The makeup business is worth your time. All you need is an entrepreneurial spirit with dedication and strong research skills.
The good thing about starting a makeup business is that the barriers to entry are low. The bad thing is you will fray into a market that is competitive and crowded. Given that the competition is stiff, it might take a lot to claim your space.
It is estimated that the beauty industry generates $100 billion in revenue worldwide. Even the makeup brush industry alone is worth $1816 million as of 2021 and is expected to reach $2600.4 million by 2028. There is potential to grow with the tide!
We will start by discussing the opportunities in the makeup business. We will then see what could be possible ways and paths to start and build a strong cosmetics line. At last, we will discuss how QueenBrush in particular can help you start a makeup business.
What opportunities could you have in the makeup business?
We don’t say that big cosmetics retailers like Sephora and Ulta are going to give in to you. But we do say that the cosmetics landscape changes with new trends and that trends are an opportunity for you. Grasp the opportunity and have your share in the market.
Another plus point for starting a makeup business is that there are lower costs associated compared to other ventures. You can find a lot of manufacturers and wholesalers that provide you with custom products for your business. Even if you were to make makeup products on your own, the capital costs are still low when compared to other businesses.
The profit margins on average are 40 percent. And the other cool thing about a makeup business is it’s scaleable. Once you have made some baby steps and built a loyal customer base, you can scale your business by upselling and introducing other products.
How to start a makeup business?
Everything begins with an idea. An idea is fuelled by research. Research gives you plans. And the way you execute those plans matters at the end of the day. So, idea, research, planning, and execution are what takes for a business to become a brand.
Let’s discuss the possible steps of starting a makeup business with examples.
The cosmetics industry is already inundated with products. If you haven’t something different to offer, you are at risk of not doing well. It is not like you pick up some generic products from Alibaba and start selling them in your store.
Choose wisely the products that you are going to offer to your customers. Whether you are to make them or procure white-label products or private-label products, they should be unique enough for your customers.
White-label products are what you procure from suppliers and that you can rebrand yourselves. These are generic products. You can paste your business label on them and resell the products.
Private label products are what you procure from manufacturers with your custom requests. Say, you have long been in the makeup industry. And you know what makeup brush the industry has been missing so far. You design a makeup brush mockup and send that to manufacturers to produce makeup brushes in bulk with your brand labels. These are private-label products.
You can make your cosmetics yourselves too. For that, you will need to have a formula. You can start production at a small facility before you scale up. But make sure you comply with local regulations.
Brainstorming about what customers seek is necessary. This could be foundation makeup, concealer, natural makeup, eyelashes, body makeup, or makeup brushes.
And you need to spend as much time defining the target audience as you spent on choosing the product. Your audience must be a specific group of customers. In marketing, we say if you strive to please everyone, you end up pleasing no one.
Make sure to do market research and know what your competitors will be in the business. You may not want to invest in the product has demand has been forecasted to slow down in the subsequent years. Also, you need to know who your competitors will be and do you have a competitive advantage over your competitors.
A business plan is a financial document that forecasts your revenues and expenses in detail. You need to know what revenues you can potentially collect and where your revenue will be coming from.
The business plan also entails the expenses you will incur. Make sure to break down the expenses so you can see a wider picture. The expenses for starting a makeup business can be the expenses on
- Branding and website
- And others
Once you are done with planning, it’s time to get your hands dirty. Start with registering your business so you are legally compliant. There can be many legal structures for you. For example, you can be a Sole Proprietor, LLC, or Corporation. To know what structure suits you, you can consult a legal consultant or study your local regulations yourselves for that matter.
Pro tip: The brand name must be unique. Be quick to buy the web domain as per your business name.
Irrespective of whether you plan to go brick-and-mortar or not, you will need to set up a digital store. A physical shop can be expensive for you.
Setting up a digital storefront is quite easy. You can set up an eCommerce store on Shopify, Wix, Woocommerce, or any other platform of your liking. Other options are Amazon, eBay, and the like if you want to start immediately.
You know your product. You know whether you will be making your products on your own or procuring them. You know your target audience. You have registered your business and you have set up your stores to sell your products. It is time you start producing or procuring the products.
Cosmetics come in direct touch with the skin. Any hazardous product can cause you trouble and potentially bring you into litigation. Make sure your product is compliant with the safety standards.
Manage your inventory and stock them in your warehouses. If you are on Amazon you may rely on Fulfilment by Amazon (FBA) programs. In other cases, you may need to contact a third-party logistics company for fulfillment.
Businesses spend a lot on marketing. Marketing as a percentage of revenue is on average 10-13% for businesses. That’s why without an effective marketing strategy and substantial marketing spending, you are not going to make the way.
The packaging and brand story must be unique. It is not the product that sells, it is the story that sells. For example, people would love your brand values that are based on sustainability. A “cruelty-free products” slogan might also capture your customers.
You need to market your product where your customers are. If your customers are on Instagram, go there. If they happen to be on TikTok, you should be there too. If your customers aren’t on social media, you need to employ traditional advertising tactics.
- A lot of people search for products on the internet. You need to optimize your content and product descriptions for those keywords. (SEO)
- Social media marketing connects you with your customers.
- Influencer marketing works especially for cosmetic products.
All the things are in the position and now you have to launch the brand. Retain the loyalty of your customers through customer support. Accept feedback, improve yourself, and again ask for feedback. Scale yourself gradually!
We are a certified and qualified makeup brush manufacturer from China. So, if you want to include makeup brushes or other cosmetics accessories that we produce in your stock, you can download our catalog to check our products. Or otherwise, send us an inquiry for your custom order.