Venturing into or investing in a Cosmetic Enterprise, is one of the best moves a young investor can make. While some people, especially our brothers can go for days without using cream, we all use soaps on daily basis. We all want to look good, that’s why you’d see cosmetic businesses booming even in times of recessions.
In fact, the cosmetics market is expected to continue to rule the retail industry for the next few years. It is a billion-dollar industry that despite the number of people into it, isn’t still saturated.
One very important fact you need to know about starting a cosmetics business is that it can be harmful if not properly managed.
Tips for starting a cosmetics business in Nigeria
With the increase in the number of makeup brands, one needs to take extra strategies to stand out in the industry. In this article, we’ve put together some tips on how you can start a successful cosmetics business in Nigeria.
Add more value to your products
With the increase in competition among beauty brands, you really need to apply unique and brilliant ideas to scale through. Spy on your competitors to figure out what they’re doing better than you and improve your brand.
Keep up with trends
Just like the clothing business, you can’t run a successful cosmetics business without knowing what your customers need. One of the tips for stepping above your competitors is trying to stay more updated than them.
You can find out more on what your customers need by carrying out surveys. This will also help you in figuring out why they choose products from other brands and what they haven’t gotten from their competitor brands.
Customer experience matters too
Sometimes, offering a great product isn’t just enough, you also have to make your customers know that you care about their satisfaction. You don’t just need to offer the same service with everyone else, try doing something unique.
For example, Sephora, a French cosmetics line provides an application called Virtual Artist that allows the customers to try their makeup products virtually.
Go for your customers
We’re in a digital era and meeting your customers is now far more easier than before. You can get your website created at a very affordable rate, and start making use of the many advertising mediums to reach your customers. One good thing about the internet is that many ad networks will allow you choose a target audience.
You can also reach more users through the many social media platforms like Facebook, Instagram and Pinterest.
How much investment is needed to start a cosmetic shop?
There is no fixed capital, they all depend on your financial capability. You can start on a low scale with capital of ₦50,000 and expand with time. If you’ve got enough funds, you can start on a medium scale with a capital of ₦500,000 to ₦1 million or a large scale with a capital of ₦10 million to ₦20 million.
No amount is too much, it all depends on the business scale you intend running. One thing is that there is always a room for expansion, especially as you gain more experience into the business.
How to venture into cosmetics business in Nigeria
Below are the things you need to put into consideration before starting a cosmetics business in Nigeria:
You first need to undergo some basic training that will help you know how the cosmetic industry works. Some very important things you’d learn include the names, sizes, prices and functions of the products.
Don’t hesitate in asking your questions, no matter how foolish you think they’d sound. Ask questions on how to buy the products, how to figure out the original ones, how to cost them and any other thing that you’d be needing in the later run.
The capital should be one of the first things you’d put into consideration when starting a cosmetics business in Nigeria. I’ve already listed out the estimates on what you’d be needing, depending on your scale.
You can source your capital from personal savings or by borrowing from your family and friends. Alternatively, you can collect loans or sell some of your old stuff to raise the money too.
Your business location will determine how far you’d go. Your business should be sited in a busy and easily accessible area. If possible, site your business in a place that other things relevant to your business are sold, for example; clothes, shoes and handbags.
Also conduct surveys in the area to find out how many people sell similar things around. This will help you figure out if it’s really worth going for.
Setting up your shop
The products in your shop should be neatly arranged according to functions, sizes and brands. You can use a nice wallpaper to design the walls or beautiful wall paintings, depending on your taste.
About the shelf, you can either call a carpenter to build them to the wall or you go for the glass show glasses. The both of them are good, and will fit into any kinds of cosmetic shops.
Your shop should be spacious and airy, so people won’t have issues walking around. The front should be designed in a way that passersby can easily look inside the shop from the outside.
Where to buy the cosmetics
While learning how to trade on cosmetics, your tutor will also enlighten you on where s/he buys her own products. Ensure you go for only dealers of original products and where possible, deal directly with the manufacturers.
A lot cosmetic shops have closed down because of fake products. Only patronize certified dealers, people who have their reputations to protect, not just any seller in the market.
The types of cosmetics to sell
You shouldn’t just deal on only one product, be versatile so as to meet to your customer’s demands. Stock your shop with a lot of popular creams and other products.
Some things you can be selling include hair products, powder, mascara, powder, foundations, nail polish, etc.
As a new business, you won’t just start getting hundreds of customers flooding into your shop. You’d first have to do a lot of publicity, both online and offline to notify people of your new business.
You can print fliers and posters with your brand’s name, address and other contact details. If you have a website, you can even advertise to people not living close to you and deliver the products to them after payments.
If done very well, you’d be making good profit from your cosmetics business even as a beginner. As I earlier said, avoid selling fake products as it kills reputation and can even land you into a legal case. With good marketing strategies, you won’t have issues generating sales.