How To Start A Cosmetics Business In Nigeria – Cosmetics business can be lucrative, especially in Nigeria. It is a popular venture, especially among people interested in the beauty and personal care industry. It’s one of the lucrative businesses that have high recognition in Nigeria. People constantly want to look beautiful, and nearly everybody uses a cosmetic product. Due to its high demand, the business has a high competition rate in the industry. One attractive aspect of this business is that it doesn’t require a huge amount to start. There are different types of cosmetic products. Some are expensive while others are cheap. So, are you interested in venturing into the cosmetics business industry? This article will provide you with a guide on how to start a cosmetics business in Nigeria. Read on.
How To Start A Cosmetics Business In Nigeria
Let’s look at the Necessary steps You can take to start your Cosmetics Business In Nigeria.
1. Conduct a market survey
Even though every Nigerian uses cosmetics products at least every day, you will need to conduct a market survey regarding the cosmetics business, especially in your location, to see whether it’s possible to start the market there. This will allow you to know the rate of customers that will come knocking on your door when you start and also to see whether you have many competitors. This will also give you an idea of what your customers can afford. For example, you can’t establish an expensive cosmetics shop in a rural area; instead, you will need to sell something you are sure the people in the area can afford. Remember, your customers are the king; they are the essential factor driving your business forward.
2. Obtain the funds required for the business
Once you are done surveying the market and are surely starting the business in the area that will yield a positive result, your next step is to source the required funds. So to ideally have an idea of the funds that will be enough for the business, you should write a business plan. You can obtain capital through private funding, getting a loan, or looking for investors. The exact amount you will need depends on the business size you want to establish.
3. Rent a shop or space
Your next step is renting a business or space where you will start the business. Put the following three factors in your mind when renting a shop
- Ensure your customers can purchase the products
- It’s an easily located place
- People pass by your shop daily
After getting the perfect shop, you should design and brand your shop. Make sure the design is that will attract people; you can hire a graphic designer that will help you with the brand.
4. Purchase the cosmetics product
Depending on the size of your cosmetics business, you can purchase your cosmetic products wholesale from markets like the Abia and Onitsha markets or even import the product from foreign countries like the USA, China, or Dubai. If it’s a small-scale business and you are far from the mentioned places, you can start purchasing from local markets, so when you earn enough profit, you can begin importing since it will be even better, and the payoff will increase. Also, you can import from China right after the product is made, then brand it so that you are the original producer. This will make it look as if you own a cosmetic company.
5. Stock your shop
After buying the products, stock them in your shop. Make it look attractive and put each product on display so your customers can see them from outside. You can consider using display shelves which you can get a local furniture carpenter to do for you.
6. Start the business right away
You might think you may require a grand opening to attract customers to your business successfully. But this is not always the case. As you establish the company in the right place and have the products available, you only need to open your doors, and customers will come to purchase the products.
7. Market your business
An essential tool that will help customers regularly patronize you is marketing. You can even sell your products online. You can market your business both online and offline; online, you can list the company on various social media platforms, and offline, you can stick to words of mouth form of advert.
That’s it! Above is a guide on how to start a cosmetics business in Nigeria. Read on to learn how to grow your cosmetics business.
How To Maintain Your Cosmetics Business And Keep It Growing
You should know that all cosmetics products have a particular time they will reach before they expire. So in this case, you need to keep selling your products so you won’t waste your capital. Some of the ways you can maintain business growth include;
1. Protect the cosmetics business
Most cosmetics items are produced using fruits, minerals, vegetables, etc. So you must keep them in a cool and dry place so they won’t spoil easily before their due date. Ensure your shop isn’t in a damp area and not an extremely hot place.
2. Check the expiry date
You don’t want to chase your customers away by selling them expired products. Therefore, whichever product you purchase, make sure it’s far from its expiry date. At least, it should reach 12 to 24 months before it expires so your customers can fully leverage its usage. This will also build trust between you and your customers, knowing that your products are genuine. Also, you should beware of selling expiry products because it can get you behind bars. Alternatively, you can have a book where you will keep track of the manufacturing and expiring dates of the products you sell.
3. Prioritize low prices
As tempting as it will be for you to want to make a considerable profit at the beginning of your business, put that temptation down. At this phase, your biggest priority should have a loyal customer base. Nobody in their right sense will buy a product nearly double its original price; they don’t even know you, and without any reliable relationship, they will prefer to buy things from cheap shops. So ensure you minimize the profit; if you gain something from that product, even if it’s small, accept it.
4. Market your cosmetics business on social media platforms and others
Another strategy to promote and maintain your cosmetics business is to market your business using social media platforms. Popular platforms to promote your business include Facebook, Instagram, Twitter, and more. Also, you can run billboards, radio and Tv advertising, etc.
How Do I Register My Cosmetics Business In Nigeria
As we said above, you must register your business with NAFDAC. So let’s look at the steps you can follow to register.
The first step is to write an application to NAFDAC and provide them with information like your Certificate of Incorporation or Registration of Business Name. Trademark Certificate or Acceptance letter, Comprehensive Certificate of Analysis, Proposed Lable, and payment of application fee. The fee also depends on your business size; the micro-enterprises fee is N22,000, the small enterprise’s cost is N66,000, while the medium and large enterprises’ price is N85,000.
2. Facility inspection
After obtaining an application, NAFDAC will conduct a facility inspection of your business. This phase usually happens when you start producing your cosmetics or when you import from China and brand it. The facility inspection fees are N15,000 for micro-enterprises, N30,000 for small enterprises, and N40,000 for medium and large enterprises.
3. Approval or rejection
Once NAFDAC reviews your documents and finds them satisfactory, they will send you a Notification of Product Registration. Whereas, they could also reject the application if they are unsatisfied. However, you can only use the notification letter temporarily. Later, they will send you a Certificate of Product Registration.
Starting a profitable cosmetic business requires proper planning, market research, and good knowledge of the legal requirements. Follow the laid-down steps to learn how to build a successful cosmetic business and adopt effective marketing strategies to maximize profits from your cosmetics business. Good luck!
Frequently Asked Questions
How much does it cost to start a cosmetics business in Nigeria?
The amount required to start a cosmetics business depends on the size and kind of product you want to sell. You can start the business with as low as 20,000 Naira. On a medium scale, you can start with 100,000, 500,000, or 1 million, and on a large scale, you can invest 5 million, 10 million, or 20,000. Overall, it all depends on the product you want to sell.
Do I need to register my cosmetics business in Nigeria?
Yes, you must register your cosmetics business in Nigeria to avoid problems now or in the future. You are required to register the business with the National Agency for Foods and Drugs Administration and Control, NAFDAC.
How can I find reliable suppliers for my cosmetics business in Nigeria?
To find reliable suppliers for your cosmetics business in the country, you can search online directives, attend training, trade fairs, and more.
What marketing strategies should I implement for my cosmetics business in Nigeria?
The marketing strategies to be used depend mainly on your target market. You can use influencer marketing, social media marketing, billboards, tv adverts, and more.
Can a cosmetics business be lucrative?
Yes, it can. With Hard work and perseverance, the cosmetics business can be rewarding.
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