Top beauty industry player L’Oréal accounts for 35% of worldwide beauty industry sales. That leaves 65% of the industry for other players. Will that include your burgeoning skincare business?
While there is undoubtedly a lot of competition in this sector, there’s still room for small beauty businesses to thrive in their local markets. It’s all down to the products you create. Learn how to get it right below.
Research and Planning
To create skincare products people love, thorough research and planning are crucial first steps.
But what does this consist of?
Before you do anything else, you need to understand your market. This includes identifying the target audience for your product or products. Conduct market research into:
- Popular ingredients
- Price points
- Preferences around product testing
Next, research skin types; the main types are oily, dry, combination, and sensitive. Lean into this knowledge when selecting the ingredients for your skincare line. For example, bulk CBD raw materials might be popular now, but are they suitable for skincare products?
So, you have your ingredients finalized. Now, you need to research product packaging.
Look at what your competitors are doing. Do you want to copy them or stand out on a shelf with unique packaging? Consider, too, factors around sustainability, ease of use (especially for other-abled people), budget, and labor costs.
And don’t forget to look into local government and industry requirements for ingredient and warning labels.
Developing the Product
Once you’ve analyzed your findings from the research phase of product development, it’s time to take your skincare startup to the next level: product development.
Creating a formula that meets the needs of your target audience is vital. This involves:
- Selecting the right ingredients
- Combining them in the correct proportions
- Achieving the desired effect
You’ll need to add a lot of room into your development timeline for experimentation and testing. After all, you want to ensure any products you release to market are safe and effective. Once you have a formula that works, it needs to be tested.
Test for stability over time and safety—your product shouldn’t induce adverse reactions in the wearer.
Finally, consider the external and market aspects of your product. Work out the cost of production, packaging, and marketing. Price your product appropriately to ensure it’s profitable but also competitive.
Launching the Product
Any promising beauty startup spends as much time planning its launch as they do its products.
It’s an exciting and challenging moment. You must enter the market on the right footing, or customers may forsake your products before trying them.
Consider the following steps:
- Create a marketing plan with your ideal customer in mind
- Choose popular sales and promotional channels
- After launching, collect feedback from customers and make improvements
- Scale up production and expand your product line
Don’t rush into each step. Take your time to understand your customer base before progressing.
Starting a Skincare Business Is Fun Yet Challenging
Overall, launching a skincare business involves careful planning and execution.
By following these steps, you can ensure that your product is well-received by customers. Focus on developing sustainable products that actually work and are sold at a profitable price point your customers can afford.
For more small business and entrepreneur advice, view the other articles on our blog.