How to open a cosmetics department

Retailing cosmetics can be a lucrative business. However, keep in mind that in this niche you will have many competitors. To succeed, choose the right assortment, think about pricing and conduct ongoing work with customers.

You will need

• - IP status;

• - premises;

• - cash machine;

• - shop equipment;

• - stock of goods;

• - Promotional Products.

Instruction manual

1

Carry out a marketing research. Check how many retail stores operate in the area where you plan to stay. Consider all the points selling cosmetics - supermarket departments, kiosks in shopping centers, large chain stores and individual brand boutiques. Evaluate the range of outlets and identify product gaps (free niches, spaces).

2

Make a business plan for the future enterprise. You must consider the amount of upcoming costs and potential revenue. Indicate what goods you will trade, how you plan to deliver, in which area you rent the premises and how much you will spend on repairs. Take into account the volume of initial purchases. To make a decent calculation, you need a good inventory.

3

The easiest way to start working with the mass and mid-price segment. Luxury cosmetics are a limited product. To make a profit, you have to increase the margin. Keep in mind that in this segment the competition for the newcomer will be not only large chains, but also online stores that are rapidly gaining popularity.

4

Find the right room. For a good display, you will need a spacious trading room. There is also a utility room for storing stocks of goods. Stay in place with good pedestrian traffic. It’s a good idea to open a department in a popular shopping center. Do not be tempted by low prices - in shopping centers located in unsuccessful places, buyers simply will not find you.

5

Make a repair of the room. Do not spend money on expensive finishing materials. Light walls and a high-quality floor - this is quite enough for a new store. Do not save on lighting. Install lamps as close as possible to natural light.

6

Buy trade equipment. You will need open shelving for free access and presentation stands. If you conclude an agreement with a certain brand, the brand holder will provide such stands free of charge.

7

Find partners who will deliver the goods to you. You can work with local distributors or go to authorized dealers of the brand. Buying directly is profitable, but brand representatives will present you with a number of requirements. But you can count on help in selecting an assortment, training for sellers, contests from brands and other bonuses.

8

Pick up the assortment. You can sell cosmetics of different brands or focus on several popular brands. Try to offer the market something new that can attract buyers. For example, find a brand that interests users but is not yet represented in your area. Do not save on the initial purchase. Expose full lines, include limited editions and seasonal novelties in the assortment.

9

Hire sellers. Their responsibilities include customer service, counseling, maintaining order at stands and product control. To ensure safety, it is possible to install theft-prevention gates and label the goods.

10

Engage in advertising. Order a noticeable sign, install billboards and lightboxes. Print leaflets and distribute them on the street or in the mall. Consider a system of discounts and discount cards for regular customers. Make an informative website and start your promotion on the network. Subsequently, you can use this site as a possible base for an online store, which will increase your sales.