How to Start a Cosmetic Business in Pakistan

Why Start a Cosmetics Business?

Through a cosmetic brand, you can reflect your vision, enjoy financial freedom, work flexibly, and tap into the growing demand in the beauty industry.

Cosmetic Industry in Pakistan: The Lastest Trends

The demand for cosmetics and beauty products is not only growing in Pakistan but also globally. 

According to Grand View Research, the global cosmetics industry is projected to generate $445.98 billion in revenue by 2030, growing at an annual rate of 6% from 2024 to 2030.

Skincare is the biggest part of the cosmetics industry, with people wanting more face creams, powders, and sunscreens. However, different factors are affecting how it will grow in the future.

The demand for cosmetics in Pakistan is on the rise due to a few key reasons:

1. Growing Middle Class: Due to the increasing trend of using or working through the internet, the size of the Pakistani middle class is increasing. Which means they can spend money on things like cosmetics. They want to look good and feel confident, so they buy more makeup, skincare products, and hair care items.
   
2. Social Media Influence: Social media platforms like Instagram and TikTok are huge in Pakistan. Influencers and celebrities promote beauty products, inspiring people to try them out. This creates a strong demand for the products they endorse.
3. Men’s Cosmetics: The male sector is also becoming beauty conscious, which is creating new opportunities for men’s skincare and cosmetic products.
4. Luxury and Ultra-Luxury Segment: Prestige Cosmetics and Fragrances will drive the growth of Pakistan’s luxury goods market, expected to grow by 3.77% annually from 2024 to 2029, reaching revenue of $1,368 million by 2024.

Overall, these factors are the main reasons for the growing demand for cosmetics in Pakistan. 

How to Start a Cosmetic Business in Pakistan | 10 Steps

After discussing the trends and reasons for the growing cosmetic market, it is time to discuss the steps to start a cosmetic business in Pakistan.

Let’s explore the steps of how to start a skincare business in Pakistan.

Step 1: Make a Business Plan

To bring your cosmetic business your first step should be developing a solid business plan. Here is what you should include:

Through the business plan, you can have a clear roadmap, and you can also attract investors to get funds.

Step 2. Decide Your Business Model and Manufacturing Strategy

When starting your cosmetic business, you will need to decide how you will sell your products. You can sell online, in physical stores, or work with spas and salons. Each option will affect how you run your business, market your products, and manage costs.

As for manufacturing, you have two main choices:

1. Private Label: You sell ready-made products with your brand on them. This is a cheaper and easier option if you do not want to deal with making products yourself.
2. Custom Formulation: If you want to create your own unique products, you can work with a cosmetic chemist to make them. This can help your brand stand out.

Step 3: Ensure Legal Compliance

Before you start making or selling cosmetic products, you need to make sure your business follows local rules and any international standards if you plan to sell abroad. Here is what you need to do:

1. Business Registration: Register your business with the government to make it legal. In Pakistan, you will likely need to register with the Securities and Exchange Commission of Pakistan (SECP). This gives your business credibility and protects you legally and financially. You can consult Waystax to register cosmetic products in Pakistan.
2. Licensing: Depending on your products and where you are selling, you may need special licenses. For cosmetics in Pakistan, the Pakistan General Cosmetics Regulatory Authority regulates the industry, and you will need to get the right licenses to sell your products.
3. Product Safety & Certification: Make sure your products are safe. Follow health and safety rules for the ingredients you use. 
4. Labeling Requirements: You should include important details, such as ingredients, how to use the product, expiry dates, and any allergens on your packaging. 

Step 4: Product Development & Testing

Here is how you can make a safe, high quality cosmetic product stand out.

1. Research & Development: Start by creating the formulas for the products you want to sell. This means researching what customers want, what ingredients work best, and what is trending. For example, Organic products are becoming popular these days, just like the BnB (body and body) brand.
2. Safety Testing: After making your product, it is important to test it for safety. Make sure it does not cause skin irritation, allergies, or harm to any skin type. You can do tests like patch tests or clinical trials to see how the product works on the skin.
3. Product Effectiveness Testing: It is not just about safety, your product should work well too. For example, does your moisturiser hydrate the skin? Does your foundation provide full coverage without looking heavy? These tests help improve your product and keep customers happy.

Step 5: Work on Cosmetic Packaging

Cosmetic packaging does not only mean the outer appearance of the product that contains your cosmetic products. Here is why good packaging is important:

1. Branding and Communication: The first aspect that catches customers’ eye is packaging. It gives your brand identity and helps your products get noticed.
2. Product Protection: Good packaging is important to protect your products during transportation without damage.
3. Customer Experience: Attractive and practical packaging makes unboxing enjoyable, encouraging customers to buy from you again.
4. Legal Compliance: Packaging must follow the rules, including ingredient lists and safety information, to build trust with customers.

Good packaging can be a great marketing tool and can make customers choose your brand over others.

Step 6. Set Up an E-Commerce Platform

You must start an online store to reach more customers locally or internationally. Here is what you should do while setting up an ecommerce store

1. Choose a Platform: Platforms like Shopify, WooCommerce, and BigCommerce set it up relatively easily. Shopify is especially good for beginners, while WooCommerce is great if you already use WordPress.
2. Design & User Experience: Make your website user friendly. It must be quite easy for customers to navigate and include clear pictures of the products and descriptions.
3. Payment & Shipping: Provide multiple payment options, such as debit cards, Easypesa, and JazzCash. Also, offer free shipping or international delivery for shipping options so that shopping becomes easier for your customers.
4. Mobile Optimization: People use cell phones most often to shop, so your website should work on a cellphone. Shopify, as well as other platforms, automatically makes your site mobile-friendly, which is necessary for modern businesses.

Step 6: Pricing Strategies for Your Cosmetic Startup

For your product’s pricing, you should consider the cost of manufacturing and the amount your targeted customers can afford to pay for your products. 

Some aspects are costs for materials packing, marketing, and shipping, and the amount of profit you want to make. 

Step 7. Creating a Retail Strategy

Selecting channels of distribution for your cosmetics is equally important. Sites such as Daraz and Instagram are becoming increasingly popular, you have the ability to reach out to millions of people.

Physical stores, spas and local retailers can also prove to be very profitable if your product is unique and according to the customer’s demand.

Additionally, you should consider global expansion. Many cosmetics brands have successfully entered international markets through online platforms and building a strong brand presence.

Step 8. Implement Marketing Strategies

Once your online store is ready, you need to bring customers to it. Here are some ways to market your cosmetics brand:

1. Social Media Marketing: Present your products through platforms like Instagram, TikTok, and Facebook. These platforms are great for cosmetics because you can share before-and-after results, tutorials, and content from your customers.
2. Influencer Partnerships: Connect with influencers who match your brand.. Even smaller influencers with loyal followers can make a big difference.
3. Content Marketing: Create blogs, tutorials, and other helpful content for your audience. For example, you can share skincare tips beauty trends, or explain the benefits of your products. 
4. Search Engine Optimization (SEO): Keep your site top on Google. Use keywords, create useful content, and improve your site’s speed and mobile-friendly features.

Step 9: Getting Honest Feedback: Positioning Your Brand Correctly

To be successful in the cosmetics business, you have to understand your customers and the market. 

Keep asking for honest feedback on how to improve your product and represent yourself. 

If what you make is exactly what they need, with a different approach and of exceptional quality, you have a better opportunity for enduring success.

Step 10: Consider Manufacturing Your Own Line

As your business grows, you should create your own products. Here is why it may come in handy:

• Quality Control: You don’t have to be dependent on others. Moreover, it’s on you that which ingredients you want to choose to meet the standards of your brand.
• Cost Control: It is hard to begin production from scratch, but it can save you money in the long run because you do not have to rely on other manufacturers who will cut from your margins.
• Scalability: Manufacturing your product will give you room to grow. You can experiment with new formulas, new packaging, and new products as your demand increases.

However, setting a manufacturing line up is expensive, and you may require large machines, a factory, and workers. For smaller businesses, the best route is often to outsource the production first and start producing in-house as your business grows. 

Types of Cosmetics Businesses

1. Skincare: This category focuses on products like cleansers, moisturizers, serums, and eye creams that enhance skin health and wellness.
2. Beauty & Makeup: This category includes products such as foundation, lipstick, mascara, and nail treatments designed to enhance appearance and personal style.

Both types offer you unique ways to stand out in Pakistan’s cosmetic industry and meet customers’ changing needs in the growing cosmetics market.

4 Powerful Selling Tips For Cosmetics Business

Well, now you know each step to start a cosmetic business in Pakistan, it’s time to focus on selling tips. Here you go!

1. Be a Trendsetter

Grab your audience’s attention by making your product stand out. As a starting point, answer the following key questions:

• What are some of the latest trends related to your product?
• How will you be able to offer something unique to your audience?
• What can be done to increase your product’s value?

Follow trending popular influencers, bloggers, and YouTubers. With these insights, you’ll be prepared to position your cosmetics business in Pakistan for success.

2. Make Your Brand Shine

The beauty industry grows on attractive visuals and branding. Your brand should connect with your audience easily. 

Enhance your product’s appeal with creative touches like adding bright colors to mascara caps or giving your products catchy, memorable names.

Create a unique logo and use clear, readable fonts to stand out. Focus on making your brand glamorous and relatable to modern consumers.

3. Use Seasonal Promotions

Utilize special occasions to increase sales.

• Holiday packages: Provide festival packs in Eid, New Year, or wedding seasons.
• Limited editions: Create a buzz with exclusive products for a limited time.
• Coupon codes: Hold flash sales and have coupons available through shopping holidays such as Black Friday.

4. Offer Excellent Customer Service

Great service leads to loyal customers.

• Quick responses: Address inquiries on social media or via email promptly.
• Flexible return policies: Create trust through hassle-free returns.
• Educational material: Provide guidelines on how one can use their products.

Some Incredible Brands and Their Success Stories to Inspire You

Pakistan’s skincare industry is now shifting from imported products to supporting local brands. 

This shift has been facilitated by people having more trust in products created locally, imposition of import taxes, and preference for homegrown solutions.

Saeed Ghani

One of the oldest brands is Saeed Ghani since 1888, which is famous for its natural stuff, such as Ubtan, Aloe Vera Gel, and Rose Water. Despite minimal marketing, their strong reputation is built upon word of mouth and a customer-focused approach.

Co Naturals

CoNatural sisters Myra Qureshi and Reema Taseer also manage an organic beauty products company, Organic Beauty for Asian Skin. It has raised $825,000 in funding to expand its international markets and is recognized for its special packaging and natural products.

Luscious Cosmetics

Luscious Cosmetics, founded by Meharbano Sethi in the year 2007, boasted products as varied as blush palettes and lipsticks. They are known for innovation and have given launch to products like Camera Powder and Camera Foundation Stick, which blend into a flawless glow.

Zero Makeup by Nabila

ZERO Make-up by Nabila, by celebrity stylist Nabila, is a low-cost, vegan, and gluten-free make-up. The No Make-up Palette was a bestseller, and they have since added further items to the range with items such as Kajal Liner and Blending Brushes.

MM Make-up by Masarrat Misbah

MM Make-up by Masarrat Misbah in 2014 stands out for offering halal, non-irritating cosmetics. It is one of the best brands in Pakistan, providing ethical, high-quality products for Pakistani beauties in the niche of halal beauty.

How much investment is needed to start a cosmetic shop in Pakistan

How much investment is needed to start a cosmetic shop in Pakistan depends upon your business model. Here is the overview of required investment for different business models. 

Please Note: This cost is estimated and may vary depending on location, and rate of inflation etc. 

Wrapping Up

This guide is a comprehensive answer to your concern about how to start a cosmetic business in Pakistan. You need to do research, and planning and also be flexible according to the demands of the customers.

Through creativity, customer satisfaction, and effective marketing, you can build a cosmetics brand that resonates with consumers and can lift you up in a competitive market.