This article will cover all you need to know about running a cosmetic business in Nigeria, including how to set up your shop, types of cosmetics to sale and off course, how to attract customers.
The cosmetics industry is one of the largest industries in the world.
It made Kylie Jenner the youngest self-made billionaire in the world, with a net worth of $1 billion as at 2019. No surprises on how it managed to be like that, the cosmetics industry provides essential services that we all can’t do without.
With a lot of advertisements from brands, one wouldn’t have any other option than to patronise the products that will make you appear more attractive than you normally look.
Most ladies I’ve seen have a collection of a minimum of four to five cosmetic items in their makeup box. They’ll always appear one or two before going for any occasion or function and would quickly rush to the market for a replacement as soon as it finishes.
Types Of Cosmetics
In the general terms, cosmetics are products used to enhance or change the appearance of the face, fragrance or the texture of the body. While many of them are designed for use of applying to the face and body, there are still different parts of makeups that you can sell in your shop:
Primer is applied on the face before the actual makeup is done. It creates another layer between the skin and helps sustain the makeup wear for a longer time. It also prevents acne and makeup clogging up pores.
Primer has a creamy texture and applies smoothly It is applied throughout the face including eyes, lips, and lashes.
• Lipstick and lip balm
Lipsticks are applied to to add colour and texture to the lips and often come in a wide range of colours, as well as finishes such as matte, satin, gloss and lustre. They come with a rollerball but can be applied using hands.
Lip balm helps in making the chapped lips look smooth and is normally applied before the lipstick. Some brands of lip balms also contain sunscreen.
Other products for the lips are the lip gloss (often used when a person wants to have some colour on their lips), lip liner, lip conditioner and lip stain.
Concealer is often used as an extra coverage for concealing any marks or imperfections of the skin. It is useful in covering undereye circles, acne/pimple blemishes, and other imperfections.
It is often thicker than foundation and provides a good base for applying makeup. It also helps in brightening up the skin.
Foundation has a creamy texture and is used in smoothing out the face by covering any spots, pimples, or uneven skin tones. It is sold in different forms including liquid, powder, cream or even in a mousse.
• Face powder
Face powder is applied to the face to control shine and a foundation after application. It sets the foundation and under eye concealer, giving it a matte finish while also concealing small flaws or blemishes.
There are different types of the face powder, including loose powder, pressed powder, HD powder, finishing powder, mineral powder and setting powder.
Highlight has a glossy appearance and is used to draw attention to the high points of the face such as the cheekbones, below the eyebrows, nose, upper lip, and collar bones.
Highlight comes in either liquid, cream, or powdery forms and often contains a substance to provide shimmer.
• Mascara and eyeshadow
Mascara is available in various colours and is used to darken, lengthen, thicken, or draw attention to the eyelashes.
Eye shadows in the other hand is a pigmented powder/cream or substance used to accentuate the eye area, traditionally on, above, and under the eyelids.
• False eyelashes
Basic designs of false eyelashes consist of human hair, mink hair, or synthetic materials attached to a thin cloth-like band, which is applied with glue to the lashline. They are usually applied when exaggerated eyelashes are desired.
A perfume is a mixture of fragrant essential oils or aroma compounds, fixatives and solvents, used to give the human body, animals, food, objects, and living-spaces an agreeable scent. It normally comes in liquid forms.
There are so many different brands of perfumes and colognes in the market, and your target market will determine the brand you go for.
How To Start A Cosmetics Business In Nigeria
We’ve seen some different types of cosmetics you can deal on, but they’re not the only ones available.We didn’t include things like nail polish, setting spray, contouring and bronzers. You can also include them in your list of items, depending on your target market.
Below are some things you should know before venturing into cosmetics business in Nigeria:
• Startup capital
Capital should be your first consideration while setting up a cosmetics business in Nigeria. It doesn’t only determine the scale, but will also play a role in choosing your location. If you’ll be starting on a small scale, a capital of ₦250,000 can set your business running, but if it’ll be in a large scale, you can set aside ₦900,000 capital.
As with every business, you’ll need to undergo some training in order to make it in the business. You’ll learn different things, including how the cosmetics business works, what and what you should be selling and more.
Your trainer will also guide you on where to buy original products, including contacts of sellers he or she trust. Don’t hesitate in asking questions no matter how foolish the questions may sound, they’ll go a long way towards saving you in the later run.
• Choosing a business location
Choosing a location is a very delicate step in starting a cosmetic business and should be handles with care. Your business location should be easily accessible, and probably an environment with businesses that sell similar things like boutiques, hair salons or more.
You’re shops shouldn’t be too large, unless you’d be offering a wide range of products. Customers won’t like it when they meet your shop scanty, as it’ll give them issues in making choices.
• Setting up your shop
Packaging matters a lot in this business, so your shop should be neatly arranged in a way that your customers will find them appealing. Products should be arranged according to types and sizes, in shelves similar to the ones you see in provision stores.
You can also consider putting a wallpaper in the background and nice, coloured lights. You should know what I’m talking about, the fine ones we see in boutiques. Depending on the size of your shop and scale, show glasses will also make you stand out from other people.
The front of your shop should be opened in a way that people cane easily see it from the outside, with a table and chair that looks like a locker which will be serving for the placement of writing paper and money deposit.
You can start by advertising your products through word of mouth to your family members, friends, colleagues and neighbours. Other advertising media like banners and fliers should also be explores.
In the later run, you can consider creating a website to reach more people online. There are so many types of online adverts, including the free ones that you can make use of for a wider reach.
Remember that if you don’t let people know about your business, no one would come knocking. The major secret of selling is marketing, and the internet has made things so easy, that you can now sell your products without even leaving your bedroom.
Challenges of running a cosmetics business in Nigeria
Some major challenges you might face in the course of setting up your business include:
• Your location: Your location really matters and should be treated with care. You shouldn’t go about setting up your business in a non easily accessible part of your town, especially when you’re not yet ready to take it online.
• Poor marketing: The secret of getting sales is good marketing. I’ve already explained some ways of getting customers above, please check them out and also search online for more tips.
• Selling of fake products: This is very serious and can harm your business beyond what you can imagine. People love getting quality products and wouldn’t mind paying extra just to make sure they get nothing but the best.
How profitable is cosmetics business in Nigeria?
Cosmetics Business is one of the most lucrative, businesses you can venture into with a little capital. Depending on your scale, you can make as much as ₦500,000 profit monthly from your business, especially in a busy location.
In addition, selling a wide range of products will help in increasing your profit. You can also consider buying directly from the producers when possible, it’ll be far cheaper to you.
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