Due to the increasing number of accidents caused by regular skin care products which are sold over-the-counter, consumers are becoming more and more careful about investing their hard-earned dollars in natural organic products. As there is always a soaring availability of complimentary and herbal ingredients, consumers seem to exercise their control over the safety and quality of the products which they apply to their skin and inside their homes. If you tend to have the eye of an entrepreneur and you’ve been wondering about jumpstarting with a business of your own, the skin care and beauty industry would be the best option.
Investors usually assume that the margins of profits are low, there is stagnant growth in this industry and pay back is also slow. With regards to the personal skin care industry, these assumptions couldn’t just be more flawed. There are in fact overflowing opportunities for the investors at the present moment.
Why invest in the personal skin care industry and why now?
There are definitely few factors which have all converged to make it simpler for the companies to establish their niche amidst the crowded space. Here are few such factors.
- Loyalty towards brands
You’ll find it tough to find better and stronger brands or loyal customers than what you can ever get in the personal skin care periphery. When it comes to make-up products, organic and natural skin care products, fragrance and shampoos, people are much less likely to shift allegiances due to price fluctuations. Even the product with the highest price will never tend to leave the market when financial situations are tight among customers and when they need to trim their budgets.
- Frequency of purchase
For the entrepreneurs, is there anything that is better than customers who are extremely loyal? In the skin care industry, you will always have loyal customers who tend to return every month. The manufacturers of Weleda, a natural organic skin care brand claim that most of the organic skin care products are bought either once in a month or in two months. Hence, the entrepreneur can be rest assured that there will be a recurring stream of revenue which is a great factor for stability.
- Better sales opportunities
The customers nowadays wish to have skin care products and experiences tailored towards them and this has made niche products more popular. You visit a store and you will find niche products fill up the shelves. With this, the personal skin care products have even successfully made it to the shelves of the larger retailers, especially those who focus on personal skin care products only.
- Lucrative profit margins
One of the greatest myths in the Silicon Valley is that there are low margins for the consumer care products. This is far from being true in the organic skin care and personal care industry. The hair care and skin care companies have more than 60% profit margins and hence they get enough of capital to invest in the brand new products.
Hence, you can well understand why the reasons highlighted in this post merit investing in the personal skin care industry. Now let’s take a look at the steps to take.
Jumpstarting your skin care business – Few steps to take
- Choose the most appropriate location
Generally, there has to be both personal and business reasons to choose a definite location for your skin care business. Being an entrepreneur, you have to choose the most appropriate location for your business so that you don’t need to invest a huge amount for commuting to that place. Try to keep your initial investment as low as possible.
- Invest in educating yourself
When you choose to manufacture organic skin care products, you need to educate yourself on these. You should be ready to experiment with the already available solutions and then learn how you can customize and personalize them for creating different products for different niche. It is also imperative that you learn about the preservatives and the ingredients. If you’re all set to manufacture the different types of lotions, soaps, fragrances and soaps, you have to invest your time in learning about them first.
- Know how to market the products
Choosing the name and logo of your business is one of the first decisions that you should make. The name shouldn’t be too long, it should also be easily remembered and it should reflect the positivity of the products and business. In case you plan to create a website, choose the name of your business domain so that no other skin care company can grab it from you. Create a flyer with your product details and distribute them among everyone you know. Gradually set up a website so that you can accept the online orders. Also plan to organize skin care parties to increase engagement among clients.
- Gather knowledge on packaging products
There are bigger companies who are aware of the direct relation between packaging of the products and the initial reaction it may garner. You too have to realize that the outward appearance can play a vital role in determining the success of the product. It should be able to protect the product throughout the entire shelf life, it should mention the contents of the package and it should compel the customers to buy it. Invest time and money to design an attractive packaging for your product.
- Arrange the business requirements
Even though you might operate your business from home, you have to choose your business entity (whether a LLC or a partnership or a corporation), obtain a business license and a property license, get liability insurance coverage from your nearest insurance provider and also get proper records of taxation, accounting and inventory.
We hope that the concerns of this article will give you realistic insights into why it is the best time to invest in the organic skin care industry and how you should start off with one. Follow the tips to set your business rolling.