When it comes to selling cosmetics, then the first thing that comes to mind is that this is quite profitable, since every woman buys some cosmetics for herself almost every month, and let’s not forget about gifts from men. But there is another side to this business – competition. Availability in big cities large cosmetic stores, with huge advertising budgets, sales programs, etc., make it significantly more difficult for a novice businessman to start in this business. In this article we will talk about how to properly start a business plan for a cosmetics store and not go broke. Let's discuss all the main points of this direction.
Outlet format
If you want to start a cosmetics business in small town, then you have every chance of success, you need to make your store a little better than your competitors and offer people a more convenient service and customers will definitely choose you. But in big cities, small entrepreneurs can get ahead of large ones retail chains almost impossible, which is why we recommend choosing narrow specialization and only in this case will you get your clients.
Examples of narrow niches:
- natural cosmetics without chemicals. Yes, the cost of such products is higher than conventional cosmetics, but in recent years there has been a trend towards a healthy lifestyle and that’s all more people moving towards healthy eating and the use of cosmetics based on natural elements. In big cities it is very promising direction Moreover, you can launch an online cosmetics store for this niche, which will increase sales.
- cosmetics for children. There is a market huge amount various creams, shampoos and other cosmetics for children. Open a specialized store and carry quality goods, there will be customers no matter what. In this direction, the main thing is correct advertising.
- sale of a certain group of goods. For example, perfumes or nail polish. At the same time, you should have as wide a range of these particular products as possible.
If you are launching in a small town, then you need to stock all groups of products and create a one-stop cosmetics store.
Place and premises
You will also need to tinker with the choice of place for trading. Free-standing stores are practically a disastrous solution for a novice businessman. To attract buyers, you will simply need huge investments in advertising, which at first, as practice shows, is not there.
The best solution would be to rent a small retail space in a popular shopping center. Yes, you will pay more for rent, but you will immediately get buyers and sales.
The area of the room should be starting from 20 sq.m. and more. Often, a standard retail outlet of this type has a size of 30 – 50 sq.m.
Another advantage worth adding is that when renting in a shopping center, you will not need to invest money in renovating the premises, which is also important.
Equipment for a cosmetics store
The lion's share of the budget for furnishing the premises will be taken by display cases and shelving.
Below is a list of the basic furniture and equipment you will need:
- glass and wooden shelves. The style of shelves will depend on the format of your store. If it is healthy cosmetics, then wooden shelves self made will come in handy. The style must be adhered to, as your clients will definitely pay attention to it. The cost of shelves starts from $15/piece. and higher.
- shelving – from $40 per section.
- special display cases with scrolling – from $100/piece. They are used to present the most popular solutions or new products.
- lighting for the store. Proper lighting is a very important part in this business. All display cases and shelves must be illuminated - from $800.
- a bright, eye-catching sign - from $100.
- table and 2 chairs for seller and consultant - $200.
On average, you will need about $1800 - $2000 for equipment.
Product range
To draw up the correct assortment map, you need to carefully study all offers on the market from wholesale suppliers. Contact them and find out at least the approximate pricing policy of a particular brand. Your assortment should include both professional cosmetics manufacturers and newcomers to the market. Important rule! Do not forget to ask about the availability of product quality certificates; if they are missing, we do not recommend purchasing this product. You are planning to work in the health and beauty industry after all, so quality should come first.
In terms of pricing, you should also have variety so that you can offer both cheaper solutions and more expensive options. Clients will be different, so all this should be.
Recruitment
Employees need to be recruited based on the types of products you will sell. For example, to sell natural cosmetics, you can hire women aged 35 and above. Customers will have more confidence in them than in young salespeople. To sell nail polish, for example, it is still advisable to hire the younger generation.
From the staff you will need:
- 2 sellers with shift schedule work;
- 2 consultants also, with a shift work schedule.
Vendors can clean the premises. Salaries for staff are based on sales volume.
You can either do your accounting yourself or outsource it.
You can also budget for the development of an online store and its subsequent promotion.
Financial plan
Starting investments:
- purchase of equipment - about $2000 - $3000;
- registration as an entrepreneur - $250;
- purchase of the first batch of goods - $15,000 - $20,000.
Monthly investments:
- rental of premises and public utilities– from $500;
- salary - $2000;
- taxes - $250;
- replenishment of product range - $1000
- advertising budget - $400.
In total, at the start you will need to invest about $25,000.
The average customer check is $8 - $9. About 25 sales are planned per day. You can earn $5,500 - $6,000 per month. If we subtract monthly expenses, we get a net total of about $1,200.
The payback period will be 12 months or more.
Heading:Taking care of your hair and its condition is an important component in the complex of caring for yourself and your appearance. At the same time, hairdressers and beauty salons often offer to come with your own hair dye, or other hair care products, since the hair products available in salons are not always suitable for a specific person, naturally this is not very convenient for clients.
Therefore, it is so important that beauty salons and hairdressers have a variety of professional hair care products available. Consumer demand for such products will undoubtedly be high.
Therefore, considering the various directions and areas of business that exist on the market, I settled on a business related to opening a store specializing in the sale of professional hair care products. There are only a few such stores on the market, and more often they are not available to all consumers, but work only directly with beauty salons and hairdressers.
Before we talk about how to open a professional cosmetics store, first let’s define what kind of cosmetics there are. You can find cosmetics in hardware stores, grocery supermarkets or just individual cosmetics stores. This is a household series, or I call it retail cosmetics.
In pharmacies you can find medicinal cosmetics, this is a special series of cosmetics that is sold only in pharmacies. There is also a professional series of cosmetics that are used in beauty salons for hair and skin care. That is, hairdressers, stylists, and cosmetologists work with her.
To sell medicinal cosmetics, you need to open a pharmacy; it is sold only with a pharmaceutical license.
Household cosmetics are not very interesting to me personally, due to the low markup. Therefore, we will focus on selling a professional series of cosmetics. The markup here can exceed 70%; the profitability of the store, with proper cost management, is high.
Who buys professional cosmetics?
- Social status: young people interested in fashion trends, who always want to be in the center of events
- Age:17-25 years
- Gender: female
- Education : higher, incomplete higher, secondary specialized
- Income level: average income, do not have their own income, are supported by their parents
ambitious, competitive-minded, status is of great importance to them, so they consider the prestige of a product as a means of increasing it. They have modest financial resources, but a great willingness to spend them. Characteristic features: low level of consumption, willingness to spend, attention and trust in advertising.
- Social status: married couples, families with children
- Age: from 25-50 years
- Gender: female, male
- Education: secondary, higher
- Income level: average income, above average
Psychographic characteristics: people who value self-sufficiency. They are focused on what is close and familiar - family, work and active recreation. They are characterized by a willingness and sufficient ability to spend money, which is combined with prudence in purchases.
- Social status: active citizens, top managers of companies, owners of their own small business
- Age: from 25-50 years
- Gender: female, male (very little)
- Education: higher
- Income level: above average, high
Psychographic characteristics: people who have achieved a position in society, success in business, in their profession. These people are competent in their field, work hard and achieve success. They usually own material assets and are satisfied with their position in society. Such people prefer to buy branded, high-quality products and services that emphasize that they are more successful than others.
By focusing on the sale of cosmetics to both beauty salons and hairdressing salons and ordinary consumers, it is possible to achieve very high product turnover and profit rates for a store specializing in the sale of professional hair care products.
It will be important for your work to find wholesale bases that sell these professional hair care products, enter into agreements with them for the supply of products, or come to purchase directly from the bases each time as needed.
You should purchase the most popular items in which clients will be interested, to find out what items they are, you can talk to employees of beauty salons and hairdressers and find out what they need and what is popular with clients.
You will need to find premises for the store; you can sell these hair care cosmetics in a small office, then you can save on rent. At first, you can sell on your own, and only then, when the company begins to make a profit, hire a sales consultant.
If beauty salons and hairdressers are interested in the store’s products, you can immediately gain regular customers. You can interest them in purchasing products favorable conditions deliveries, flexible prices, convenient schedules and an individual approach to each client.
Since competition in this area is low, getting beauty salons and hairdressers interested in hair care products will be a completely feasible and realistic task.
Trading format
It is better to use an open display, this increases average bill at least 40% percent.
It is better to place stores in shopping centers: in modules or shopping islands.
Also interesting will be streets with high traffic, with points of attraction.
Equipment
The average store area is 20 square meters. m. Based on this, we select equipment: wall racks, display counters, stands for combs.
Assortment
There are a lot of professional cosmetics, what exactly should you choose for your store? You need to trade what the masters work with in the salons of your city. People should know this cosmetics. The store's assortment includes both inexpensive lines and premium cosmetics.
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You can study a calculated business plan for a cosmetics store right now. The fact that selling cosmetics is a popular activity today does not require proof. Within such a store you can distribute perfumes, decorative cosmetics, certain positions household chemicals, household goods. As you can see, the assortment is almost unlimited; it is in constant demand among both women and men.
After studying a ready-made business plan, you will find out what the return on investment for a perfume store is, how to properly organize its work, and what investments will be required. An important factor affecting profit will be the location of the store itself. It is better if it is a crowded city center or a large residential area.
Our business plan for organizing a perfume store includes options for renting premises or purchasing them. However, with the same success, using the plan, you can create a cosmetics department within a large shopping center or popular supermarket. Rental costs in this case will be lower, but this figure ultimately depends on the size of the premises you need.
Cosmetics and perfumes are products that no woman can do without. But this is not the only reason why entrepreneurs decide to open a professional cosmetics and perfumery store from scratch. Another advantage of this type of business is that the barrier to entry into it is not too high. In order to open a perfume business - a boutique or a store - 50 thousand dollars is enough. At the same time, the profitability in this type of business can be called quite decent, since it rarely falls below 25%.
It is impossible to be involved in the perfume business and not understand anything about its intricacies. If only because without necessary knowledge difficult to decide on assortment point of sale. Trading everything is a very risky option. Firstly, because it requires a huge one-time investment. Secondly, this approach makes it difficult to determine the target audience of your store. All cosmetics that are produced in our country and abroad are divided into certain groups and types. And when choosing what to trade, an entrepreneur needs to focus on many factors.
The abundance of cosmetics and perfumes makes it difficult not only for buyers of fragrant products, but also for entrepreneurs who have planned to open a perfume and cosmetics store. As you know, all cosmetics are divided into certain groups: professional, pharmacy, selective and mass-market cosmetics. What product will be in demand in a particular store is up to the businessman to decide.
Your own business - opening a cosmetics department - will be profitable only if you are able to accurately compose the assortment of your outlet. So, for example, a business in branded, professional cosmetics will be advisable only in large cities. And, on the contrary, creating a retail outlet in which the main assortment is inexpensive cosmetics and perfumes, in an area where people with high incomes live, most likely will not bring the expected profit. The choice of assortment list depends on marketing strategy companies. Entrepreneurs who are planning to open their own body cosmetics store need to target a specific audience of buyers, which must be taken into account when promoting a retail outlet.
A high-quality example of a business plan for opening a cosmetics and perfumery store with ready-made calculations will help beginning and experienced entrepreneurs understand the basics of organizing and managing production in a perfume and cosmetics store. Looking for answers to your questions about opening a cosmetics store on various forums is not the best solution. Only professional recommendations will allow you to avoid possible mistakes, find out what you need to open a bottled perfume store and how to beat your competitors without losing the money invested in this business.
The perfume market in Russia is growing rapidly, which gives confidence to entrepreneurs who are planning to open their own business - a cosmetics store. This market sector is developing according to its own laws, which cannot be ignored. Otherwise, you cannot count on success in business. For example, how can one not take into account the fact that opening a point selling cosmetics has a clear seasonal dependence. It is most profitable to open a store on the eve of the holidays - on the eve of the New Year, March 8, February 23. Traditionally, cosmetics and perfumes are considered one of the most popular gifts.
Opening a perfume and cosmetics business involves two main scenarios for an entrepreneur: acting as a distributor of a well-known chain of perfume stores, or free floating, when a businessman is engaged in independent sales of perfume and cosmetic products. The “gray” market does not have the advantages characteristic of a distribution network, but at the same time, this path has certain advantages that attract many entrepreneurs.
As the experience of opening cosmetics departments in Russia shows, acting as a distributor provides a businessman with great opportunities. First of all, this is the right to sell a certain brand of cosmetic or perfume products. As a rule, we are talking about worldwide famous brands, such as Lancome, Chanel, Hugo, Cristian Dior and many others. This type of entry into the perfume business is very beneficial for beginners.
Partnership with large companies allows an entrepreneur who wants to open a cosmetics company to avoid the costs of marketing research, product supply, and most importantly, promotions. All this contributes to huge savings. You can open a small department of professional cosmetics or a huge store, but the terms of trade will be dictated to you by your partner, that is, the owner of a well-known chain.
But, despite the rather obvious advantages, many entrepreneurs prefer to go free and start a business such as selling cosmetics, according to the so-called “gray” market scheme. In this case, the opening own business- a perfumery or cosmetics store - involves selling products that you choose yourself, and you set your own price for it.
Before you start a business and calculate profits from trading perfumes, you need to calculate the maximum allowable markup on products. This figure is influenced by the level of competition in a particular region, the income of the population in the area where the store is located, and many other factors. Typically, the markup on perfumes and cosmetics does not exceed 15%. Judging by the reviews of experienced entrepreneurs, those who set sail freely have every chance not only to survive, but also to thrive. True, this only applies to businessmen who have focused their attention on a competent example of a business plan for a cosmetics and perfumery store. This document contains useful information that will help you conquer this market.
The business of selling perfumes promises very decent income to an entrepreneur who can understand all the intricacies of a specific trade. The maximum opportunities fall to those businessmen who prefer to open not just one cosmetic store, but an entire network of retail outlets. In conditions modern market the owner of a chain of stores has a much better chance of surviving and ensuring high and stable turnover.
Another success factor for a cosmetics business is its favorable geographical location. You can count on profit only if stores open in large cities, which are distinguished by well-developed infrastructure, an increased level of income among the population, and large number potential buyers quality cosmetics and perfumes.
Opening a point with professional cosmetics in a small locality- the enterprise is quite risky. In this case, the entrepreneur faces problems with the delivery of goods and the possibility of selling them. After all, as a rule, residents of such cities do not have very high incomes, and few can afford to buy expensive cosmetics.
The success of organizing a perfumery and cosmetics production enterprise is determined by its favorable location. It is best to open a retail outlet in a separate room, for example, on the ground floor of a residential building, or in a reputable shopping center. It is important that it is convenient to get to your store, which is facilitated by convenient access roads, as well as a good transport interchange. Proximity to a metro station or bus or trolleybus stops is a prerequisite.
If you act as a partner of a well-known network, then the final decision on the choice of premises will be made by its owners. It is they who decide how profitable it will be to organize the sale of cosmetics in a particular area. Another question that a businessman has to solve at the organization stage perfume business– renting premises for a retail outlet or purchasing it.
The first option looks more preferable only at the initial stage of business development. Already in the first months of the store’s operation, the prospects for trade can be determined. If it becomes clear that no particular profit is expected, you can quickly turn around and look for another option for locating a retail outlet. Or, if things go well, buy the premises and begin to actively develop a business in perfumery.
The interior of the store, its design, and, of course, the professionalism of the employees working in it are also important. Understanding a business proposal like selling cosmetics can sometimes be very difficult. But even novice entrepreneurs will find it much easier to act if they have at hand a high-quality example of a business plan for opening a perfume and cosmetics store with professional and natural cosmetics. It contains a detailed description of this type of business, taking into account its various nuances. With the help of this document, you will learn, for example, what features a business such as bottling perfumes has and what measures need to be taken in order to increase the likely profit.
We present to your attention the project "Distribution of cosmetics".
The business plan is developed based on the actual data of the existing enterprise.
Highly qualified employees with experience in the industry took part in the creation of the project.
The business plan complies with international and Russian standards(UNIDO, TACIS, EBRD, MEDT of the Russian Federation, Ministry of Finance, Ministry of Construction, Ministry of Agriculture) and will adequately present your project in Russian and international banks, as well as government agencies at all levels.
If necessary, our company’s specialists will promptly make adjustments to financial calculations and the descriptive part of the project, in order to ensure full compliance business plan to your parameters.
The project is provided in the format of working files, which you can make changes to yourself or by qualified employees: financial model(Excel based) and Word file (Powerpoint).
Main project parameters:
Quantitative indicators: The planned volume of product purchases from the distributor is 17,063 thousand rubles per month
Investment volume:- in dollars 229,053
- in euros 174,032
- in rubles 6,754,967
Project payback period, years: 0,8
Basic document parameters
- Number of pages – 100
- Number of charts – 25
- Number of tables – 18
1 SUMMARY
1.1 Project goals and objectives
Project initiator: a new one will be created legal entity XXXXX LLC. It is planned to include three founders among the founders of the enterprise when receiving investments (2 individuals - the initiator of the project and an investor).
Project goal: organizing the distribution of cosmetics.
Legal address of the company: XXXХ. Location contract manufacturing– XXXХ, distribution networks – city XXXХ and major cities Russia.
The planned volume of product purchases from the distributor is 17,063 thousand rubles per month.
1.2 Promotion strategy
The strategic goal is to cover 10% of the sales market through business and VIP beauty salons. For comparison: XXXXX, which entered the market in XXXXX, currently works with 200 beauty salons in XXXXX.
Promotion channels:
- Beauty salons;
- Educational studio schools;
- Participation in exhibitions (in XXXХ – XXXХ, in regional centers of Russia and CIS countries);
- Television advertising;
- Billboards, street advertising;
- Advertising in magazines;
- Professional stores;
- Shopping centers;
- Sales representatives;
- Trading by catalogs through XXXХ;
- Online store;
- Viral advertising on the Internet;
- Distribution of our own magazine in Russian.
1.3 Pricing
The distributor's price with a wholesale trade margin (300% of the distributor's price) constitutes the price for wholesale products.
1.4 Project financing
Requirement for financial resources and financing structure
The need for financial resources for the project is 6,755.0 thousand rubles.
It is planned that this project will be financed from our own and borrowed funds.
Size own funds- 858.4 thousand rubles.
The volume of additional financing is 5,896.6 thousand rubles.
Terms of attraction borrowed funds
To draw up this business plan, the following conditions for attracting cash: the loan is provided for 13 months (1.09 years), for the period: February XXXXX - February XXXXX, the interest rate on the loan will be 15% per annum.
The loan is raised in stages, over 3 months (0.25 years: February XXXXX - April XXXXX), in accordance with the investment financing schedule.
Conditions for repayment of borrowed funds
It is planned to use 95% of free cash flow after payment to repay the loan current expenses, taxes and interest on the loan, the loan repayment period will be 1 month (February XXXXX).
The loan is planned to be repaid in full in the 15th month of the project (February XXXXX).
Loan interest repayment
During the entire period of the project, interest is accrued and paid on the funds used.
Interest accrued for the past period is paid at the beginning of the next period.
The amount of accrued interest for the period of using the loan will reach 805.4 thousand rubles.
1.5 Project indicators
The economic viability of the project was confirmed by calculating traditional financial indicators used in project analysis.
The project calculation horizon is 36 months (3 years).
| № | style="text-align:left;">Indicator name | Indicator value |
|---|---|---|
| 1 | Project calculation horizon, years | 3,0 |
| 2 | Project calculation horizon, months. | 36 |
| 3 | Amount of capital invested in the project (LDC), rubles | 6 754 967 |
| 4 | Revenue volume for the project period (SP), rubles | 1 057 875 000 |
| 5 | Net average op. income per quarter (NAOR), rubles | 20 306 036 |
| 6 | Average cash balance funds per quarter (ADB), rubles | 139 727 757 |
| 7 | Net profit for the project period, rubles | 430 413 223 |
| 8 | Net income (cash balance (NV)), rubles | 430 413 223 |
| 9 | Average profitability during the project period | 40,7% |
| 10 | Discount rate (DR), % | 14,5% |
| 11 | Net present value (NPV), rubles | 319 704 962 |
| 12 | Average Rate of Return (ARR) | 2123,9% |
| 13 | Return on Capital Employed (ROI) | 6371,8% |
| 14 | Profitability Index (PI) | 49,99 |
| 15 | Internal rate of return (IRR) | 377,8% |
| 16 | Modified ext. rate of return (MIRR) | 5220,6% |
| 17 | Payback period of the project as a whole (PBP), months. | 9 |
| 18 | Payback period of the project as a whole (PBP), years | 0,8 |
| 19 | Discounted term payback of the project as a whole (DPBP), months. | 9 |
| 20 | Discounted payback period of the project as a whole (DPBP), years | 0,8 |
1.1 Project goals and objectives
1.2 Promotion strategy
1.3 Pricing
1.4 Project financing
1.5 Project indicators
2 MARKET OVERVIEW
2.1 Cosmetics market
2.2 Beauty salons in XXXXX
Business attractiveness
Types of beauty salons
Beauty salon services
3 INVESTMENT PLAN
4 ORGANIZATIONAL PLAN
4.1 Project implementation management (enterprise management)
4.2 Project implementation stages
4.3 Current management project
Staff
5 DYNAMICS OF PHYSICAL SALES VOLUME
5.1 Physical sales volume
Reaching planned sales volumes
6 COMMERCIAL PLAN
6.1 Types of income received under the project
6.2 Structure and volumes of income
7 PROJECT COSTS DURING THE OPERATIONAL PERIOD
7.1 Fixed costs
Current expenses
Depreciation
7.2 Variable costs
Direct costs
Loan interest
Taxes
7.3 Project Cost Analysis
7.4 Break-even point analysis
Break-even operating activity
Break-even analysis for the entire project
8 FINANCIAL PLAN
8.1 Conditions for attracting investment resources
8.2 Cash flow plan indicators
8.3 Profit and loss plan indicators
8.4 Financial indicators project
9 PROJECT RISK ANALYSIS
9.1 Factors affecting the company's activities
9.2 Quantitative risk analysis (sensitivity analysis)
Sensitivity Analysis
Conclusions
10 DESCRIPTION OF CALCULATION
10.1 Assumptions
Assumptions in break-even analysis
10.2 Project parameters
10.3 Calculation of project effectiveness criteria
10.4 Calculation of financial ratios
Solvency indicators
Indicators financial stability
Business activity indicators
Profitability indicators
11 LIST OF FIGURES AND TABLES
11.1 List of tables
11.2 List of drawings
APPENDIX 1. SALES PLAN AND DIRECT COSTS
APPENDIX 2. FINANCIAL RESULTS OF THE PROJECT
APPENDIX 3. PRODUCT CATALOG XXXX
APPENDIX 4. INFORMATION ABOUT THE PROJECT DEVELOPER
1 LIST OF FIGURES AND TABLES
1.1 List of tables
Table 1. Financial and investment indicators of the project
Table 2. The most popular XXXXX brands on the market
Table 3. Advantages and disadvantages of competitors
Table 4. Competitors' prices, euros
Table 5. The most popular beauty salons in XXXXX
Table 6. Investment budget
Table 7. Calendar and financial plan
Table 8. Staffing table with salaries
Table 9. Sales plan (1 year)
Table 10. Fixed costs
Table 11. Variable costs
Table 12. Taxes
Table 13. Analysis of cost structure (in relation to revenue)
Table 14. Distribution of tax payments by budget level
Table 15. Loan receipt and repayment schedule
Table 16. Financial and investment indicators of the project
Table 17. Impact of changing individual parameters on project performance indicators
Table 18. Project sensitivity analysis
1.2 List of drawings
Figure 1. Price structure for retail sales
Figure 2. Structure of the cosmetic market in Russia, XXXXX
Figure 3. Dynamics of imports of cosmetics in Russia
Figure 4. The most popular places for selling cosmetics in the regions
Figure 5. Shares of XXXXX beauty salons by age
Figure 6. Shares of salons providing basic services in the XXXXX beauty salon market
Figure 7. Frequency of visits to XXXXX beauty salons
Figure 8. Criteria by which XXXXX choose beauty salons
Figure 9. Structure of investment costs
Figure 10. Schedule for financing investment costs, rubles
Figure 11. Schedule for financing investment costs, rubles
Figure 12. Reaching planned production volumes
Figure 13. Dynamics of sales revenue, rubles
Figure 14. Structure fixed costs(to total fixed costs)
Figure 15. Structure variable costs(to total variable costs)
Figure 16. Structure of tax payments (for the project period)
Figure 17. Ratio of fixed and variable costs
Figure 18. Structure of distribution of sales revenue into costs and profit
Figure 19. Break-even point excluding the tax component, rubles
Figure 20. Break-even point taking into account the tax component, rubles
Figure 21. Break-even point of the project as a whole, rubles
Figure 22. Cash flows for attracting and repaying credit funds, rubles
Figure 23. Payment of interest accrued this month, rubles
Figure 24. Cash flows for the project, rubles
Figure 25. Project payback, rubles
Perfume and cosmetics stores have become one of the most profitable types of business. Strictly speaking, this is not surprising, because we all love to be beautiful, and in recent years this love has only been growing. Here we will look at an article about how to open a cosmetics store, a business plan that can be downloaded for free, and what you need to open it.
You can increase your chances of success by betting on the organization the whole network shops. This will provide you with more opportunities due to high turnover. The formed network of cosmetics stores is more durable and adapted to market conditions market survival.
Business plan
Here is a ready-made example of a business plan for a cosmetics store with tables into which you will need to insert your data. If you need to download a version with full calculations (but not your numbers), then you can buy it on the RBC website. If you need an individual version of a cosmetics store, then contact the developer this example— to the website of the company GLOBAL REACH CONSULTING.
Before you proceed directly to downloading the business plan, note that today there are 2 options available for starting this type of business - open a cosmetics pavilion (the so-called boutique) in a large shopping center, or create a separate store.
The first option will cost you much less, because in this case there will be no costs for construction or renovation of the premises. But in this case, you usually need to be prepared for a considerable number of competitor cosmetics stores in your neighborhood. The second option may be too expensive, because you will have to buy and renovate the premises, but, at the same time, it may have a number of advantages: convenient location, lack of competitors, individual store opening hours, etc.
How to open a cosmetics and perfumery store
So, you have decided to start your own perfume business, but you don’t know about how to open a cosmetics store, what you need to open it.
Customer Focus
It is more profitable to open cosmetics stores in large administrative cities and regional centers. Such cities are home to more than 1 million residents, most of whom have average earnings and above. This means that there are many potential buyers of cosmetics there. In addition, thanks to a well-developed infrastructure, the supply of goods to stores is not difficult. There are also exception cities, with a smaller population, but with a higher overall purchasing power.
Distributors of cosmetics and perfumes
The largest networks are organized according to the principle of their close relationship with distributors for cosmetics stores. They either become partners or are part of the company. They have exclusive sales rights for cosmetics and perfumes. For example, the right to authorize a point of sale, conduct advertising and marketing activities.
There is another option - opening a market stall. No problems with promotional material: packages, posters. All you need to do is buy any perfume or cosmetics you like and put it up for sale at any price. The tent belongs to the so-called gray market. Sales volumes there are quite large, but there are no prohibitions from the state.
Large chains are fundamentally different from a retail outlet. Manufacturers have strictly fixed recommended retail prices. Rigidity and regulation are fundamental to the selective cosmetics market.
Product range
Regarding the choice of products, the situation in the cosmetics and perfumery business is easier than in others. World leaders, which include Christian Dior, Guerlain, Lancome and others, have powerful advertising campaigns And great opportunities. Their cosmetics will definitely find their buyer. You risk absolutely nothing by including them in your assortment of products in the store. The nuance of working with brands is that your store meets a whole list of requirements.
Trade premises
One of the main requirements for a cosmetics store is its location. Preferably it should be shopping mall or a separate salon. Naturally, transport interchange is important. Approval of the premises you have chosen will be taken by the distributors. At the initial stage, renting is more attractive. If the stability and prospects of a cosmetics store are guaranteed, it is better to buy the place.
Store interior
The interior must be carefully thought out: proper lighting of the store, the predominance of glass shelves in furniture. A place for the presentation of each cosmetics and perfume of a particular brand must be allocated and decorated, and advertising posters with logos and slogans must be placed. As a rule, decorating a premises according to all the requirements of manufacturers of selective cosmetics and perfumes requires a significant investment.
Staff
To attract clients, high-quality personnel selection is very important. Many cosmetics stores organize their own training centers, in which distributors are involved. Sellers must have not only basic techniques, but also comprehensive information on certain brands. It will be good to move the core of the team from the old store.
Advertising
According to many experts, it is highly effective outdoor advertising cosmetics stores on billboards. But she gives good result subject to wide coverage. By contributing to the formation of an image, it affects the recognition and memorability of a particular brand.
Promotions and discounts
You can slightly beat the rigidity of the pricing policy in order to attract additional customers by introducing accumulative discount systems and gifts with purchases in the cosmetics store specific product. But to be able to carry out such promotions, it is advisable to interest the staff in trade turnover.
Control
For effective management cosmetics store, its work must be clear and coordinated. Everyone should deal only with the immediate task at hand. The stepwise interaction between the management apparatus and personnel will make it possible to achieve centralized management.
Business expansion
The continuous development of a chain of cosmetics stores is integral to success. Expanding the range and coverage of the territory helps to increase trade turnover.
IN lately There is a trend towards the development of chain stores. The competitiveness of individual stores is rapidly decreasing, unable to cope with the prices, volumes and variety of assortments of chain stores. This trend also determines the further direction of development for cosmetics stores - chain stores.
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