Cosmetics Business in Nigeria
How much does a cosmetics business in Nigeria cost? What should I consider before starting my own cosmetic business? These questions could run through the mind of anyone wishing to start a cosmetics business.
Cosmetics is one of the fastest-growing industries worldwide. In 2017 alone, global sales reached $1.7 trillion. The beauty industry has also grown significantly over the last decade. According to research, the global cosmetics industry grew at a CAGR (compound annual growth rate) of 6% from 2010 to 2016.
With the increasing demand for personal care products, the cosmetics industry in Nigeria is expected to keep expanding. This makes it one of the most significant sectors in the country's economy. If you want to start the cosmetics business, read our guide below. It contains everything that you need to know as an entrepreneur.
What are Cosmetics?
The word "cosmetic" comes from Greek and means "beautifying medicine." Cosmetics are products used to enhance or improve the overall appearance and hygiene of the skin. We can find them in different forms, including creams, lotions, gels, oils, lipsticks, perfumes, and deodorants.
The history of cosmetics dates back to ancient times. Cleopatra used a mixture of egg yolk and honey to prevent wrinkles. Also, Queen Elizabeth used a concoction of cucumber juice and vinegar to remove facial hair.
However, in modern times, cosmetics have become more sophisticated. Modern cosmetics include skin lighteners, anti-aging treatments, sunscreens, makeup foundations, eye shadows, blushes, eyeliners, mascara, lipsticks, etc.
How Does Cosmetics Work?
To understand cosmetics, we must first look at the human body. Our bodies have three layers: the epidermis, dermis, and subcutaneous. The outermost layer of the skin is called the epidermis. It consists of dead cells that protect us from external factors such as pollution, UV rays, heat, cold, wind, insects, etc.
Meanwhile, the middle layer of the skin is known as the dermis. It provides nutrients to the epidermis and helps regulate temperature. Further, the subcutaneous layer consists of fat tissue, and this layer protects the internal organs and muscles.
When we apply cosmetics to our faces, they go into the epidermis. They then pass through the stratum corneum, where they get absorbed by the living cells. After this process, the chemicals penetrate deep into the skin.
Cosmetics Market Trends
In recent years, the cosmetic market has been multiplying. This is mainly due to the increase in disposable income among consumers. According to Euromonitor International, Nigeria's cosmetics market has grown by about 14.5%, and its retail sales added billions of naira to the country's economy.
Another trend is the rise of social media marketing. Social media platforms like Facebook, Instagram, Twitter, Snapchat, and YouTube allow users to share information with others. This increases awareness about new brands and products. In turn, this leads to increased sales.
Another factor driving growth in the cosmetics market is the aging population. According to the World Health Organization (WHO), the number of people over 60 will double between 2000 and 2050. As a result, the demand for beauty products will continue to grow.
Steps to Start a Cosmetics Business in Nigeria
To start your cosmetics business in Nigeria, there are several things to consider. First, you should choose a popular and easy product to sell. Second, you should ensure that your product is safe for use. Third, make sure that your product meets local regulations. Finally, you should invest in advertising and marketing strategies.
Choosing a Niche
The most important thing when starting a cosmetics business is choosing a niche. You need to decide what type of product you want to offer.
Choosing a Popular Product in Your Niche
You can start your own cosmetics business by selling a product already available on the market. For example, if you want to start a nail polish business, you can buy an existing brand or create your own. However, you must note that you cannot copy another company's formula. Instead, you need to come up with something unique.
Before starting your cosmetics business, you must ensure that your product is safe. You can do this by conducting tests on your product before launching it. If your product contains harmful ingredients, you may not be able to sell it.
Before starting any business, you must check whether your product complies with local laws. Some countries prohibit certain types of cosmetics. For instance, some countries ban hair dyes because they contain toxic substances.
Investing in Advertising and Marketing
To promote your business, you must advertise it online. There are many ways to do so. One way is to set up a website. Another option is to join social media platforms such as Facebook, Instagram, Twitter, and LinkedIn.
Choose a Location
When choosing a location for your cosmetics business, you should look at factors such as cost, availability of raw materials, transportation options, and customer base. When you put these factors into consideration, you'll be choosing a suitable location.
Rent a Shop
If you don't have enough capital to build your shop, you can rent one from a supplier. Suppliers offer space and other services at affordable prices.
Register Your Business
To protect your business against fraud, you should register it. To register your business, you must fill out forms and pay fees.
Starting a cosmetics business is challenging but rewarding. With hard work and dedication, you can succeed.
Cost of Starting a Cosmetics Business in Nigeria
Starting a cosmetics business in Nigeria is relatively cheap. The cost depends on how much capital you have and what type of business you plan to launch. A small-scale business starts at NGN100000. On the other hand, a large-scale business costs more than NGN300000.
Is the Cosmetics Business Lucrative in Nigeria?
A cosmetics business in Nigeria is profitable. It requires little investment and has high-profit margins. However, it would be best if you worked hard to earn money.
Starting a cosmetics business requires planning and hard work. However, if you have a good idea, you can easily succeed. To learn more about how to start a cosmetics business, visit our website today!