So, one day you wake up and decided to chase your dreams of owning and running a company, your decision to step into one of the most competitive and lucrative businesses of all time has got you riled up and nervous at the same time. However, do not fret for we are here to help you through the foundational steps of your business. Moreover, Corpseed will also help you with procuring licenses and agreements.
Table of Contents
- Introduction: Skincare
- Understanding The Idea Of A Skincare Business:
- Establishing A Skincare Business
- Final Thoughts
- How To Start A Skincare Manufacturing Company
- Cosmetic Regulations In India
- Initiating The Steps To Start Your Own Manufacturing Company In India:
- Requirements For Setting Up Of A Cosmetic Manufacturing Company In India?
- List Of Documents Required
- Final Thoughts
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Understanding The Idea Of A Skincare Business:
Stepping in and starting a newfound skincare business is unlike any other startup business’s foundational steps, the innovator(s) and the owner(s) need to be more hands-on and involved than a business that deals in print-on-demand T-shirts.
And just like any other start-up venture, the beginning phase of the business plan is theoretically possible even if you are on a meager budget, if you are creatively resourceful and through this blog, we will try to list out the do’s and don’ts while starting a skincare business.
Experts in the field and business analysts have predicted that the skincare industry will be worth approximately around $200 billion by 2025. This projects that it is a really good opportunity to step in right now, and even if you decide to step in later, it is going to be a great decision as the prediction suggests that it will only grow from thereon.
We are sure you must have done your due diligence in understanding the scope of the industry…below are the few things necessary to keep in mind and understand before starting a business or a manufacturing business.
Establishing A Skincare Business
In the last decade, several women have led their businesses into financial success while leaving the competition in utter turmoil. The women-led enterprises and natural brands that have burst out into the market like a wrecking ball have been of all sizes.
It doesn’t matter if you are just a random person trying to toy around with the idea or if you are a hands-on-deck person stepping into this venture, nobody can deny the excitement of this prospect and sure, your own skincare business sounds freaking amazing but, how are you supposed to take the first step? And as the age-old saying goes “the good overwhelming feelings go hand-in-hand with the complicated overwhelming feelings”…
Sitting there on the couch, wondering where and how to begin? We here at Corpseed have you covered, below are the must-know (s) before starting a skincare business of your own.
1. Meeting The Legal Requirements:
Coming to the most important part, it is of the utmost importance to understand the legal requirements and follow the regulations and compliances to not only avoid legal trouble but also to engage in a safe and healthy skincare business that gives your product consumers the confidence to use and apply your product.
To understand the regulations and the laws governing the Indian market, put a substantial amount of your time and energy into understanding which products fall under the definition of Cosmetics under the Drugs and Cosmetics act of 1940. If it does fall under the definition of cosmetic, the product must be registered with the details of pack size, if it has different variants and where is it manufactured or if it is being imported to the country, where is it being imported from, and the foreign manufacturing site details.
If a cosmetic product is not registered under the existent rules and regulations for cosmetics given under the drugs and cosmetics act of 1940, the product is barred from being sold, manufactured, or imported into the entire territory of India.
2. Identifying The Niche:
Being one of the largest and the most lucrative industries, the skincare industry covers everything, from head to toe, the companies involved in the industry offer a product for every centimeter of skin on our body. Since there is such a huge competition between businesses appealing to customers and consumers on such a huge scale is going to be next to impossible because established businesses have a much bigger scale of operation and have already crossed the ocean you are yet to cross.
As a newfound skincare business, whether you manufacture or produce, create and understand a niche. Pick and choose your areas of interest; understand which products or what kind of products you want to sell or manufacture. The next step would be to make your products different than the rest of the competition and understand the target consumer base, based on your products.
3. Choosing A Flagship Product:
As you go through the years and foundational steps of establishing your business, you’d most definitely be adding more and more products to your portfolio to increase your customer base. But that comes later in the stage; before reaching that milestone, you need to work on a flagship product. A product that will grab the attention of all of the masses.
When developing a flagship product for your business, make sure that the product you offer is going to be the most exciting and attention-grabbing product in the entire market when your business is in its launching phase.
When choosing your flagship product, keep in mind that, the flagship product will be quite literally the poster child of your Skincare line.
4. Finding A Manufacturer:
Unless and until you are building and manufacturing everything for your brand in the comfort of your home and being indulged in the entire process. A good manufacturer will take a hefty load off of your shoulders when designing and heading your skincare line and can produce your products in bulk while you as the founder and owner of the business can focus on building your brand past the current milestone.
To make sure that your products are manufactured and shipped to your facility on time, choosing a trusted and competent manufacturer is of the utmost importance. A manufacturer you can trust can only be chosen by you and the research you conduct and establishing a relationship with the manufacturer.
You could either choose a local manufacturer or an overseas manufacturer. Picking a local manufacturer would in turn benefit you by establishing a close relationship with the manufacturer and would also enable you to get in touch with them while receiving faster shipments. On the other hand, picking an overseas manufacturer would benefit you by having access to a larger range of products to manufacture for a fraction of the price of what it would cost to produce or manufacture locally. However, before choosing an overseas manufacturer, you must vet the manufacturer’s business.
5. Creating Your Skincare Brand
It is important to note and acknowledge that when creating and founding your own skincare business and line, you should create your brand’s personality which can capture your target consumer base’s attention; moreover, the consumer base you are focusing on should be able to fall in love with your brand and products that you offer them.
The very basic thing to do when creating your brand’s profile is to create a universally likable logo and a catchy name, a logo that must be eye catchy, describes what your brand stands for in one look, and the color palette of the logo plays an important role too.
The second most important thing is that your product’s packaging be in a way through which the consumer can understand what is in the product, i.e. how was it made, thus, bringing transparency to your consumer which further gives boosts confidence in your brand and encourages them to avail more of your products. Great product packaging is innovative and enables easier access to use your products. Is lightweight and eco-friendly and reusable, to appeal to government regulations and the consumer’s law-abiding morals?
6. Building An Online Store:
Now that you have successfully made a flagship product and have a good manufacturing partner, it is time to take your business to new heights. In today’s era, where everything has shifted to the digital market from an analog and manual market, it has become relatively easier to sell your products online. You can choose to enlist the help and resources of a third partner, an E-commerce website that bridges the gap between you and your consumer in the virtual space without needing any technical assistance (like Shopify) or you could choose to build your website from scratch which is customized to your liking and let you have a deeper connection with your consumers.
Many companies and brands have shifted from having their website to e-commerce platforms like Shopify. The reason is simple yet effective, outsourcing the managerial part of having an e-commerce platform takes away a considerable amount of load from the business owner’s shoulders, thus enabling them to focus more on the brand, its products, and its image.
It is pertinent to note that having a website, you should design it carefully and shouldn’t be confusing or have a difficult navigation system. The website should provide ease of access to your products pages, which not only contain your products and their description but also provide an extra bit of information that would further enhance their confidence in your brand and product. Having a subscription-based newsletter system would help nurture your loyal customers who just might be ready to jump in the action and buy your new products as soon as they hit the market.
So, you have an early-stage business, a website, and a flagship product readily available on store shelves and through the internet. The Skincare Industry has above-average competition for upcoming and budding brands.
Having the right marketing strategy for your brand can ensure your brand outshines the competition and draw the attention of the customers most likely to benefit from your product which in turn will benefit you. Keep your brand image and your target audience (likely customers); by curating marketing material that would appeal to them, and advertise it on platforms on which they are most likely to see your campaigns. For example, younger consumers are much more likely to see your campaigns on Instagram and Facebook whereas the older consumer base is much more likely to see your advertisements on television.
The skincare industry is one of the major industries of the entire world, big shot companies have successfully made a consumer base in almost every country thus making them extremely wealthy in terms of capital. Starting a newfound business has its own risk but has the same, if not more opportunities of being fruitful. The industry is set to reach a worth of $200 billion in the upcoming years with only an upward projected trajectory. Establishing a successful and lucrative business model and marketing strategy while having a unique flagship product is going to make or break the start-up venture.
How To Start A Skincare Manufacturing Company
Manufacturing companies are the backbone of the industry. Without them, the entire industry could fall out of the market and many brands may lose their brand value in entirety.
Creating and founding a skincare manufacturing business could be an immensely prodigious task. In the planning stage of the business, a lot of difficult and important decisions have to be made which will result in your business’s overall success.
Have you decided to step into this domain anyhow and want to know about a starting point? Well then…This part of the blog is dedicated to the risk-taking high-rollers wanting to step into being the backbone of the industry.
Cosmetic Regulations In India
The Drugs and Cosmetic Act, of 1940 defines what a cosmetic is. According to the law, a cosmetic is any product that is intended to be rubbed, sprinkled, sprayed on, introduced into, or otherwise applied to any part of the human body for cleansing, enhancing attractiveness or altering the appearance and article intended for use as a component of cosmetic.
Read Our Blog: Import License of Drugs and Cosmetics in India
The Drugs and Cosmetic Act of 1945 lays down the rules and regulations which are related to the companies which are related to manufacturing of cosmetics in India. Cosmetics have been categorized into 11 categories. Which are:
- Alcoholic Fragrance Solutions (Cologne)
- Skin Creams, lotions, shaving creams, emulsions, pastes, Bindi (Liquid) Kum-Kum Powder, cleansing milk, soap-based/synthetic-detergent-based shampoos, pomade, shaving creams, brilliantine, Hair Oils, etc
- Depilatories chemicals
- Preparations used for eyes (Mascara, Eye Liner)
- Hair Dyes (Oxidation hair dyes, Henna Powder, Powder Hair Dye & Liquid)
- Lipsticks, Lip salve, Cosmetic Pencils & Lip Gloss, etc.
- Nail Polishes, Nail Enamel, and Nail Lacquers
- Skin Powders (Adults and Babies)
- Toilet Soaps (Liquid, Baby, Shaving, Transparent, etc.)
- Tooth Powders and Tooth Pastes etc.
Initiating The Steps To Start Your Own Manufacturing Company In India:
- The very first step is to choose a unique name for the company, the name should be easy to pronounce and catchy.
- The Second step is to choose the location for your manufacturing site, you must be careful while choosing the location of your factory setup.
- The Third step is the registration of your company on the network of GST.
- The fourth step is the registration of your company with the Registrar of Companies under the Companies Act of 2013.
- The fifth step is the most essential, your company should meet the documents requirement and should have a license for Cosmetics in India.
- Once, you have received the cosmetic manufacturing license number, your company would be ready to manufacture cosmetic products.
Requirements For Setting Up Of A Cosmetic Manufacturing Company In India?
The Drugs and Cosmetics Act of 1945 lays down the requirements and needs for manufacturing cosmetic products. To fully maintain and run your business, it is essential and mandatory for you to fulfill these requirements.
It is pertinent to note that, every state has different requirements in the initial stages to be fulfilled and submitted.
Form Submission for License: Form Submission for a license for manufacturing cosmetics has to be submitted. Form 31 has to be submitted to the respected authorities in your chosen site location. The license and inspection fee has to be made through bank challans and in case you have applied online, an E-mail will be sent to you on your E-mail.
Technical Staff Qualification Requirements: It is mandatory that the technical staff of the manufacturing plant has to have these below-listed qualifications. The minimal requirement is that at least one of the technical staff has these qualifications with the idea of the qualified person being able to train other staff.
- The Staff should at least have a diploma in Pharmacy.
- The Staff must have passed the Higher School Certificate (HSC) examination with the core subject of Chemistry. Any other examination equivalent to the Higher School Certificate Examination having a core subject of Chemistry and which is recognized by the licensing authority is eligible to be considered by the authority as well.
Requirements for factory premises: The factory must be clean and hygienic location and has to provide proper sanitary conditions. The cosmetic manufacturing factory should be located far away from a residential area while being free of rodents, pests, and insects, or shouldn’t be having any sort of infestation. The walls of the factory should be waterproof with a height of at least 6 feet and cleanable.
List Of Documents Required
Submission of documents required varies depending on the nature of the cosmetics to be manufactured and it differs from state to state as well. Attested documents should be submitted with form 31. The list of documents you shall be required to submit is as follows:
- A copy of the fee receipt (no need to submit a receipt in case of online filing)
- An approved blueprint of the planned layout of the premises.
- Documents of ownership or agreement of rennet agreement stating the proof of premises.
- List of bills of purchased equipment(s), machinery tools, etc.
- A copy of the partnership deed (if it is a partnership)
- A copy of the Memorandum of Association, Article of Association, and a copy of the original Incorporation Certificate of Manufacturing Company.
- A certificate of NOC from the panchayat or the ruling municipality for the setup of the unit.
- A permission letter from the Pollution Control Board of the State.
Establishing a skincare/Cosmetic manufacturing factory has plenty of risks involved; however, if you have decided to establish a business in the manufacturing sector of cosmetics anyway, it would be a great upside to know that the cosmetic industry is predicted to be worthy of approximately $200 billion in the next couple of years. The initial safety is in the hands of the manufacturers and hence, there is a strict regulatory board for the same.
To do business in pharma industry including Ayurvedic & Unani drugs, one must get a Drug license to operate legally. As per Drugs Act, 1940, License is mandatory throughout India. A particular license is required based on business requirement.
CDSCO Online Registration
Team Corpseed will help you to get CDSCO registration / DCGI approval for your products as per CDSCO guidelines. Under the Drugs and Cosmetics Act, CDSCO has many responsibilities which includes approval of Drugs.
Medical Devices Registration
Also, CDSCO regulates the manufacturing and import of medical devices in India. As per Drug and Cosmetic act, the medical devices are categorized under the category of drugs.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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