Want to Start a Cosmetics Business? Here’s How

batesvillechristmastrain.com – The world of beauty opens up many opportunities, one of which is the cosmetics business. Cosmetics itself is a fairly broad category. You can dig deeper into your niche in the cosmetics field to determine what you will sell. Starting from skin care, body care, make-up, makeup tools, and so on.

The easiest step to get into the cosmetics business is to become a reseller or dropshipper for beauty products. You can work directly with manufacturers or distributors to procure products.

Next, you only need to carry out a number of marketing strategies so that your e-commerce gets the attention of many potential buyers. Want more challenge? You can also step up and have your own cosmetic brand. Is that possible? Of course! But there are a number of things you need to pay attention to when setting up your own cosmetics business.

Things You Need to Prepare to Build a Cosmetics Business

There are several things you need to prepare for when building a cosmetics business from scratch. This is because the production of cosmetics is quite complicated and there are a number of legality issues that need to be taken care of. You also need a rather large space to carry out mass production.

Here are some important points from Small Business that you can consider in preparing to set up a cosmetics business.

1. Learn the Rules First

There are certain ingredients that cannot be used in the manufacture of cosmetics. All of these have been regulated by the Food and Drug Supervisory Agency. There are certain materials that can be used but their use is limited. In addition, certain preservatives, dyes and sunscreens are permitted. For materials that are not allowed to be used in cosmetics, the number is in the thousands. You can check the list in the attachment to the regulation.

You have to learn all of these things first, because you need permission later to be able to distribute your cosmetic products. If it does not meet the requirements, your product will certainly be withdrawn from circulation.

2. Think about the Production

When creating a cosmetic product, there are chemical formulations that you need to learn. For example, what percentage of preservative content is needed and so on.

If you are not a chemist or pharmacist, you might consider hiring a cosmetic chemist to work with you on product development. You can also look for private label manufacturers that offer customization. These companies are formed to make cosmetics and skin care according to your specifications.

Alternatively, you can learn the ins and outs of cosmetics and get a degree in cosmetic chemistry or a related field. It may take years, but it will give you in-depth knowledge of the product you are selling.

3. Secure Financing and Work Space

Consider funding sources. You need capital to cover the costs of producing your cosmetic product line, packaging it, then distributing it to customers or retailers. Not to mention employee salaries, rent, and license and permit fees. You may be able to finance your business through personal savings, family, relatives, or making loans to banks.

After securing business financing, the next step is to find a place to run your cosmetics business. Besides needing a place for production, you need a place to store supplies of raw materials and finished products.

4. Prepare a Business Plan

No bank or investor will finance your business if you don’t have a mature and visible plan. Make a business plan before you develop your product. At a minimum, your business plan should include a company overview, market research analysis, organizational structure, beauty product details, marketing and sales strategy overview, detailed financial views, and other related documents, such as legal documentation, tax information, etc. .

Cosmetics Business Opportunity

The cosmetics and body care market is expected to grow every year by 7.2%, equivalent to  77.3 trillion. In 2021, 7% of total revenue from the cosmetics sector will come from online sales.

This is a fairly high opportunity in the cosmetics business in Indonesia. Apart from the increasing demand for beauty and body care products in general, halal cosmetics can also be an attractive niche. The trend of using halal cosmetics has been increasing in Indonesia in recent years. This is because the large number of working Muslim women now generate more income. Their awareness to use halal products is also increasing.

Tips for Starting a Cosmetics Business

You already know what it takes to start a cosmetics business and the opportunities are quite good. There is still a lot of room for development and new products in the beauty sector. Now all you need are some tips to start a cosmetics business. followp Looka, here are the tips.

1. Choose a Cosmetics Business Niche

When starting a beauty business, you want to choose something that you are passionate about and have experience with. Picking a niche that is too big will make it difficult for you to compete with big companies. When you’re just starting out, it’s best to choose one type of product line that you can specialize in.

For example, you had a bad experience with acne and you managed to make a foundation or powder that can cover acne scars. You can use this personal experience of yours as an idea for product development as well as materials for promotion. Show your potential buyers how good the foundation you make on your own face to convince them.

2. Find a Suitable Partner

As your business grows, your need to work with outside vendors and partners will grow too. There are at least four main partners that you must have in the early stages of your business.

  • First, the laboratory. You need it to test new products. Second, fulfillment partners, who take care of orders, packaging, and delivery.
  • Third, an e-commerce platform that you can make yourself or rely on certain partners to make it for you.
  • Fourth, resellers. You can sell your own products, but you can also work with resellers to make your products available in other cities.

3. Set Product Prices

Price is a big thing to consider when starting a cosmetics business. You can set competitive prices with your competitors to win price wars in the market.

But you also need to consider the price of raw materials, production costs, packaging, shipping, labor, and others. You need to calculate these various components and include them in the price. Don’t let the selling price be lower than the production cost.

4. Create a Marketing Strategy

If you decide to sell your cosmetic products through e-commerce, placing advertisements and content marketing can be the best option.

There are several types of marketing strategies that you can do. Starting from social media marketing, paid advertising, search engine optimization (SEO), to influencer marketing.


Your marketing strategy should depend heavily on your target audience. Know who is your target audience, then adjust your marketing strategy accordingly. Thus the guide in starting a cosmetics business. Hope it is useful.

Hello, my name is Dodi Santoso usually called Dodi. I am a professional writer on several sites, one of which is this blog.

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