How To Start Organic Beauty Products Business In India? [Plan, Steps & more!]
Table of Contents:
2. How To Start A Natural Beauty Products Business?
3. Organic Beauty Products Business Requirements
4. Organic Beauty Products Business Plan
5. Natural Beauty Products- Market Research & Analysis
1. Organic Beauty Products
Are you an entrepreneur planning to start an organic beauty products business of your own? Then you are on the right track as natural products have found increasing acceptance among customers worldwide. According to Grand View Research, for the year 2019, the size of the natural skincare products market globally was valued at Rs. 7,86,41,49,00,000. It also states that the market would grow at a CAGR rate of 5% from 2020 to 2027. So, what’s the major reason for the sudden boom in the organic sector? People are now more aware of the environment, climate change, and sustainable options to save the environment. Also, they are worried about the long-term adverse effects beauty products have on the skin, such as allergies, cancers caused due to carcinogenic ingredients, etc.
2. How To Start A Natural Beauty Products Business?
Before you start anything, the first and foremost question that knocks us, i.e., “How?”
Venturing into cosmetic products can be challenging, but it’s easy to trace the proper steps for an organic beauty product business plan with the right questions and solutions. Let’s delve deep into the various steps involved in the production of natural cosmetic products.
1- Research Thoroughly
Always keep in mind that you are manufacturing products for human skin. So, it is important that you have a thorough knowledge and understanding of beauty products. Whether it’s the business sector, manufacturing process or even chemical formulations, you need to study all. So, research extensively as much as possible before stepping into the industry.
Euromonitor stated that more than 50% of Indian consumers nowadays choose natural or organically manufactured products, especially for skin and hair products. 71% of consumers said they would choose to buy a moisturiser or lotion for their face if it is completely natural. On the other hand, we have a demographic of 38% of consumers who would pick a hair oil or shampoo if the product has some botanical ingredients.
Engage in research and collect data from various published research papers by renowned people of the industry. Have a conversation with entrepreneurs or business people who are leading in this sector to give you some thoughts and wisdom on this.
Engage in research and collect detailed information about the various ingredients to be used in each product you plan to manufacture. Also, have a clear plan regarding why you want to sell a particular product and how it’s going to benefit consumers. Some of the important factors are a robust supply chain, sourcing high-quality raw materials, and managing customer relationships effectively.
2- Decide on the initial investment
The next step in the organic business plan is to decide on the sources for raising initial investment. A sum of around Rs.10-15 lakhs would be a decent amount to start with. You can either invest your own savings or approach banks or financial institutions for securing loans towards building your business. If your business is doing really well in the first few years, then you stand a chance of getting funded by venture capitalists.
3- Procure the necessary licenses
For starting a cosmetic products manufacturing business in India, you need to get a cosmetic license and registration. These were proposed from 1st April, 2011 as per the modified rules of Drugs & Cosmetics Act, 1945. Acquiring a cosmetic license in India for the sale of drugs and cosmetics is not easy. But with the right set of documents, you can get the certificate without much hassle.
3. Organic Beauty Products Business Requirements
These are the required documents for your Natural Beauty Products business in India:
1. Application form for the Drug Cosmetic license
2. Challan as proof of deposited fee
3. Form of declaration
4. Blueprint of the key plan
5. Blueprint of the site plan
6. Statement of type of possession of the proposed premises
7. Statements of premises’ ownership details with proofs
8. Certified copy of firm’s constituency
9. An affidavit of non-conviction of all Proprietor/Partners/Directors of the proposed company
10. A copy of the original certificate attested by Regional Delhi Pharmacy Council
11. Bio-data form
12. Affidavit of Registered Competent/Pharmacist person who works with the business. Ensure that a notary attests to the document.
13. In case of employed persons, appointment letter of Registered Pharmacist/Competent person in charge.
This is a must that the product is licensed by a respective state government authority who is appointed to issue such essential documents. The responsibility lies with the manufacturer to ensure that the proposed product of the brand is manufactured under the strict supervision of technical staff and qualified pharmacists.
Also Read: Best Face Wash Brands in India
Also, it’s crucial that all the technical staff members should have the below educational qualifications:
- Diploma in Pharmacy attested by the Pharmacy Council of India Board
- Intermediate examination qualification with Chemistry and Biology as must-have subjects (Certificate recognised by the Licensing Authority or any equivalent statutory authority)
Before approving or rejecting the application for a cosmetic license in India, the Licensing Authority inspectors, appointed according to the Act, inspect the proposed premises of the cosmetic production. They submit a detailed report to the Licensing Authority to decide unbiasedly whether to grant the licence or not.
Focus On Organic Beauty Products Authenticity
If your products are not completely organic, you just cannot brand them as organic and push them to the market. As per the survey conducted by social shopping platform, Influenster and consumer shopping network Bazaarvoice, two-thirds of women worldwide wanted greater transparency when it came to the labelling of clean beauty products.
Hence, never make the mistake of mixing one or two organic ingredients with non-organic or synthetic ingredients. Fake claims about the authenticity of the products can also land you in deep trouble. Make an effort and source organic ingredients for manufacturing your products.
Get Certified From Accreditation Bodies
Certifications from various regulatory bodies add to the credibility of your organic brand. In India, there is no single certifying agency. Hence, the companies operating in this space approach various international accreditation bodies. The cruelty-free certification is issued by PETA [People for the Ethical Treatment of Animals]. Brussels-based COSMOS, an international and independent association, issues certification for natural and organic products that meet its standards.
4. Organic Beauty Products Business Plan
If you are planning to set up a cosmetic shop, a business plan is essential for starting your business and for getting bank loans. Now let’s quickly go through the basic details that you need to include in your dream cosmetic boutique business plan.
- Details about the business: Mention details such as the structure of the business, how you are planning to conduct the business, the brands you are dealing with, status of proprietorship, shop’s proposed location, vision of the business, projected sales during the initial stages, etc.
- Management and equipment details – Include details such as the number of staff required and how you are planning to manage the business. Also mention information about all equipment that you need to run the cosmetic shop, for example, shelves, mirrors, display counters, stocking facilities, etc.
- Capital requirement and funding procurement – Starting the cosmetics shop involves several expenses such as buying the shop or renting it, cost involved in maintaining the stock of cosmetic items, interior work, and furnishing, etc. Apart from these expenses, there are other maintenance costs such as employees’ salary, electricity and water bill, maintenance bills, and other miscellaneous expenses.
5. Natural Beauty Products- Market Research & Analysis
Conduct detailed market research on your competitors, how they are pricing, how they attract customers, their marketing strategy, the needs and demands of customers, etc. Include all those details in your business plan. Also, mention your proposed marketing strategies for fending the competition.
Conclusion
In the present times, there is cutthroat competition in the organic beauty products industry in the present times, and hence you need to be really competent. The above guidelines will help with your organic beauty products manufacturing business and face the competition heads on.
Also Read:
1) How to Start an Organic Food Business?
2) How to Start an Online Plant Business?
3) How to Start a Food Business in Mumbai?
4) How To Start a Borewell Business?
5) Cosmetic Manufacturer in India
6) Best Shampoo Brands in India
Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.
FAQs
Q. How long do organic skincare products last?
Ans. Organic skincare products stay good for close to 2 years. In the case of soaps and shower gels, the shelf life is around 1 to 2 years. For facial moisturisers, it is 6 months to 1 year after opening.
Q. Do I need a license to sell homemade cosmetics?
Ans. For manufacturing handmade cosmetics, first, you need an authorised license by the famous FDA, i.e., Foods and Drugs Administration of India. Also, you need additional approval by the Central Licensing Approving Authority, in this scenario, the Drug Controller General of India.
Q. What are the benefits of organic skincare products?
Ans. The organically grown ingredients in these products contain higher nutrient levels. Unlike synthetic products, they do not contain chemical residues that can cause skin irritation or long-term harm to the human body.