Did you know that the global cosmetic industry is valued at $262.21 billion? Yes, and according to projections and consumer trends, this number is expected to rise even higher. The cosmetics business in Kenya hasn’t been left behind. Many individuals are beauty conscious and are rapidly gravitating towards beauty products. As a result, owners of these businesses are making massive profits.
Nothing stops you from venturing into the cosmetics business in Kenya if you have the proper knowledge and enough capital. However, looking at estimated costs, the requirements and tips on starting it would be helpful. Here is everything you need to know.
Understanding the cosmetics business in Kenya
The cosmetic industry is growing rapidly in Kenya. This has been attributed to the increasing demand for all types of cosmetic products from varied sections of the population. Therefore, if you want to venture into this industry, there is immense scope for growth.
How to become a bodyguard: job requirements, roles, salary
Starting a cosmetic business requires knowledge that will set your business apart. However, you need to know what to stock in the shop.
How to start a cosmetics business in Kenya
Opening a cosmetic business in Kenya is a process that requires a lot of attention. However, starting a beauty business can seem daunting. You can go far in your entrepreneurship journey with sheer determination and hard work.
Here are the tips on how to start a beauty shop business.
1. Write a cosmetics business plan
The first step when starting any business is writing a business plan. A good business plan should include the following;
- Startup costs.
- List of cosmetic items for the shop.
- Risks and ways to mitigate those risks.
- Business location.
- Strengths and weaknesses.
If you don’t know how to write a business plan, you can hire a professional to write one on your behalf. A good business plan will help you understand how it works and how you can win the competition.
200+ best gaming slogans and taglines to get you in the game
2. Find a suitable location for your business
A good location is suitable for the success of your business. Getting a place with high traffic and displaying your products is better. You can start in a mall or busy market. However, that option should suit your budget. Here is what to look for when searching for a suitable location:
- A site with a large percentage of targeted clients.
- A place whereby there are no dominant cosmetic shops or supermarkets.
- A place with economies of location.
- Where there exists price competition majorly contributed by economies in sourcing and cost management.
- A site where established cosmetics shops do not offer a variety of products to clients.
3. Choose the cosmetic products to sell
You need to understand the market of specific products and select highly profitable ones. Concentrate on products that you are familiar with so that you can plan your business well. This will make your business stand out and attract many customers.
KPLC planned outages: How to check power interruptions in your area
Which cosmetic products are most profitable? Fast-moving products are highly beneficial because of the stock turnover. Products such as makeup, eyeliners, manicures and pedicures are highly marketable.
Additionally, hair products like weaves and different hair brands, perfumes, skincare products and facial products are profitable.
4. Set your budget
You must plan out all startup costs and recurring expenses ahead of time. It will help you know the fraction of your profit to return to your business.
If you run out of money, you can’t operate your business and must shut down. Therefore, making your budget an essential tool in your planning.
4. Find cheap suppliers
It would be best to look for ways to minimise operational costs and maximise profits. Acquiring your products cheaply and selling them at the required market price will earn you more profits. Therefore, look for cheaper suppliers for your product.
Nairobi has some of the best prices for cosmetic products. The downtown side of the CBD, like River Road, Kamukunji Trading Centre, and Best Lady along Ronald Ngala, are the places to source products.
10 simple bedsitter design plans in Kenya with measurements
5. Advertise your business
Creating more awareness about your unique cosmetics products would be best among your target audience. There are numerous marketing strategies you can adopt. You can use flyers, posters and customer referrals to promote your business.
A marketing plan gives you direction. It informs you how to move forward in a calculated way when selling your products to people. You can capitalise on your social media presence. It is probably the cheapest way to promote your business and reach more people.
Cosmetics business requirements in Kenya
Besides capital and an elaborate business plan, you need other requirements to run a cosmetic business successfully. The mandatory license is a single business permit that is a must-have. It can be obtained from the relevant county government offices.
The county government charges fees depending on the size of the business. Generally, the annual fee ranges from Ksh. 3,000 to Ksh. 15,000. The other requirements os starting a cosmetics business in Kenya are as follows;
15 best lead generation websites for contractors in 2023
- Beauty products inventory
- Stall or shop
How much investment is needed to start a cosmetic shop in Kenya?
Several factors determine the capital needed to set up the cosmetic business. The cost of starting a cosmetic shop in Kenya ranges between Ksh. 100,000 to Ksh. 500,000. Here is a breakdown of the cost of starting a medium-sized cosmetic business;
- Beauty products inventory – Ksh 100,000
- Furniture – Ksh 20,000
- Salary for staff – Ksh 10,000
- A computer and printer – Ksh 25,000
- Advertising – Ksh 5,000
- Licenses and permits – Ksh 20,000
- Rent and upfront rent – Ksh 30,000
- Electricity expenses – Ksh 1,000
What is the demand for beauty products in Kenya?
The beauty industry in the country is a booming sector with plenty of growth opportunities. The market for beauty products and services in Kenya is estimated at a whopping Ksh. 20 billion. Therefore, it is one of the most attractive markets for investors.
What is AfriSight? Here is everything that you need to know
Interestingly, the industry has seen steady growth over the past few years. It also continues to present new trends that can be capitalised on. Technology is also playing a significant role in shaping the future of this sector.
The cosmetics business in Kenya is, without a doubt, one of the best ventures. Every year, millions of dollars are spent on beauty and cosmetic products. There is also a lot of hype and buzz surrounding the products. Therefore, with the right plan and enough capital, you can invest in it.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Tuko.co.ke also shared a list of logistics companies in Kenya. The country has different types of logistics companies. They range from giant multinational corporations like Maersk Kenya Limited to startups like Twiga Foods and Glovo.
These companies in Kenya move goods around the country and globally. If you want to transport your items nationally or internationally, these are the companies you should use.