How to Start a Makeup Kit Manufacturing Business in Easy Steps?
The Makeup and Beauty Industry is one of the booming industries in the world. In India too, the scope of growth is tremendous given the fact that in countries like the US, UK, South Korea, and China, the industry is at an advanced stage and India has a lot of catching up to do. However, the industry is very fragmented and with a lot of players already in the domain, differentiation and specialisation become crucial factors.
But the thrill to make up your brand and see it become a success is something that very few have experienced. You can pursue your passion for beauty with your brand, fulfill the growing demand for cosmetics, control your finances and scale up your business on the go when you aspire to build a makeup kit manufacturing business of your own.
Let us dive into 10 Steps that can help you create a Makeup Kit Manufacturing Business of your own:
1. Define Your Brand and Goals
The act of developing a story that elicits an emotional reaction from your target market is known as branding. It's all too tempting to think of your beauty brand as "simply" your logo, but it's much more than that. Without the context of all, you stand for, your brand is nothing. What makes your brand special is you and your mindset.
Every aspect of your beauty brand, from the formulation to the packaging, marketing, aesthetics, and brand presentation must work together to elicit an emotional reaction from your target clients for them to fully interact with your brand.
If you miss one of the above-mentioned aspects, you are unlikely to succeed. It is not just important to create a new product, it is equally important to market that product to the right audience, have the necessary business processes to reach out to them, and keep on innovating on the go.
2. Define Your Product
Cosmetics combine to form a makeup kit. Therefore, to have a makeup kit manufacturing unit in place you should also understand what products would combine to form the kit. Cosmetics can be divided into a lot of categories. For example, in India Government Schedules can be divided into 11 categories.
Therefore, you must correctly identify what are the business processes that will be needed to help you manufacture your chosen products. While starting, it is advisable not to have a large product portfolio which may become difficult to handle. Rather, it is good, to begin with, a beauty makeup kit that may contain 3-4 products.
3. Define Your Market
After you have successfully identified your product, you must know what audiences these products will cater to. Therefore, you now must know whether your products will serve as a makeup kit for girls, whether they will serve as a makeup kit for women, or can serve a larger audience.
4. Register Your Company
An important part of establishing a company is to have a name in mind. The name should be catchy, help brand recall, and essentially give insight into your brand. After you have thought of a name, you can now follow the necessary processes to apply for a licence. In India for example, you must file Form 31 for licensing. Additionally, you should also register on the GST network and meet the requirements as set out in the Drugs and Cosmetics Act, 1945.
5. Plan A Manufacturing Strategy
When it comes to starting a cosmetic manufacturing company, deciding how to generate your inventory is a crucial step. In-house production has been increasingly prevalent in the cosmetics sector in recent years. This approach is most likely used by brands that are "hand poured" or "small batch." Cosmetic companies do their R&D, ingredient procurement, manufacturing, filling, packaging, and labeling. If you're starting off to become one of the makeup kit manufacturers, this could be the way to go.
When contemplating in-house production, keep in mind that because raw materials are obtained in lower quantities, the cost per item might be considerable. Despite minor disadvantages such as cost, in-house production gives you total control over your product. Without having to rely on a partner, this technique allows cosmetics producers a lot of flexibility and freedom. Additionally, you can also find out what other manufacturers are doing by visiting such facilities nearby. Searching by using the keywords “makeup kit manufacturers near me” will give you a lot of options.
6. Obtain the Right Equipment
After you have defined your manufacturing strategy, you also have to see that you have the right equipment for your products. You must rely on conveyor systems if you want to manufacture beauty kits in good numbers. Several systems are available which can help you increase your production capacity as you expand by using some simple add-ons rather than changing the whole set. Opting in for such products will help you save on finances.
7. Design and Build Your Products
Building your product is not only about ingredients; packaging also plays an important role in manufacturing. If you are making a makeup kit for girls, the products should be attractive, funky, and have a “pull” factor.
Also, it will be helpful if you already have in place what are the things that you want to include on your packaging. Keeping this handy will help you while you start working with design agencies or packaging vendors.
8. Define Your Supply Chain
As a follow-on from the Manufacturing strategy, also ensure that you have your inventory storage planned out and you have with you your logistics network ready as soon as the products are manufactured and ready to be shipped. Down the line, you may decide to rely on a third-party Logistics company that can help with dynamic storage and fulfilment of the order.
9. Focus on Marketing and Sales
Now comes the important part of marketing your product. It is time to determine how you will tell your customers about your product and how you will be able to pull them in. Decide on the channels that you may use for your products. Beauty kit manufacturers normally rely on private channels to market their products to other businesses and rely on channels such as TV, Radio, Banners, and Newspaper to reach out to their audience directly.
You also must keep in consideration the budget that you have allotted for this purpose. This will help you further narrow down the channels. Social media is another marketing channel that is gaining a lot of prominence off late.
10. Innovate
After you have successfully performed the previously mentioned 9 steps, comes the most important part, which is to take feedback, audit reports, and innovate. In this fast-moving industry, you should always have the next plan of action in place. Therefore, take feedback from your consumers and act on them as frequently as possible. The more you innovate, the better your chances of success.
Conclusion
Now you have all your plans in place. Be mindful of the brand vision, plan your product and identify your market accordingly. This will help you set up a well-polished manufacturing unit that is especially suited for your product and as soon as you have the product on your hands, your supply chain will take care of logistics and inventory. It is good to remember that this is a consumer-driven industry and therefore listen to your consumers and keep on innovating.
The last ingredient for making this a success is you. How you build your brand, how you define your product, and how you want to relay the message for your brand are something that you should be thinking long and hard on. The company can only be as great as its founder. So, pull up your socks, jot down your plan and get down to business. Success will find you!
FAQs: Makeup Kit
Q. Is Insurance necessary while setting up makeup kit manufacturing businesses?
Ans. Insurance is advisable when opting to open a new business. Depending on the type of business, you can have commercial property insurance, General liability insurance, Workers compensation insurance, data breach insurance, and so on.
Q. How much finance will be required and how can I acquire it for makeup kit manufacturing business?
Ans. Initial capital of around 30-50 Lakhs INR may be required to set up the makeup kit manufacturing business. Normally if you do not have any previous business insurance, financial institutions may be hesitant while giving you the entire amount in a loan. In this case, you may have to pitch in some capital on your own. However, if you have a sound business plan and have prior experience, lenders will be more lenient while offering a loan to you.
Q. What are the requirements for establishing a makeup kit factory premise?
Ans. The factory should have clean and hygienic conditions with proper sanitation. It should be far from a residential area and free from any pests. All the rooms should have waterproof, cleanable and smooth walls and disposal of wastewater should be available as per norms.
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