Cosmetics Business Plan in Nigeria

Cosmetics Business Plan in Nigeria

Our Sample Cosmetics retail shop business plan and feasibility study is up to date and can be used for grants, access bank loans and proposal writing. Furthermore,this article will be answer the following questions for you:

Also Read: Supermarket Business Plan in Nigeria

• The cosmetics industry in Nigeria
• How to start a cosmetic business in Nigeria

To get your sample Cosmetics Business Plan in Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (cosmetic retail business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Just in case you have not been informed, cosmetics business is one of the biggest industries in Nigeria and indeed the world at large. If you are not sure about this then I should ask you a question, did you use soap to take your bath this morning? Or after taking your bath did you use some cream on your body and some hair cream on your hair? Cosmetics as most people see it is all about makeup, that is a far cry from what cosmetics is in reality. The term cosmetics is far wider than just makeup, in fact makeup is just a branch of cosmetics, cosmetics covers everything we use to keep the skin healthy and in good condition. We will take a look at some of the different classes of cosmetics that you can invest in later in this article to give you a wider perspective of what constitutes the term cosmetics.

There is a saying which goes thus, “looking good is good business.” If you have heard that before and thought it was a lie, you better think again because looking good is really good business, else the cosmetic business will not be one of the biggest and fastest growing sectors worldwide. Firstly, you should have noticed that more and more beauty products are being produced on a daily basis, from body lotions to hair growth creams and serums to skin lightening products and even bathing soaps, deodorants and perfumes. It is natural that most of these products are more in demand by women than men and if you were to study the present demographic statistics you will discover that for every man you see, there are two women.

The profitability of the cosmetic business in Africa

Before we get to the crux of this article, it is important that we check out how well the business is doing in Africa, this should be a motivation for you to get involved before it is too late. Several entrepreneurs in Africa who recognized this opportunity and decided to invest in it early enough are already millionaires and they are still smiling to the bank as the business is still booming. One big name is Africology, who started by making $400 every week, is reported by CNN to have grown to over $1 million average sales on a monthly basis. Her business has also spread beyond the shores of Africa to Asia and Europe, reaching countries like France, Belgium, the United States, Germany, etc.

If you are in Nigeria you probably would have heard of House of Tara, presently the biggest makeup brand in Nigeria. The company started from just doing freebies less than 20 years ago but today boasts of branches in almost every state in Nigeria, and has crossed into Ghana and Kenya. These growth stories are just a few out of the many successful cosmetic businesses on the continent and you will definitely have some in your neighborhood that practically started from nothing and are making mega income today.

The reasons for the boom in the cosmetics industry in Africa

Africa is the major focus and not Nigeria because this business has the capacity to take you beyond the shores of Nigeria if you can simply get your act right. As stated earlier the business very lucrative and has experienced a major boom from the early 2000’s till now, which is likely not to decline for a very long time. Euromonitor International, a market research firm, gave some staggering statistics in 2011 which stated that the cosmetic industry of both Africa and the Middle East was worth a little over $20.4 million in that fiscal year. Of all the countries that are in this region Nigeria ranks second largest, this means we are the second largest cosmetics market in both Africa and the Middle East combined.

Below we will take a brief look at the reasons for the rapid growth of this sector:

1. Cosmetics are no longer a thing of luxury of show off, they are a daily need. Once upon a time, the use of cosmetics was restricted to the affluent, now they are used by all and sundry and that on a daily basis. Cosmetics help us keep the skin in health and in state of cleanliness which is necessary for good hygiene. We could add cosmetics to the basic needs of man which are food, clothes and shelter because it is now a daily need which most people depend on for daily survival. The African population which just above a billion people is projected to rise to about 2.5 billion by the year 2050, this means there will be more than a hundred percent rise in the demand for cosmetics.
2. 60% of Africa’s population is young and focused on looking good. About 60% of Africa’s population is less than the age of 25 years, this set of people are known to be keen on looking good and trying to impress others with their looks. For this reason alone there is a high demand of cosmetic products and studies show that they could spend an average of $15 a week on looking good.
3. African women have more money to spend. The women who are the major purchasers of cosmetic products now fall into the working class category more than the last thirty years. This means they have more money at their disposal to spend, hence the increase in their demand for cosmetic products. It is only normal that when you have more cash at hand to spend, you will spend on what attracts you the most.

The bottom line is that as long as the population of the African continent increases, there will be an increase in the demand for cosmetics and thus there will be more profit to be made for the entrepreneurs.

Different cosmetic products you can invest in

Earlier it was stated that there are different classes of cosmetics that you can invest in and since we have looked at how big the industry is and what is causing the continual expansion of the industry, it is wise to look at what products you can focus on.

1. Hair care. This accounts for between twenty and twenty five percent of all the cosmetics sold in Nigeria. As you know, there is a new craze about Brazilian, Peruvian and other kinds of hair as well as products that can make the hair longer and thicker. Asides these you have products like relaxers, shampoos, conditioners, dyes, and styling products which are needed daily. Men are not left out as the new trend of keeping beards has caused beard oils and serums to very high in demand.
2. Skin care. This is regarded as the largest branch of the cosmetics industry as there are so many products to choose from. There are different kinds of skin and each of these skin types has products that are peculiar to them, a major reason for the size of this branch of the industry. Products in this category include body lotions and creams, skin lightening formulas, anti-acne, anti-aging, anti-wrinkle creams, toners, cleansers, etc.
3. Makeup products. This is the part you have been waiting for. Makeup is known as decorative cosmetics and it is mostly used by women to beautify their faces, lips, eyes and nails. Some of the major products in this branch include eyeliners, mascara, lipsticks, nail polish, foundation, etc. The number of product brands in this category keeps growing by the day.
4. Toiletries. This category is also widely used by every class of the society as they are necessary for maintaining personal hygiene. They are very in demand and thus they are also referred to as Fast Moving Consumer Goods. Some products in this category include bathing soaps, toothpaste, toilet paper, shaving creams, deodorants and antiperspirants, hair removal formulas and sunscreens.
5. Fragrances. This category is actually the least in demand but somehow comes up with a huge profit because the products are usually expensive. The products that fall into this category are simply a mixture of oils and spirits which help to give the body a great and attractive scent. By this we mean perfumes and other forms of body fragrances.

Steps to take in starting your cosmetic business

Having considered all of the above, we can now discuss the steps you need to take in starting your own cosmetic business in Nigeria.

1. Study the business and make a workable plan. Before delving into any business it is advisable to take some time out to study the business, the sector terrain and the prospective customers. This will help the entrepreneur know what steps to take with the business and how best to invest the capital. When the feasibility study is done, the business owner should come up with a business plan which give him or her a vivid picture of how the business will run and a projection of how much capital is needed and how much profit will be made.
2. Raise your capital. From your feasibility study and business plan you should be able to decipher how much capital is required to start the business. The truth about this business is you do not need so much money to start, you can start very small and grow the business to become a huge empire. There are several ways you can raise capital, from personal savings, from loans from friends, family and the bank and seeking investors.
3. Find a good location. Where your business is located has so much influence on how much patronage you will have and ultimately how much profit will be made. It is advisable to rent a shop in a high brow area, where people who have the capacity to purchase your products will find you. The internet has made life easy and business has become more versatile. You can decide to have an online store using Facebook, Instagram or even open a merchant website, any of this will suffice for your customers to make frequent orders and fetch you your desired profit.
4. Get a reliable and affordable supplier. If you are going to make good profit then you must be buying from a supplier who will not sell to you at exorbitant prices. Consider that there are other cosmetics merchants like yourself and if your products are too costly you will lose your customers to them. This means that you need to find someone who will sell cheaply to you such that when you add your prices, it will still be reasonable enough for your customers.
5. Aggressive publicity. The cosmetic business is one that is attracting quite a lot of attention right now, especially from investors and entrepreneurs. It is who can shout out the most that wins the market. It is your responsibility to make noise about your business, tell over the hilltop and shout it in the valleys. There are several methods of publicizing the business, the internet is your best bet and then you can focus on physical ads like handbills and billboards. Anyhow you want to do it, get as much attention for your business as you can, this will grow your patronage levels geometrically.

In conclusion, the cosmetic industry is one with a lot of profit potential, the onus now lies on you to make the necessary research and put in your investment to share in the spoils of the industry.

Get your sample Cosmetics Business Plan in Nigeria today. To order the business plan, pay N10, 000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

OR

BANK NAME: FIRST BANK PLC

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your full name, email address and topic (i.e. cosmetic retail business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

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