The cosmetics industry is a flourishing one; grooming and makeup items are a rage among girls and women of all age groups. With more and more women embracing the choice to look beautiful and turn out glamorous at social events, cosmetics now see a staggering demand in the beauty circuit.
The beauty and cosmetics industry is worth billions in the current times and the figures growing at this astounding pace are only indicative of women no longer willing to stay confined to their homes, merely engaged in domestic chores. They are the woman of substance and love to reveal their bold streak in the way they carry themselves. Looking great is a big confidence booster for them and they have their set of favourite cosmetic brands and products.
Here are some essentials you need to keep in mind when you consider starting a Cosmetics and Other Girls Stuff Store.
Why Start a Cosmetics Retail Store?
Cosmetic store is a profitable venture to start in India with a high profit margin. It is only destined to grow by leaps and bounds in the future, given the professional focus this industry has been getting from expert advisors and artists.
Everyone likes to take care of their skin and beat the signs of aging. For this reason, cosmetics can never go out of trend. In addition, cosmetics business does not need you to have any technical skills for running the store. Starting this business is easy and when you are looking to start on a small scale, it is not very capital intensive.
Cosmetics and Other Girls Stuff Store Business Plan
Any business, not only a cosmetics one, will require sound planning to make sure it tastes success sooner than a business without a plan. A detailed business plan is a must for execution to be smooth and hassle-free. Putting together all your requirements of starting a cosmetics retail business is important for you to create action-oriented plans. Consider the brands you think people will like to buy as those you want to stock in your store. Good stock keeping is a secret behind a successful cosmetics store.
Understand your business goal. As the owner of a store selling cosmetics and other girls stuff, you will want be the most favoured choice of residents in the locality where you open your store.
Since you will also be a part of a large community, make sure you have a plan for actively taking part in community activities and showcasing yourself as well-versed in the field of business.
Make sure there is a solid business structure with dedicated workforce to ensure your customers are satisfied at the end of the day. Create plans for building good teamwork because your success, at the end of the day, will be anchored on teamwork and not individual accomplishments. Assigning clear roles and responsibilities to each team player is crucial right from those at the helm to the store manager, accountants, and cleaning staff.
Perform a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats so that you are better equipped to hold your own in situations of adversities and challenges.
Be clear about the vision and mission of your business and make sure you have them chalked out clearly so that you follow them to the hilt.
Where you setup your store is extremely critical to the success of your business. A location with a good level of visibility can give the leverage of more people knowing about the existence of your store in quicker time. Make sure there aren’t many stores selling your kind of stuff in the area where you intend to open your retail store so that you don’t have to face much competition.
Choose a high traffic location that is frequented by youngsters, girls, and women in particular. If you decide to stock high-end brands, an affluent location will suit your clientele. Ample parking space is good to have for your customers who drive all the way to purchase from you.
Establishing Links with Wholesalers of Major Brands
This is probably the first thing you must look for when you are working on cosmetics and other girls stuff business idea. Get in touch with trusted local wholesalers to be able to stock the entire spectrum of products with various brand options at your store. Try keeping middlemen to a minimum if you have to make your business more profitable. Quality should be your primary focus for cosmetic and other typically girl items so that there are no issues later. Select each item carefully making sure it has the necessary licenses and approvals from the government.
If you are also looking to stock girl items such as lingerie, bridal wear, undergarments, and sanitary use stuff, make sure you establish links with vendors who can provide good variety to you at great prices so that your customers can get the best quality and good value for your spend.
Associate with a Cosmetic Expert
Your business is more credible when a true professional is associated with you to provide convincing answers to people’s queries. A cosmetic expert will know his or her job to the hilt and have the best recommendations on what suits your kind of skin or hair. Your buyers will be more inclined to visit your store and purchase from you when they get precise solutions to their skin or hair woes.
When you set up the business, the cosmetics and other girls stuff store start up cost will depends on the approach and the scale of business you undertake. In case you are renting a big place out to ensure you sell the best of brands under one roof, you need a handsome amount of capital to take care of your employees and provide them a conducive work environment. Keep the focus on your goals, vision, and mission first and these can decide whether your budget will be high or low.
Even with a basic store layout for displaying the cosmetics and other girls items you are selling, the investment value usually runs in lakhs. If you want to beautify the space and want it to have a contemporary outlook, the investment cost goes up accordingly. Calculate your budget and work out all the requirements within that amount, which includes your investment in all the items you are selling.
Keep in mind that you may have to incur costs under the following heads:
- Registration fees for your business
- Legal expenses including the costs of obtaining licenses and permits
- Insurance coverage
- Marketing promotion expenses
- Rent payment if you do not own the store space
- Operational cost for the initial months
- Cost of start-up inventory
- Storage hardware such as shelves and cabinets
- Cost of equipment – necessities as well as comfort-focussed
- Cost of furniture and gadgets
- Other expenses such as stationery and telephone
- Miscellaneous items
After a careful consideration of the above pointers in your business plan, you can shift your focus on the legal and taxation aspects, which are critical to your business’ operations.
Obtaining a cosmetics and other girls stuff business license before you begin operations is extremely crucial. Ensure you have relevant licenses and approvals to start a business of beauty and cosmetics in India.
You may also need a state or city license after making sure the business name you are proposing is not already taken.
Get in touch with a legal consultant to obtain all the details you need for acquiring your business license to avoid getting into any form of legal dispute later.
Impact of GST on Cosmetic Products
Source Image:Financial Express
The launch of GST in India has increased the cost of cosmetic products.
Several cosmetic products such as perfumes, beauty or makeup preparations, skin care items, sunscreen and suntan products, manicure and pedicure preparations, hair care, oral and dental hygiene, pre and after shave preparations are charged 28% under GST and this makes them dearer for the end consumer.
Items such as toothpaste, hair oil, and essential oils are charged at the rate of 18% GST.
With 28% GST, sanitary products have become more expensive than before.
Marketing Plan for Your Business
If you start out on a smaller scale but wish to scale your business up with time, you can create a web presence with a website of your business. Selling your goods online with free shipping as a bonus is also a great idea of creating a wider reach for your products. Bring out offers such as cash offs, discounts, and combo offers from time to time to keep your consumers engaged in your business.
Be creative in advertising that long lasting, smudge-proof eyeliner or the creamy lipstick that will stay good for hours. You can go for billboards and online advertisements on social media to let people in a locality know about your new store. Watch this video to know the marketing and advertising strategies you can implement for the cosmetics you are selling in your store.
With fashion-consciousness on the rise, it is only intuitive that cosmetics and girl stuff businesses will get a lot of eyeballs in the future as well. Having a well-chalked out business plan in place, you can make sure you get the maximum leverage out of your investment. Dedication and perseverance are the keys to success in any business and with a little extra effort, you will be able to reap the rewards of high ROI within quick time.
Good luck on your new venture!
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