenience, appeal and texture.


The purchase of product depends upon packaging only. On the whole, packaging

plays a vital role in cosmetic business.


III. FOCUS ON WORLD PROBLEM:

Worldwide now a days cosmetic products govern the world. These cosmetic products should not be a solution to a problem.


Instead the product should solve the real world problem like poverty, plastic pollution etc., the cosmetic company or brand can stand for a cause and what the product does to the customer.


IV. SOLUTION ORIENTED MANUFACTURE:

Manufactures are fond of varieties. They asks for different variety of soap like red

wine soap, charcoal soap and many types of creams and lotions. But all this are product oriented.


Manufacturing of cosmetic products should be on ‘solution oriented’ and not product oriented. Based on the customer needs, the manufacturing has to be proceeded.


V. ADVERTISEMENT:

Do not hesitate to advertise. Advertisement initiates marketing. Without advertisement, product movement will not happen. We take 22 to 23% of margin from our investment for advertisement purpose.


One of my close friend does many business. He conveyed one interesting fact that if a cosmetic industry or FMCG industry is failed to advertise then that product start dying. In the meantime, another brand or company will boom and overpower our products and as well as our customers.


Advertising should never stop and it should be a continuous process. If you think that it is waste to advertise in online then watch over one of my video (4:22 – 4:25) pertaining to this.


VI. DIGITAL BUSINESS:

Cosmetic product manufacture should start with minimal risk. Can’t make longer

jumps and aim for more profit. Initially, we have to move step by step. As online business in online.


So that you got to know about the customers. From there, you can take it forward to

the general stores and then to the retail shops. Slow progressions will stand forever.


VII. MINIMIZE INVENTORY COST IN PACKAGING:

As we spoke before, packaging is highly important. During the start up of the

company, we often go with minimum order quantity purchase. Initially, we purchase

at least 1000 boxes for packaging. Our money gets lock up in packaging. We need

Boxes, labels for packaging. Added there will not be sufficient spacing to keep all this boxes and labels. Even though, our movement will be in 10’s to 100’s, remaining

boxes unnecessarily gets dumped in. To overcome this problem and also to break all the MOQ’s, we provide you with even single box. What you have to do is that just

visit our supplier society website (5:55 – 5:56) and it will help you to launch your

brand. This will help you a lot to minimize your inventory cost too.


VIII. MAINTAIN BRAND THEME AND BRAND COLOR:

A common brand theme and brand color has to be maintained. It is the must. But in a start up company, they miss the continuity in brand theme and brand color which

should be unanimous throughout. Color palette has to be created and brand book is the must. More information related to this is available in our digital marketing video (7:01 – 7.02). Click on it and learn more from it. Maintaining Brand theme and color paves the way for transition of viewers to become a customer. It makes them easily identify the product wherever it is placed. Even the product becomes familiar.


IX. MASS MARKETING:

During the start up of the economy, we invest only a lakh or half a lakh. In such a

case, don’t go for mass marketing. Initially, do not compete with mass market product as the product is new, it will not have market reach. So, design a product according to a specific need for a specific set of people. This will give you high margin. Once you reach a marginal profit, gradually increase the marketing. Suppose if you are a multi-billionaire, you can invest a lot and compete with mass market products or else go with the aforesaid tactize…


X. NICHE:

Niche markets are smaller segment of consumer groups. If you are trying to create

innovative new products you will have to make products that solve specific problems. If you are going to start your own cosmetic industry make a list of problem and you have to identify the niche and cater according to the niche.


Produce the cosmetic products that gives solution to their problems. If you find it difficulty in identifying niche, we are there to help you at free of cost. Come, sit with us and let’s have a discussion to help them identify niche. It’s a very competitive field.


Choose a region and if it is going to a gold mine, then money keeps pouring….

It is our goal to make our privacy practices easy to understand.If you have

questions, concerns or if you would like more detailed information, please do contact us (8838303139) for any assistance.



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1 Comment


Allure Beautyseo
Allure Beautyseo
Nov 04, 2021

So good to read this. Seems like something mutual and relatable. i'am agree with your openion. i'm also in his industry arround 50 years ladies skin issues are commons. if you want online cosmetics products available in allurebeauty. Thank You.

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