The global skincare market was valued at $134.8 billion in 2020 and is projected to reach $180.4 billion by 2025, with a CAGR of 6.0% during the forecast period. With more and more people entering into this industry every year, what should you do to increase your chances of success and bring your vision to life if you are also looking to enter this industry?
As the demand for clean, sustainable, and effective skincare products grows, there has never been a better time to start your own skincare brand. However, starting a skincare brand from scratch can be a daunting task. From sourcing ingredients to creating a unique brand identity, there are countless factors to consider when launching your own line of skincare products. Don't worry! We'll guide you through the entire process of creating a successful skincare brand, including market research, product development, branding, and marketing. So, whether you're a beauty enthusiast with a passion for skincare or an entrepreneur looking to break into the booming beauty industry, this guide is for you. Let's deep dive into the world of skincare and start a business together!
We've broken the process down into 5 major steps:
Seems simple, but a lot goes into starting a business. So without further ado, here's the rundown on how to start your skincare brand!
1. RESEARCH
What to consider before starting a skincare brand
Remember that starting a skincare line requires significant investment, dedication, and hard work. It's crucial to take the time to conduct thorough research, plan meticulously, and execute each step with care and precision. With so many factors to consider, from ingredient sourcing to marketing strategies, there's no room for cutting corners.
Financial Aspect: When launching a startup, it's important to be realistic about the amount of money that you can invest in the company. For instance, you will need to allocate money towards manufacturing, purchasing supplies for your business, and marketing expenses. Understanding the financial requirements of starting a skincare company and creating a solid business plan are key steps towards long-term success.
Roles: As a sole proprietor, you may have to juggle several roles at once, such as a marketing manager, graphic designer, and financial officer. Therefore, it is essential to be prepared to work long hours and be flexible to handle different responsibilities. It can be a challenging experience, but with the right mindset and determination, your startup can achieve success.
Skincare Research: In the skincare industry, having a good understanding of skin conditions, causes, triggers, and ingredients to help combat symptoms is a must. Customers trust and rely on skincare brands to provide effective solutions to their skin problems. By developing products that address specific skin concerns, you can establish a loyal customer base and increase your brand's credibility. Therefore, investing time and effort into researching skincare ingredients and their effects on the skin can help set your brand apart from competitors.
Find your niche - USP (Unique Selling Point) / Hero Product
The beauty industry, particularly the clean beauty segment, is incredibly saturated, making it challenging to stand out. It's essential to seek guidance and inspiration from industry leaders and mentors to help navigate this competitive market. Here are some tips to keep in mind:
When starting a skincare brand, it's important to consider the type of products you want to offer. Some options include:
eco-conscious products that appeal to consumers who prioritise natural and environmentally friendly ingredients
luxury products for high-earning clientele
specialist products designed to address specific skin conditions.
Selecting the right products to specialise in can be challenging. Consider which skincare category you want to focus on, such as:
Facial Products
Haircare Products
Body Care Products
Lip Care Products
Intimate Skincare Products
Additionally, determine if there is a hero product that could become your brand's flagship offering and help distinguish your brand from competitors.
While chasing trends may seem like a tempting strategy, it's essential to focus on solving the problems and frustrations of your target audience. By presenting your products as effective solutions for specific concerns, you can earn customer loyalty through quality and authenticity. As recommended by successful business owners, creating an original product with a compelling story can help you find your target demographic and establish a strong brand identity.
2. REGISTRATION + PLANNING
During this phase, you will need to conduct a business plan that will outline everything you need to start your business. It's also essential to pay close attention to legal requirements such as obtaining necessary licenses and permits, ensuring product safety and proper labelling, and registering your business with the relevant authorities.
Business Plan
A business plan will assist in your skincare brand to keep track of the necessities you'll need for starting your business in an organised manner.
Executive Summary - Introduce your business, explain your goals, summarise plan
Products/service - Description of what you offer
Marketing Research - Determine target audience (This is very important!!)
Marketing Strategy - Outline how you would promote skincare line
Competition analysis - Research and analyse competitors in the industry
Financial Plan - Estimate start up costs, profits and predict sales revenue
Operations Plan - Details regarding manufacturing, product and fulfilment
Legal requirements
It is essential to obtain the appropriate licenses and permits to ensure that your skincare products meet regulatory requirements. In Australia, the cosmetic market is largely self-regulated, and while a license is not required to manufacture cosmetics, there are still several things you must do to comply with regulations. Here are some essential things to consider:
Strictly monitor air and water quality
Ensure your facilities are well-ventilated, dust-free, and temperature-controlled
Ensure that the chemicals used in your products are permitted in Australia (NICNAS)
Fulfil claims, safety, and labelling obligations with the Australian Competition and Consumer Commission (ACCC)
Check if your ingredients are covered by the poisons standard by the Therapeutic Goods Administration (TGA)
Check with IP Australia to ensure that your product does not infringe on any copyrights or patents.
Registrations: To operate your skincare brand legally, you must also register your business and secure business insurance. It is highly recommended to consult with an accountant and a lawyer early on to navigate the legal requirements. Here are some crucial steps to take:
Register your business and name with the Australian Securities and Investments Commission (ASIC)
Apply for an Australian Business Number (ABN)
Get a Tax File Number (TFN)
Register for Goods and Services Tax (GST)
Register your website domain name
Open a business bank account.
3. PRODUCT PROTOTYPING
Now that all the documentation and legalities have been done, it is time to start developing your products.
Products
Collaborate with a cosmetic chemist to develop a line of skincare products that are not only effective, but also safe and compliant with regulatory requirements. This process involves:
Formulating Products: Work alongside a cosmetic chemist to create skincare products that meet your requirements and customer needs.
Ensuring Safety and Compliance: Ensure that the products are safe and meet regulatory requirements before testing and releasing them to the market.
After the product formulation stage, it is important to conduct thorough testing on the products to ensure that they are effective, safe, and meet the needs of your target market. This process involves:
Product Testing: Conduct extensive testing to ensure that your skincare products meet safety and quality standards.
Meeting Customer Requirements: Ensure that your products meet the requirements and expectations of your target audience. This helps to build customer loyalty and brand reputation.
Photo from CDC from Unsplash
Manufacturer/Supplier
Research to find a reliable manufacturer or supplier for your skincare products is essential to ensure the quality and effectiveness of your products. Here are some ways to find a reliable partner:
Look for a partner who can provide custom formulations that meet your specific requirements. This is crucial in creating a unique and high-quality skincare line.
Attend industry events and trade shows to connect with potential suppliers and manufacturers. These events are a great opportunity to meet industry leaders and discover new trends in skincare.
Utilise global directories to find reputable suppliers and manufacturers from different countries. These directories provide a comprehensive list of businesses in the skincare industry.
Ask for referrals and recommendations from other skincare brands or industry leaders. This is a great way to get reliable information and feedback about potential partners.
If you're looking for unique formulations and custom products, choose a private label skincare product manufacturer. It's important to carefully pick the right partner as it will determine the quality of your products. Once you have selected a partner, purchase the necessary ingredients in bulk to begin manufacturing your skincare products.
4. BRANDING
We are almost there!! It is time to create the face of your business - the branding phase. This is where you establish your brand identity and connect with your target audience. A well-crafted brand can help differentiate your skincare products from competitors and attract loyal customers. Developing a strong brand is essential to the success of a skincare brand. This involves creating a unique identity that resonates with your target audience and effectively communicates your vision and values. To achieve this, you need to focus on the following elements:
Develop a brand story: Determine the values and beliefs that inspired you to create the brand, and craft a compelling narrative that will resonate with your target audience.
Define your target audience: Identify the specific demographic of customers who are most likely to be interested in your skincare products.
Establish a brand vision, mission, and values: Clearly define the long-term goals and values of your brand, and communicate them in a way that resonates with your target audience.
Create visually appealing branding: Develop a logo and choose colour schemes and typography that will help your brand stand out and be easily recognisable.
Design product packaging: Choose packaging that reflects your brand identity, and consider practical factors such as durability and ease of use.
Invest in high-quality photography: Use professional-quality photos to showcase your products and establish a strong brand image.
Website or Ecommerce platform:
In addition to creating a strong brand identity, it is also important to have a functional and user-friendly website or ecommerce platform to showcase your products. Here are some important steps to consider:
About page: Use this page to introduce your brand and provide more information about your story, mission, and values. This can help potential customers get to know your brand and build trust.
Product page: Make sure your product pages provide accurate and detailed information about your skincare products, including ingredients, benefits, and usage instructions.
Marketing tools: Use email marketing, social media, and other marketing tools to reach potential customers and build brand awareness. This includes sharing valuable skincare tips, creating engaging social media content, and running targeted ads.
Blogging: Establishing a blog can help you establish expertise and authority in the skincare industry. Use your blog to share skincare tips, industry news, and other relevant content that will help build your brand's reputation and attract potential customers.
Ecommerce platform: Setting up an ecommerce platform can be a great way to sell your skincare products directly to customers online. You don't need extensive coding knowledge to do this; there are many ecommerce platforms available that make it easy to create a fully functional online store such as Shopify.
5. LAUNCHING
Congratulations your business is now ready to launch! All your hard work with product development, branding, and marketing finally comes to fruition. BUT!! There's still some work to be done for this to be a successful launch. For instance: marketing.
Marketing
Without marketing, no one will know how or why your brand exists. So here are some ways to promote your business to potential customers. Here are some ways to promote your brand effectively:
Social media: Utilise popular social media platforms like Instagram, Pinterest, and TikTok to showcase your products and interact with your audience. Share engaging content, such as tutorials, before-and-after photos, and user-generated content to build brand awareness and establish credibility. It's important to maintain a consistent brand aesthetic and messaging across all social media channels to reinforce brand identity.
Social proof: Use customer reviews and ratings to demonstrate the effectiveness of your products and offer special discounts or promotions to incentivise customers to share their feedback. Positive reviews and testimonials can be powerful marketing tools and help increase brand credibility.
Collaborate with Other Small Business Owners: Collaboration with other small business owners in your niche can help expand your customer base and build your brand. You can partner with a complementary brand to offer bundle deals or cross-promote each other's products. Collaborating with other business owners also helps you learn from their experiences and gain new insights into the industry.
It's important to remember that building a successful skincare brand takes time and effort. Consistently implementing these promotional strategies, in combination with quality products and excellent customer service, can help establish a loyal customer base and drive sales.
Monitor and Adapt
It's not enough to just promote your skincare brand; it's equally important to regularly monitor and adapt to ensure its continued success. You should regularly evaluate the performance of your products and marketing strategies to identify areas for improvement and stay ahead of the competition. Keep up with the latest skincare trends and innovations to make sure your products stay relevant and appealing to your target audience. By continually evolving and improving your brand, you can build a strong foundation for long-term success in the skincare industry.
Building a successful skincare brand requires dedication, patience, and a willingness to adapt to feedback from customers. Customers play a crucial role in the success of the brand, so it is essential to pay attention to their feedback and make adjustments to the branding accordingly. While starting a business may be challenging, it's important to be patient and not worry too much about immediate success. Remember, building a successful brand takes time and requires a strong marketing strategy and a solid business plan. Just like skincare products, it takes time to determine what works and what doesn't. With dedication, perseverance, and time, your skincare brand can flourish and become a staple in the industry. If you are looking to create an influential skincare brand, contact us to see how can we bring your visions to life!