The Complete Guide to Starting a Private Label Skin Care Company
If you're thinking of starting a private label skincare line, there will likely be a large number of factors running through your head right now. From thinking about your target audience, brand concept, and manufacturing process, there is much to consider.
To help you through this initial maze of tasks you will need to complete to start your private label skincare business effectively, we have put together a guide that goes through each process in detail with advice on how you can get the most out of this process.
The First Considerations When Starting a Skincare Business
Before you even get around to officially starting your business, you will need to figure out several things. First, you need to know who you are as a brand, what you stand for, and how you want to reach consumers.
What is Your Brand Message?
The importance of a clear brand message should not be overlooked, and we recommend you take some time to consider this. There will likely be something that inspired you to start a skincare line, and you should always keep this initial inspiration and motivation in your head.
When we think of any successful skincare brand, we notice that they are consistent even though skincare product trends continuously evolve. This is because they apply trends to themselves and never the other way around, making them more genuine to consumers.
What is Your Target Market?
The backbone of any business is their consumer. You could have the best product in the world, but if you haven't thought about who you want to target the product towards, the chances of it selling well will be much lower.
So, think about who you want to use your skin care products and how you want them to feel when using them. For example, if you would like those suffering from acne to feel more confident, imagine creating a product that exudes this feeling and could change their skincare routine forever.
How Will You Market Yourself?
Once you have devised your brand's message, target audience and the essential elements of your brand, you should then consider how you will want to come across online or through marketing. The most significant way to reach potential consumers is by having social media accounts and an online presence, so it is good to start thinking about your online content early in the process to ensure that you are ready when the time comes.
How to Start a Private Label Skin Care Business
When the above points have been considered to a sufficient level, you should know who you are as a brand and exactly what you want to achieve with your business. Having a clear vision is vital to succeeding in a saturated market like the skincare industry, and will ensure that your own skincare line has what it takes to stand out from competitors.
So, now is the time to put your ideas and concept to the test and commence your journey as a private label cosmetics company. Here are our top ways to do this;
Find The Right Skincare Manufacturer
Of course, none of this will be possible without creating the skincare products of your dreams. As a private label, you will need to find a contract manufacturer to pursue this with. In this process, you will choose all elements of your product from formulation to the ingredient list. From here, the manufacturer will produce your skincare products for a set price, which will then be delivered to you ready to be packaged with your branding prepared to sell.
Focus On a Hero Product
When working with your manufacturer, you should figure out which product you want to direct your focus toward initially. This will be the first product you launch, so it is vital to tie in with your brand's message and give the world the best idea of who you are as a business and why they should consider buying from you.
Know Your Rights and Legal Requirements
As with anything, there are legal requirements that you need to consider when starting a skincare business. For example, in Australia, skincare brands need to be transparent about their ingredient list, and product claims to ensure they are covered if any customers have adverse effects from using their skincare products. But, the country has a laid-back self-regulating approach, so you don't need a license to start your business.
You should also thoroughly research Good Manufacturing Practices in Australia to guarantee that your manufacturer is following the correct protocol. In most cases, they will already follow the rules, but it is best to be safe and check anyway.
Start a Website
As we included in our first considerations for starting a private label skincare line, you should have already thought about the essential online marketing/presence you want to complete. If you have, this will help you with this process as you can start applying these marketing assets straight away.
For example, knowing the colour scheme, brand's logo and tone of voice will help you create a consistent online presence that speaks to your target audience in the best way. Having these ideas prepared and ready to use will save you time in this process and make it easier to set up your website and social media presence.
Develop Client Reviews and Testimonials
One of the best ways to market your products and drive traffic to your online store is through testimonials. Skincare consumers want to know which beauty brand has the best products that will really make a difference to their routine, and seeing like-minded people give a good review can motivate them to purchase a product.
As a newly launched skincare line, it isn't the most straightforward task to get good reviews to begin with, as with skincare, it takes a while for consumers to know if they love a product or if it works for their skin type. We recommend providing your friends and family with samples they can try, so they can leave you reviews when your skincare products go live on your website.
Price Skincare Products
Thinking of a pricing strategy will likely be one of the last steps you complete when establishing your private label. But this doesn't make it any less important! Finding a good pricing strategy that enables you to make a profit is essential to keeping your business afloat, so you will need to put a lot of thought into how you will price your cosmetics line.
Most private label cosmetics suppliers mark their skincare products up to around three times the manufacturing cost to ensure they make a profit while still providing their customers with affordable and accessible pricing.
Although there are several technical elements to consider when starting a skincare brand, from manufacturing to pricing, you have the chance to get creative and make yourself unique in the industry. Additionally, when looking at the global skincare industry as a whole, you can see a constantly evolving skincare landscape, meaning you will need to keep up with curve trends and be adaptable.
So, our advice is that you keep up-to-date with what is happening in your industry, but never forget what makes you unique. Having a different outlook on significant trends and bringing something new to the table will help you stand out within the beauty industry and show that you aren't like all the other skincare lines already available.
Having a good sense of identity and well-established attributes such as a knowledgeable manufacturer and e-commerce platforms will help you to start a private label cosmetics brand successfully and continue to grow at a good pace.
Frequently Asked Questions
What license do I need to start a skincare business?
The best way to determine if you need a license to start a skincare line is to check the laws in your area. Although their approach is more self-regulated in Australia, instead of obtaining official licenses, you are expected to follow Good Manufacturing Practice and other protocols.
How much money do you need to start your own skincare line?
You will need to apply some initial investment into your skincare line to get it off its feet. Most private label brands work with manufacturers to make their products, and this will require a starting fee before you have made any profit. Even if you sell homemade cosmetics, you will need to put money into their ingredients, packaging and branding.
Is private label skin care profitable?
Having a private label brand is incredibly profitable when done correctly, and the indie beauty market is currently growing at an exceptional rate. If you secure a good manufacturer, produce on-trend products and establish relationships with wholesale partners, you can make a significant profit.