cosmetic wholesale business plan in india

Complete Guide to Start Cosmetics Business in India

This comprehensive guide will walk you through every step of the process, from creating a business plan to navigating the legal requirements. We’ll also share valuable insights and tips from industry experts to help you succeed in this competitive market. So grab your favourite lipstick and get ready to embark on an exciting journey into cosmetics entrepreneurship.

Why to Start a Cosmetics Business?

Starting a cosmetics business offers numerous compelling reasons. Firstly, the beauty industry is consistently thriving, making it a financially rewarding venture. With the right products and marketing, it can yield substantial profits. Secondly, it allows for creativity and innovation, as you can develop unique cosmetic formulations, colours, and packaging that cater to diverse consumer preferences.

The cosmetics industry is also highly adaptable to e-commerce, enabling a broad customer reach. Moreover, the growing trend towards clean, natural, and cruelty-free cosmetics provides an opportunity to promote ethical and sustainable practices. Ultimately, a cosmetics business offers the chance to combine passion, profitability, and purpose.

Here are 6 Tips on How to Start a Cosmetic Business

Starting a cosmetic business can be an exciting and lucrative venture, but it requires careful planning and a deep understanding of the beauty industry. Here are six essential tips to help you kickstart your cosmetic business and make it a success:

Think Like a Beauty Entrepreneur:

To succeed in the cosmetic business, you need to think like a beauty entrepreneur. This means having a passion for beauty products, staying up-to-date with industry trends, and constantly seeking innovation. Successful beauty entrepreneurs are visionaries who can anticipate the needs and desires of their target audience.

Select a Niche:

The beauty industry is vast, and competition can be fierce. To stand out, it’s essential to choose a specific niche within the cosmetic market. Consider what you’re passionate about and where you see a gap in the market. Whether skincare, makeup, haircare, or a combination, focusing on a niche will help you tailor your products to a specific audience and build a dedicated customer base.

Deep Industry Analysis:

Before launching your cosmetic business, conduct thorough market research. Understand your competitors, target audience, and trends in the cosmetic industry. Identify what sets your products apart and how you can offer unique solutions to customer needs. A comprehensive industry analysis will help you make informed decisions throughout your journey.

Know the FDA’s Regulations:

The cosmetics industry is heavily regulated, especially in terms of safety and labelling. Familiarize yourself with the Food and Drug Administration’s (FDA) regulations for cosmetics to ensure that your products comply with all requirements. This includes ingredient safety, labelling, and testing procedures. Compliance is crucial to building trust with customers and avoiding legal issues.

Create Your Marketing Plan:

A well-thought-out marketing plan is essential for the success of your cosmetic business. Define your brand’s identity, target audience, and unique selling points. Develop a robust digital marketing strategy that includes social media, a user-friendly website, and e-commerce capabilities. Utilize influencer marketing and partnerships to increase brand visibility. A strong marketing plan will help you connect with your customers and drive sales.

Hire Cosmetics Manufacturer for Product Development:

Unless you have extensive experience in cosmetics formulation, it’s wise to partner with a reputable cosmetics manufacturer for product development . They can help you create high-quality, safe, and effective beauty products that meet industry standards. Collaborate closely with your manufacturer to ensure your vision for your cosmetic line comes to life.

So, starting a cosmetic business requires a combination of passion, research, and careful planning. By thinking like a beauty entrepreneur, selecting a niche, conducting deep industry analysis, understanding FDA regulations, creating a robust marketing plan, and partnering with a cosmetics manufacturer, you’ll be well on your way to building a successful cosmetic brand. 

Remember that success in the beauty industry often takes time and persistence, so stay dedicated to your vision and adapt to changing market conditions as needed. With the right strategy and commitment, your cosmetic business can thrive in this competitive market.

Conclusion: CTA

So, if you have dreamed of starting your own cosmetics business in India, RevieraOverseas is here to help you turn that dream into a reality.

Our complete guide provides all the necessary information and resources to start and grow your cosmetics business in India. From understanding the market to navigating legal and regulatory requirements, we’ve got you covered. Get expert advice, tips, and strategies from industry professionals who have been there and done that.

Don’t wait any longer! Access our complete guide today and take the first step towards launching your successful cosmetics business in India with RevieraOverseas .

Posted in Knowledge Center on October, 2023

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How to Start a Cosmetic Business in India

Indian beauty businesses are flourishing. The cosmetic industry in India is growing at a good pace with Indian youth inclined more towards grooming and aesthetics. There has been a gradual but consistent growth in the personal care and cosmetic market. There has been a significant increase in the number of cosmetic stores across India in the last 10 years. This blog will guide you on how to start a cosmetic business in India through a step-by-step guide.

The cosmetic Industry in India is likely to grow to become 20 billion in 2025 growing at a CAGR of 25%. On the other hand, the global cosmetic market is expected to grow at a 4.3% CAGR to become $450 billion by 2025. India will thus contribute 5% to the total global market share.

Understanding the Cosmetic Market in India

For a major part, the Indian cosmetic market has focused on women’s beauty products. However, the trends have changed with more and more companies coming up with cosmetic products for men. Also, trends have evolved for organic and natural products with equal or better results than their inorganic counterparts.

These shifting trends and widening aesthetic business opportunities have opened up a plethora of opportunities for aspirational entrepreneurs in India both rural and urban who wish to start a cosmetic business.

Planning Your Cosmetic Store

Planning a cosmetic business could be an exciting journey but with the need for a lot of due diligence before putting that store out for people to explore and buy:

Identify your niche

There is a range of cosmetic products, from mass-market to organic to luxury. Therefore, it is crucial that you decide and pick your niche. Mass-market products cater to buyers who look for affordable personal care cosmetic products. Organic and luxury segments cater more to the richer audience.

Decide on the types of products to sell

Mass-market, organic or luxury cosmetic goods can further be categorized into various other types – makeup, skincare, haircare, and fragrance. A wrong product type can lead to a struggle in selling them. Therefore, prior research on the product type preferred by the local audience in the area can increase the chances of sales success.

Define your target audience

Based on the category of product, define your audience, whether they are people that focus on lifestyle products, what gender will prefer more of your products, or which age group is likely to buy more.

Develop a business plan

A business plan is a document that tells how you will make money through your business. The various revenue streams and how much revenue you will generate through them in a certain period. In your case, it will generally be through the product sales. Another out-of-the-box revenue stream could be introducing a membership package that customers can subscribe to get discounts, etc. Therefore, document a business plan that pens down revenue forecasts and maps out milestones for the next few months, quarters or a year.

Legal and Regulatory Requirements

Getting into legal trouble would be the last thing you would want for your business. Therefore, you must be aware of the regulatory requirements beforehand.

Registering your business and obtaining the necessary licenses

There is no negotiation to register a business. It makes your business a legitimate entity. Also, it leads to financial transparency, meaning you comply with the tax and labor laws prevalent in India. It also provides numerous benefits. You can look for funding or investment in different forms. You will have access to legal protection. Hiring will be much easier.

Complying with the Cosmetics Rules under the Drugs and Cosmetics Act, of 1940

A detailed awareness of the Drug and Cosmetics Act, of 1940 is required to ensure you adopt fair practices with your business operation, import, distribution, and sale of cosmetics in India. 

Trademark registration for your store name and logo

Registering a trademark for a store name is required. It can be a business name, tagline, slogan, and logo. You can apply for it through the trademark attorney. Alternatively, you can do it online through the IP (Intellectual Property) India website.

GST registration and other taxation requirements

Complying with the prevailing taxation system in India is inevitable. You must register your cosmetic store for GST and other applicable taxation systems to ensure you are up for meeting all tax requirements and running your store without interruption.

Setting Up Your Cosmetic Store

Finally, setting up a cosmetic store is no easy task after all the research, due diligence, documentation and paperwork. Do the following to ensure you continue to do things right:

Designing the store layout and ambiance to enhance customer experience

Customer experience is the most important aspect for a business. And when it comes to a cosmetic store, it becomes even more important. Even before the product, the customer must like the vibe that your store emits. Therefore, how you design your store and set the ambiance will matter.

Procuring display units, shelves, and other fixtures

Again, the presentation will be the key to selling. Carefully pick display units, the kind of shelves and other fixtures to lure the visitors. These considerations can make the visitors become buyers.

Sourcing and stocking products from reliable suppliers and brands

Partnering with reliable suppliers is crucial to keeping the inventory up and meeting customer demands. Ensure you have the right brands in your store that your customers prefer. At the same time do not hesitate to introduce slightly lesser-known, authentic brands that could fetch a brighter margin and boost your top-line growth or revenue.

Implementing inventory management and automated billing

Manually doing inventory management and billing could be inefficient, and prone to mistakes that could cost a big time. Therefore, consider employing an automated process, pick an inventory management and billing software that suits your needs to keep the hassle of billing and inventory management away

The beauty industry is a thriving sector in India with the rising awareness among more men and women for beauty and lifestyle. Follow the key steps in this blog to start your cosmetic store in India and check all the boxes for business success.

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How to Start a Cosmetic Business in India

Cosmetics business in India is a great opportunity. However there are many aspects to consider and keeping up with the latest trends can be difficult. 

Whether you are starting a brand like Mamaearth  or a company like Sugar Cosmetics , this is a perfect guide. It also shares some tips and tricks on how to stay afloat.

The cosmetics industry of India is a huge  US$7 billion  industry.  It is projected to grow at a CAGR of 5.4% from 2018-2024 . Therefore even a small portion of it can be extremely rewarding.

Step 1: Research and identify your target market

Step 2: Register your Business and Apply for the Necessary Licenses

Step 3: Find a Supplier

Step 4: prepare a business plan.

Step 5 : Test Market the product

Step 6:  Make a marketing strategy

Step 7 : Let's talk Business.

Identifying customer's unmet demands is crucial to succesfully start a cosmetics business. This is easier said than done. This can only be done by analysing the customer's behaviour, perceptions, core concerns, influences and so on.

For example, analysing how and why majority of customers percieve ayurvedic products over chemical based products.

In addition, India has the majority 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.

Step 2 : Register your Business and Apply for the Necessary Licenses 

The first step to start a business is to start. Which means that take a step forward and get your business registered.

You can fill out the form on your right and provide the basic details to get a free consultation.

After that, an expert will get in touch with you and help you with the complete registration process online.

The suitable legal structure for a cosmetic business can be any of the following :

For two or more founders

• Private Limited Company  
• Limited Liability Partnership
• Partnership

For one founder

• One Person Company
• Sole Proprietorship

Once you have registered your cosmetic business legally, you might want to apply for the following licenses depending on applicability: 

• GST Registration (if required)
• Shop and Establishment Act 
• Trademark (to protect your brand)

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. Alternatively you can also set up your own plant if you have a very tested product and want to start with more funds.

If you are choosing a supplier, choose a reliable one. 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. 

• Local Wholesalers: 

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: 

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.

• Online Directories: 

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: - 

• Define your goals: What are you trying to do with your business? What do you want it to look like? Are there any specific areas that you want to focus on? Defining these goals will help guide the rest of your planning process. 
• Create a timeline: Once you have defined what you want from the future of your business, you can create a timeline to show how you will achieve your goals.
• Create an action plan: One thing that can often get forgotten when planning for success is the action plan! Make sure that there are specific steps for what will happen when you start the business and specific dates for when these actions will be done.
• Track your progress: Once you have created your plan, it is important to make sure that you keep track of your progress. Use websites like google docs or printables to help keep track of all your work.
• Make a risk analysis: One thing that can often get forgotten when planning for success is risk analysis! Make sure that there are substantial plans in place on how to handle any risks that may arise.

Step 5: Test Market the product 

Once you are ready with the product, its time for trials.

Share your product and brand with the family, friends and your knowns. Ask for honest opinions. Get as much feedback as you can.

This will help you improve your product by leaps and bounds.

Step 6: Make a marketing strategy

In order to set up your own store, you will need to consider the following:

• Location: 

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.

• Products: 

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.

• Displays: 

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 .

Step 7: Lets talk business

What are you waiting for? 

Fill out the form on your right and get started.

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11 Crucial Steps to Start a Cosmetic Business in India

Introduction The beauty and cosmetic industry in India is witnessing an unprecedented surge, making it a prime time…

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Introduction

1. research the market, 2. choose your niche to start a cosmetic business, 3. create a business plan, 4. legal formalities and licenses, 5. sourcing ingredients and packaging, 6. manufacturing and production, 7. build your brand identity, 8. launch an online cosmetic store, 9. marketing and promotion strategies, 10. focus on customer reviews and feedback, 11. scaling your business.

The beauty and cosmetic industry in India is witnessing an unprecedented surge, making it a prime time for aspiring entrepreneurs to dive into this lucrative sector. Whether you dream of launching a cutting-edge makeup brand or a skincare line infused with organic ingredients, the opportunities are endless. With the growing demand for innovative beauty solutions, this comprehensive guide will take you step-by-step through the process of how to start a cosmetic business in India, ensuring you’re equipped with the knowledge to turn your dream into reality while understanding the cost of starting a cosmetic company in India.

Before diving into the business, thorough market research is essential.

• Identify Target Audience : Are you targeting young adults, professionals, or niche customers looking for organic or luxury products?
• Study Competitors : Analyze existing brands, especially those similar to what you want to launch. This will give you insights into their strategies and gaps you can fill.
• Trend Analysis : Is your focus on skincare, makeup, or an all-inclusive cosmetic brand? Understanding trends will help in planning better.

Also Read:-   How to Start Sweet Shop Business in 2024: A Complete Guide

One of the keys to success is choosing a niche that caters to specific needs in the market. It could be makeup, skincare, hair care, or organic products. For instance, if you’re thinking about how to start a skincare brand in India, focusing on natural ingredients or dermatologically tested products could set you apart.

Also Read:- How to Start a Cake Shop or Bakery Business: A Guide to Success in 2024

A well-thought-out business plan is essential for any startup.

• Vision and Goals : Define the vision for your brand, whether you’re aiming for a premium or affordable product range.
• Financial Planning : Outline your budget for production, marketing, packaging, and distribution. Consider the cost to start a cosmetic company in India, and don’t forget to account for digital marketing if you plan to sell online.
• Product Development : Work on formulating products with expert chemists. Quality is key in this industry.

Talk to our expert Business Consultant.  Click Here To Book Your Appointment

Starting a cosmetic business in India requires compliance with various legal formalities:

• Company Registration : Register your business as a Private Limited Company with the Ministry of Corporate Affairs (MCA) to enjoy limited liability protection and enhanced credibility.
• GST Registration : Obtain Goods and Services Tax (GST) registration to comply with tax regulations and enable smooth transactions in the market.
• Licenses : Secure a Cosmetic Manufacturing License from the Drug Controller General of India (DCGI) to legally produce cosmetic products.
• FDA Approval : If you’re manufacturing skincare or pharmaceutical-grade products, you may need approval from the Food and Drug Administration (FDA).
• Trademark Your Brand : Protect your brand name and logo by registering them as trademarks, ensuring your unique identity is safeguarded in the marketplace.

Also Read:- Steps to Start a Spice Business in India

Quality sourcing is crucial. Partner with reputable suppliers for raw materials, and ensure that your ingredients comply with India’s safety regulations. Additionally, packaging plays an essential role in attracting customers.

• Sustainable and Eco-friendly Options : More customers are becoming environmentally conscious, so consider eco-friendly packaging.
• Test Your Products : Ensure your products are dermatologically tested and safe for use.

Also Read:- How to Start a Café Business in 2024: A Complete Step-by-Step Guide

Once you have your ingredients and packaging ready, it’s time to focus on production as you learn how to start a cosmetic brand in India. You can choose between:

• In-house Manufacturing : If you have the necessary resources, establishing your own manufacturing unit allows you to maintain complete control over product quality and consistency.
• Third-party Manufacturing : Many new businesses prefer third-party manufacturing as it can significantly reduce costs and simplify the production process, making it a popular choice for those starting their journey in the cosmetics industry.

By selecting the right manufacturing method, you’ll be better equipped to launch your cosmetic brand successfully in India.

Also Read:- KFC Franchise in India: Cost | Process | Eligibility | Profit Explained

When considering how to start a makeup brand in India, branding is crucial to your success in the cosmetic industry.

• Logo and Packaging : Invest in professional branding for your logo, color palette, and packaging design to create a memorable and appealing visual identity for your products.
• Unique Selling Proposition (USP) : Clearly define what makes your makeup products stand out. Is it the unique ingredients, the results they deliver, or competitive pricing?
• Online Presence : Establish a strong online presence by creating a professional website and maintaining active social media channels to engage with your audience and promote your brand effectively.

Also Read:- How to Start a Vegan Restaurant

In today’s digital era, knowing how to start online cosmetic business in India is essential for your overall business strategy.

• E-commerce Platform : Select a robust platform like Shopify, WooCommerce, or BigCommerce to set up your online store, ensuring a user-friendly experience for your customers.
• Online Marketing : Implement effective online marketing strategies, including SEO, social media, and influencer collaborations, to attract and engage potential customers.
• Product Photography : Invest in high-quality images, as they are crucial for showcasing your cosmetic products online and enhancing your brand’s appeal.

Also Read:- Zudio Franchise Cost & How to Apply in India

• Social Media Marketing : Utilize platforms like Instagram and YouTube to promote your cosmetic products. Collaborating with influencers can help create buzz around your brand and reach a wider audience.
• Paid Advertising : Invest in Google Ads and Facebook Ads to effectively target your specific audience, ensuring your products get in front of the right consumers.
• Content Marketing : Launch a blog or YouTube channel to share valuable tips, tutorials, and information related to beauty and cosmetics. This approach can position your brand as an industry authority and engage potential customers.

Also Read:- How to start a Tiffin service business from Home in 2024

Positive reviews are crucial in the beauty industry. Encourage customers to leave feedback on your website and social media platforms. Responding to reviews can also improve customer loyalty.

Once you’ve established your brand, consider scaling your business by:

• Expanding Product Lines : For instance, launching a new skincare range.
• Entering Retail Chains or Beauty Stores : Increase your brand visibility.
• Expanding Internationally : Explore global markets for growth opportunities.

Starting a cosmetic business in India can be a rewarding venture if you follow the right steps, from understanding the market and legal requirements to building a strong brand identity. Whether you aim to create a makeup brand, skincare brand, or an online cosmetic business, there is tremendous potential for growth in this booming industry. The cost of starting a cosmetic company in India may vary, but with proper planning and execution, your beauty empire can flourish. Take the first step today and explore innovative cosmetic business ideas in India to stand out in this competitive market!

Ready to launch your dream cosmetic business? Before you dive in, unlock the secrets to success with our powerful Digital Marketing Strategies For Cosmetics Companies ! Equip yourself with the tools you need to thrive in the competitive beauty market—check it out now!

Frequently Asked Questions

Conduct market research, choose a niche, create a business plan, and fulfill legal requirements like company registration and licensing.

Costs vary based on product development, manufacturing, and marketing. A detailed budget is essential for accurate estimates.

You need company registration, GST registration , a Cosmetic Manufacturing License, FDA approval (if applicable), and trademark registration.

Use social media marketing, collaborate with influencers, invest in paid ads, and create valuable content to engage your audience.

Consider organic skincare lines, eco-friendly packaging, subscription boxes, personalized consultations, or vegan and cruelty-free products.

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