Retailing cosmetics can be a very profitable business. However, keep in mind that you will have many competitors in this niche. To succeed, choose the right assortment, think over the pricing and conduct ongoing work with customers.
It is necessary
- - IP status;
- - premises;
- - cash machine;
- - trade software;
- - stock of goods;
- - Promotional Products.
Instructions
Step 1
Conduct marketing research. Check how many retail stores are operating in the area where you plan to locate. Consider all the outlets selling cosmetics - supermarket departments, kiosks in malls, large chain stores and individual brand boutiques. Evaluate the assortment of outlets and identify product gaps (free niches, gaps).
Step 2
Make a business plan for your future enterprise. You must consider the amount of upcoming costs and potential revenue. Indicate what kind of product you will trade, how you plan to carry out deliveries, in which area you rent premises and how much you will spend on repairs. Consider the volume of your initial purchases as well. To make a decent display, you need a good inventory.
Step 3
The easiest way is to start working with the mass and mid-price segment. Luxury cosmetics are a limited demand product. To make a profit, you will have to increase the markup. Keep in mind that in this segment, the newcomer will compete not only with large networks, but also with rapidly gaining popularity online stores.
Step 4
Find a suitable room. For a good layout, you will need a spacious trading floor. A utility room is also needed to store stocks of goods. Stop in a place with good pedestrian traffic. It's not a bad idea to open a department in a popular shopping center. Don't be tempted by low prices - in malls located in unfortunate locations, buyers simply won't find you.
Step 5
Renovate the premises. Don't waste your money on expensive finishing materials. Light walls and high-quality flooring are enough for a new store. Don't skimp on lighting. Install lamps as close to natural light as possible.
Step 6
Purchase shop equipment. You will need open shelving for easy access and presentation stands. If you contract with a specific brand, the brand holder will provide such stands for free.
Step 7
Find partners who will supply you with the product. You can work with local distributors or go to the official dealers of the brand. It is profitable to buy directly, but the representatives of the brands will present you with a number of requirements. But you can count on help in the selection of the assortment, training of sellers, contests from brands and other bonuses.
Step 8
Pick an 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. Don't skimp on your initial purchase. Exhibit complete lines, limited editions and seasonal updates.
Step 9
Hire salespeople. Their responsibilities include customer service, consulting, maintaining order at the stands and controlling the goods. To ensure safety, you can install anti-theft gates and label the goods.
Step 10
Get involved in advertising. Order a prominent sign, install billboards and lightboxes. Print flyers and hand them out on the street or in the mall. Think over a system of discounts and discount cards for regular customers. Make an informative website and start promoting online. Subsequently, you can use this platform as a possible base for an online store, which will increase your sales.
