There is a growing market for body care products. In fact, it is the fastest growing segment in cosmetics and cosmeceuticals worldwide. This makes it one of the most attractive prospects for big brands as well as the SME segment. There are big multinationals as well as luxury brands in the segment. Even for the SME companies, the segment is one of the most attractive sectors in the cosmeceuticals market.
The number of firms in the sector also makes it one of the most fiercely competitive. As a start-up in the personal care sector, you have to first be ready for this competition. But how do you start and how can you make sure that it is profitable? There are many ways to launch a body care product company. One of the easiest is to go through a contract manufacturing body care products firm.
Body Care Products
Body care products include materials that we use on a day-to-day basis to care for our body. These are essential to keep the body clean and healthy. These include soaps, shampoos, moisturizers, and conditioners. Since these products are always in demand, the scope for growth is tremendous. Rising incomes also ensure that all segments — from luxury brands to small niche companies find space to grow.
Here is a short primer on starting a body care product firm:
- Have a plan
Every business starts with a plan. The plan must include your own outlay, other sources of investment, assets at your disposal and liabilities. What is your projected revenue in the short term as well as the long term? The plan sets your goal, the challenges that you may face as well as how you can overcome them. But keep in mind that the plan must also be flexible enough to change when actually required.
- Find your niche
How do you stand out in a market that is already overcrowded with multiple brands and products? There are many generic products, but if you can establish a specialization, you are assured of a ready market. For instance, you can specialize in herbal products, luxury cosmetics or Ayurvedic products. This decision should be based on your own capabilities. However, it is more important that this is backed by market research. Before you decide on your own specialization, you must study the market, the demand patterns, consumer demographic, the competition, and the projected growth.
Your specialization will also decide your suppliers, market plan and the contract manufacturing body care products firm you pick out. The decision must be taken on the basis of all these factors.
- Legal factors
Setting up any company involves a multitude of legal steps, including registration, permits, and license. It will also involve essential certifications like ISO and GMO. To deal with all this, it is recommended that a lawyer will be hired. A lawyer can guide you on the right course of action, help you with the paperwork and ensure that all contracts are watertight. The paperwork requirements will also depend on the type of cosmetics you decide to go for. For instance, Ayurvedic products will go through a different kind of checking regulations than chemical products.
- Decide on your capabilities
Start-up firms are usually limited by their resources. It is best to assess your capabilities and the assets at your disposal. What are your strengths? Do you have a great idea for a product formulation? Is it marketing that you are best at? For many start-ups and small companies, outsourcing some of their critical functions works best for them. Contract manufacturing firms are the best means of achieving this.
- Pick the right contract manufacturer
There are many contract manufacturers in the market today. It’s important that you find the right one. After all, the manufacturer’s performance will be an important part of your own brand. You can start with a nominal search. Make a shortlist of candidates. Ensure that the manufacturer specializes in the field of your choice, be it Ayurvedic cosmetics or personal products. Ask them for their portfolio to understand their capabilities. You may find that many contract manufacturing firms have their own brand and production line.
- Insist on quality check
Whether you go for a contract manufacturing body care products firms or go solo, quality checks are critical. This could be a bit pricey for start-ups because testing can be expensive. These tests are carried out in specific certified labs. These tests include sensitivity tests — an essential criterion if the product is to be applied on the skin, near the eyes and mouth. Apart from this, you also need quality checks in the manufacturing, packaging and transportation process. Going with contract manufacturing firms can cut these costs considerably.