To figure out
how to start a makeup line, you'll have to create a detailed business plan and
determine what will set your cosmetics line apart. 7 min read
To figure out
how to start a makeup line you'll need to create a detailed business plan and
determine what will set your cosmetics line apart. There is a lot of
competition in the makeup industry, so carving out your unique niche is crucial
to being successful.
WOMEN AND THE
MAKEUP INDUSTRY
Makeup is very
important for many girls and women. Sometimes, they just don't feel like
"complete" without some kind of makeup on. It can be a
confidence-builder since some women feel more attractive when they wear makeup.
Makeup is more than pretty packaging, and consumers are always looking for
quality cosmetics that make them feel good about themselves.
The global
cosmetics industry is valued at over $ 170 billion per year. About $ 40 billion
is in the Americas, while the other $ 130 billion is spread across Asia,
Europe, Australia, and Africa. Customers in the Western part of the world spend
more on makeup, although those in Asia and India are starting to catch up. This
industry, also referred to as the personal care industry, has five main
segments:
Makeup (20
percent)
Hair care (20
percent)
Fragrance (10
percent)
Skincare (27
percent)
Other (23
percent)
The makeup
segment includes lipstick, nail polish, blush, foundation, eyeshadow, and other
cosmetic products used for beautification. According to data from the NPD
Group, Inc., the luxury cosmetic industry has seen significant growth over the
last 14 years, increasing by 6 percent between 2004 and 2018. The annual growth
rate since 2002 has been between 4 and 7 percent on a global scale, despite the
North American market dropped from 31 percent of global sales to 27 percent
between 2002 and 2004.
The majority of
the psychographic and demographic compositions of those using makeup products
are women, although the group is diverse. Women are generally more inclined to
use these products. Additionally, actors, actresses, broadcasters, and
celebrities use makeup, as well as many others.
MAKEUP AND THE
ECONOMY
Economic shifts
and downturns impact the cosmetics industry less than other industries, such as
automobiles. During the recession in 2008-2009, the growth of the industry grew
moderately in comparison with the global GDP growth rate's drop. The demand for
makeup tends to fall more slowly in recessions, while it increases drastically
during recovery.
WHAT WILL YOUR
MAKEUP LINE FOCUS ON?
Cosmetics
doesn't just refer to makeup products; it also covers skin, facial, and hair
products. When deciding to create a makeup line, think about which area you
want to focus on. Niche areas in makeup include the following:
Mascara
Lipstick
Primer
Concealer
Face powder
Foundation
Highlighter
Eyeliner
Blush
Bronzer
False eyelashes
Setting spray
Nail polish
production.
HOW TO GET
STARTED
Before starting
a makeup line, it's important to invest money and time into researching what
people want and need. You need to work with others in the industry while doing
research. It's critical to be as well-informed as possible, so take some time
to talk with cosmetologists and others in the makeup and beauty industry to
know where to start.
As you do your
research, make sure to understand the trends and details of how makeup works
and is used. If you want to be in this industry, you must know how and why
makeup works for people. You have to do more than just use it yourself. Spend
the time to learn more about the techniques for maximizing facial features, how
to use cosmetics for certain skin problems, such as acne and dandruff, and the
chemistry behind makeup products.
You can further
your knowledge of the industry by:
Learning more
about alternative ingredients, especially since green products are growing in
popularity in the makeup industry.
Obtaining a
degree in cosmetology.
Reading
biographies about famous people or companies that started successful cosmetic
lines, such as Estee Lauder or Helena Rubenstein.
Understanding
the ingredients that go into various types of makeup, such as foundation,
lipstick, and other products.
Continue to
learn about the industry and how cosmetics are made. Doing hands-on experiments
can also help you gain more knowledge while getting a better feel for how
certain ingredients work with each other and what they can do to benefit those
looking for these products. For example, you might attempt to figure out what
ingredients can produce a brighter hair color or softer skin.
You can find
books and other resources about cosmetic manufacturing at the local library or
bookstores. Using online resources should be done cautiously as not all
suggestions are safe or will work as described. Don't believe every piece of
information you find. Instead, take the time to do your own experiments to make
sure the results are what you want. You can also ask your friends and family to
help test your products.
NICHE MAKEUP
You'll probably
be more successful if you focus on a niche from the beginning. For example,
Poppy's Lipsticks are well-known around the globe for focusing on lipsticks
rather than also trying to be Poppy's Eyeliner and Poppy's Hair Potion.
Choose a niche
based on what you're most interested in and what you know you'll be good at.
You also need to consider if the market is open for your particular product
niche. You can always add new products to your makeup line as your business
grows. Until that time, perfect your existing line and build your reputation in
the industry.
Because the
cosmetics industry already has lots of competition, the one thing that sets
most successful apartments companies is marketing. This includes the packaging
and promises to make such benefits as glowing, youthful skin. Find the hook
that will entice your potential customers.
You'll need to
ask yourself some tough questions, such as the following:
What makes my
product special or different from what's already out there?
Why should a
customer take a chance on my product and stop using something they already
like?
What kind of
packaging will make my brand stand out and have that “wow” factor, while also
looking trustworthy and reliable?
What's my
special factor or buzzword, such as “natural,” “shea butter-infused,” or
“organic”? If you make certain claims about what your product will do, you need
to have scientific facts to back them up.
How to Create a
Business Plan
Makeup lines
often require a lot of start-up capital and detailed planning, so you need a
solid business plan. You may want to consult with other experts in your field
when drafting your plan. When you have a viable business plan, you can cut down
on the trial-and-error aspect of running a business. You'll have a purpose, and
you'll be prepared to meet challenges and handle growth and expansion.
A solid business
plan is a detailed guide that shows you how to manage your business
effectively. It should outline strategies on how you intend to grow your
business.
You have to be
realistic when drawing up a plan. Don't over-project numbers like income and
profits. You may want to underestimate in those areas so you're not surprised
or disappointed when the real numbers come in.
When planning
your business, consider the following:
The concept of
your business
A description of
your business
Your business'
vision statement
Your mission
statement
Your business
location
Your plans to
franchise, if any
Your expansion
plans in the U.S. or internationally, if any Key components of a business plan
include the following:
Budget
Startup
generation
Competitive
analysis
Products and
services
SWOT analysis
Target market
Marketing and
sales
To create any
business, including one in such a competitive field as a makeup brand, you'll
have to do a lot of homework and research to figure out where you're most
likely to be successful. Consulting with experts in the field is key. You need
to set your line apart from everything that's already out there. A solid,
workable business plan is the first step towards creating a successful
business.
Legal Business
Formation
After you have
done your research and are ready to get started, you will need to choose a
business name. Review existing names to make sure your isn't too similar. The
name you choose is critical as it will affect the public perception of your
business in the marketplace. Choose a name that fits the line you plan to be in
when selling makeup. You should also create a logo that is compelling and aligns
with your business goals and the name you choose.
From there, the
next step is discussing the business formation process with an experienced
attorney who can help you decide what formation to choose and how to
incorporate it. You might want to start your business as a home-based option
before expanding to a different location, or you can elect to lease a shop.
Finding the right facility from which to sell your product is expensive and can
take a lot of time.
One of the
benefits of this industry is the fact that it doesn't always require a massive
production facility in the city center. If you can save money by choosing a
production facility location that is on the outskirts of the city, it is
worthwhile to consider this option. It is more important to choose a facility
that allows you to have the lab equipment and other requirements for your
makeup. If you need a location to display products, it's easy to lease a small
space in the center of the city.
Selling the
Product
After you have
created your product (s), it is important to get it in front of as many people
as possible. Visit department stores to discuss carrying your makeup, sell your
product online, and consider hosting parties to get the word out about the
makeup options you provide. Come up with several key selling points that will
help encourage potential customers to buy your product and understand what sets
your makeup apart from the many other options in the industry. Tell your
background story and be upfront about why you are ready to start a business.
If you need help
starting a makeup line, you can post your job on UpCounsel's marketplace.
UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on
UpCounsel come from law schools such as Harvard Law and Yale Law with an
average of 14 years of legal experience, including working with or on behalf of
companies like Google, Menlo Ventures, and Airbnb.
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