How To Start A Beauty Product Business Philippines: Two of the biggest questions asked about business in the beauty industry are how to start a beauty product business in the Philippines and how to start a makeup business in the Philippines. Therefore today, we will be addressing these two popular questions.
Starting a makeup business in the Philippines can be challenging; however, this tends to be slightly easier than launching your beauty product in the Philippines. Therefore the main focus today is the process on how to launch your very own beauty product business in the Philippines.
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How To Start A Makeup Business Philippines
Today’s main focus is how to start a beauty product business in the Philippines, but if you are an entrepreneur looking to dive into the makeup business world, you may wish to start a makeup business in the Philippines instead of creating a product.
As we know, there are several different types of makeup businesses to start in the Philippines. Still, for this article, I’m going to assume that you wish to start a makeup business where you serve customers on a one-to-one basis. Therefore below is a list of the relevant steps on how to start a makeup business in the Philippines.
- Gain The Appropriate Skills Experience And Qualifications
- Research The Makeup Industry In Your Area
- Create A Business Plan And Strategy
- Raise Business Capital
- Rent A Business Location Or Salon (Optional)
- Legally Register Your Business
- Contact Suppliers
- Obtain FDA Clearance On Supplies (Mainly If Products Are Being Imported From Overseas)
- Open Your Business
- Build Your Brand
- Start Online Marketing For Your New Makeup Business
- Reinvesting And Grow Your Makeup Business
When you look into how to start a makeup business in the Philippines, you will find several different stages. Some may be more relevant than others, depending on the type of business model you choose.
But how much does it cost to start a makeup business in the Philippines if you are a complete beginner?
Starting a makeup business in the Philippines can be started for as little as 100,000 Pesos. If you choose to buy and sell makeup products, rent a salon, and so on, The capital you will need to start will be at least 4 or 5 times higher. Naturally, this will depend on the scope of your business, location, and your overall business plan.
One of the great things about starting a makeup business in the Philippines is very few maintenance costs. As soon as you have the equipment and supplies needed, you can earn money as a makeup artist.
But what about if you wanted to know how to start a beauty product business in the Philippines? After all, is it so different from starting a makeup business in the Philippines? In the next section, we will find out exactly what you need to do if you want to sell a beauty product in the Philippines.
How To Start A Beauty Product Business Philippines
Research The Beauty Market
A new report published by Allied market research concluded The Philippines beauty & personal care market size was valuedat$3.3 billion in 2018 and is projected to reach $4.7 billion by 2026.
When looking at the beauty industry market in the Philippines, it’s important to remember that some hygienic products (which have been very popular due to the recent pandemic) are also categorized in this industry; however, without these product types, the industry in the Philippines is colossal.
There are also several smaller categories within the beauty industry. For example, real estate and business processing outsourcing have become two of the fastest-growing industries in recent years, but within those categories are smaller categories similar to that of beauty.
As mentioned a moment ago, hygienic products have become very popular. But there are several other niches. for example, organic products, products not tested on animals, etc.
When looking at how to start a beauty product business in the Philippines, one of the most important stages is fundamental research. Not only can this save you a great deal of time in the long term, but it could also save you thousands of pesos. As W. Edwards Deming said – “Without Data, you’re just another person with an opinion.”
Summarise Your Business Goals
Why are you starting a beauty product business in the Philippines? What are you looking to achieve? Finally, what is the end goal?
I ask these questions as they are critical to answer before moving forward. Having a goal of earning more money or helping people is fantastic; however, it is not specific and cannot be measured, and there is no time limit to the goal. Smart goals are often used to create a clear end goal.
This will help you during every stage of your business as you can start to plan your steps and build your business journey based on the result. For example, if your goal is to obtain 100 full-time customers in your new beauty salon by August… then you will be able to work backward from this goal and determine what you will need to do by creating smaller steps and strategies in an appropriate time-bound way.
Never be afraid to be different in business. Most successful businesses are different in one form or another. As an entrepreneur, remember the sky is the limit. In other words, setting a big goal that helps you stretch is not always a bad thing, as you will discover a lot about the business while achieving your goals.
Create A Financial Plan And Business Plan
The next stage in selling a business product in the Philippines is a robust financial and business plan. The good news is there are several beauty product business plans available. Filipino wealth also has a business and financial template that can be downloaded by clicking on the business plan at the top of this page.
Selling a physical product in the Philippines can be very profitable, but it can be challenging, just like every business. There are several risks and obstacles you will need to analyze. For example, how will you deliver your products? which service will you use, and how much will this cost you? Finally, how would these fees affect your overall profit margin?
This is the stage where you carefully calculate your plan, strategy, and financial responsibilities. You may also decide to go one step further and create a business strategy that can be very useful in the early stages of business.
A classic example was Red Bull. When the energy drink first started, they agreed with supermarkets not to put their energy drink in the same aisle as other energy drinks. Instead, they can be anywhere else in the store if they are not next to energy drinks. This business strategy allowed them to get the attention they needed and build their brand in the early stages.
Turning the attention back onto you and your new beauty product business… how will you build attention with your business and product? How will your business stand out, and most importantly, why will your customers buy your product?
Find The Capital And Support
One thing that’s always guaranteed when starting a makeup business in the Philippines or a beauty product business is the costs involved. The question you may find yourself asking at this point is, how much does it cost to start a beauty product business in the Philippines from the very start?
The total capital to start a beauty product business in the Philippines can vary depending on imports, taxation, registration, survival budgets, marketing, etc. Nevertheless, 250,000 Pesos is recommended, but the total capital can be higher or lower depending on several categories, including the scope of business and your location.
So the question is, how can you start raising the capital to start a beauty product business in the Philippines? Here are several examples.
- Angel Investing
- Approaching Businesses And Wealthy Investors
- Find A Wealthy Business Partner
- From Friends And Family
- Saving And High-Risk Investing
- Start A Sell Now Buy Later Agreement
- Use The Power Of Leverage
- Using Credit Cards
- With A Bank Loan
Another category that is often not discussed is the support from others when setting up a beauty business in the Philippines. Even for experienced entrepreneurs, starting a business is challenging, and support is always welcomed, whether financial support or knowledge support.
Aside from information here at Filipino wealth, the Philippines government has some excellent education sources for those starting a business.
Contact Beauty Suppliers
Before we discuss contact with suppliers, I want to talk about the FDA in the Philippines quickly.
If you are selling any products in the Philippines, you will need to ensure that the products are safe for consumers. This often falls under the jurisdiction of the FDA. You can find more about the laws regarding cosmetics in the Philippines by reading Republic Act No. 3720.
If you create your products, you will need to apply for FDA clearance. A similar process will need to be followed if you purchase from overseas unless the product already has FDA clearance. If you are selling to other Asian countries, there are also cosmetic regulations. America, Europe, and others also have similar local laws.
If you are purchasing your supplies directly from the Philippines through private labeling (someone creates the product with your logo on it), the product likely has FDA clearance; otherwise, the company in question cannot legally sell it to you; nevertheless, it is the responsibility of the business owner to ensure the product is safe and suitable for the consumer.
So assuming that the cosmetic law for your new beauty product in the Philippines has been taken care of, you may find yourself asking how do I find suppliers for a beauty product?
The best and most trusted website to use is Alibaba. On their platform, you will find thousands of suppliers worldwide (including the Philippines), so whatever type of beauty product you are looking for, you almost definitely find it on this website.
Alternatively, you could search for beauty product suppliers in the Philippines; however, many do not offer private labeling or bulk orders. Therefore, you may find using platforms such as Alibaba more convenient and cheaper.
Register Your Beauty Product Business In The Philippines
As we discovered a moment ago, when starting a beauty product business in the Philippines, business owners must ensure that their product can be legally sold in the Philippines by gaining FDA clearance. But at this stage, registering a business is what’s next.
Previously we have gone through how to legally register a business in the Philippines. If you are a foreign visitor, we have a detailed guide on starting a business as a foreigner. But if you are looking for further reading, you may wish to look at the official guidelines on legally starting a business in the Philippines.
Depending on the demand, it can sometimes take weeks or even months to complete the full process. It’s often recommended to start the process as soon as ready. You will also need a location for the business to be registered in, and therefore you may wish to move this stage earlier or later depending on the situation.
Launch Your Product
Once the above stages have been completed, we now move on to the stage where your product is released. Please look at our guide on selling tips for online sellers, which has some great information on making your first few sales and building repeat customers.
I discovered when I started selling products that it takes time to gain attention and make sales most often. For example, creating a website and adding your product description can be completed In less than a day. Still, it may take several weeks for your page to be indexed by Google and, in some cases, several months to be picked up on the Google ranking system.
This is also true if you’re using third-party platforms such as Lazada. The process can sometimes be lengthy as the market is so large, and this is why it’s critical to differentiate yourself and your business. So if you do not make those early sales, do not feel disheartened.
The same is true if you have a physical location such as a store or a salon. It can take time for the community to know that you sell these products. Building awareness may be challenging without marketing, so thinking as an entrepreneur comes in very handy… but more on marketing later.
Network With Influencers And The Community
One great way to start building your new product business in the early days is to work with influencers and the wider community. If you are selling online, collaboration can work very well. If you are in a physical location selling to your local community, then working with the community, in general, can also be very beneficial.
I came across a fantastic product a few weeks ago of herbal tea. The tea has been known to help people lose belly fat, and it was marketed as a great option for those who are obese. Instead of working with tea lovers, the company collaborated with fitness influences and became very well known because of this strategy.
As you are a new business, you need to negotiate with people to collaborate. Unfortunately, you start from square one as a complete beginner, but you still have options. It would be best to find out what makes people tick and what would make influencers collaborate with you, and most often, the answer is a financial reward.
Affiliate marketing in the Philippines is extremely popular. If you are earning a 20% profit margin from your product, it may be wise to offer affiliates 3% for every sale they make. You can approach YouTubers, influences, or even bloggers. The most important component is that the influences have the perfect audience for your product.
Working with influences and the community will build awareness, but what can you do to build more awareness when you first start a beauty product business in the Philippines?
The most common form of building awareness for new businesses is marketing. Thanks to social media, targeted marketing is now easier than ever. But what about if you are looking to markets in the Philippines cheaply?
A few weeks ago, we released a full article on the market in the Philippines, including free and paid options. To summarise, if you are looking to market for free in the Philippines, social media, PR, and email marketing is often the cheapest and most successful form of marketing.
There are also several types of marketing. Awareness marketing is a category on its own, and it tends to be implemented when businesses first start or when they launch a new product. But there are many forms of online marketing, traditional marketing, etc.
Analyse, Reinvest, And Grow
Overall growth is important when setting up a beauty product business in the Philippines. How do you achieve growth as a business owner in the Philippines? There are several ways, but fundamentally it comes down to analyzing your business and reinvesting in the right areas.
Reinvesting does not always mean financially. It may just mean reinvesting your time, but you may decide to reinvest finances depending on the business area.
For example, You may find it social media marketing on Facebook works very well for your business. from studying your sales; you find that 83% of your sales come from your Facebook audience. Therefore you may wish to reinvest your time and finances to grow your social media channel.
The key to successful growth is data. Most business owners focus on the weak spot in business. For instance, I have a separate website talking about traveling around Asia. The Philippines is the most popular topic on my website, but one topic that is not so popular is the country of Laos.
I may focus on the weak areas by producing more content about Laos, but it’s simply not what my audience wants. My business will grow if I instead focus on my strengths, including increasing the content about the Philippines. The same is true for when you analyze your business.
In other words, don’t forget to strengthen what has already been working for you, as most businesses only focus on the weak areas.
After every new campaign, month and goal, reanalyze the business and see what data and product statistics you can take away from your research that will help your business grow with the goal of one day being the best beauty product in the Philippines.