The skincare industry is booming, presenting a wealth of opportunities for entrepreneurs passionate about beauty and wellness. With the global market projected to reach $189.3 billion by 2025, now is an opportune time to launch your own skincare line. However, starting a skincare business requires careful planning, dedication, and a thorough understanding of the industry. This comprehensive checklist will guide you through the essential steps to launch a successful natural skincare business.
Laying the Foundation
1. Define Your Niche and Target Market
Before diving into product creation, it's crucial to define your niche. Will your focus be on anti-aging, acne-prone skin, organic skincare, or products tailored for sensitive skin? Once you've identified your target market, it's time to study your competitors. Evaluate their strengths, weaknesses, and product range to pinpoint market gaps. This focused approach will help you tailor your products and marketing efforts to a specific audience, increasing your chances of success.
2. Craft a Unique Selling Proposition (USP)
Crafting a compelling, unique selling proposition is essential for elevating your skincare brand above the competition. This isn't just about what your products do; it's about how they resonate with the desires and concerns of your target market. Perhaps you'll focus on sourcing clean ingredients, prioritize natural elements, utilize the latest skincare methods, or address particular skin issues. Regardless of your approach, ensure you emphasize your unique selling point in every marketing effort.
3. Develop a Brand Identity
Creating a cohesive brand identity is crucial for establishing trust and resonating with your target audience. Consider elements like your brand's name, logo design, packaging aesthetics, and color scheme, ensuring they complement each other seamlessly. Craft a strong brand story that showcases your values, mission, and the purpose behind your skincare line.
4. Understand Skincare Regulations
Whether you're targeting the US, with its stringent FDA guidelines, or Europe with its detailed EU cosmetics regulations, it's vital to know the rules inside out. Educate yourself on local and international skincare regulations, as this knowledge will guide your product formulation and packaging. Secure the necessary certifications and licenses to safeguard your business against unwanted legal troubles.
Read also: Transform your skin with natural products
Product Development and Manufacturing
5. Partner with Skincare Professionals or Manufacturers
Partner with seasoned skincare professionals or reliable manufacturers to create top-tier products that perfectly echo your brand's USP. As you select each ingredient, prioritize natural, safe, and effective options that comply with industry standards. Dive deep into rigorous testing, from ensuring product consistency over time to guaranteeing they're germ-free and deliver on their promises. Choosing the right manufacturer is a pivotal step in your skincare line journey.
6. Order and Test Samples
Before committing to a full product line, it's crucial to order samples from your chosen manufacturer. These samples give you a firsthand look and feel of the product, allowing you to assess its quality, texture, scent, and overall effectiveness. Testing doesn't stop at personal use; share these samples with a small group, preferably encompassing your target audience, to gather feedback. This ensures your skincare product meets consumer expectations and reduces potential issues later. Additionally, conducting third-party lab tests can provide insights into the product's safety, stability, and adherence to regulations.
7. Formulate a Detailed Manufacturing Brief
When you first start working with a manufacturer, you should put together a formal brief which lists what you expect them to make. You and your manufacturer should be clear on how your product will look, smell, function and feel. You’ll need to make a benchmark sample in the final packaging that you intend to use. In other words, before you outsource the manufacturing of your skincare products, you should agree on the texture, colour, viscosity and fragrance of your formulation.
8. Establish Quality Control Standards
Regular cosmetic stability testing should be part of any formulator’s lab - and this includes your manufacturer. You must be specific about the types of tests you want undertaken (e.g. thermal stability, centrifuge, freeze/thaw stability, photostability, etc.) and then you must agree a testing schedule with your manufacturer. How often do you want these tests to run? Do you want them to keep any reference samples? Where and how should these samples be stored? Do you want to receive reports about their tests? We recommend that you go into any skincare manufacturing agreement understanding which tests will be required.
9. Clarify Intellectual Property Rights
If the manufacturer makes any tweaks to your formulation, is it still yours? If you decide to terminate your contract with this manufacturer and work with a different one, can you still make the same formula? Your Intellectual Property is yours - protect it at all times.
Read also: Is Natural Skincare Effective?
10. Define Manufacturing Agreements
When you outsource your skincare manufacturing, you’ll need to agree where your manufacturer will source their ingredients. Have an agreement in place that specifies what happens if you need to change suppliers. How will your manufacturer ensure consistency if they suddenly need to source their ingredients from another company or region? Will you receive a sample first to approve any changes?
11. Determine Batch Sizes and Lead Times
You need to agree exactly on what your skincare manufacturing facility will deliver and when they will deliver it. Will you have regular batches manufactured or will be they be manufactured as and when you need them? If the latter, how much lead time and notice does your manufacturer require before they can deliver your batch to you? Also agree on the size of your batch. What is the Minimum Order Quantity of products manufactured by your facility? Keep in mind that the fewer units you produce, the more they will charge.
12. Address Batch Codes and Certifications
As you undoubtedly know, cosmetic labels can be tiny in size and we already have to deal with lengthy ingredients lists and cosmetic allergen declarations in certain countries. You should leave space for your manufacturer to print a batch code onto your labels. Where and how will they do this? What will it look like? Are your products going to be organically certified? Or are you going to meet Halal, vegan, gluten-free or paleo requirements, for instance? You will need to discuss your certification needs with the skincare manufacturing facility you choose. It may even be a good idea to find a facility that is already certified to make organic products, or Halal products, or vegan products. If you go for #organic certification, check the production facilities also meet standards.
13. Plan for Returns and Recalls
Now that you’re in business, you will undoubtedly at some point deal with returns, complaints and refunds. But what will you do if you have to undertake a product re-call because your manufacturer got something wrong? We recently wrote a blog post about the re-call of 15,000 bottles of Liz Earle cleanser - imagine that happening to you if your manufacturer had inadvertently caused contamination in your batch. What would you do? Who would shoulder the financial liability of a batch that had to be re-called and destroyed?
Financial Planning and Pricing
14. Develop a Business Plan and Budget
Starting a skincare line involves investments in ingredient quality, packaging, production, and marketing. Production, storage, and distribution costs follow. A small-scale venture might require a budget of €10,000 to €20,000, while a broader launch could range from €50,000 to €100,000 or more. A well-crafted business plan and budget are crucial.
Read also: Smoothies for Glowing Skin
15. Determine Pricing Strategy
Setting the right price for your skincare products goes beyond numbers; it's about aligning with your brand's value proposition and what your audience is willing to pay. Begin by analyzing key determinants: the cost of production, your desired profit margin, and what your competitors are charging. With the industry average profit margin hovering around 60%, ensure your pricing not only covers costs but also secures a healthy profit. Remember, pricing isn't static. As the market ebbs and flows and your business matures, be ready to adjust. If your total cost is multiplied by 5 or 6, it roughly gives your retail price.
Marketing and Sales
16. Create an E-commerce Platform
Prioritize mobile responsiveness, ensuring that shopping on-the-go is a breeze for your customers. A smooth shopping journey retains customers. Implement a trustworthy order fulfillment process, whether it's partnering with specialized logistics companies or leveraging e-commerce platforms with built-in order management. Your after-sales service is equally vital. Construct a responsive customer support system, addressing concerns, feedback, and returns promptly.
17. Implement a Marketing Strategy
Delve deep into the marketing arena: share your brand's narrative and product highlights on social media, use influencer marketing for genuine product endorsements, and harness the power of targeted advertising.
18. Track Business Performance
Consistently track your business performance, staying attuned to customer feedback, emerging industry shifts, and competitor moves. Let data guide you, refining your marketing, products, and overarching strategy.
Expansion and Growth
19. Consider Expanding Product Ranges
The skincare landscape is ever-changing. Once your initial skincare line is established and you have a loyal customer base, consider expanding your product range with complementary offerings. For example, if your first line includes cleansers and moisturizers, you might want to add serums, masks, or exfoliants. Complementary products can help address additional skin concerns of your existing customers and attract new customers seeking a comprehensive skincare routine.
Additional Resources
20. Explore Platforms Like Wonnda
Considering the latest skincare trends but hesitant to begin production? Enter Wonnda. We pair you with the best producers for private labeling and contract manufacturing. The key to a successful skincare launch? Finding the right production partner. With Wonnda, it's simplified.
21. Seek Guidance from Industry Experts
The journey from concept to launch can span several months to a few years, accounting for product development, testing, and branding. Don't let the timeline discourage you. Instead, focus on continuous learning and seek guidance from industry experts.
22. Embrace Continuous Learning
The foundation of a great skincare brand is built on passion, patience, and persistence. Remember, every successful brand starts with a leap of faith. The world of natural formulation is easy, fun, and empowering. The more you invest, the more you gain.
23. Connect with Skincare Entrepreneurs
Want to connect with skincare entrepreneurs worldwide?