12 Things to Consider Before Building a Skincare Brand


Building a skincare business requires a high level of dedication, knowledge and time. But, aside from those factors that will push your business idea to fruition, there are different elements that you should consider to ensure you build a successful skincare brand that stands out against the incredibly crowded beauty industry.

In this article, we will take you through what you should consider when starting your own skincare business and how strategically thinking through each step of your skincare line will help you succeed and build a skincare brand you are proud of.


12 Things to Consider Before Building a Skincare Brand

Who is your target market?

Of course, it is to be expected when you have a dream of starting a skincare business that you love skincare. You may already have an idea and a love for a specific ingredient that you really want to include in your skincare range. But, this can't all be about you and your team's interests; instead, you need to consider your consumer.

At this stage, you will likely only have ideas and may be wondering why you need to already think about your potential customers. The truth is, your consumers will be the driving force of your brand. So, ensuring you have a clear idea of your target audience will be super beneficial.

Can you refine your angle through market research?

Once you have landed on a target market, your next step is to research this market. For example, say you want to tailor your skincare products towards ageing and mature skin. In this case, you should consider various things such as which ingredients are popular for that age group, which brands are most loved by your target audience, the expected price range and which ingredients are most effective.

12 Things to Consider Before Building a Skincare Brand

How well do you know the skincare industry?

Going hand in hand with market research is industry research. Whilst focussing directly on your target audience and understanding their needs will be the most crucial aspect of your brand, you must have a deeper range of knowledge regarding the skincare business.

For example, knowing your biggest competitors and market leaders will ensure you understand which products are currently in demand. And you should always keep up with skincare trends, as they will affect consumer spending habits and can help you dip your toes into more lucrative skincare products if you anticipate the movement with enough time!

Which manufacturing route will you venture down? 

Once you have your brand concept in place, you will need to decide how you will make your products. Some more simple formulations, such as facial oils, can be made in the comfort of your own home, but you would need a thorough grasp of beauty manufacturing.

Therefore, the safest option will usually be to work alongside a company that manufacture cosmetics as part of their speciality. This will ensure that your products meet the legal requirements, and you will likely learn a lot from your manufacturer, giving you a better understanding of your product's ingredients and what makes it stand out. 

Who will be your skincare manufacturer?

For the majority of small skincare businesses or new brands, you will start your skincare line by working with a contract manufacturer. This is because most small brands don't have the funds that a luxury skincare brand or a more renowned business may have. So, the best option is to work with a manufacturer that can provide you with knowledgeable decisions and the skincare products you set out to make without high factory costs.

You will need to consider the voice of your own skincare brand when deciding which manufacturer to choose. For example, if you are going down the organic skincare route, you will need to guarantee that your manufacturer can provide these types of products.

12 Things to Consider Before Building a Skincare Brand

Don't underestimate testing

You should complete product testing every step of the way to guarantee that you are happy with how your product is performing. In Australia, by law, your product must deliver on your claims. So, for instance, if you say this product is for oily skin, your ingredients and formulation should honour this. 

Laws aside, this will make your own brand more dependable and trustworthy in the eyes of consumers. If your products are claiming to promote healthy skin, you need to make sure that your formulation provides health benefits and causes minimal reactions in all who use it. 

Know your laws

Above, we briefly touched upon Australia's law of delivering on your claims by using the right ingredients and formulations. Still, there are obviously other serious laws that should be followed as well. One of the most important laws is regarding your packaging, which must be labelled as accurately as possible to let consumers know exactly what they are buying, with complete ingredient listings and directions included in the labelling.

You should also be careful with making sure your products' shelf life is accurately followed when it comes to selling. This isn't a direct law of Australia, but it is essential to always keep in mind and accurately track through analytics to be on the safe side. If using a manufacturer, you should track your product's shelf life back to its initial creation and talk in detail with them about any limitations specific ingredients may have. 

You should also consider having product liability insurance. Having this will help protect your business against any claims consumers could make. For example, if your facial wash caused someone skin irritation and they feel this possibility wasn't made clear to them. Product liability insurance is something all businesses that manufacture and sell products should have in place to protect them if such claims arise. 

Overall, Australia has a pretty straightforward approach for those starting their own business and operating as a private label. Still, it is essential that you follow the implemented laws to protect your business and deliver the best service to your customers. 

How will your skincare brand stand out in the beauty business?

Your own skincare line needs to come across as authentic to truly be unique in the current industry. There are thousands of brands and products occupying the beauty market right now, so you really need to spend time devising a unique selling point that will drive traffic towards your brand.

Thinking of examples that have come before you is often the best way to do this. For instance, The Ordinary is one of the most successful skincare brands currently on the market, but what is their unique selling point? They offer transparent and clinically proven products at accessible and affordable prices, making their users feel they can genuinely rely on them. Their science-backed approach makes them dependable and is one of their best attributes.

We recommend studying the current industry trends and thinking about the most popular brands' unique selling points to see what skincare lovers are interested in lately. This will ensure you choose a unique selling point for your own skincare brand that coincides nicely with the skincare world while still allowing you to stand out.

What skincare product will be your first launch and hero product?

To start a skincare business strongly, picking your best product will work wonders. This will be your introduction to the beauty and skincare industry, so you want to make sure you make a great first impression!

Use your market research to help you determine which products are currently in the most demand. Although this may be a more general product initially, ensure you inject an individual element into it. Whether through packaging or a unique ingredient choice, you want to get your skincare peers talking about you and noticing that your skincare products are making a mark.

12 Things to Consider Before Building a Skincare Brand

How will you use marketing techniques?

While your product formulation and packaging may be exciting, the public will need to be able to find your brand easily. The best way to make your brand and products accessible is through marketing, as almost everyone will have access to social media.

Your marketing goal will be to send traffic to your online store and boost the sales of your own products while creating a solid vision of who you are as a beauty brand. This means it is vital for you to truly devise engaging marketing that represents your product line and brand message in a straightforward way that the masses can grasp and get behind.

So, research the best marketing campaigns and understand the content your target market interacts with. For example, does your demographic prefer using Tiktok to Facebook? Do they have a preference for video or photo content? There are many things to consider!

How will you price skincare products?

Before you start selling online or in your own store, you must devise a pricing strategy that makes you a sufficient profit. As you will likely have used a contract manufacturer to produce your cosmetics, the chances of you making a profit are high as long as you manage to find a good clientele through marketing and word of mouth.

In the skincare world, products are usually marked up five times as much as the landing cost. So if your landing cost was $10, you could aim for a retail price of $60. This would give you a profit margin of $50, which would be a significant number to work with and help you develop your brand further.

Build your online store

Navigating your way through the skincare business in 2022 calls for having a professional website and eCommerce page set up to ensure the potential customers you reach from social media marketing can easily purchase the products they see on these pages. 

Your website should be in-depth and let your customers know who you are as a brand, clearly describing your unique selling points and why they should choose to buy skincare products from you and your brand.

Then, your product page should include professional photography that does your products justice! Having clear and high-quality pictures of your products is essential to show your customers that you are a trustworthy and genuine source, so don't sell yourself short here. 

Going hand in hand with your product photography should be your product descriptions, which will clearly let your customers know what a product does and how to use it, with ingredient listings disclosed. 

Finally, add marketing tools throughout your page to persuade your customers to stay on your store and become part of your community. These marketing methods include email lists and having your social media channels linked throughout your page. 

12 Things to Consider Before Building a Skincare Brand

Final thoughts

There are many things to consider regarding starting a successful skincare brand that shouldn't be overlooked or skipped over. Truly connecting with your brand's message and niche will give you a better chance of succeeding in the long run, as you will make better decisions regarding which products to release and how to market yourself.

To bring your product ideas to fruition, you will need to find a trustworthy manufacturer that can deliver on what you need. Once you develop a good bond between yourself and a manufacturer, your business life will become much easier, and you will learn a lot.

There is no specific route that everyone should take when starting their own brand, but there are definitive ways that have worked for previous successful brands that you can look to and use to your advantage. 

Frequently Asked Questions

How do I start my own skincare line?

Start by finding your niche and unique selling point whilst working on your brand's concept. From this, you should tune into your brand's concept to devise product ideas that will make you stand out. 

What comes first in a Skincare?

The first step of any skincare routine is cleansing. Cleansing your face will remove any dirt, makeup and debris to ensure your skin is clean and ready for other products to be applied. You should cleanse twice a day, in the morning and at night. 

Is the skincare business profitable?

The skincare industry is a market worth investing in, currently worth over $7.5 million in Australia alone. However, to profit from your own business, you will need to stand out and offer products that are unique to the others in this highly crowded market.