Last updated on March 2nd, 2024 at 05:40 pm
Starting a cosmetics business in Kenya can be a lucrative venture, given the high demand for beauty products. However, like any other business, starting a cosmetics business requires careful planning and execution. This guide aims to provide a step-by-step guide on how to start a cosmetics business in Kenya, including the starting cost breakdown, location, requirements, market size, earnings per day, and pros and cons.
Starting Cost Breakdown
| Item | Cost (in KSH) |
|---|---|
| Business registration | 10,000 – 20,000 |
| Rental space for shop | 10,000 – 50,000 |
| Initial inventory | 50,000 – 100,000 |
| Licenses and permits | 5,000 – 15,000 |
| Furniture and fittings | 20,000 – 50,000 |
| Marketing and advertising | 10,000 – 30,000 |
| Total | 105,000 – 265,000 |
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Location
The location of your cosmetics business is crucial. You want to choose a location that is easily accessible, has high foot traffic, and is in a safe neighborhood. The best locations for a cosmetics business are in busy shopping centers, malls, or markets.
Requirements
To start a cosmetics business in Kenya, you need to fulfill the following requirements:
- Business registration: You need to register your business with the Registrar of Companies, obtain a business permit from your local government, and register for taxes.
- Licenses and permits: You need to obtain a trading license from the county government, a health permit from the Ministry of Health, and a cosmetic manufacturing license from the Pharmacy and Poisons Board.
- Initial inventory: You need to purchase inventory such as makeup, skincare products, hair products, and fragrances.
- Furniture and fittings: You need to furnish your shop with shelves, display cases, mirrors, and other fittings.
- Marketing and advertising: You need to promote your business through various marketing channels such as social media, flyers, and posters.
Market size
The cosmetics market in Kenya is growing rapidly, driven by a young and fashion-conscious population. According to Euromonitor International, the cosmetics and personal care market in Kenya was worth KSH 50.3 billion in 2020 and is expected to grow at a CAGR of 5.3% from 2020 to 2025.
Earnings per day
The earnings per day for a cosmetics business in Kenya vary depending on several factors, including location, inventory, pricing strategy, and marketing efforts. On average, a cosmetics business in Kenya can earn between KSH 5,000 to KSH 20,000 per day.
Pros and Cons
Pros:
- High demand for cosmetics and personal care products in Kenya
- Potential for high profits
- Opportunity to showcase your creativity and passion for beauty
- Flexibility in terms of working hours and location
Cons:
- High competition from established brands and other startups
- Need for continuous innovation and staying up-to-date with the latest trends
- Capital-intensive business with high initial investment
- Challenging market conditions, including price sensitivity and counterfeit products
Conclusion
Starting a cosmetics business in Kenya can be a rewarding venture, but it requires careful planning and execution. By following this step-by-step guide, you can start your cosmetics business on the right foot and position yourself for success in the growing cosmetics market in Kenya.
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