The pursuit of beauty has been part of human nature since ancient times. Today, millennials and Gen Z are riding a wave of “beauty economy” in China and beyond. Using cosmetics seems to be an essential part of everyday life. Even masks can’t stop people’s pursuit of beauty: masks have driven the sales of eye makeup and skin care products to soar; lipstick sales in the post-epidemic era have seen an astonishing increase. Many people see an opportunity in the beauty industry and want a piece of the pie. But most of them don’t quite know how to start a cosmetic business. This article will share some tips for starting a cosmetic company.
A few steps to a good start
1. Understand market needs and trends
This is the first step in starting a business. The Chinese art of war values are “know oneself and one enemy”. This means it is necessary to understand market demands and trends. To do this, you can do some website research, attend beauty exhibitions and events at home and abroad, and exchange opinions with industry insiders such as experts or consultants.
2. Identify a niche market
Many entrepreneurs may choose to operate in a niche market. Some of these may specifically target consumers with sensitive skin and offer them products made from natural ingredients. Some of them may offer lip or eye products. Others of them may operate in the packaging or beauty equipment niche. In any case, you’ll need to do some further market research to identify your startup niche and flagship product.
3. Develop a business plan
Starting a business is not easy, and many startups fail. The lack of a comprehensive and detailed plan is partly to blame. To develop a business plan, you need to identify at least the following:
Mission and Purpose
Target consumers
Budget
competitor analysis
Marketing strategy
4. Develop your own brand
If you want your products and services to impress consumers, you need a strong brand. Design a unique, beautiful logo that reflects your brand image to grab people’s attention.
5. Select a supplier
When looking for suppliers, you need to consider:
price
product and service quality
shipping
professional knowledge
Of course, you have many options: manufacturers, trading companies, agents, etc. They all have their own strengths and weaknesses. But as seasoned professionals, we suggest that a high-end manufacturer might be the best option. They have strict quality control so you don’t have to worry about quality. Working directly with the factory will avoid the cost of paying for the middleman. They usually have mature logistics systems. Not only that, their expertise can also provide OEM and ODM services.
When choosing a supplier, some channels may be helpful:
Attend a beauty event or exhibition
friend’s recommendation
Online search engines such as Google
Some online platforms such as Alibaba, Made in China, Global Sources or Beauty Sourcing
However, it is not easy to select some quality suppliers from the numerous domestic and foreign candidates.
6. Identify marketing and distribution channels
As a startup, you can sell your products through multiple channels, including online platforms (B2B, B2C platforms or social media), your own offline store, local salon, spa or boutique. Or you can also find some agents at beauty shows.