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5 Things to Consider Before Starting a Cosmetic Business in Europe

Starting any business in Europe comes with certain factors that may not be required in other countries. The fact that your products are approved in other countries does mean automatic approval in an European country if the products are imported. Understanding these kinds of unique factors is critical to your success in starting and building a business in Europe. For cosmetic products, there are cosmetic regulations to consider before going into the business. If you’re looking to build a successful cosmetic business helping people improve their appearance in Europe, then you need to pay attention to these 5 major things before starting.

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1. Cosmetic start up costs

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You may either choose to import your products, produce them yourself, or become an exclusive distributor of the company producing it (with your own brand name on it). Either way, you need to count your cost. Cosmetic business can be quite expensive in the long run if your numbers don’t check out. Your best bet is to begin online where you can build some sales data which you can then take to your local markets to convince them to carry your product. If you take the online route, your key start-up costs will be in three primary areas including product development, marketing, and business expenses. Of course, these costs can vary widely depending on the formulations you are making but here is a general ballpark for what you can expect.

2. Cosmetic market

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Globally, the cosmetic market is a very huge one, because everyone uses a cosmetic product one way or the other. However, your market is not really determined by the people that make it up. Ultimately, your market is built by how effective your customer relationship is. The product is not what sells, but the fact that you have a market of your own—your loyal customers.

Yes, you may do an analysis of what kind of cosmetic product has the greatest demand (organic makeup, etc.) or you can introduce something entirely new (special effects makeup); but ultimately, your market is built—by the effectiveness of your customer relations. Give consumers a great experience with your product and they will choose to buy from you every time and not really because of the product.

3. Cosmetic Regulations

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Whether the products are produced in Europe or imported, you must register them in Cosmetic Products Notification Portal (CPNP) before you can take them to the market. The best approach is to hire a consultant to help oversee the legal and regulatory aspect of the business. The most important aim of the CPNP is that the product is safe for use by the people. The products must undergo expert scientific safety assessment before they are approved to be sold.

After passing the test, you will have to provide a PIP (Product Information Package) which needs to contain the certificate of testing and the ingredients for your product amongst other things. Some cosmetic products are given special attention from regulators due to their scientific complexity or higher potential risk to consumer health.

4. Product development costs

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Better products or improved version of your products gives you the opportunity to make an excuse for an increment in price. But the customer must be able to feel the value of what’s new about your product—hence, product development. Resources must be dedicated to this in order to build the kind of customer base (or market) you want for your product.

If you are serious about running a cosmetic business you MUST keep working out better formulas, testing them and ensuring they’re safe and effective. Preservative Efficacy Testing is a must. Budgeting for this sets in motion the process of making it happen.

5. Business Insurance

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The nature of cosmetic products really require insurance for long term success. This protects you from unexpected accidents (e.g. fire, natural disasters, etc.) and also from liabilities that show up as a result of using your products. Without insurance, your business is vulnerable. You would be risking your savings, your car, and your home.

In the case of an unexpected disaster, the insurance company covers for your loss properties (computers, other devices, etc.) used in the production of your products. If it’s liabilities coming from negative reaction of the public to your

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