How to Start a Makeup Brand | A Step-by-Step Guide

The beauty industry of India is estimated to be $24.53 Billion by the end of 2022. In fact, it is expected to grow at a CAGR of 6.32% and reach $33.33 Billion by 2027.

 

In the last few years, India has seen a rise in the number of Indian makeup brands. They have been able to stand out from international brands by focusing on the needs of Indian consumers.

 

Some of these Indian makeup brands are Nykaa, Lakme, and Maybelline. 

 

These brands offer quality products at affordable prices while still being innovative and catering to the needs of their audience.

 

So, if you believe that you can do it like they do and offer something they are not offering, then you are ready to start your own makeup brand.

 

Steps to Start a Makeup Brand

 

1. Research the Market
2. Choose your Niche
3. Build up a Plan
4. Register your Business and Get the Licenses
5. Apply for a Trademark 
6. Design the Packaging and Set the Prices
7. Set up your Store and Hire! 
8. Market your Brand

 

Step 1 - Research the Market

 

When you thought of starting a makeup brand, the first thing that came to your mind was searching how to do it on the internet.

 

Well, this is where the world revolves on now.

 

Now, use the internet to research the makeup industry before getting into one.

 

Here is what you must find out in your research:-

 

• What is the current makeup market?
• Which products are in demand in your country?
• What are the average prices?
• Which one has the highest sales and best profit margin?
• How is the packaging designed?
• Are people buying organic and cruelty-free makeup?
• Where are they being sold (offline or online)?
• Which makeup brands are successful and why?
• How much is their turnover from online and offline sales separately?
• How are other makeup brands marketing themselves, and who are they targeting?
• How much is their annual sale?
• Are they in profit or loss?
• What are the mistakes these brands are making?
• Do they have any drawbacks that your makeup brand can eliminate?
• Who are the retailers and wholesalers you can approach?

 

The research phase is key for any business and can be done in several ways, including using the internet, interviewing people, and reading about the market.

 

With the increasing number of people looking for better quality products, there are opportunities for new brands in India to enter the market and make their mark.

 

Step 2 - Choose your Niche

 

Choosing the right niche is important for any business, especially in the beauty industry.

 

India is a country with diverse cultures and skin types, so you must choose your niche wisely when deciding what makeup products you want to sell in India. 

 

Most importantly, you must know how your product will work on all different skin tones before you start selling them.

 

There are many different factors that you need to take into account when choosing your niche for starting a makeup brand in India.

 

• Market: 

 

The first thing you need to know is the market size of your niche in India. If it is small then it might not be worth the effort and time investment to start a brand in this niche. You should also consider how fast the market is growing and whether it has any potential for growth in the future. 

 

• Skillset: 

 

You must be passionate about your product or service and know how to produce it well. Also, you need skills like design, marketing, branding etc., which can be learned but not if you have no interest in them at all. 

 

• Competitive Landscape: 

 

It includes both existing brands and potential competitors who might enter into this space soon enough or already exist there today but with less competition from you in this niche.

 

• Cost of Entry: 

 

You need to know how much it will cost to start a new brand in your niche, grow it and compete with existing brands. 

 

It is crucial if you are thinking about competing with other brands that have already been established.

 

Step 3 - Build up a Plan

 

The next step is creating a plan of action. Use all your research and the information you collected. 

 

Write it down and start working on your plan.

 

Figure out the following things:

 

• Select the products you will include in your brand.
• Decide where you will source it from or whether you will make it yourself.
• Think of the uniqueness you can add to your brand.
• Estimate the investment you will require. (Typically, you can start with Rs. 2 Lacs to Rs. 3 Lacs initially).
• Gather the Funds. 
• Come up with the Theme for your Brand 

(Types of themes: Luxury, Organic, Gender-Neutral, Party, 9-5 Corporate, Vintage, etc.)

 

Once you have figured this out, follow the next steps to give your business a Kickstart.

 

Step 4 - Register your Business and Get the Licenses

 

All the above steps were just the game of words, now it is time to take action.

 

Legally registering your makeup brand is crucial to protect it from any conflicts.

 

Moreover, it is also important to build your customer's trust, brand identity and investor's reliability.

 

For this purpose, you can register your makeup brand as:

 

• Private Limited Company Registration Online
• One Person Company
• Limited Liability Partnership
• Sole Proprietorship
• Partnership

 

Though we would suggest going for either of the first three business structures when we are talking about "BRAND".

 

Want to know why?

 

Let's get you in touch with an expert. 

 

Simply fill out the form on your right, and our expert will reach out to you.

 

After registering your business, there are also some mandatory licenses that you must apply for when starting a makeup brand. 

 

Such as,

 

• GST Registration
• Shop and Establishment Act
• Undertaking concerning the makeup products not tested on animals certified by CDSCO

 

Step 5 - Apply for a Trademark 

 

Before advising you for trademarking your brand, here is an example of why you must do it.

 

In Oct 2021, "L'oreal" the famous cosmetic brand, found out that a retailer is using its trademarked name and logo on its products and selling it on the e-commerce platform.

 

As soon as they found that out, they ordered the products from the retailer and got them tested in their labs. The results showed that the products were fake.

 

Along with the test results, L'oreal filed a case in the supreme court against the retailer.

 

The judgment was made in favor of L'oreal and the court issued a statement restraining the retailer and anyone associated from "using, manufacturing, marketing, purveying, supplying, soliciting, exporting, displaying or advertising on any marketplace concerning the trademark L'oreal".

 

• Why did L'oreal win the case? 
• Why was the judgment in their favor? 
• Why did the court trust and believe them?

 

Yes, it is a global brand, but on the same hand, they have been making its products and selling it under the same trademarked name and logo since 1910. 

 

Moreover, they have even registered their trademark in all the major countries to where they export their products.

 

Trademarking your brand name restrains anyone and everyone to use your trademark as their brand.

 

If you are convinced now, make the right decision, like L'oreal and apply for trademark registration online.

 

Step 6 - Design the Packaging and Set the Prices

 

Packaging

 

Packaging is what attracts customers to buy the product and helps them identify the brand.

 

The outer packaging of a product is what first catches the eye. 

 

Therefore, the design should be such that it creates an impact and makes people want to buy the product.

 

A good packaging design will make it easier for customers to find your products in a store. 

 

Also, it will help them understand what each product is for. 

 

A good design can be the difference between success and failure for a new makeup brand in India, so it is important to get this right from the start!

 

Pricing

 

There are some factors that one should consider before setting the prices of a product: - 

 

• Cost of Production and its Profit Margin. 
• Target Audience and their Purchasing Power. 
• Market Trend.
• Quality of Product 

 

Once you have considered these factors, look for the average price of the same product offered by other brands.

 

This will make it easier for you to decide the pricing structure for your product.

 

Note: Keep in mind that you might have to lower the prices during SALE.

 

Step 7 - Set up your Store and Hire! 

 

Why should you set up a store before going online?

 

Let's hear it directly from the Founder of an emerging beauty brand "Earth Rhythm" - Harini Sivakumar.

 

They already have pretty good sales on the leading e-commerce platform "Nykaa" and even through their online website.

 

But what made her open 12 Offline Kiosks in top cities of India?

 

In an interview, Harini said, "Online-First stores are now dropping down as mobility resumed after the pandemic. Everybody wants to get out, and footfall has increased in offline stores.

 

Moreover, they want to experience and try new products before making the purchase."

 

We understand that opening a big store initially is quite an intensive task. 

 

This is why we suggest you do the same thing as Harini, open small kiosks.

 

You can do this in nearby malls or a famous makeup multibrand store in your city.

 

All you have to do is ensure that you use the right theme colors to make your brand highlight in the crowd.

 

Step 8 - Market your Brand

 

Firstly, give yourself a PAT ON YOUR BACK.

 

You did a great job by doing all the above steps correctly, and now it is time to market it the right way.

 

For this purpose, design pamphlets, newsletters, brochures, posters, etc. and leverage social media.

 

Target your clients by giving generous discounts on the first purchase and retain them by offering good quality products.