The skincare industry is booming and is expected to be worth $202.5 billion by 2026. As more and more people become more aware of the products they put on their skin, this creates a space for indie brands to create thriving skincare companies.
However, starting a skincare company is not an easy task. The competition is fierce, and the industry is highly regulated. If you’re considering venturing into the skincare business, you need to know the correct steps to take to turn your dream into a successful venture.
This article will discuss the five essential steps you must remember while opening a skincare company. With these steps, you’ll be on your way to building a thriving business in the exciting world of skincare.
- Skincare Niche
The first step in opening a skincare company is identifying your niche and, thus, finding out who your target customers are. Skincare is a vast industry, covering everything from cleansers and masks to facial oils and sunscreens.
You need to determine what area of skin care you want to focus on and double down on it. For example, you may want to create products for people with sensitive skin, acne-prone skin, or dry skin. Whatever your niche, it’s essential that you have a deep understanding of the market and your target customers.
- Hero Product
Opening a skincare line is an exhilarating experience. You probably have numerous products you can’t wait to create and get to your customers. While all this is great, you should hold off on that and get a hero product or singular product for which your company will be known.
This might be an anti-aging cream with peptides or a lash serum with fats. If you’re having difficulty coming up with your flagship product, consider your brand message and values and choose a product that best reflects that.
The second item that you need to think about is logistics. Think of logistics as the second urgent concern. Figure out who will be your logistics partner, and where will your manufacturing base be located, your shipping partner, where you will get your products tested, and what the legalities are.
You can choose to either have an overseas manufacturer or a local one. Weigh the pros and cons and decide which one will work with where on the journey your company is at.
- Shipping Partner
If your manufacturer will also double as your shipping partner, how fast can they ship products to your customers?
Make sure that your company meets FDAs rules and regulations concerning cosmetics. Whether you’re working out of your home or have a dedicated space, ensure that your company follows all the rules. You can also work with a lawyer concerning any licensing and documentation to protect your brand.
Ensure that your labels meet the standards of the country you plan to sell your products. Check on the FDA’s website regarding their laws and talk to a lawyer to ensure you’re doing everything by the books.
How will you Market your Line?
Another crucial step is setting up your marketing. If you’re a one-person show, consider setting up social media pages for your brand before your launch date.
This can help you get to know your customers, build a relationship with them and, when the time is ready, help with sales. Making sure you have a working marketing strategy can help you avoid common pitfalls.
- Research Is Your Best Friend
Opening a skincare line requires that you do your due diligence. To avoid creating potentially disastrous items that would lead to lawsuits, research is necessary to get the best possible formulations for your customers and create a high-quality, helpful skincare line.
While this doesn’t necessarily mean that you must be a chemist or dermatologist, you must be knowledgeable. You must understand shelf life, how preservatives work and interact with other ingredients and allergens, and the storage procedure for specific products.
Get your hands on as many books as possible, work with mentors in your field if you can find any, and research online. The web can be a great learning resource if you’re willing to search and read.
- Brand Identity
Your brand identity/image is what sets you apart from your competition. This is what makes your company unique and recognizable to your customers.
To create your brand’s identity, you need to come up with your name; if your line is all about clean and vegan skincare, you could go with something like organic balms if you’re selling creams and ointments.
- Logo, you can take the creative reins on this one. A great logo will communicate your values through it to your customers.
- Packaging – your packaging is the first thing your customers will encounter before your product. Ensure it’s practical, eco-friendly, and can be customized to include your colors and name (this is optional ).
Additionally, ensure that your brand’s identity aligns with your company’s values. If your customers sense that your identity is off base with what you say you believe in, they will jump ship accordingly.
Opening a skincare line requires a lot of patience, hard work, and dedication. While you will be needed to deeply understand your niche and develop effective formulations with these tips, you can get started on your entrepreneurship journey and hopefully make it a great one.