So you’re looking to start a cosmetics business in Nigeria! Of course, it is a very profitable one to venture into especially for ladies, as you can start with about any amount.
Cosmetics business is one of the fastest-moving businesses in Nigeria that doesn’t require lots of stress as you can market your products in different ways and drive sales.
The business is very profitable, and that is why a lot of young ladies, even students, now venture into the business, as you can make up to 100% ROI or 2X profit per product.
Cosmetics business in Nigeria is very easy to start, however, you need to know well, how to operate the business, the cost of starting, and also how profitable it is, so you can decide if it is good for you.
All that is what we will be discussing here in this post, so, if you’re looking for how to start a cosmetics business in Nigeria, just read on.
Starting a Cosmetics Business in Nigeria
Cosmetics business involves selling all types of beauty products including eyelashes, powder, lipstick, cream, tubes, etc.
In Nigeria, this business can be started on both a small scale and large scale. Regardless, cosmetics products move fast, as most of them are used by women especially, on a daily basis.
There are lots of ways to operate a cosmetic business in Nigeria, and they include opening a cosmetics shop, selling online, and using your bag as a mobile shop where you go around advertising your products to people. This last one works well among students.
Also, the business allows you to niche down, as you can only focus on selling mainly make-up items, and make a lot of money.
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How Much Do You Need to Start a Cosmetics Business in Nigeria
Since beauty products are costly in the market, you may be wondering – what is the cost of starting a cosmetics business in Nigeria?
A cosmetics business can be started with a minimum of 50,000 Naira on a small scale, while you may need up to millions of Naira to start a standard large-scale cosmetics business in Nigeria.
Keep in mind the startup capital needed for this business may vary depending on location, as the cost of all that is needed to get started (e.g shop rent), maybe more expensive in some parts of the country than others.
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Is Cosmetics Business Profitable in Nigeria?
Yes, the cosmetics business is very profitable in Nigeria as you can make 100% profit from just one product. Although, you may get less for some products, sometimes even 20%.
Note that the probability of this business also depends on many things including location, and most importantly, the cost price of products from suppliers. If you work with suppliers that sell at high prices, you may end up with just a small profit. That is why cosmetics sellers, especially those that sell online now order their products from China, as they are way cheaper there.
Check Out: How to Buy Products from China and Sell in Nigeria
How to Start a Cosmetics Business in Nigeria
1. Carry Out an In-depth Market Research
To start a cosmetics business in Nigeria, first of all, you need to carry out thorough market research to get to understand the business.
In your market research, do some findings on how the business operates in your area, what do you need to get started, the actual startup capital to budget, best marketing strategies, where to buy cosmetics for cheap in bulk, and so on.
To get the best result, it will be better to find and meet a cosmetics seller in your area, build a business relationship, and ask them everything you wish to know about the business.
2. Pick a Niche
All beauty products are known as cosmetics, so there are different types, and mainly sellers go with a niche at least for a start.
The following are some of the cosmetic business niches in Nigeria.
This niche of the cosmetics business involves the sales of all kinds of make-up products such as eyelashes, powder, lip gloss, mascara, foundation, etc.
This is the most popular and the one that usually comes to people’s minds when they think of cosmetics business. It is profitable and moves faster than other niches in the cosmetics business in Nigeria.
Skin Care Products
Skincare products are another popular and profitable niche in the cosmetics business and it involves selling all kinds of skin care products including body lotion, moisturizing creams, tubes, anti-acne creams, and lots more.
From opening a shop to selling online, skin care products move fast, as they are products that are used both by men and women.
Sales of fragrances in order words perfume is another niche in the cosmetic business in Nigeria. This niche also moves fast, and you can market the products in many different ways including taking them to offices, and even schools and advertising to students. That means it is a perfect one for students.
Personal Care and Toiletries
This niche is not too known as a type of cosmetics business, it is! It involves the sales of personal hygiene. These products include toilet paper, bathing soap, sanitary towels, etc.
3. Get a Shop/Store
After picking a niche, the next thing is to find a shop in a suitable location. In this step, you need to take your time and do some findings such as competitor analysis. This will help you know what types of places cosmetics move fast. For example, where I live now, cosmetics move faster in the market square than on the street.
Although, while looking for a place to sure your store, you should consider:
- Target audience
For the target audience, if your market research is well done, you would know who your customers are and your targeted demographics, just make sure to find a shop where there are many of those audiences.
Talking about competition, it is hard to find areas without cosmetics stores especially if you live in Lagos or Port-Harcourt. So, try and secure a shop where there is no, or far away from an existing cosmetics store.
Lastly, make sure there is a low criminal record in the area you’re looking to site your store.
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4. Come Up With A Business Name & Get Registered
It is really hard to find a cosmetics store without a name unless the seller is a hawker. You need to brainstorm a business-related name for your cosmetics business, and also come up with a slogan.
After that, although not a must, you need to register your business with CAC, and it is important you find out if there are associations of cosmetics stores in your area. If there are, it is ideal to join one, so as not to get disturbed after starting.
5. Find a Supplier
In a cosmetics business, working with the right supplier could speed up your success. Because prices vary across every supplier, you’ll want to work with the ones that have the best prices.
If your market research is well done, you would have known the best places to buy cosmetics products at wholesale prices. However, you can also source products online from China and have them shipped to Nigeria. This is great for those that already know about the mini-importation business model.
Another way to find suppliers is to search online for the best cosmetics suppliers in Nigeria, and you’ll find a list of them. You can also go to a big market in your area and source suppliers yourself, just make sure you compare their prices before settling for one.
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6. Stock Your Shop and Start Selling
After finding the heat supplier to work with, buy different kinds of cosmetics based on your niche and stock your shop with the products.
Stocking your shop starts with buying products from your supplier, you need to keep the following in mind and make sure they are well in place.
- Ensure the products are well packaged before being transported to your store
- Take note of the expiry date
After getting the products to your store, you need to arrange them in sections. That is, make sure that a specific category of product (e.g different kinds of lipstick) is arranged in one section. Overall, make sure that your shop is set up to look like a cosmetics store, then you can start selling.
7. Market Your Business & Products
To start getting sales, you need to market your business and the products that you sell. The following are some of the best ways to market a cosmetics business in Nigeria.
In a cosmetics business in Nigeria, marketing starts from branding. That is you need to make sure your shop describes your business by printing a poster or banner containing your business name, and the different kinds of products you sell.
Use Social Media
Social media is one of the best ways to reach a wider audience with your cosmetics business in Nigeria. A lot of cosmetics stores have social media pages for their business, you too can market your products that way.
This involves creating Instagram, Facebook, TikTok, and Twitter pages for your business and posting your products every day. You can also try out paid social media ads to reach a more targeted audience.
Word of Mouth
Telling your friends, family, and neighbours about your business, and encouraging them to recommend your products to other people is another effective way of promoting your beauty product business in Nigeria.
Going online simply means building an online store for your business. This is becoming one of the most popular ways people sell stuff online. You can either build your own store using Flutterwave, Pocket, or Shopify and start selling or list your products on Jumia and Jiji to get buyers.
With this marketing method, you can even run your business in the form of dropshipping where you don’t have to see or touch the items, you only make your money online from home easily.
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Cosmetics Business – FAQs
Where to buy cosmetics in bulk in Nigeria?
The best place to buy cosmetics in bulk as a seller in Nigeria is simply going to big markets in your area, and finding big cosmetics shops. You can buy from them in bulk for cheap wholesale prices.
How to start a cosmetic business at home?
To start a cosmetics business at home, you’ll either operate the business as a dropshipping business, or mini importation, where you sell online and ship the products to the buyers.
What are the items to sell in a cosmetic shop?
Items to sell in cosmetic shops include but are not limited to eye gloss, mascara, foundation, concealer, face primer, face powder, and make-up brush, as well as other related products like perfumes, moisturizing creams, etc.
Cosmetics store business in Nigeria is a very lucrative one that anyone can start whether on a small scale or large scale. If you’re looking to start, I believe this post on how to start a cosmetic business in Nigeria has covered all you need to know to get started.