COSMETICS BUSINESS GUIDELINE
1. UNDERSTAND THE COSMETICS BUSINESS
A cosmetics business involves selling beauty and personal care products used for skincare, haircare, makeup, and hygiene.
Common products include:
• Skincare products (creams, lotions, oils, soaps)
• Haircare products (shampoos, conditioners, wigs, weaves)
• Makeup (lipsticks, foundations, powders, eyelashes)
• Perfumes and body sprays
• Beauty tools and accessories
Main customers:
• Women and men
• Salons and barbershops
• Brides and makeup artists
• Youth and working professionals
2. MARKET RESEARCH
Before starting:
• Identify popular beauty products in your area
• Understand customer preferences (skin type, hair type, price range)
• Study competitors and their pricing
• Identify fast-moving vs slow-moving products
• Decide whether to focus on mass market or premium products
Beauty trends change fast. Always stay updated.
3. LEGAL & REGULATORY REQUIREMENTS
To operate legally in Kenya:
• Register your business name (eCitizen)
• Obtain a Single Business Permit from the county
• Register with KRA and get a PIN
• For manufactured or imported cosmetics:
o Ensure products are KEBS compliant
o Some products require Pharmacy and Poisons Board (PPB) approval
• Imported products must meet Kenya Bureau of Standards (KEBS) requirements
Never sell unapproved or counterfeit cosmetics.
4. LOCATION & SETUP
You can operate from:
• A physical shop (town centers, malls, markets)
• A salon partnership
• Online platforms (Instagram, WhatsApp, Jumia)
• Home-based store (for online sales)
Key setup needs:
• Clean, well-lit space
• Shelves and display counters
• Mirror and testing area
• Secure storage
5. CAPITAL REQUIREMENTS
Startup capital depends on scale:
• Small scale: KSh 50,000 – 150,000
• Medium scale: KSh 200,000 – 500,000
• Large scale / premium shop: KSh 500,000+
Main costs:
• Initial stock
• Rent and licenses
• Shelving and displays
• Branding and marketing
6. SOURCING PRODUCTS
Products can be sourced from:
• Local manufacturers
• Authorized distributors
• Wholesalers in Nairobi, Kisumu, Mombasa
• Importers (China, UAE, Turkey)
Always request invoices and compliance documents.
7. PRICING & PROFIT MARGINS
• Cosmetics typically have 20% – 60% profit margins
• Price based on:
o Cost price
o Target customer
o Competitor pricing
• Offer bundle deals and promotions to increase sales
8. MARKETING & SALES STRATEGY
Successful cosmetics businesses focus on visibility and trust.
Marketing methods:
• Social media (Instagram, TikTok, Facebook)
• Before-and-after photos
• Influencer and makeup artist partnerships
• Loyalty programs
• Word of mouth
People buy beauty they can trust.
9. CUSTOMER SERVICE & HYGIENE
• Maintain high hygiene standards
• Avoid sharing testers carelessly
• Offer honest advice
• Handle complaints professionally
• Educate customers on product use
Good service builds repeat customers.
10. RECORD KEEPING & STOCK CONTROL
• Track daily sales
• Monitor fast-moving products
• Avoid overstocking slow items
• Separate business and personal money
A business you don’t track will collapse silently.
11. RISKS & HOW TO MANAGE THEM
Common risks:
• Counterfeit products
• Expired stock
• Changing beauty trends
• Cash flow problems
Solutions:
• Buy from trusted suppliers
• Check expiry dates
• Start small and scale
• Reinvest profits wisely
12. GROWTH & EXPANSION
As the business grows, you can:
• Open more branches
• Start private-label products
• Supply salons and institutions
• Offer beauty training services
• Go fully online
Beauty is repeat business if done right.
FINAL ADVICE
“The cosmetics business succeeds where trust, quality, and consistency meet.”
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