As you can imagine, it will be a real obstacle course to create your own cosmetic brand. However, it is possible to create your own cosmetic brand by following specific steps and being motivated. We explain.
The market study
Before thinking of imposing yourself on the cosmetics market and having a share in it, you must first study it to detect commercial opportunities. This is the first point and it is the one that will determine the rest. Thanks to the market research you will carry out, you will have a precise idea of the main trends of the cosmetic brands market. You will know more about the existing customer segments, but also about the buying behavior of the consumers.
This is also the time to evaluate your strengths and weaknesses, the competitive intensity that exists, the business strategies of your competitors, etc. By the way, the beauty industry is highly competitive and already has many brands. However, this will not prevent you from carving out a share.
The difficulty of new independent brands
If the situation is becoming increasingly complicated for independent brands, it is because large and medium-sized retailers control more than half the sector. There is also the selective perfumery which holds more than a third of the market. It is composed of traditional perfumers, but also large national chains, department stores, franchises, etc.. There are also pharmacies and parapharmacies with a small market share.
Market trends: aesthetic and organic
The field of cosmetics is very vast and constantly evolving. At the moment, many people are interested in medical aesthetics, which seems to have come back into fashion. This is also the case with organic and natural cosmetics. The craze for these two types of cosmetic products in particular can be understood when we see that women now think of making themselves beautiful by using the healthiest products possible, by opting for natural care and even by preferring organic makeup products.
Before using a beauty product, a new habit is gradually being established, where we check the components of each product before buying. Aesthetics and organic products are hot trends right now, and you can ride this wave to create your own product line.
What concept to position yourself well?
Since the market is highly competitive, you need a concept that is strong enough to appeal to your target market. So, once you've done your market research, you'll need to carefully determine the type of business positioning you want to achieve. You will need to ask yourself specific questions and provide answers:
- What kind of cosmetics do you plan to market?
- Who is your target (men, women, adults in general, children, everyone, etc.)
- What will be the price range of your products?
- Do the products satisfy a need? Etc.
Through all these questions, you will be able to determine a manufacturing process adapted to your situation. You will be able to better refine your various integration strategies on the cosmetics market. To this end, you will have to determine the distribution channels to be favored. These may include online distribution, pharmacies and parapharmacies, dedicated boutiques, etc. Also, you can choose several at the same time, depending on what your market research has revealed.
Then use storytelling to highlight your brand identity. True or somewhat modified, it's up to you to embroider around your brand thanks to all these elements at your disposal, to create a beautiful story, a beautiful concept. How did you come up with the idea, what audience did you think of, in what universe will your brand evolve, etc.? It's all about capturing your target's attention and getting them interested in your cosmetic products.
Register your brand
That's it! You have defined an interesting and catchy concept and you have your cosmetic brand...but not quite. You will only be able to boast of this if you register the name of your brand. This is done at INPI, the National Institute of Intellectual Property and it is the only way you can protect your formula from frauds which are numerous in the field. Also, if there is a problem with the name of your cosmetic brand, you can defend it without blushing in court if necessary.
Find a good distribution channel
This can be done in two ways. You can decide to distribute your brand's products by maintaining a physical contact with your customers via a physical store. The other solution will consist in selling online, which leaves you a wide opening since your products, with a good communication strategy, will gain a lot of visibility. As you may have guessed, each of these solutions has its advantages and limitations. However, the choice of your distribution channel can take into account certain criteria.
This makes it much easier to market organic products at slightly above-average prices in exclusive boutiques. The particularity of these shops is that they only sell one brand of product. There is also the pop-up store that you can set up in a busy place like a shopping district for example or in downtown. Otherwise, you can always opt for department store corners. This could be an interesting experience for you.
What legal status is appropriate for a cosmetics brand?
It is a company that you are going to set up by creating your cosmetic brand. It will therefore need a legal form, which means that there will be procedures to put in place and steps to take. However, you will have to choose the legal status with care, because it will have a great impact on your cosmetics business.
In fact, the legal status you choose will determine your social and tax status, the way you make decisions, your liability for debts, etc. It is therefore important to choose accordingly and, if necessary, to seek advice from experts in the field. Several choices are available to you concerning the status. You can have a microenterprise, a sole proprietorship, a simplified joint stock company (SAS), or a limited liability company (SARL).
Creating your own cosmetic brand: the needs
They are human and material, because your knowledge alone will not be enough to develop your business.
Material needs
Based on the characteristics of your project, you will determine the material elements you will need to carry out your activities. However, there will be costs to consider in order to successfully launch the brand. These include costs for laboratory research, product design and distribution. There are also costs related to the creation of the company, marketing investments, advertising, etc.
In the case of an online store, the costs may be lower. Nevertheless, there will still be a cost for the creation of the site, maintenance, research and development of the audience, etc. However, if you need to have at least one physical store, there will be costs related to renting or buying the premises, furnishing, running expenses, etc.
Human needs
You will need to surround yourself with competent personnel to whom you will assign tasks according to their skills. This will generate significant costs in terms of salaries that you will have to take into account. Also, your needs will depend on the type of project you have for your cosmetic brand and its scope. For example, you may need an administrative staff, a production team, a marketing team, a service team, etc.
However, you also have the possibility to outsource certain functions. Thus, for the management of your online store, you can delegate the tasks to a web agency for example. Similarly, instead of having a marketing team, you can entrust this part to a marketing agency, etc.
Other related services to consider
Your financial needs must be considered in your forecast and they do not stop at personnel and materials. You will also need to consider:
- Professional insurance
- Costs related to administrative management
- Accounting, etc.
If you are unable to accurately estimate all of these costs, you can simply request quotes from professionals in the relevant fields. This will help you make realistic estimates. Also, ask for several quotes to compare prices and get a fair average of the prices charged.
How to establish a marketing plan for a cosmetic brand?
In order for your cosmetics brand to be profitable, it is important to find customers, but above all to keep them loyal. To achieve this, you will have to put in place an effective marketing plan that will allow you to attract your customers. In order to develop this plan, you must take into account your commercial positioning, your objectives, your budget, etc. Among the actions to put in place, you can use :
Internet
Few brands are not on the internet. The web is an excellent way to reach the largest number of potential customers. You will be able to create links with them and make yourself known. This is how you can design a website that will be the showcase of your cosmetics brand.
For this to work, you will need a good presentation of your products, a neat and ergonomic online store, etc. Focus on the difference between you and your competitors and strive to create and show difference in the details, in order to be unique. This can be original content, tips, images, etc.
To be visible to Internet users and to be able to attract them, think about referencing. Indeed, it is not enough to exist on the Internet, it is essential to be well positioned in search engines. This way, when a target inserts the right keywords, you will automatically appear among the top results of search engines. You will then get a lot of clicks, since potential customers will see you.
It's up to you to make sure that once on your website, it will be as attractive as possible to retain Internet users, but above all, that your products and content will convince them to buy and come back. To achieve this, there are different ways, including referencing. This one can be natural or free, it's up to you according to your objectives and your means.
Another online strategy that works well is to partner with beauty and fashion bloggers and influencers. All you have to do is send them samples of your products and they will tell their community about it. You can alsocollaborate with online stores like Amazon for example, to be able to distribute your products through their platform.
Traditional distribution networks
These are the big shops that distribute cosmetic products, its traditional or selective perfumers, etc. By negotiating well with them, they could help you sell your cosmetic products. There are also beauty professionals who can help you sell your products and even make you known. We are talking about beauty salons, beauticians, company committees, etc.
Traditional media
Despite the internet, don't forget that traditional advertising channels still carry weight. For this purpose, you can talk about you on the radio, in the press, make advertisements for television, etc. However, this kind of action could be expensive, especially when it comes to television. Otherwise, you can also make yourself known through billboards, posters to be stuck in shops, etc.
Loyalty program and promotions
Many people are now looking for promotional periods to do their shopping. So, don't hesitate to multiply attractive promotions and sale times to entice customers to buy. It can be the launch time, during the holidays, etc. Also set up a loyalty program, etc.
How to write a business plan for a cosmetics brand?
This step is essential, especially to help you find financing, in case your own funds are not enough. However, a business plan has many other uses since it can serve as a roadmap, especially at the beginning of your activities. It will also allow you to be sure about the financial viability of your project. Therefore, the business plan, once written, must be clear and precise. It must contain realistic figures on the global situation of your cosmetic brand.
The business plan is often composed of two parts in general. On the one hand, the need for financing so that the brand can be born and be viable. On the other hand, the document presents the project of the brand, the targeted customers, the market, the commercial strategy put in place, etc. If you have difficulties in writing a business plan, online solutions exist to simplify the task. You can then be guided for each part of the document. By following the steps, you will be able to obtain a good professional document. Moreover, you can now find business plan templates on the web that are already written.
Where to find financing to launch a cosmetics brand?
It is with your business plan that you will be able to look for financing for your cosmetic brand. This document represents your project and potential investors will need to study it to get an idea. However, before getting to that point, you will have to try to find some personal contribution. This way, the financial risks are shared between you and your partners, which brings a little more credit to your project.
As far as your personal contribution is concerned, if you have savings, it is time to break the piggy bank. If not, you can call on your relatives or think about an honorary loan. The other solution will be to look for partners or passive investors who will help you to constitute a consequent capital.
Once the personal contribution is made, if the necessary amount is not yet collected, you can then contact credit institutions, banks, etc. Note that these institutions can be quite reluctant to finance new projects, since they contain a large amount of risk. Then, there is the solution of participatory financing. To do this, start a well-organized donation drive with interesting gifts and discounts at the end. Many people join in.
Creating your own cosmetic brand: in summary
Finally, you should know that not only banks and credit institutions can help you find financing. There are also aids and subsidies from the State or local authorities. They aim at helping the creators of companies.
