How to Start a Skincare Retail Business in Nigeria (2024)

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When Atomiwa Wahab launched Miwabeauty, her online skincare store in 2020, she was frustrated at the difficulty of accessing quality skincare products in Ibadan. Knowing that if she was having this problem, other people were probably having it as well, so she took a leap of faith and launched her skincare business. She started this with just N10,000.

It’s 2024, and Miwabeauty has been running for 4 years and has processed over 2,000 orders since then.

The rise in interest in skincare and maintenance in Nigeria has been consistent over the last few years and created a demand that business owners like Atomiwa are already taking advantage of. In this article, we’ll explain how to start a skincare retail business in Nigeria in 2024!

Before we delve into more detail, here’s a question you probably have, and some answers to that!

How Profitable is the Skincare Business in Nigeria?

Right before you start a skincare business, your first question would probably be whether selling skincare is profitable in Nigeria. The answer is yes! According to Dataphyte, there has been an upward trend in the average revenue skincare brands have generated from every individual, going from $5.65 in 2018 to $9.34 in 2023.

And here are other reasons you should know:

1. Growing Demand: The skincare industry is experiencing increasing demand as consumers prioritise self-care, wellness, and skincare routines.

2. Recurring Sales: Skincare products are often consumable goods, leading to repeat purchases and creating a steady revenue stream for businesses.

3. Diverse Customer Base: Skincare appeals to a wide range of customers across different age groups, genders, and skin types, offering businesses a broad target market.

4. High Margins: Skincare products, especially premium and specialized ones, often have high-profit margins, making them lucrative for retail businesses.

5. Innovation and Trends: The skincare industry is constantly evolving with new ingredients, technologies, and trends, providing opportunities for businesses to introduce innovative products and capitalise on market trends.

So if you were considering it, you now have more reasons to jump into this line of business!

How much do you need to start a skincare business in Nigeria?

With starting a skincare business, the money you need can range from a few thousand naira to hundreds of thousands. Depending on what you want to start with, you can decide how much you’ll need to launch your business.

Miwabeauty in their interview with Bumpa shared how they launched the business with just N10,000 in 2020, and explained how they started with that amount. In today’s economy you may need more than that, but doing the right research and starting is what’s most important; just start.

How to Start Your Skincare Retail Business

This step-by-step process will help you set up your skincare business in Nigeria, without making any mistakes.

Step 1: Market Research and Planning

One great mistake people make before launching a business is not doing any research and understanding the demands. Seeing that one or two people seem to need something isn’t enough; to put money into a business, you need to make sure you’ve done enough research and planning.

1. Conduct market research on the skincare industry in Nigeria: The first thing to understand is the market dynamics, trends, competition and consumer preferences. For example, there are skincare products that cater to the face, the body, etc. There are also different categories and brands of skincare. Understanding customer behavior is how you can know what will help you sell faster. Market research gives you insights into demand, popular brands, pricing strategies and best sales channels.

2. Identify target market segments and consumer preferences: Next is the segmentation and preferences of your customers. This helps you tailor your product offerings and marketing strategies and also helps you define the audience you’ll be solving problems for.

3. Develop a comprehensive business plan and set clear objectives: Even though you think you’re just starting a business and don’t need structure, it’s important to take time and create one right from the onset. You need to outline your mission, goals and strategies and also set clear objectives like revenue targets and customer acquisition metrics for a start.

Check this out: Your Ultimate Guide to Writing a Winning Business Plan with Free Template

Step 2: Legal Requirements and Business Setup

A proper business setup is super important; it doesn’t matter if you’re just starting or think your business is too small. For example, getting your business name so that another person doesn’t claim it, or getting a custom domain for your website to match your business name and not waiting till another person buys it are things to consider.

To start, you can register your business with CAC. There might also be permits and licenses you need, especially if you’re creating your own products.

You also need to decide whether to set up a physical store or explore online retail instead, based on your target market’s preferences, budget and growth plan. Thanks to tools like Bumpa for example, you can easily create and start an online store in 2024.

You’ll love this: All You Need To Know About CAC - Registration, Public Name Search & Annual Returns

Step 3: Product Selection and Sourcing

When it comes to product selection and sourcing in the skincare industry, it's all about staying ahead of the curve. This involves carefully curating a selection of skincare products that align with current market demands and trends. To ensure top-notch quality, identify reputable suppliers and manufacturers who can deliver excellence. Building strong relationships with distributors and wholesalers is key to smooth and efficient product sourcing, helping to keep your offerings fresh and exciting for your customers.

Step 4: Marketing and Promotion

And now, it’s time to start selling! To do this, people need to know about your business, and this is where marketing comes in. Here are 3 things you can do.

1. Develop a marketing strategy by understanding your audience, setting clear objectives and determining the best marketing channels to achieve your goals.

2. Leverage digital marketing channels like social media, email marketing, and SEO for your website and collaborations.

3. Implement promotional activities like sales, discounts, giveaways, limited-time offers and collaborations with other brands or influencers to create buzz and excitement around your skincare products.

Read also: The Best Guide to Search Engine Optimisation (SEO) for Small Businesses

Step 5: Customer Service and Experience

This step is super important. As customers start to come to buy from you, it’s necessary to give them the very best experience so that they can come back and also recommend your brand to people around them.

Here are some things you can do.

1. Offer personalised skincare recommendations and consultations to build customer trust and loyalty. By taking the time to understand each customer's unique needs and concerns, you can tailor your recommendations to provide them with the best possible skincare solutions.

2. Create a positive and memorable shopping experience. This can include a welcoming atmosphere, attentive service, and going the extra mile to ensure that customers feel valued and appreciated. These are keys to customer retention.

3. Train your staff if you have any. This will help them engage better with customers, thereby enhancing their overall shopping experience.

Step 6: Financial Management and Inventory Control

This has been mentioned a couple of times in this article, but it is important to say again: starting a business doesn’t mean that planning and management aren’t important. Some business owners tend to think that because their business is just starting, they don’t need processes in place. But that’s not true.

Financial management and inventory control are a major part of the success of any business, and right from the beginning, focusing on them is absolutely necessary.

Here’s what you should do:

1. Set up a bookkeeping and accounting system: The first thing you need to do is set up a robust accounting system. But robust doesn’t have to mean ‘complicated’. The important things to track include sales, expenses, and other financial data like operational costs. This gives insights into your business’s financial health and helps you make informed decisions. A simple tool to consider is Bumpa; setting up is easy and you can start recording your daily sales and other expenses instantly, making it easier to track. Here’s a simple guide on how bookkeeping and accounting work for small businesses.

2. Implement an inventory management system: It’s important to monitor stock levels and prevent losses from overstocking your inventory or stockouts (your items being out of stock). To do this, you need an inventory management system like the Bumpa app. This helps you track product movement, and inventory and also ensures the right products are available at the right time.

Step 7: Adapting to Market Changes and Trends

Lastly, adapting to market changes and trends is very essential for staying ahead of the curve. This involves knowing the industry trends, what customers are excited about and what they prefer, and where the market is headed. What this does is help you cater to your target audience effectively. Make sure to also pay attention to your competitors' actions to understand where you can improve your business.

Setting up your Skincare Business with Bumpa

Setting up your skincare business doesn’t have to be as stressful as you would typically think, especially with the right tool. And that’s where Bumpa comes in. With the Bumpa app, you can:

1. Create your online e-commerce store and start selling in minutes.

2. Track your inventory quantity, and record and track your sales across multiple channels.

3. Store customer data permanently on your app; you’ll never lose it once stored.

4. Connect your Instagram DM to the Bumpa and process orders faster, without needing to login to Instagram.

5. Send invoices and receipts to your customers.

6. Remarket to your customers by sending them emails and SMS campaigns right from the app.

7. Create discounts and coupons whenever you want to run sales. They’re instantly applicable!

8. Manage your orders neatly; track pending and completed orders.

9. Add staff members, assign roles to them and have them manage your business.

10. Get business data to help you make better business decisions; best-selling products, best-performing channels, most returning customers and more!

The Bumpa app is designed to help you run your business with ease, from when you start and even as you grow and expand. Sign up today to get started!

Conclusion

In conclusion, starting a skincare retail business in Nigeria requires careful planning and execution to ensure success. Key steps such as curating the right products, implementing effective marketing strategies, providing exceptional customer service, managing finances efficiently, and staying adaptable to market changes are vital for navigating the competitive industry landscape. To aspiring entrepreneurs looking to embark on this exciting journey, remember that passion for skincare and business ownership can be a powerful driving force. With dedication, creativity, and a commitment to excellence, you have the potential to carve out a unique space in the skincare market and make a lasting impact. Good luck!

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