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How to Start Beauty Care & Cosmetic Retail Shop Business in India

Currently cosmetic & beauty industry in India is valued at around $4.5 billion and is growing at a fast pace.  According to yearly analysis, it is observed that the industry is growing at a rate of 15-20% per annum, which is again splendid. If you want to be a small part of this huge industry and earn a good amount of profit, we are here to guide you about how to start beauty care & cosmetic retail shop business in India and business plan.

Cosmetic Retail Shop in India

Find out What Your Competitors are Doing

You are not the only one who wants to flourish in this business. There will be numerous competitors in your own city, where you live. The principal key to success is to know what your rivals are selling. Before getting on with your own business, start getting in these shops and make a list of what they are selling. In this case, you need to be a bit smart. They must not know what your intentions are. Just get a rough idea about what brands, and what special products they are selling, and you’re good to go. You can also work part time jobs in these shops, to get a rough idea about the products, customer requirements, and marketing.

 

Business Registration License

You need to make sure you have all the relevant licenses and approvals to start beauty and cosmetics business in India. Come on! Everything needs a license these days. It is rather a simple job if done neatly. Contact a legal consultant for all the details in getting a license for this business. Leave no stone unturned in getting a proper license.

 

Finding Beauty Care & Cosmetic Supplier

If you have worked previously in a cosmetic shop, you can get the suppliers contact number from there. In-spite of that you can easily get the contact numbers from the internet, visit the brand sites, and you will get a whole list of distributors near your region.

 

Sell only Reputed Brand Products

Beauty Care Products

You are starting a new business of skin and beauty products. We hope you never want your customers complaining about the quality of products and allergies by using the products. You must select each and every product carefully by making sure it has all government licenses and approvals. Sell products only from trusted and reliable manufacturers. In this way, your customer will get good quality products, and you won’t face any problems.

 

Find a Niche Market

Natural Organic Beauty Care Products

While setting up a new business, it’s always better to sell a special product which will only be available in your retail shop. It can increase your market a lot. Ayurvedic and herbal products hold a good example as they are organic and good for skin. You can also set a special section for men only products or you can also promote a new brand in the market.

 

Choose a Location

Finding a great place for setting up your shop is yet another important thing. As you are setting up a cosmetic shop, it’s always better to do it in a region having decent footfalls. Road facing shop is a must. Make sure the shop has proper electricity connections and stuff. Rent for a shop located in excellent location will be higher but it’s very much necessary for the success of your business.

 

Equipment & Furniture List You Need

Cosmetic Retail Shop

It’s not a place where people are going to come and sit for hours.  They will come, purchase items and leave the shop. Below are some of the major things and equipment’s that you would need while you are setting up your shop.

  • There must be a lot of space in the shop, for customers to move around freely and try the products.
  • Product shelves, where all the products will be arranged in a simplistic manner.
  • You can also keep a showcase table, to display the most reputed and expensive products in your shop.
  • A billing desk where you can keep your billing machine, and computer.
  • Installing one or two wide screen television can prove worthy. You can display recent product launch video, upcoming products, etc.
  • A good paint job is a must. Select sober colors. It creates a peaceful ambiance. We would suggest you consult a specialist before doing it.

 

Marketing Plan

It depends on how you and your staff sell stuff. As you are setting up a new shop, it’s better to buy less stock so that your loss is minimized in case the business doesn’t run well. Keep good products of all range. See how the customers respond.

  • Print visiting cards and brochures- brochures can be of the products available in your own shop and also the catalogs of the brands.
  • Take the order of the products that the customer wants but not available in your shop.
  • Develop a website, sell your products there, and give customers free delivery.
  • Make membership cards for regular customers and offer them good deals.
  • Sell combined products and give offers on combos.
  • Introduce special offers for new customers like discounts on few products.

 

Be Polite and Friendly with Your Customers

Thank You

This is another key to success. Keeping good relation with customers is very crucial. Just one behavior and you might lose a loyal customer. Be friendly to them, analyze their demands and provide them with the best service.

  • Train your staff on how to behave with the customers.
  • Learn about the products yourself and guide training to your staff in the same manner.

 

Hire Staff

You cannot run a cosmetic shop all on yourself. Not even for the first few months. There will be huge workload, ordering products, arranging them on proper shelves, handling more than one customers and much more. For the first few months hire a single staff member and then increase the staff members according to the workload.

 

Minimum Investment

Cosmetic Products

Here comes the principal factor- money. In a typical Beauty Care and Cosmetic business initially, you need about 1,00,000 INR to 2,00,000 INR to invest. The amount will include deposit, rent for few months, the cost of furnishing, etc.

 

Costing

We have tried our best to provide you with all the initial expenditures in setting up this business. All the prices are just an estimate. The real prices might vary accordingly. Here goes the list-

 

  • Security deposit for the shop- 50,000 INR

This is a onetime investment, and refundable. You can always negotiate with the landlord about the money being charged. You just need to sign a few legal papers to get this thing done. If there is already a pre-owned shop, then you mustn’t worry about this investment.

 

  • Rent of the shop- 10,000

This is the money you need to pay every month. It won’t be a big burden if you are generating decent sales. You can again negotiate with the landlord about the rate. The rates might be sky soaring if the place is in a posh region.

 

  • Salary of the staff- 10,000 INR per month per staff

Keep one staff for the first few months. You can find plenty number of people if you search the right place. Many college students do these jobs for extra pocket money. Finding the ideal candidate won’t be a big problem.

 

  • Buying products- 80,000 INR

As the products that you will be buying are of reputed brands, it’s going to cost significantly. Mid-range products are not that costly. For the first few month try to buy those products that have a high shelf period as it will keep the worry about expiry dates at bay.

 

  • Furniture and equipment- 40,000 INR

Buy good quality, durable furniture. They will last for a long time. You can design the furniture or buy readymade stuff.

 

  • A decent computer and a printer- 30,000 INR

This is a must for all business. You can keep all your data and manage your website. The billing machine will be connected to your computer, so it will help you manage accounts too.

 

  • Re-furnishing the shop- 20,000 INR

No need to spend much in this section. Just give a sober paint job and a good ceiling.

 

  • Electricity bills- 2000 INR

You need to pay your bills as per the regulations set by your landlord. Keeping an air conditioner might consume more power, but you need to keep your customer satisfied.

 

  • Starting a website and developing it-5000 INR

Websites can be start online at much cheaper rates. Hire a freelancer to design your website. Hiring a professional might be costly.

 

Margin

You need to earn money as well as provide best products at lower prices to the customers. If you want a good number of customers, then you need to give offers. On the other hand, if you need to earn a decent profit then you can’t give too many offers. Typically beauty and cosmetics shop earn a handsome profit of all the products- margins typically range from 20% to as high as 60-70% So the amount of money you would be making will depend on sales made by you every month and the expenses that you are doing.

 

ROI

ROI stands for Return on Investment

It is a percentage of how much is your net profit after subtracting the investments.

Return on Investment = (total income*-investment*)/investment*

*all the figures in INR

For the first few months the ROI will be low, about 20-30% due to initial investments, but later on, it will go higher.

 

Conclusion

Beauty Care and Cosmetic Retail Shop business can be a huge success. The initial period is bound to be hectic, but later on, it will be fine. You need to keep track of the changing demands of your customers. Later on, if the business runs well, you can also start selling your own white labeled products. We hope you find this guide helpful.  Do let us know your words via the comment box below and stay tuned to find more business ideas which can be started with low investment but generate decent profit.

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