How To Start A Supplement Business Philippines: Over the years, several industries in the Philippines have seen unprecedented growth. The fitness industry is one of those niches that has seen phenomenal expansion with no signs of slowing down anytime soon. So with this in mind, the question remains how to start a supplement business in the Philippines as a beginner?
In this beginners guide on starting a supplement business, we will be exploring the nine stages you will need to follow from the very beginning to the final stage of growing your business. in addition, we will also be talking about how to start a protein shake business in the Philippines, how much protein supplement businesses cost in the Philippines and much more.
Start Supplement Business The Philippines
1. Supplement Market Research
The foundational step of starting a supplement business in the Philippines is market research. Market research can be slightly challenging, and this is why we created a full guide on market research which covered some essential tools that you can use to find statistics and data about the Philippines markets
But despite market research being a foundational step in starting any business in the Philippines, it remains a part of the heavily underrated process.
If the market is too saturated or there are gaps in the market, the market research of a supplement business in the Philippines will be the stage for finding out these answers, and this is why market research is vital.
In summary, if you’re looking to set up a protein business in the Philippines and market research is not conducted, you run the possibility of missing potential opportunities or exposing your business to unnecessary risks.
There are several areas that you may wish to investigate. These include the market in general, your customer target market, and opportunities to differentiate yourself in the current market.
In addition to business research, it’s also important to analyze the law and regulations. Below we will be talking about a list of supplement suppliers in the Philippines, but before that, it’s important that the products you sell can legally be sold in the Philippines. These need to be approved by the FDA.
It is likely the products you purchased from a supplier who is based in the Philippines will only sell products that can legally be sold in the Philippines; otherwise, they would be breaking the law; however, it’s always essential that new business owners fully investigate the products to ensure that it meets the safety regulations of the FDA. – The Administrative Order No. 2014-0030 – FDA.
2. Business Plan & Strategy
The next important stage is the overall business plan and strategy. This includes what you will be doing, how you will be doing it, and the actions you will need to take as a business owner.
Filipino Wealth has a free downloadable PDF business template and financial statement that can be downloaded on the business plan tab at the top of this page or by clicking on the hyperlink.
Business plans are common, and most of us know how these work. So instead, we will focus on the slightly more complex strategy but equally as important.
As a new supplement business in the Philippines, how will you differentiate yourself from the competition, and what makes your business more attractive to customers than your competitors? In other words, why is your supplement business going to grow? Once you have this answer, you have the baseline for your foundation.
In an article a few days ago about the popular energy drink Red Bull, it was said that the company could not compete against all the other energy drinks on the market when they first started, so they asked to be placed anywhere in the store but not in the same aisle as other energy drinks. This was their in-store strategy, and it worked.
Strategies do not always need to cost a lot of money. On the contrary, some experts would argue that the best strategies are free. Nevertheless, a strategy is important.
3. Find Relevant Supplement Suppliers
The next important step is investigating a list of supplement suppliers in the Philippines. Finding a list of supplement suppliers in the Philippines will give you options and build your network in the early days. But where do you find the list of suppliers?
Before we go into different supplement supplies in the Philippines is important to know that you have two different options as a business owner. The first option is to work with suppliers in the Philippines, and the second is to work with overseas suppliers. Both options have pros and cons.
With in-house supplement suppliers in the Philippines, you can feel assured that most products are safe for consumers and resell (however, it is recommended to check this nonetheless). With overseas supplements, you may need to contact the FDA to see if the product can be sold and imported.
Here are the local wholesale supplement companies in the Philippines
- Supplement Warehouse Philippines
One great source to find the best wholesale suppliers is Alibaba.
Alibaba has a huge list of supplement suppliers from all across the world. When it comes to setting up a supplement business in the Philippines, you may need to import products which is often much more work than purchasing local items; however, the profit margin may be much higher, but both options carry with them elements of risk, so it is important to research this stage fully.
4. Business Registration
Previously we have spoken about setting up a business in the Philippines, including the registration and requirements. Also, if you are a foreign visitor, you can check out the option of registering a business in the Philippines as a foreigner! So we won’t go into too much detail here.
Starting a business in the Philippines can be slightly different depending on your physical location; however, most areas require clearance and paperwork to be filled out thoroughly.
The time scale to register a business from start to finish can differ depending on the demand and external events such as the ongoing pandemic. You may wish to register the business sooner rather than later if you look to open up your store quickly. FDA registration is also needed for new products to the marketplace.
5. Launch Your Website & Online Stores
Once you have your suppliers, business strategy, and everything in place, the next stage on how to open a supplement business in the Philippines is to launch your website or online store.
Some supplement businesses sell on 3rd party platforms such as Shopee or Lazada. Lazada he’s so popular we have written about how to start an online business and make money on Lazada in the Philippines. Therefore, it’s recommended to look at our full guide if you plan to use these platforms.
The most important thing at this stage is your profit margin. The supplement industry in the Philippines is fairly competitive, extending to the supplement prices. Therefore a business owner will need to spend a significant amount of time analyzing the current market and calculating whether it is worth their time or not.
With some supplements and accessories, you may only be making a small profit, and thus, you will need to sell in bulk to see financial gain. Each product is different but requires careful consideration and calculations to ensure that the business is profitable even after fees from the third-party platform.
Selling on your website is an ideal situation for many supplement business owners. It’s recommended to look at our blogging guide and best web hosting services in the Philippines for some ideas on how you can set up and succeed with a website in the Philippines.
What is also a great idea is matching your store up with content if you are a content creator. For example, if you are on YouTube and you talk about gaining muscle, then recommending your viewers to buy your whey protein that has a promotion is a great way to generate free traffic to your website. Bloggers, podcasters, and other content creators can also create a similar process.
Starting your website and making money can take time, so we’ve put together a few things you may need to consider when starting a supplement business in the Philippines…
- Cross-Selling And Upselling
- Free Delivery
- How You Will Generate Traffic
- Membership Points
- Payment Gateways
- Returns And Complaints
- Sales Pages
- Search Engine Optimization
- Social Media Integration
- Special Offers And Promotions
- Website Themes And Designs
- Websites Terms Of Service
- Will You Work With Affiliate Marketers
There may be some areas that you find unnecessary for your business, but similar to creating a business plan for the business in general, you may wish to create a separate business plan for your website, social media integration, and strategy.
6. Open Your Physical Store (Optional)
Another area to consider if you want to start your own protein supplement business in the Philippines is a physical store.
This can work very well, especially for impulse buyers (people who want the product now and don’t want to wait). But similar to online stores, there will be fees involved and therefore finding out when you will break even and start making a profit is essential.
Due to the price of renting a commercial property in the Philippines and the expected profit a business makes in the Philippines within the first six months, it is expected that a supplement business will have a negative cash flow for the first few months when opening a physical store.
This is not always the case, but as a new business, you will have no customers to begin with, and therefore, it can take time to generate regular clients and time for customers to know that your business exists.
I know several business owners who have succeeded in opening up a physical store. Still, unfortunately, I also know some who have failed due to the unexpected costs of opening a store in the Philippines. Therefore this is a stage that needs careful planning and financial guidance.
7. Awareness Marketing In The Philippines
So what exactly is awareness marketing in the Philippines? Awareness marketing is a type of marketing that is often introduced at several key elements of a business’s journey, including the very start. The goal of which is to generate attention and recognition above the competition.
Several different definitions of awareness marketing differ slightly depending on who you ask and the industry you are talking about. Still, fundamentally, it is how well your business or brand stands out and can be recognized by the customer.
At the beginning of starting a supplement business, awareness marketing is one of the foundational steps. Potential customers need to know that you exist and have products available for them at a cost-effective price.
Awareness marketing works best when you can target your targeted customer. There are many types of marketing in general, which is fine if you are a large corporation or have many different products for many customers. Still, as a new business, you will likely have a small niche to begin with.
Perhaps, you are selling tea supplements such as organic tea… or even protein supplements such as bodybuilding powder, so with this information, you will be able to create your target market, which will lead to the best types of awareness marketing for them.
For example, a few years ago, I visited a bodybuilding gym, but a billboard was outside of the gym. The price for the billboard (I checked for my business a few weeks before) was incredibly low because the only people who could see the billboard were people leaving the gym…
A supplement store was advertising for their new store. The advertising is not the important point here, but the direct connection with the targeted customer is….
…The store could have purchased online marketing 10 times the price with fewer sales. The store did so well because the store targeted its customers fully using the billboard. Money works well in marketing, but brains work the best.
8. Work With Gyms, Customers, Suppliers, And Other Businesses
At this stage of your journey, your business is starting to take shape, so the next question is, how do you take your new supplement business to the next level? This is achieved by working and networking with the customers and businesses.
For example, you may wish to contact small gyms to see if you can negotiate a business arrangement to sell your equipment in their gym.
Another example can include reaching out to customers and influences to see if they would be interested in an affiliate program where they earn commission from the sales they generate.
There are many different approaches that you can implement when you first start a supplement business but perhaps one of the most important is networking within the industry.
If you are a new business owner and a complete beginner in starting a protein business in the Philippines, then don’t worry if you cannot network straight away. Networking is an important skill that takes time. Starting small is one of the best pieces of advice for those who wish to grow their business in the beginning stages.
9. Grow Your Supplement Business In The Philippines
The last stage for setting up a supplement business is the overall growth. Just a moment ago, we spoke about what you can do to grow a supplement business in the Philippines, which explored the opportunity of networking, so the question is, what other things can you add to encourage growth?
When you are looking to grow a business, it is recommended to look at the bigger picture of your business and the industry in general. For example, where is your business going, and what does your business stand for in the market?
You may wish to be invest profits back into expanding your business into a different niche. Perhaps you wish to reinvest in growing your overall marketing campaigns or your staff. Each area has opportunities for your business, and this will depend on your bigger picture.
How To Start A Protein Shake Business Philippines
Two popular questions are often asked are 1, how to start a protein shake business in the Philippines? 2, how to start a supplement business at home in the Philippines.
Starting a protein shake business and a supplement business at home follows similar steps outlined above. Protein shakes are a popular product sold in the supplement world, so some business owners choose to specialize in protein shakes.
With a protein shake business, a business owner must ensure that the product is suitable and safe for consumers. For example, accessories such as gym gloves are fine as they are not eaten but instead worn. But protein powder is digested, so regulations need to be followed.
Similarly, starting a similar business at home in the Philippines follows a very parallel process. For example, suppose you are selling foods and supplement snacks. In that case, the product must be stored carefully to ensure that it is hygienic and that the products are not damaged, resulting in a product becoming unsellable.
How To Start Your Own Supplement Brand
Supplement branding is also another popular option for starting a supplement business in the Philippines. Private labeling is an option that may be suitable for those business owners who do not want to create a product from scratch.
Essentially private labeling is when another company creates a product such as protein bars or protein powders. Then your business puts your logo and information on the packaging and sells it as your product. Alternatively, you could create the product yourself to save money long term. Both options have their advantages and disadvantages.
FDA clearance is, of course, one of the most important stages. Suppose you are buying from a Filipino business… In that case, likely, that product will already have the clearance necessary still, it is recommended to check with the company itself to make sure that the products are safe for the consumer.
One of the biggest differences between starting a supplement business in the Philippines and starting your brand is that your customers will likely be other businesses that will resell your products to their customers for a profit. This is great if you want to sell in bulk, but naturally, you will have to sell the product at a discount to build relationships with buyers.
Other businesses who become your customers will likely purchase your brand if it is received valuable by the end consumer. This is why marketing and brand awareness are so important, especially in the early days of starting a new business.
How Much Does It Cost To Start A Supplement Business In The Philippines
The total cost to start a supplement business in the Philippines will ultimately depend on the scale of the business. For example, small businesses selling online can be started for less than 100,000 pesos, including basic product stock, marketing, and registration. However, a larger business in a physical location will cost upwards of 500,000 Pesos.
However, starting this kind of business in the modern world can be much cheaper or more expensive depending on several factors, including – suppliers, types of products, quantity, the scale of business, marketing, and other general business categories.
Is Starting A Supplement Business A Good Idea In The Philippines
As mentioned above, there are several key elements to consider if you plan to start a supplement business in the Philippines.
The industry has evolved, and now many suppliers have moved on to platforms such as Lazada. In addition, gyms have even sold supplements to increase their business revenue. Hence, competition in this industry is fierce.
However, there are still some gaps in the market, and there is no one leader like there is in some industries. Therefore, it could be a great business opportunity with the right strategy and opportunities, but there are many areas a business owner will need to consider.
Even though this industry has a big demand for the products in question, having demand is not enough to be successful when starting a protein or supplement business in the Philippines. Your business needs to be cutting edge and be different.
It was once said that a business becomes successful when the owner can give the consumer exactly what they want, which they don’t know how to get yet. The fitness market in the Philippines is always evolving, so this is the perfect time for innovation and differentiation.