This is crazy: according to CNN, the market for the skincare industry hit almost $6 billion in 2019. That’s a huge leap from 2018, jumping a whopping 13 percent in a single year.
Thinking about starting a skincare line?
We are here to help. Check out the complete guide to starting a private label skincare company from scratch!
Step One: Find Your Niche
When it comes to starting your own cosmetic line, it’s all about finding your niche. While this might sound easy, it can be the hardest part for a lot of small business owners. Discovering your niche depends on a few things, including the amount of capital that you have to invest in selling beauty products.
For instance, if you don’t have much funding capital to work with, you’ll want to avoid private labelling pricey items. That is, unless you have a chance to drop shipping prices or order a low minimum amount of products.
If you’re curious about how to start a skincare line, we highly recommend that you opt for a niche in private label skincare. Thanks to its large market size, you’ll have more than enough clients to advertise to. However, it’s up to you to decide which target market is the most profitable for your business.
The smartest way to find your niche is to look at market data trends. Also, it’s a good idea to consider the resources that you currently have. If your brand already has a large social media following, then brainstorm what kind of products they would like.
In addition to this, feel free to use Amazon volume as a guideline to see if you plan to sell on this useful channel. Of course, you can also use tools like Merchant Words or Jungle Scout to see more data on specific keywords too.
Be sure to create a checklist to zero in on your niche’s golden opportunities. Then, think about how many products you must sell to reach this goal. Focus on the following qualities:
- Product size
- Product weight
- Supplier availability
- Minimum order quantities
Want to know the best part?
This helps you understand the potential of your product in the market!
Step Two: Contact a Private Label Supplier
For the uninitiated, contacting a private label supplier is the second step to figuring out how to start your own skincare line. Working with a quality private label manufacturer is going to be the biggest key to your company’s success.
As you may already know, providing great customer service and reliable products is the fastest way to keep customers coming back for more. Some companies prefer to import beauty products internationally. Nevertheless, this can lead to communication issues, increased shipping costs, and poor quality control.
Let’s face it: it’s cheaper to find products from overseas. But it is definitely easier to work with manufacturing businesses in your home country. That being said, be sure to double-check what kind of system your private label manufacturer has in place.
This is super important, especially since you don’t want to send out late shipments or run out of products due to production errors. Besides this, ask your manufacturer what their turnaround times and manufacturing abilities are.
That way, you’ll get an idea of how pairing up with this business will increase your sales effort and marketing attempts. You’ll know that you found a good company if they’re more than happy to give you these sorts of details. Take a look at what kind of services they offer ahead of time too.
Not only will this save you time, but it will also help you to reduce overhead. In addition, some manufacturers will let you mix and match different things like:
- Minimum order quantities
- Package design
Our general rule of thumb is to find a company that offers a wide range of services to manage your products. As if that’s not enough, discovering one reliable manufacture can reduce your need to rely on several suppliers.
The result is this – increased cash flow and reduced overhead!
Step Three: Find Your Sales Channels
Here comes the fun part: finding your sales channels. Thanks for the Internet, there are millions of potential customers to get in touch with. But here’s the thing.
It can be beyond difficult to decide which channel to go with, particularly when you see how many options are at your fingertips. Many private skincare brands use Amazon to reach out to tons of future buyers.
Want to go a different route?
Make a website that can process business transactions. This will give you much more control over your brand’s message. We suggest that you look at the following channels to build your website:
FYI – the sales channel that you choose will depend on how much money you have to invest in this decision. Fortunately, you don’t have to be an expert coder to create your brand’s website either. But if computers aren’t your thing, feel free to hire a website developer to give you a
Start Your Private Label Skincare Line Today
Ready to start your own private label skincare line?
We’ve got you covered. All that you have to do is follow our simple steps to get your skincare brand up and running. Soon enough, the hardest part will be keeping up with all of your product sales.
Looking to grow your skincare business? Feel free to drop us a line anytime!