How To Start A Candle Business In The Philippines: Starting a candle business in the Philippines can be an enjoyable business experience, but is starting a candle business profitable in the Philippines? More importantly, if you are a complete beginner to this industry, what are the steps on how to start a candle making business in the Philippines?
In today’s article, we will address these questions and more as we look into the candle market in the Philippines and what you need to know when starting a candle business in the Philippines as a beginner.
Table of Contents
How To Start A Candle Making Business In The Philippines
1. Build Your Candle Business Plan
The first foundational step to any good candle business in the Philippines is creating a business plan and strategy for your overall business operations.
There are several different types of candle business plans that can be downloaded for free. However, if you are looking for a specific business template, you can download our free business plan and financial template by clicking on the business plan tab at the top of this page.
Alternatively, you can create your own. Although there are several things to consider, here are some of the most important considerations when opening a candle-making business in the Philippines.
- Business Strategy
- Competition Analysis
- Current Demand And The General Market
- Current Risks And Future Threats
- Financial Capital
- Opportunities Within The Market
- Scalability And Growth
- Wholesalers And Suppliers
Naturally, you may wish to add several other categories that are not included in this candle business plan, such as the location of your candles, the types of products, and their profit margins.
It is also wise to have a niche. For example, starting a scented candle business In the Philippines may be a great idea depending on the type of customer you are looking to sell to.
2. Investigate The Candle Market In The Philippines
Below we have explored the candle market in the Philippines, so we won’t go into too much detail here. Nevertheless, you may wish to investigate certain aspects of the market depending on your overall business model.
Naturally, the supply and demand of candles are one of the most important areas of research, and previously, we have gone through 9 ways how to conduct market research in the Philippines, which will give you some amazing sites where you can find the latest information and statistics on different products sold in the Philippines.
If you decide to sell internationally, researching the market overseas is also a fundamental task in starting a candle business in the Philippines.
For the entrepreneurs who wish to outsource this task, there are plenty of opportunities to do so. Fiverr, for instance, has many Filipino researchers that can be called upon if you wish to outsource this task. Additionally, market research can be done in-house, which has been explored below.
3. Find Candle Suppliers In The Philippines Or Overseas
Similar to investigating the candle market in the Philippines, candle suppliers are also a big topic, so we have included an additional section below covering candle suppliers in the Philippines. Therefore in this section, we will be exploring your options as an entrepreneur.
The first option is to use suppliers and businesses nationally. This has many benefits, including faster delivery and easy communication; however, some suppliers in the Philippines can be more expensive than buying in countries such as China. On the other hand, many Chinese warehouses are very large and can produce a large quantity with minimal prices.
However, there will also be a delivery charge if you purchase from overseas and potentially import tax (the seller sometimes pays this). Therefore on some occasions, prices can be very similar.
If you are looking to increase your overall profit margin, it is best to work with a company or warehouse that sells in bulk. This is because the cost will often be much lower compared to smaller orders; however, you may need to assess your risks according to your business operations.
4. Design & Marketing The New Business
Apart from where to buy candle making supplies in the Philippines, another popular question that is often asked is… once I have my supplies, how do I design and market the product?
If you are working with a supplier directly, they will likely design your packaging and product to your demands.
Alternatively, suppose you are looking to save money. In that case, most suppliers will be willing to send you the product in bulk, excluding any design and individual packaging, which will allow you to save money. From there, you have the option to design at your office or home, including adding your packages and stickers onto the product.
Packaging and design have a deep connection with business psychology. In our modern world, it’s not only about producing packaging and labeling that is the most pleasing. What is more important is producing an eye-catching design that stands out from the competition.
5.Legal Registration & Location
Once you have begun your journey of starting a candle-making business in the Philippines, you will need to legally register your business, including choosing a suitable location for your business operations.
When starting a business in the Philippines, the local office will ask you what your business’s location is, and this is why an important step on candle selling in the Philippines is deciding where you will be conducting your business.
When starting a business as a beginner, it’s often recommended to start small and build up. Therefore you may wish to start your business at home or in a family location. However, if you choose a physical store, the added expenses will need to be calculated in your overall business plan at stage one.
6. Open Up A Selling Account
Creating an avatar that is your perfect customer can help you at every stage of the business. Most successful businesses can tailor their business services and products to their customers, and this is why knowing who they are and what they want can be very valuable.
But why is this information important? Because different types of customers visit the different types of selling platforms. For example, Lazada customers are often looking for a great deal, and those sellers who offer the lowest prices often sell the most.
However, other platforms such as Esty work if you are looking for customers who wish to purchase homemade items.
Additionally, creating a website is a fantastic option for candle business owners; the maintenance costs are often low, and fees are minimal. However, marketing is also an important stage when selling on your website. One common hurdle you may run into is trustability, and this is why selling on third-party platforms can be a great option.
7. Reinvest And Grow Your Candle Business
After looking through the candle market in the Philippines and how to start a candle business, you may find yourself asking what’s next? – The investment and growth of your new candle business.
There are many different ways you can reinvest your business and grow your business, depending on your overall business vision and model.
For example, if you are looking at starting a candle-making business in the Philippines, your end goal might be to be a supplier for other businesses. Therefore your profits can be reinvested into working towards this result.
On the other hand, if your business model is to sell candles directly to the customers, you may decide to become a franchise business or sell internationally. Therefore, your reinvestments can be Used for this purpose.
When starting a candle business in the Philippines, reinvestment is tricky as there is no set amount on what you should reinvest. Some business owners choose as much as 90 or 100%, others do not reinvest at all.
Where To Buy Candle Making Supplies Philippines
There are several different options if you are looking at where to buy candle making suppliers in the Philippines or candle making supplies wholesale in the Philippines. However, unlike other industries, not many large corporate businesses offer this service.
https://islas-aromatics.myshopify.com and https://rawessentials.ph are two websites we found to offer candle making supplies in the Philippines. Nevertheless, several stores on Facebook, Shopee, and Lazada offer this service.
Alternatively, if you are looking to buy supplies in bulk, a great option is to use Alibaba. Alibaba is the worlds leading wholesale marketplace. You can find many Filipino, Chinese, Japanese, American factories on their platform.
If you are looking to order a small amount, you may consider AliExpress, which is similar to Alibaba but sells products directly to the customer instead of to businesses which means you can order a lot less, which is great if you are looking to start a candle business in the Philippines cheaply.
Candle Market In The Philippines
According to Fast.Mr – Philippines candle market is expected to mark a valuation of USD 35.4 Million by 2024 by growing at a CAGR of 1.9% throughout the forecast period. The Philippines has witnessed a candle market valuation of 32.8 million units in 2018 and is anticipated to collect an opportunity of 3.0 Million Units between 2019 & 2024. The Philippines market for the candle is about to witness a Y-o-Y growth of 1.8% in 2024.
In addition, 360iResearch has a fantastic document including their findings, research, and forecast for the future. Unfortunately, the license fee is fairly expensive; however, a free report sample can be downloaded by visiting their website.
In addition to the candle market in the Philippines, if you are looking at how to sell candles outside of the Philippines, some promising areas in terms of statistics and data are Europe and the United States. Similar to many businesses having a niche is wise in the early stages of business.
Is A Candle Business Profitable In the Philippines
There are several areas to consider when calculating the profitability of a business, and whether a candle business in the Philippines is profitable or not will depend on the location, customer type, and manufacturing costs.
Nevertheless, candle businesses can be profitable in the Philippines. On average, low maintenance and startup costs allow businesses to profit sooner. However, with all things considered, candle businesses are not the most profitable business types in the Philippines.
One of the biggest challenges that may affect the profitability of a candle business is that many businesses sell all types of candles at a low cost. This is one threat that will need to be investigated when you start your candle business plan in the Philippines.