How to Start a Cosmetic Business in India

Starting a cosmetic business in India is a quite profitable business nowadays. If you are looking for how to start a cosmetic business in india? Then you came to the right place.

It is no secret that the cosmetic business is one of the fastest growing in India as the demand for its products is always on the rise. 

Therefore, today we are sharing a guide for you to expand your knowledge on how to start a cosmetics business in India.

Start a cosmetics business in India

If you are interested in knowing how to start a cosmetics business in India in India. So here we will explain the basic steps you must follow to start your own cosmetics business in India.

1. Make a business plan

The first step when starting a new business is planning, as this way you will have a guide for making the right decisions . The business plan details all the aspects to take into account for the implementation and execution of the idea. Here they are considered from the specific characteristics of the business, mission, vision and objectives to the analysis of the competition, budget and marketing strategies. Keep in mind that within this plan you must also include other smaller plans such as financial and marketing.

In order to give you a clearer idea of ​​what your business plan should include, we will mention some of the essential variables that you should consider:

Market study

In which an exhaustive analysis of the cosmetics sector is carried out and its behavior in recent years is investigated. As well as the demand it has in the area that you are going to choose for your business. In addition to this, you have to identify which are your main competitors, their weaknesses, strengths, strategies and positioning in the market.

Target audiences

It refers to the segment of the population to which your business will be directed . They are generally women of average age between 18 and 65 years. However, men are also part of that target audience. To be clear about the segment, your market study should also include an analysis of consumers. This taking into account sociodemographic characteristics such as age, gender, purchasing power, tastes and consumption habits.

Define the products

As we mentioned at the beginning, a cosmetics business in India can span many product categories. That is why you must define which of them are the ones you are going to sell. You make this definition based on market research , so you can offer the products preferred by consumers.

2. Set the budget

Within the budget of a cosmetics store you must estimate the initial investment and the fixed costs of at least the first 2 months of operation . For the initial investment, the costs related to: opening legal procedures, adaptation of the premises, equipment, purchase of products and marketing and advertising strategies are considered. As for fixed costs, you must take into account the rental value of the premises, the payment of services and the salary of the workers.

Taking into account the above, the approximate investment budget to set up a cosmetics business in India is about 15,000 USD and up .

3. Legally register your cosmetics business in India

Starting a cosmetics business in India not only implies planning for its correct operation, it is also necessary to legally register it with the competent authorities .

The procedures for registering and creating a new business depend on the country in which it is located. Generally, it is required to define the legal form (natural person, legal entity, company, etc.), verify the business name and process the operating licenses as the case may be.

For this, it is advisable to make use of the advice for entrepreneurs provided by the entities in charge of regulating these procedures.

4. Choose a location

Having a well-located store is key to the success of your cosmetics business in India . So here you must make sure that it is in a commercial area, easily accessible and very busy.

Some strategic places in which a cosmetic store can operate are in shopping centers, near offices, on the streets of beauty salons and next to clothing stores. Whichever location you choose, make sure it is easy to locate, the space around it is clean, and it has nearby options like parking lots and benches.

5. Make the assembly of the premises

Once the location is defined, it is time to think about setting up your cosmetics business in India. For this you must take into account the size of your premises, so you can choose the appropriate equipment for that particular space. Some of the equipment, machinery and supplies that you will need are:

• Shelves and gondolas
• Showcases
• Mirrors
• Tables
• Product testers
• Lamps
• Packaging, bags, boxes
• Invoices
• Decorative items
• Computer
• Printer
• Cash register
• Magazines or catalogs

In addition to the equipment, it is important that you put an advertisement or poster with the name of your business that is striking and distinctive for customers. You should also set the place with music and pleasant aromas in order to make the space a little more welcoming.

6. Search for suppliers

The answer to the question of how to supply a cosmetics business in India lies in the selection of suppliers. Here you have the option of contacting the leading cosmetic brands in your country directly and buying directly from them.

For this you can make a list with the different brands of makeup, skin care products, personal hygiene and hair. So you can select the main ones in each category and organize your stock of products based on that information.

You can also look in directories or on the internet for wholesale shops specializing in the sale of cosmetics of all brands . With this, you can buy all the products with a single supplier. If you are going to favor this option, make sure you first do a good research and select a merchant with experience in the market, experience, quality assurance and affordable prices.

7. Develop a promotion strategy

Without marketing and advertising your cosmetics business in India will hardly be able to sell. Therefore, you must develop a marketing plan . In which different strategies and actions are proposed to promote your new venture . These strategies can combine traditional marketing and digital marketing tactics to increase effectiveness. For example, hold a launch event for the business and promote it on a website. Or also, offer discount coupons by email marketing to be redeemed in the store.

Remember that the marketing plan must be included in the business plan. That is, it is a step that is carried out before the opening of the business. With that you will have the opportunity to implement it with enough time and see the results as your business is born and grows.

How profitable is a cosmetics business in India?

A cosmetics business in India spans various niche markets ranging from perfumes and makeup to hair and skin care products . Markets that in turn have a high share of consumers, men and women of all ages, who purchase these products on a daily basis. Not to mention the beauty salons, esthetics and other stores that also demand these products for their businesses.

In addition, this is a versatile type of business that offers entrepreneurship opportunities both in traditional stores and online stores , regardless of the size of the business. This translates into greater accessibility and flexibility for people who want to start their own cosmetics business in India.

Another fact that confirms the profitability of this business is that Brazil, Mexico and Colombia are the 3 most important markets in Latin America for beauty and personal care products. Therefore, undertaking in this sector means being part of the profitable businesses in your country.

How to set up a cosmetic store?

Makeup is one of the product categories covered by the cosmetics industry and one of the best-selling within it, so many startups related to the sale of cosmetics tend to focus only on the makeup business .

In addition, because it is a more focused market niche aimed, for the most part, at women with an average age between 18 and 50 years. This in turn allows for greater clarity in the entire process of execution, start-up and promotion of the business.

Knowing how to open a makeup business implies having extensive knowledge of the brands present in the market , as these are quite a few and with products with different characteristics. This way you can expand the offer of your business, provide variety to customers and market the brands preferred by consumers.

If you are wondering how to open a makeup store, the steps to follow are the same as with the cosmetics business in India . The only difference here is that your business will only offer makeup of all types. Below you will see a checklist so that you remember the steps to follow to start a makeup business:

• Business plan (includes market study, target audience and product definition)
• Budget
• Legal requirements
• Store location
• Local assembly
• Providers
• Promotion strategies

How to start a home makeup and cosmetic business?

Currently, doing your own makeup business at home is a task that is a little easier thanks to information technologies, especially the internet. So if you want to start a home makeup business, the best way to promote it and sell your products is through online channels such as a website, an online store or social networks. This will help you get good exposure and be visible to a large audience.

The advantage of starting a makeup business at home is that you should not incur local rental costs or other related procedures. And the best way to do it is by joining as a consultant for a recognized cosmetic brand such as Avon , Natura or Mary Kay . Being a beauty consultant is working under a direct sales model, reselling the brand’s products, either by catalog or by online tools that they provide you.

Here you have to make an initial investment to be able to place the first order of products to resell. Each brand manages different commission percentages that range between 30% and 50%. This means that you have the possibility of obtaining between 30% and 50% profit on the total sales you make.

This is undoubtedly one of the business models related to the cosmetics industry preferred by female entrepreneurs, due to the following reasons:

• It requires a minimal investment compared to setting up a store.
• It allows you to manage time autonomously.
• Provides independence.

Conclusion

It is clear that the cosmetic industry will always be one of the most profitable to start a business. And it is that the demand for beauty and personal care products remains constant in different segments of the population.

Starting a cosmetics business in India offers the possibility of meeting this demand either by selling a wide range of products from all related categories or by focusing only on the sale of makeup.

Don’t forget that like all entrepreneurship, the cosmetics business in India requires planning, entrepreneurial vision, perseverance and hard work. This, combined with a good location and effective promotion strategies, will allow you to be successful.