Starting a cosmetic business in India is a tough task, but with the right knowledge, you can achieve anything. In fact, there are many aspects to consider and keeping up with the latest trends can be difficult.
This guide provides an overview of the process you should follow to start your own cosmetic business in India and also shares some tips and tricks on how to stay afloat.
Step 1: Research and Find out the Market Demand
Step 2: Find a Supplier
Step 3: Prepare a Business Plan
Step 4: Register your Business and Apply for the Necessary Licenses
Step 5: Open a Business Account and Enable Online Payments
Step 6: Set up an Office Space and Display your Products
India is one of the fastest-growing markets for cosmetics, and the industry is projected to grow at a CAGR of 5.4% from 2018-2024.
In addition, India's population of young people, who are the main consumers of cosmetics, will continue to grow over the next few years.
The Indian government has also been taking steps in recent years to promote entrepreneurship and improve access to finance for entrepreneurs like you.
Cosmetic products have been used for centuries by women to enhance their natural beauty.
In recent years, men have also started using them for grooming purposes.
As a result, now you have a much wider customer base to target.
Moreover, there are many factors that have encouraged the growth of the cosmetic industry in India, such as rising disposable income, changing lifestyles and the increasing number of women entering the workforce.
There are various ways to find out the market demand, but the most important and effective way is through surveys.
Surveys are one of the best ways to get an objective opinion about what people think about your product or service. It is a very simple, inexpensive and quick way of getting feedback.
The world of beauty and cosmetics is one of the fastest-growing industries in the world. It is also a very competitive industry.
In order to be successful, you need to develop a strong supplier network that can provide you with the products that your customers want at a reasonable price.
Moreover, they must be able to meet your production and delivery deadlines.
There are three ways to find suppliers for your cosmetic business in India.
You will be able to identify the local wholesalers by having a word with your competitors in the market.
For this purpose, you cannot go directly. Thus, disguise yourself as a surveyor or researcher to know about all their suppliers.
Social media platforms such as Facebook, Instagram, and LinkedIn are great sources of information on different brands and their suppliers.
You can also use hashtags such as #beautyproductsupplier or #cosmeticsupplier on Twitter or Google Plus to find suppliers that way.
There are many online directories that you can use to find potential suppliers for your business, such as TradeIndia, Alibaba, BizTradeIndia etc.
These websites let you browse through different products and make contact with the right people easily.
It is important to prepare a plan for your cosmetics business in India. This will help you run your business and make it more successful.
To make sure that you are prepared for success, here are some steps to follow when creating your plan: -
This step will help you with the best way of registering your cosmetic business in India.
All you have to do is fill out the form on your right and provide the basic details.
After that, an expert will get in touch with you and help you with the complete registration process online.
The most suitable legal structure for a cosmetic business can be:
Once you have registered your cosmetic business legally, apply for the following necessary licenses:
The most crucial step is to decide which bank you want to open your account with.
There are many banks that offer business accounts for businesses, but most people choose ICICI or HDFC because they have lower fees and higher interest rates than other banks.
We are living in an age of technology. We have seen the evolution of smartphones, and computers, and now we have a new technological advancement called digital payments.
UPI has become one of the most popular modes of digital payments in India, especially in the aftermath of demonetization, due to its convenience and ease of use.
In fact, this is a much faster and more convenient way for customers and merchants to transact.
There are various benefits that come with using these gateways, such as:
In order to set up your own store, you will need to consider the following:
The location of your store would depend on your target audience.
If you are targeting teenagers then a mall or high street would be a good option.
However, if you are targeting adults then a shopping centre or market might be better suited for your needs.
A cosmetic store needs to have products that people want to buy.
You will need to research what products are in demand in the area that you are setting up in and make sure that they are well stocked on the shelves.
The way that you display your products is also very important.
Displays should be colorful, eye-catching and well-organized so customers know where everything is without having to ask staff members for help.
Check out these ideas on how to display your products in a cosmetic store.
What are you waiting for?
Fill out the form on your right and Get a free consultation today!