Want to start a cosmetics company in India?

by varun · Published October 3, 2020 · Updated December 24, 2021

We need to accept that everyone wants to look good and presentable in general. It is one of the most important wants of an individual. Earlier, women were more interested in looking good but in recent times men have also started giving more importance to their external looks. Cosmetic industry in India is a direct beneficiary of this aspiration. Retail cosmetic industry is expected to increase to USD 4.5 Billion by 2025 with a CAGR of 20-25%. With increasing entry of global and local companies, this field has tremendous opportunity for a budding entrepreneur to start a retail store and offer these products. One can also go for distribution too. Let us look at some important features of cosmetics company in India-

Disposable Income

In recent past 10 years, per capita income of individuals have doubled in India. This has given tremendous disposable income in the hands of individuals to look after their presentation and external looks. Increasing income offers a great opportunity to open a retail cosmetic company in Tier 1 and Tier 2 cities.

Change in demographic profile

India is one of the very few countries in the world with a younger population under 35 years of age forming close to two thirds of the population. One can easily observe the inclination of younger generations towards beauty products. The Younger generation doesn’t hesitate in buying a product to enhance their beauty.

Female participation in workforce

You can easily observe increasing participation of female workers in Indian corporate sector. Females are generally more interested in cosmetic products compared to men. This offers a great opportunity for a retail cosmetic store in Delhi to offer a variety of cosmetic products to these consumers.

Retail cosmetic industry in India now includes a range of products one can imagine from hair styling cream to deodorants. For a budding entrepreneur who wants to open a cosmetics company, financial requirement for this business would include-

Store – A physical store at a convenient location can be the biggest turning point for this business. There are options of owning a space as well as renting one. Location and optimal space should be the things to take care of.
Product variety – A cosmetic retail store should include maximum variety for a consumer to choose from. Initially, stock of different companies should be kept and analysis should be drawn on the largest selling items on a monthly basis.
Display and payments – A cosmetic store should take care to display its product properly and catch the attention of incoming customers. All payment options including credit or debit cards, wallets, cash etc. should be given to consumers.

Cosmetics company business runs on the basis of ease of comfort and options one provides to a consumer. A consumer will enter only those stores in which he thinks that he would get the product of his choice immediately at optimal cost. If a retail cosmetic store in Delhi or Mumbai can provide that, then this is perfect business for an entrepreneur.

In this article, we have discussed important points related to cosmetics companies. Meanwhile you can read more articles on various business and business related licenses here.