According to Wikipedia, “Cosmetics include skin-care creams, lotions, powders, perfumes, lip sticks, fingernail and toenail polishes, eye and facial makeup, permanent waves, hair colors, hair sprays and gels, deodorants and many other types of products”. With available information in the market it has been suggested that worldwide annual expenditures on cosmetics is around U.S $18 billion.
If you are interested in the business of cosmetic sales then there are many factors that you should consider before you make any investments. First it's important to identify the fashion consciousness of the people in your area and of course their income level. If you are living in relatively a poor region then you will have to sell the products with a lower price. However if you are living in a rich area where people believe that fashion as one major element in their life style then will have the chance of selling reputed brands at a higher price. The main opportunity here is that most of the wealthy people purchase products to show their status, so a combination of unique and well known brands would have to be made available.
While on the subject of segmenting the customers, it’s also of vital importance to understand the changes that you may have to do to your shop/house. Its highly like that rich customers would require more facilities and services from you than those with a lower income. In this case you may consider using part of the house or opening a shop attached to the house. This would help you to adequately provide the customers with the expected facilities and better shop floor management to display different cosmatics in many attractive ways. This would include presentation of the cosmetics in such a way that it reflects the status and the power of the person who uses it and further lighting and proper display lighting, etc.
If you are unable to start up the business on your own then you have the opportunity of signing up with companies such as Avon and Mary Kay. With this option, you’ll be able to buy the samples and catalogs from them but they are normally distributed at a lower price. After you have signed up you have to work as an independent agent for those companies and you also get the flexibility of deciding on the price that you are going to sell the product at (full retail or at a discount). The profit income from each product would be in a form of a discount based on the volume. However since you work as an independent agent, it’s important to notice that even with this option the cost of advertising, purchasing inventory, hiring staff, etc would have to be spent out of your pocket.
For the success of any business it’s important that the owner has skills and the ability to successfully run the business. For cosmetic sales, it not required for you to be a cosmetologist but however it would be an added benefit if you have at least followed a course on beauty care or any related area. This would give you a good knowledge on cosmetics and the other related products that the customers may want. So that you would be able to cater them with ease. Further marketing and other business management skills would also be useful in day to day running of the business. If you are tight on time then it is always possible for you to get the help of an expert on any specific area.
Considering the amount of money spent on cosmetic products each year, it’s clear that this is an area where a significant income can be obtained in the long run. Provided that the right location and the brands are chosen, any individual would be able to become successful in the sale of cosmetic products. Therefore if anybody has the capacity and willingness to do so, this would be one successful area where any talented individual may benefit through effective marketing.