The natural desire of every woman is to look young and beautiful. Representatives of the fair sex are willing to spend up to 15% of their budget to buy face and body care products. Many girls pinch themselves in their diet in order to allocate some money to buy a new lipstick or perfume. The business of selling such products is popular and interesting for investors. For a successful start and to minimize the risks of the project, it is necessary to make a business plan for a online beauty store with calculations.
Project description
Objective of the investor is to open the store of cosmetics and perfumery in the city with the population more than 200 000 inhabitants. Project mission – to satisfy demand of local inhabitants for cosmetic goods.
The outlet will be located in a large shopping and entertainment center of the city, in a place with high traffic. The area of the store is 40 m2, out of which 30 m2 is allocated for a sales area with the rest of the space being used as a cash register and a small warehouse. The shop will be open seven days a week from 9.00 to 20.00.
The main direction of goods – decorative cosmetics of different manufacturers:
- concealers;
- powders;
- foundations;
- eye shadows;
- eyeliners;
- blushes;
- lip and eyeliner pencils;
- lipsticks;
- lipsticks;
- lip glosses;
- brushes;
- sponges;
- cosmetic sets.
About 30% of the products in the showcase are face, body and hair care products. These are tonics, lotions, creams, cosmetic milk, cellulite remedies, micellar water, shampoos, balsams and conditioners. The catalog also includes perfumes. To ensure steady sales, we plan to diversify the assortment of men’s beauty care products. Its share in the total amount of goods is 15%.
The target audience is mainly women of different ages (90%) with average income. Of these, 40% are ladies from 25 to 45 years old, 30% – girls from 16 to 24 years old and 20% – women over 45 years. Men also sometimes visit makeup stores to buy a gift for their life partner or mother. About 10% of the total number of visitors are members of the stronger sex.
Advantages and disadvantages of the business idea
Selling cosmetics as a business is attracting more and more investors, because this kind of business has a number of advantages:
- high markup on goods – from 50%;
- a wide target audience;
- stable demand for products;
- lack of seasonality factor;
- short payback period;
- business management does not require special knowledge.
The disadvantages of the project include a high level of competition in this niche and a large amount of investment for start-up.
Possible risks
Advantages and risks
When drawing up a business plan for a perfume and cosmetics store, you should analyze various factors that may hinder the development of the project. The risks of the business include:
- Unfortunate location of the outlet and, as a consequence, low sales;
- sudden increase in prices by suppliers of goods;
- unscrupulous vendors;
- force majeure;
- termination of the lease agreement;
- appearance of new competitors in the vicinity of the store.
It is important to think in advance about the ways in which these risks can be minimized and to indicate ways of solving problems in the business plan.
Market and competitor analysis: the first step towards the goal
Before starting to implement the idea, you will have to conduct a marketing analysis – to assess the demand for face and body care products in the city. In settlements where the population exceeds 100,000 people, mostly people with average income live. A large number of young people in the city is a favorable ground for the project development, because girls of 16-25 years old make up the main part of the target audience.
Assessing the level of competition is the next stage of the future entrepreneur’s work. The main competitors of the store are cosmetics departments in supermarkets, online stores selling skin care products and perfumes, as well as similar outlets in the offline. For the successful development of business in a highly competitive environment, you need to make a list of its own advantages.
The strengths of the project are:
- the supply of high quality goods;
- a wide assortment;
- the presence of organic cosmetics;
- bonus system of discounts;
- careful attention to each client;
- affordable prices for goods.
