How To Start Small Cosmetic Business In India? 

The cosmetic industry in India offers great opportunities for manufacturers, businessmen, and importers looking to start a small cosmetic business in India. If you are considering starting a cosmetic business, whether a brand like Nykaa or a company like Sugar Cosmetics, but you are clueless about how, then we have the correct guidance for you. This is a perfect guide with some tips on how you can enter the cosmetic industry. Understanding the Cosmetic Rule, 2020, and obtaining the necessary license are the key steps in setting up your business.

What Are Cosmetics? 

As per Cosmetic Rule, 2020, under the Drug and Cosmetic Act, of 1940, cosmetic is defined as any article intended to be rubbed, sprayed, sprinkled on, or introduced into the body of human beings or applied on any part of the body for cleaning and enhancing the beauty. Cosmetics include products like skin creams, perfume, lotion, hair products, and facial makeup, etc.

Steps To Be Followed To Start Small Cosmetic Business In India  

Following are the steps required to be followed to start small cosmetic business in the cosmetic industry:

Step 1: Market Research and Identify The Target Audience

Before you start your Cosmetic business, it’s important to pinpoint who your ideal customers are, considering factors like age, gender, and lifestyle.

• Conduct Market Research: Survey and use digital tools to gather information about customer preferences and behaviour.
• Niche Selection: Decide on which segment you want to focus such as organic skincare products or luxurious cosmetics.
• Analyse Competitors: Research and examine what your competitors offer, their pricing strategies, and how they engage their customers.

Step 2: Legalize Your Business By Securing Required Permits

Registration of business and obtaining the required permission is crucial to ensure legal operation.

• Business Registration: Register your business name with the relevant authority and choose the appropriate business structure.
• Secure License: In India, you need to obtain a license from CDSCO, under the Drug and Cosmetic Act, of 1940. This justifies your product adhering to cosmetics regulatory requirements.

Step 3: Select Reliable Suppliers

Finding trustable and reliable suppliers is the key to obtaining high-quality ingredients and packaging materials.

• Analyse Supplier: Identify and communicate with the supplier for quality ingredients and packaging material.
• Quality Control: Ensure your suppliers follow Good Manufacturing Practices (GMP) and provide you with all the required certificates.

Step 4: Design A Business Plan

The detailed business plan will serve as the blueprint for your business, guiding you through every stage of development.

• Overview: Summarize your aim for business, your vision, product, and market potential in a nutshell.
• Market Insight: Include target audiences and your competition.
• Financial Plan: Estimate startup cost, revenue projection, and break-even point.
• Operation Strategy: Mention your production processes, how you will maintain the supplier chain and day-to-day operational tasks.

Step 5: Conduct product testing

Before large-scale commercialization, test your product to receive feedback from customers and make necessary changes.

• Initial Production Run: Develop a small batch of products to test on ideal customers.
• Feedback Gathering: Collect feedback about product quality, packaging, pricing, and overall experience.
• Necessary Refinement: Make changes that are necessary before mass production.

Step 6: Create A Strong Marketing Plan

Strong marketing for small cosmetic business will help you network with your target audience and build brand awareness.

• Content Marketing: Produce valuable content like blogs, tutorials, or posts to engage potential customers.
• ChooseSales Platform: Decide whether you want to sell products from your website or an already established marketplace like Amazon and Flipkart.
• Leverage Digital Marketing: Use social media and email campaigns to promote your products.

Step 7: Launch And Start Operating Your Business

This is the phase where you put your plan into action and start running your business.

• Launch: Introduce your products into the market.
• Monitor Sales: Track sales and feedback from customers to assess business success.
• Continuous Optimization: Regularly review and improve your business process and strategies to leverage success.

How Much Money is Needed To Start a Cosmetic Business in India?

To start a small cosmetic business in India, you need a fixed amount of 7 Lakh to 10 Lakh. This will easily help you start your cosmetics brand or business.

Do I Need a License to Sell Cosmetics in India?

Yes, If you start small cosmetic business In India then you require multiple licenses for the manufacturing and import of cosmetics products.

How ELT Corporate Can Assist You With Your Cosmetics Business?  

At ELT corporate, we make your business journey smoother and more successful, here’s how:

• We will help you in targeting the right customers and how to outshine your competitors.
• We handle the legal registration process and licenses, which will help you to focus on growth.
• We connect with the best supplier, ensuring your product shines in the market.
• We build strong marketing strategies that attract customers.

Frequently Asked Questions (FAQs)