Tapping Into The Multi Billion Dollar Beauty Industry
A beauty shop business provides products and equipment that is used in the beauty industry and related industries. Since it is in the same industry as a salon and barber so it is a recession proof businesses; most products fall into the toiletry category that is essential for overall hygiene and comfort. The industry has reasonable returns and if one sells their own range of products, one can enjoy outstanding profits only surpassed by drug business.
The industry in African markets has experienced a growing trend towards natural oils and beauty products. Products that can maintain natural hair yet ease its care are a growing trend. Bleaching and hair straitening products are still in high demand.
Natural products with no chemicals are generally preferred. Outlets that can couple these with skilled and knowledgeable staff have a solid niche. Given the status of cultural change in the continent, towards a positive preference for African culture values and pride, there is an opportunity to capitalise on this trends in future as the niche market continues to grow.
Beauty shops may be attached to a beauty salon or operate independently of the beauty salon. This is especially so if the salon offers its own unique range of products and is an established brand. However, a one-stop beauty parlour may also offer a shop with a wide range of products that the client can buy to maintain their look. However, one should carefully consider how to manage the different income streams as there is the likelihood of abuse if there is poor administrative support.
KEY SUCCESS FACTORS
Location; Ensure the location of your beauty & barber shop is next to a source of traffic e.g. Mall, supermarket or market. Alternatively, if you can afford it a shop in a mall or supermarket gives you even more advantage.
Product Range; The range of products offered will depend on where your shop is located whether in an urban centre or in the suburbs. Some research into the range of products preferred by your range of clientele. This does not mean not introducing new products but managing relationships with suppliers so new brands and products are well marketed and promoted to encourage local production.
Pricing; While getting into a pricing war is not the goal here it is important to ensure your pricing is reasonable.
Product knowledge; Staff should have a good understanding of the different products and how they are to be used to be able to give advice to clients. This not only enables them to upsell but effectively recommend the right products and establish a personal relationship with the clients thus building brand loyalty.
Sourcing; Sourcing determines what the cost of supplies and, as a result, profitability. This can determine whether or not the business is profitable or not.
Research; this enables keep ahead of competitors in meeting client needs and address upcoming trends in the industry, as a result, stocking the right products.
Actively marketing new products; where your present a brand in a region. Your role would include training and marketing the brand in local beauty salons and other outlets. Having a mechanism to support this will not only ensure you have customers for the brand you represent but establish outlets for all other products you supply.
Good POS system; as with any sales outlet it helps monitor and manage stock ensuring you never run out.
HOME BUSINESS OPPORTUNITY
There are two options to start a home business opportunity with this business. You could either structure your business to offer online shopping or offer your product through multi-level marketing. Supply of beauty products forms one of the largest sub-sector for multi-level marketing. If you produce your own products then this is a great way to distribute your product especially if they are of very good quality and expensive. The options are that you could establish your own multilevel marketing company or partner with a local multilevel existing. The first option is best if you have a full product range or the latter if you have only or a very small product range.
To start a multi level marketing business, you will need to invest in an affiliate system that will be able to monitor the performance of the different marketers.