Cosmetics business in Nigeria is gradually becoming a lucrative business in Nigeria because many Nigerians now care about their skin and the way they look generally.
The average Nigerian woman spends about 5% of her monthly income body creams, bathing soaps, hair creams, hair relaxers, face masks, powder and more just to look different from every other woman around them and to attract men.
While the average Nigerian men spend less but still chase after all these cosmetics products to also look good.
Those that are dark in complexion want to become light in some cases and those that are light want to become lighter. This is why cosmetics business in Nigeria is highly profitable now.
Many Nigerian youths are not left out of this either they want to look flawless and attractive and don’t mind spending a huge amount to money to be able to achieve this.
Asides from all these, the cosmetic business is a very large business sector in Nigeria because it consists of make-up business, organic care business – a kind of cosmetics business where natural fruits and vegetables are used to glow the skin, and skincare business – a kind of business where you recommend products or solution to customers having skin problems.
So it is a very large business in Nigeria. You can either go into just one aspect of the business or go into all aspects of it if you can afford the capital needed to start.
How to Start Cosmetics Business in Nigeria
1. Do Your Market Survey
In as much as all Nigerians use body creams, soaps and other kinds of cosmetics you still need to do the due diligence and perform a market survey in your area, state or town if starting a cosmetics business there can be lucrative.
Doing a market survey when starting any business in Nigeria is important as it lets you know if the business you’re trying to start is lucrative especially where you want it to be located or not.
It let you understand what Nigerians basically the ones in your area can afford as regards cosmetics. For example, an average Nigerian living in the village cannot be able to afford expensive creams like Nivea even though they might want to buy it.
They will rather use cheap creams like Vaseline or shea butter as they have other important needs like food to spend their money on. So starting a cosmetic business in areas like this might not be successful.
Remember the customer (consumer) is king.
Conducting a market survey before starting a business in Nigeria also gives you a picture of how Nigerians in your area think as regards their money and expenses.
What cosmetics products will sell to them and what cosmetics product won’t sell.
That’s why after carefully considering all these, my best advice here is for you to start your cosmetics business in a city rather than just any random place.
If you look around you and you don’t see any cosmetics business in your area, it might not necessary be because no one has not come up with the business idea.
I might just be that all business starters have discovered that the business will not lucrative therefore opt out..
2. Get Your Capital
After doing your market research or market survey, the next step here is for you to source the capital you will need to start your cosmetics business in Nigeria.
You can do this by self-funding the business yourself or by getting the money as a loan and as time goes by pay back the money on an installment basis.
The exact money you will need as capital in this business is not specific as it all depends if you want to start the business on a small scale, medium scale or large scale.
However, if you want to start the business on a small scale level you will need capital not less than N100,000. To start the business on a medium scale level you will need a capital of N500,000 or more.
And if you want to start the cosmetics business on a large scale you need capital not less than N2,000,000 (N2M).
Starting at any of these scales has its advantages and disadvantages.
For example, if you start at a small scale the most benefit you’ll be getting from this business is low risk in terms of the capital you invest and if you start the business at a large scale the most advantage you will be getting from this business is higher profit.
Either of these scales is beneficial in one way or the other. It just depends on the one you can afford.
3. Rent a Shop or Space
When it comes to starting a profitable cosmetics business in Nigeria renting a shop at the right location is very important.
So when renting a shop you should consider these 3 factors. An area where:
1. Buyers or consumers can easily afford to buy your cosmetics products
2. Thousands of Nigerians pass by every day
3. Customers can easily locate you
4. Buy Cosmetics from wholesalers
Depending on how much you want to use in starting your cosmetics business in Nigeria you can either buy your cosmetics products from wholesalers in popular markets like Aba market (Abia State), Onishta market or Eko/CMS market in Lagos State or import your cosmetics products directly from the USA or China.
You can start with buying from the local markets around you and as time goes by when the cosmetics business has started yielding massive profits year in year out proceed to import directly from China.
Importing from China can give you a total makeover in your brand because you can add your brand on the cosmetics products right from when the products are made making it look like you produce your own cosmetics products yourself.
This gives you an authority in the cosmetics business and makes you own the cosmetics sector in Nigeria easily.
I know a popular cosmetics brand that does this very well but I won’t mention their name.
5. Stock Your Cosmetics
When it comes to stocking your cosmetics in your shop after buying them from your wholesaler extreme care must be taken.
The first care is to make sure the cosmetic products are well packaged into the delivery van to avoid spillage or damages.
And the second care is to make sure cosmetics goods are well arranged in your shop. This is after doing your stock.
Stock is the process whereby you make sure all the cosmetics you brought from the wholesaler are well accounted for with their wholesale prices so that you can know how much you will add to it as your profit.
Stocking or inventory as some people call it is very important in the business of buying and selling as it lets you know how much you bought each product and how much you are willing to sell them.
After all these you can now proceed to arrange your products: creams, powders, mascaras, lipsticks, make-up brushes and so on in your shop.
Do not forget to use display shelves that are very attractive to the eyes to arrange your cosmetics. You can contact your local furniture shop for this.
Also, lightning is very important as this makes your shop look attractive from the outside to inside. There are some specific kinds of bulbs that are you used in this kind of business. Contact your local electrician on this too.
6. Start Selling Cosmetics
At this stage start selling your cosmetics. Many business starters think to start selling their products they need a grand opening but this is not always true.
There are some business you just have to start anytime and any day as long as the goods are available and there are customers to buy them.
This is why I advise Nigerian youths to always advertise what ventures they are into even before they actually start these ventures so that buyers will start coming in right on time.
In any kind of business, the first people or consumers you should always try to sell to first should be your family and friends.
Asides from the fact that doing this helps you to learn how to advertise your products easily it also helps you make money on time as a beginner in any business.
So as regards this cosmetics business, try to advertise your products to your family and friends for profits to start coming in from day one or before day one.
7. Sell Cosmetics Online
If you are into any business in Nigeria selling your products or services online cannot be overemphasized.
E-commerce websites like Konga and Jumia and Websites like Jiji can be used to promote your cosmetics products online to intending customers.
This is because 70% of your customers will not pass in front of your shops rather they will be online either shopping or snooping around on social media (Instagram, Facebook, and Twitter).
You need to meet them there.
With a good phone that has a good camera, you can snap these cosmetics products and upload them online for advertisements.
How to Keep Cosmetics Products from Spoiling or Expiring
When it comes to keeping cosmetics products and making sure they are sold in good conditions there are some precautionary measures you must take as a seller to avoid losses.
These precautionary measures will be mentioned below so that it will be easy for you to take notes of them.
8. Keep Cosmetics in Cool and Dry Places
Because cosmetics products are made with fruits, vegetables, minerals and some chemicals they have to be kept in a cool and dry place despite been packaged in good containers.
So it is advisable that anybody that is into the cosmetics business should always make sure they store their cosmetics products in good places.
Make sure your shop and store are not damp and at the same time not hot as this can affect the effectiveness of the products.
9. Watch Out for Expiration Dates
Cosmetics products don’t last forever this is another consideration you need to put in mind.
You need to watch out for their manufacturing dates and expiration dates before buying them from your wholesaler, distributors or even manufacturing company so as to know how to sell them off your shelves before they expire.
You can get a separate book to keep accounts of all your cosmetics products manufacturing dates and expiration dates to conquer this.
The last thing you want to be sued or arrested for selling expired cosmetics products to customers.
10. Prioritize Fast Selling First
It is normal for anybody that is into a new business to want to make big profits shortly after starting but in the cosmetics business, I strongly advise that you yield into this as it will chase your customers.
No sane customers will want to buy their cosmetics almost double the price all in the name of encouraging you. They don’t know you before and are yet to develop a good relationship with you.
Rather they will go somewhere else they can get it cheap. So you need to reduce your price to a good extent just to attract them.
Another benefit you stand to gain if you reduce your cosmetics product price a bit (for a while) is that it will speed up sales of your products which will in turn not allow your cosmetics products to spoil or expire on your shelves.
When it comes to starting a business like cosmetics business it is not really important as a beginner starting as a small scale to register your cosmetics business under CAC.
You can start just the way you are and after some time when the business starts making good profits, go ahead and register the business.
The main thing here is to start and focus on selling.