Selling cosmetics is one of the most profitable businesses to start in Nigeria. On a daily basis, we all use soap and cream. We all want to look good, which is why cosmetic businesses thrive even during recessions.
In fact, the cosmetics industry is expected to continue to dominate the retail industry in the coming years. It is a multibillion-dollar industry that, despite its size, is not yet saturated.
In Nigeria, starting a cosmetics business is both profitable and exciting. You can start this business on a small or large scale, depending on the amount of capital you have available.
STEPS TO VENTURE INTO COSMETICS BUSINESS IN NIGERIA (2023)
With the increase in the number of cosmetic brands, it is necessary to employ additional strategies in order to stand out in the industry. We’ve compiled some steps on how to start a successful cosmetics business in Nigeria in this article.
The steps outlined here will provide you with a detailed, actionable guide for launching a cosmetics business in Nigeria, even if you intend to start this business on a small scale. The following are some things to think about before starting a cosmetics business in Nigeria:
STEP 1: GET THE REQUIRED TRAINING
You must first go through some basic training to understand how the cosmetic industry works. You’d learn the names, sizes, prices, and functions of the products, among other things.
While teaching you how to trade in cosmetics, your tutor will also show you where he or she buys products. Don’t be afraid to ask your questions, no matter how silly you think they’ll sound. Inquire about how to purchase the products, how to identify the originals, how to price them, and anything else you might need in the future.
STEP 2: GET THE CAPITAL TO START
When starting a cosmetics business in Nigeria, one of the things you should think about is capital. There is no fixed capital; everything is dependent on your financial ability. You can begin on a small scale with a capital of ₦50,000 and gradually expand. If you have sufficient funds, you can begin on a medium scale with a capital of ₦500,000 to ₦1 million, or on a large scale with a capital of ₦10 million to ₦20 million.
There is no such thing as an excessive amount; it all depends on the size of the business you intend to run. One thing to remember is that there is always room for growth, especially as you gain more experience in the business. But, as I always say, start with what you have.
STEP 3: GET A GOOD LOCATION
Your business should be located in a very busy, easily accessible area. If at all possible, locate your business in a location where other items relevant to your business are sold, such as clothing, shoes, and handbags.
Also, conduct surveys in the area to determine how many people sell similar items nearby. This will assist you in determining whether it is truly worthwhile to pursue.
STEP 4: SETTING UP YOUR SHOP
Your shop’s products should be neatly organized by functions, sizes, and brands. Depending on your preferences, you can decorate the walls with nice wallpaper or beautiful wall paintings.
Regarding the shelves, you can either hire a carpenter to build them into the wall or opt for show glasses. They are both good and will fit in with any type of cosmetic store. People should be able to walk around freely in your shop, so it should be spacious and airy. Passers-by should be able to easily look inside the shop from the outside if the front is designed properly.
STEP 5: GET YOUR PRODUCTS READY
Make sure to only deal with original product dealers and, if possible, deal directly with the manufacturers.
Many cosmetic stores have closed due to the prevalence of counterfeit products. Not just any seller in the market, but only certified dealers, people who have their reputations to protect.
STEP 6: START SELLING
You should not focus solely on one product; instead, be versatile in order to meet the needs of your customers. Stock your store with a variety of popular creams and other items. You could sell hair products, powder, mascara, powder, foundations, nail polish, and so on.
STEP 7: MARKETING OF YOUR PRODUCTS
As a new business, you won’t have hundreds of customers pouring into your store. You’d need to do a lot of publicity, both online and offline, to let people know about your new venture.
You can create fliers and posters that include your company’s name, address, and other contact information. We live in a digital age, and meeting your customers is much easier than it used to be. You can begin utilizing the various advertising mediums to reach your customers. One advantage of the internet is that many ad networks allow you to select a target audience.
STEP 8: ADD MORE VALUE TO YOUR PRODUCTS
With increased competition among beauty brands, you really need to apply unique and brilliant ideas to succeed. Spy on your competitors to see what they’re doing better than you and how you can improve your brand.
STEP 9: KEEP UP WITH LATEST TRENDS
You can’t run a successful cosmetics business unless you know what your customers want. Trying to stay more up to date than your competitors is one tip for staying ahead of them.
Surveys can help you learn more about what your customers require. This will also assist you in determining why they choose products from other brands and what they haven’t gotten from rival brands.
STEP 10: ENSURE YOU SATISFY YOUR CUSTOMERS
Offering a great product isn’t always enough; you also need to show your customers that you care about their satisfaction. You don’t have to provide the same service as everyone else; try something different.
One very important fact to understand about starting a cosmetics business is that it can be hazardous if not properly managed. Even as a beginner, you could make a good profit from your cosmetics business if you do it well. As I previously stated, selling fake products is bad for your reputation and may even land you in legal trouble. You will have no trouble generating sales if you use effective marketing strategies.