DUY Uttarakhand
COSMETICS STORE
1. INTRODUCTION
The influx of global beauty companies into India is now on the rise. These businesses are
strategically targeting the country, hoping to capitalize on its sizable young population and rising
disposable money. This inflow of major cosmetics has envisaged a significant increase in demand
from smaller cities and areas. After the COVID-19 pandemic, many professionals, mainly from larger
cities, have returned to their hometowns and smaller villages to work remotely. As a result, demand
for these cosmetic products has increased significantly in smaller cities of state such as
Uttarakhand, where the market was previously less exposed to such global offers. All of these
elements combined make the potential of opening a cosmetics store in Uttarakhand quite profitable.
A cosmetic store in Uttarakhand can be established in cities like Nainital, Haridwar, Dehradun, and
Udham Sing Nagar which is burgeoning with youths and tourists.
2. PRODUCT & ITS APPLICATION
A cosmetic store typically keeps a diverse range of beauty and personal care products, such as
makeup, skincare, hair care, fragrances, and more. These goods are used in a variety of elements of
personal grooming, from daily routines to special events. All the items are intended to enhance and
maintain one's appearance, hygiene, and well-being.
3. DESIRED QUALIFICATION FOR PROMOTER
To successfully develop and maintain a cosmetics store, the promoter needs to know the cosmetics
industry and the trends. Anyone with basic retail management skills and expertise in marketing and
customer service can start a business.
4. BUSINESS OUTLOOK AND TRENDS
The cosmetics industry is a dynamic and expanding industry. In 2023, the cosmetics market will
generate $6.27 billion in revenue. The market is anticipated to expand by 2.86% a year (CAGR 2023-
2028) in India. The shifting beauty standards and growing knowledge of personal grooming influence
the market for cosmetics in Uttarakhand. As consumers become more health-aware and
ecologically conscious, they are drawn to items made with natural components, free of toxic
chemicals, and environmentally sustainable. Furthermore, the growth in e-commerce is having a
tremendous impact on the Uttarakhand cosmetics business. Consumers are increasingly switching
to internet platforms for their buying requirements as they grow more digitally connected. E-
commerce's simplicity and accessibility make it a critical route for reaching clients in even the most
remote corners of the state. As a result, in this changing retail world, taking an omnichannel approach
that combines a physical shop presence with an online storefront might be especially beneficial.
5. KEY BUSINESS ELEMENTS
· Location: Selecting a strategic location with substantial foot traffic, preferably near commercial
centers, malls, or tourist attractions will attract more customers.
· Customer service: It entails providing consumers with personalized help and product
recommendations.
· Product Selection: It includes providing a wide choice of cosmetics and personal care items. It is
the key differentiator. By offering a vast product range, promoters can attract and retain loyal
customers.
· Marketing: To reach a large audience, one must leverage both online and offline marketing tactics.
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6. MARKET POTENTIAL AND MARKETING ISSUES; IF ANY
Uttarakhand's cosmetics business has enormous untapped potential. This is due to some
reasons, making it an attractive market for cosmetics entrepreneurs. Firstly, the region's
discretionary income has increased noticeably. As more citizens gain financial means, they are
more likely to invest in beauty and personal care products. This awareness translates into a
thriving market for cosmetics as it paves the way to express self-confidence. However, marketing
in this booming sector is filled with difficulties. One noteworthy challenge is competition from
established brands. Local businesses may find themselves competing for the attention of
consumers who are already loyal to global and national beauty brands as they enter into the
region by setting up kiosks and stores in malls.
7. SUPPLY OF RAW MATERIAL
Many wholesalers and distributors focus on delivering raw ingredients to the cosmetic industry.
Some cosmetic companies make and sell raw materials. Direct purchasing from manufacturers
can be a cost-effective and dependable option to obtain your supplies. For example, in
Uttarakhand, there are giant cosmetic manufacturers such as Vivo Cosmetics, Derma Company,
Kalour Cosmetics, Beauty, etc. with whom B2B relationships can be established for bulk buying.
Joining associations and organizations in the cosmetics sector can give the promoter significant
leads and connections.
8. BUSINESS MODEL
The business area is spread across 2,000 sq. meters and has an inviting entrance with well-
organized product displays, a designated makeup and beauty area, and a storage area for
inventory. The layout must incorporate space for staff assistance, product testing, promotional
displays, and customer comfort.
9. BUSINESS PROCESS
The business process includes;
· Inventory Management: This is the primary step in operating a cosmetics store. The promoter
has to check product availability by efficiently managing stock levels, reordering as needed,
and tracking expiration dates.
· Sales and Client Service: To increase the client's trust and loyalty, the promoter has to provide
great service. For that, he/she has to hire and train knowledgeable employees to provide
outstanding customer service.
· Marketing and Promotion: The promoter must run initiatives to improve brand visibility across
several platforms.
· Financial management: Along with other business operations, the promoter has to review the
business finances to ensure financial sustainability.
· Expansion and adaptation: For growth, the business has to constantly adapt to market trends
and client inputs, looking for chances of expansion.
10. MANPOWER REQUIREMENT
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11. IMPLEMENTATION SCHEDULE
12. COST OF PROJECT
13. MEANS OF FINANCE
Bank-term loans are assumed @ 60%
14. FURNITURES AND FIXTURES
Local suppliers in India offer a wide range of furniture and fixtures. The entrepreneur can avail
office furniture after thorough research and analysis. Below are the tentative suppliers in India.
Besides these, online platforms such as India Mart, Trade Mart, etc. can also be explored for
ordering online.
1. S. K. Enterprises
Khasra No.160, Sewadham Road,
Opposite Bank of Baroda, Mandoli- 110093,
New Delhi, India
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1. Oakly Chairs
No. A-2/1, Ground Floor,
Kunwar Singh Nagar, Nangloi, -110041,
Delhi, India
2. Hybonn Storage Systems
WZ - 2/10, 2nd Floor,
Surya Complex, Budella, Vikaspuri-110018,
Delhi, India
15. SALES REALISATION
16. PROFITABILITY CALCULATIONS
The basis of profit calculation is;
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DUY Uttarakhand
17. BREAKEVEN ANALYSIS
18. STATUTORY/GOVERNMENT APPROVALS
It is important to comply with statutory rules and regulations before starting a cosmetics store.
1. Businesses selling cosmetics that are designed to beautify, cleanse, promote attractiveness,
or modify the appearance of a human, must acquire a State Drug license.
2. Shop and establishment license is necessary for operating a cosmetics store wherein working
hours, employment conditions, and other regulatory requirements are stipulated.
3. Trade License: The business has to obtain a trade license from the local municipal corporation.
This license permits to carry out commercial activities within a specific jurisdiction.
4. Registration of business for Goods and Service Tax (GST) with the Goods and Service Tax
Network (GSTIN) as it applies to all the products.
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19. TRAINING CENTERS AND COURSES
Training centers that offer professional training and certification in entrepreneurship and
business management are as follows:
1. National Institute for Entrepreneurship and Small Business Development (NIESBUD)
Regional Centre, Dehradun
NSTI Campus, Green Park, Dehradun- 248001,
Uttarakhand, India
2. Indian Institute of Entrepreneurship(IIE)
Basistha Chariali, NH-37 Bypass, Near Game Village,
Lalmati Guwahati- 781029,
Assam, India
Disclaimer
Only few suppliers of furniture and fixtures are mentioned in the profile,
although many machine manufacturers are available in the market. The
addresses given for suppliers have been taken from reliable sources, to the
best of knowledge and contacts. However, no responsibility is admitted, in
case any inadvertent error or incorrectness is noticed therein. Further the
same have been given by way of information only and do not carry any
recommendation.
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