Starting a cosmetics distribution business is a lucrative business opportunity for aspiring entrepreneurs
From nail paints to kohl kajal, various shades of lipsticks, varieties of shampoo, facials and whatnot, a cosmetics retail shop is equipped with latest in products to extend a great experience to customers. However, all of these would be a challenge without the presence of distributors who do all the leg work to make it available to the cosmetics shop.
Beauty & Cosmetics is one such industry which is often considered recession-proof. It’s a billion-dollar industry and is rapidly growing at 15-20% annually. As known, women are the major contributors to this industry. With the rising income level, working women population & changes in lifestyle have provided the necessary boost to the industry. Earlier where women used to apply makeup occasionally, has now become an everyday routine. According to statistics, the average woman spends $58 per month on beauty products.
Cosmetics products are likely to remain in demand, thus providing a profitable opportunity for aspiring distributors. The beauty companies rely largely on the distribution network for the sales of their products. Thus, starting a cosmetics distribution business is a lucrative business opportunity for aspiring entrepreneurs. Below is the checklist of how you can start a cosmetics distribution business.
Research is the key
Just like any other business, before starting you must do your homework. Research about different types of cosmetics products, trends, consumer preferences etc. Find out what brands are consumer preferring the most. Ask friends and family members about their cosmetic choices or go to the mall and watch which cosmetics are being bought. Compare the business opportunities that are available from makeup companies.
Select a suitable company
Make a list of your prospective companies and request several samples from the representatives. Try them yourself or provide the samples to others and ask their opinion. Gather more information about registration fees, product stocking requirements and the company's rewards programs. Evaluate every product and select the brand you would like to sell with the best feedback & profit margins.
Contacting the company
Now that you have selected your prospective company, now it’s time to explore more about the company. It’s one of the most necessary steps as you are going to get associated with them, you should know all about the company. Ask the cosmetics company for a distributor packet. Read the information in the packet and on their website to learn all you can about the company. Request names of current distributors and contact them. Ask about their experience, challenges or any advice. Those conversations may help you decide whether to join that company.
Registration & Licenses
Once you have decided the company for which you want to become a distributor, complete the registration process. Get the required licenses such as brand license etc to avoid any legal actions in future.
Set up the business
After you have established all the above points, you are all set to become a distributor for a cosmetic company. The next step would be to find a decent location with enough space depending upon the company requirements. The place can be anything from a warehouse to a garage or even a rented space. Another pre-requisite for distribution business is transportation. There are various modes of distribution, you can either opt for buying your own fleet of vans & trucks or hire someone.