Thinking of how to start a cosmetic store in India, now is the perfect time to turn your beauty passion into a profitable venture. The beauty market in India is expanding, and this is a perfect time to convert your beauty passion into a great profitable business. The cosmetic industry in India brings a great opportunity for manufacturers, businessmen, and importers looking to start a cosmetic business. There are several new trends and products launching all the time, and yet people are still looking for more options.

The Indian cosmetic industry is divided into five main categories: Skin care, hair care, oral care, fragrances, and colour cosmetics. By 2025, the total market share is estimated to reach US$ 20 billion, with a Compound Annual Growth Rate (CAGR) of 25%. The worldwide cosmetics sector, on the other hand, is rising at a rate of 4.3% per year and will be worth US$ 450 billion by 2025. Whereas, the Indian cosmetics business is expected to make US$6.90 billion in 2025.

“Perfect Cosmetic Product Deserves VasyERP’s Perfect operations at beauty Counter. So, if you are considering starting a new cosmetic business in India but are confused about how and when, then this guide by VasyERP can help you with some amazing ideas on steps to start a cosmetic store business in India and how to manage cosmetic inventory effortlessly.

In this blog, we’ll explain how to start a cosmetic store in India, covering everything from market research to inventory and billing with VasyERP’s POS solution.

What are Cosmetics?

Cosmetic products are defined under the Drug and Cosmetic Act of 1940 which are meant to be sprayed, sprinkled, and rubbed on or put into the individual’s body or applied on any body part to clean and enhance its appearance. The products of cosmetics include skin creams, perfumes, lotions, hair products, and several other items.

• Skincare – creams, moisturizers, serums
• Haircare – shampoos, masks, oils, and conditioners
• Makeup – lipsticks, foundations, eyeliners
• Fragrances – perfumes, deodorants
• Men’s grooming products
• Organic, herbal and ayurvedic cosmetics

Why Launch a Cosmetic Business in India?

There are multiple reasons to start a cosmetic store in India. Firstly, the cosmetic industry these days is thriving, and so it is a good source of earning. By leveraging the appropriate products and marketing, it drives substantial growth. Secondly, it helps you to be more creative and innovative, by developing unique cosmetics formulations, attractive packaging, colors, that fulfills various requirements.

The cosmetics business is also quite flexible when it comes to e-commerce, which lets it reach a lot more customers. Also, the movement toward cosmetics that are pure, natural, and not tested on animals gives us a chance to encourage moral and eco-friendly behavior. A cosmetics business is a great way to combine your passion, make money, and do something good.

Here’s why it’s smart to start a cosmetic store business in India now:

1. Profit Potential

The growing middle class people with increased disposable incomes always spend more money on cosmetic products. Few brands offering high-quality products at reasonable rates should expect to get high ROI.

2. Diverse and Underserved Market

India boasts an amazing variety of skin tones, hairs, and styles. This develops a big opportunity to fulfil unique demands that are still unmet by several existing brands.

3. eCommerce Growth

The rise of online shopping in India, provides brands direct access to people across the nation. This means a lower initial expenditure because you may not require a real location right away.

4. “Make in India” Venture

There is an increasing emphasis on promoting Made in India items. This can work to your benefit because people prefer native brands.
India’s cosmetics industry is ideal for entrepreneurs who are passionate about beauty and have a great business sense. If you are willing to design things that appeal to Indian consumers, the rewards can be enormous.

Step-by-Step Guide: How to Start a Cosmetic Store in India

Opening a cosmetic store business in India is an interesting and profitable task but it requires a lot of careful planning, market study, understanding target audience, and careful preparations. Check out the 10 important steps before thinking about opening a cosmetic store in India.

Step 1: Conduct Thorough Market Research and Identify your Niche

To successfully start a cosmetic store business in India, market research is crucial Before launching a cosmetic store, it is important that you properly define the target audience and do thorough market research of the trending products and other factors including gender, age, general requirements, etc.

• Market Research: Before you start a cosmetic store business in India conduct market research by leveraging several digital tools to understand customers preferences and choice. Simply surveying online store reviews, reviewing social media trends helps to gather the basic requirements of the Indian customers.
• Choose an Appropriate Niche: Choose the cosmetic product category that you want to target such as costly products, organic skincare items, premium brand products, herbal products, etc.
• Competitor Monitoring: Research competitors pricing policies, marketing strategies and the products they are selling. This will assist you to identify gaps in customer services or product availability.

Step 2: Creating a Business Plan

A well-defined business plan provides you a clear vision for your store and also helps you to stay organized. Your business plan must include:

• Business vision and mission: This includes answers to various questions like: What are you trying to do with your business? What kind of customers are you looking forward to? What do you want your store to look like? Defining these goals simplifies your further processes.
• Creating a Timeline: Decide a time frame to achieve your planned goals.
• Target Customer Profile: Identify your target customers – professionals, teenagers, owners, or men looking for skin care. Understanding this helps to customize offers and discounts.
• Financial Plan: Assess the startup costs, break-even point, and revenue generation.

Step 3: Registering Business and Fulfill Legal Requirements

To start a store, it is necessary to register your cosmetic store business legally and avoid any legal conflicts:

• Company Registration: Register your business as sole proprietor, private limited, LLP, or partnership firm.
• GST- Registration: Get the GST-number of your store for performing hassle-free tax registration process.
• Licensing: You will need to get 3 licenses including
• Drugs and cosmetic license from State drug controller
• BIS certification
• FSSAI license (if you are selling herbal or ayurvedic products)
• Trademark to protect brand name and logo.

Step 4: Choosing the Appropriate Store Location

For opening a physical cosmetic business store, location of a store plays an important role. There are several factors to consider:

• Areas within markets or near beauty parlors: This location is always in high demand of beauty products, and hence boost the chances of walk-in sales.
• Parking feasibility: Easy parking accessibility develops more convenience for customers and results in more customer visits.
• The store must be easily visible: Ground floor entrances, attractive and eye-catching boards signal invitation to more customers.
• Competitors stores nearby: Competitor stores indicate more demand in cosmetic products and hence you can shine bright by providing unique services and products.

Step 5: Choose Reputed Suppliers

• Look for and identify with the supplier that supplies products with quality ingredients and packing material.
• Ensure that the supplier you choose strictly complies with Good Manufacturing Practices (GMP) and provide you with all the required certificates.
• Collaborating directly with brand distributors enhances authenticity, and also offers competitive pricing.

Step 6: Get an Attractive Store Layout

Customers get attracted to the stores having aesthetically appealing and attractive layout.

• Organized Products: Organizing products category-wise and using racks for different categories simplifies browsing options for customers.
• Providing Testers and Samples: Let customers try the products before purchasing. This will lead to better decision-making and more sales.
• Billing Counter with POS system: Having a billing counter with a VasyERP’s billing POS at an exit, results in quicker billing, faster transactions, and loyalty points redemption.

Step 7: Hire Polite Staff

Polite and educated staff provides more smoother operations and enhances customer satisfaction. Staff includes:

• Sales Assistants
• Billing Executive
• Makeup Experts
• Skin Experts
• Hair Experts

Step 8: Billing and Inventory Software

Simplify the cosmetic store business operations with VasyERP’s inventory management software. Multiple features of billing software can easily handle hundreds of SKUs from one dashboard. Get the cosmetic POS software with below mentioned features.

• Multi-location store management: Manage the entire inventory and billing of multiple stores from a single dashboard.
• Barcode-based billing: Scan the product barcode during billing resulting in faster checkouts, reduces manual errors, and ensures accuracy in sales monitoring.
• Notifications: Automated billing provides real-time stock management alerts to avoid “out of stock” or “overstocking” situations.
• GST-Compliant Billing: Easily generate GST-compliant billing, to automate tax calculations and filing tax reports.

Step 9: Create a Robust Marketing Strategy

One of the most effective ways to start a cosmetic store business in India is by leveraging digital marketing and local collaborations. Work on a strong marketing plan and strategies to boost more sales and retain customers

• Grand product launching
• Offer Discounts and Promotional coupons
• Provide loyalty points to repeating customers
• Collaborate with nearby local salons
• Run Facebook/Instagram ads
• Create an online store
• Directly sell your products on several e-commerce stores including Myntra, Nykaa, Amazon, etc.

Step 10: Launch Your Business

This is the final stage to convert your ideas and planning into an actionable store and initiate your business

• Launch: Introduce your products into the market in the competitive manner
• Monitor Sales: Monitor regular sales and gather feedback from customers to optimize strategies
• Use Digital Marketing Tools: Use social media platforms to promote your products.

How Does VasyERP’s Cosmetic Billing Software Help in Boosting your Cosmetic Store Business?

If you’re planning how to start a cosmetic store in India, having a powerful billing and inventory system is crucial.. VasyERP’s cosmetic billing software offers several features including real-time inventory monitoring, smart CRM, easy accounting, etc. It allows quick barcode-based product scanning for faster checkouts, automatically generating GST-compliant bills, and alerts for low-stock. Integrated CRM features in the billing software provide customers with customized discounts and offers, loyalty points, and gives access to track purchase history. Having a multi-store management feature, owners of the cosmetic store business can access all the billing operations of multiple stores from a single dashboard only. VasyERP’s cosmetic billing software can help reduce manual errors, simplifies store operations and improves the overall shopping experience of customers.

So, if you are thinking of launching a cosmetic store business in India, VasyERP can help you turn your ideas into reality by offering a scalable and robust inventory management software to ease your store operations.