Megan Cox woke up in the morning to discover she had made $10,000 in sales overnight. At the time, she was a student at the Massachusetts Institute of Technology (MIT) and had a newly launched skincare line, Amalie Beauty – her first foray into entrepreneurship.
Finding the Idea
Over the next few years, Megan successfully developed her brand into a six-figure business. However, as her eyelash serums and facial oils began to run out, she lost interest in running a skincare brand that sold directly to consumers (DTC). She was at a crossroads: expand or sell.
Making the Decision
Megan decided to sell, redirecting her attention to another skincare venture she had been working on in parallel. This business is Genie Supply, a clean beauty lab that creates products for hundreds of founders who started in the same way Megan did – with an idea and a passion for skincare.
11 Steps to Start a Skincare Line
Just start (even if you don’t feel ready), do your research, find a skincare niche, invest in your brand, utilize the resources at your disposal, develop a relationship with a skincare product manufacturer, conduct rigorous testing on your formulations, and understand the safety and labeling laws in the skincare industry, build trust with customers through transparency and content, and leverage what makes you unique.
Just Start (Even If You Don’t Feel Ready)
The global skincare industry is projected to reach $183 billion by 2025. Much of the growth in recent years can be attributed to independent brands. “Traditional brands – Estée Lauder, L’Oréal – are not growing,” Megan says. “Independent beauty and clean beauty are driving the growth of the entire beauty industry.” Traditional brands are responding, like Tarte, which started as a natural beauty line in a one-bedroom apartment in 1999, where the majority of its shares were sold in 2014 to a massive global beauty company. Maureen started with $18,000 in capital.
When looking into how to start a skincare line, remember to consider production time. Developing a skincare product takes at least 12 weeks. However, most skincare lines require much longer for research and development, testing, and marketing. Skincare products also require extensive testing, which takes time.
As skincare trends evolve rapidly, it’s better to capitalize on a great idea now rather than wait for everything to be perfect.
Do Your Research
Market research is critical in the beauty industry – it’s saturated and trends move quickly. But the constantly evolving landscape means there are still opportunities for newcomers to start skincare lines. Stay tuned to trends by following beauty publications and influencers and use a tool like Google Trends to validate your ideas.
“There is a very significant shift in how people are spending their money as Generation Z grows,” Megan says. “There are so many opportunities for innovation.”
When Megan was developing her skincare brand, she ordered every eyelash enhancer ranked on Amazon. She also read in the MIT research database that essential fatty acids showed promise in studies, yet no other company was using them in eyelash products at that time.
Megan said, “I have some background in chemistry, but really, all the research is out there. There are so many smart people online sharing information for free.”
Your research should include competitive analysis, market research, and keyword research to determine the feasibility of your idea. This is also the stage where you’ll want to crunch the numbers: how much will it cost to start the business and how will you fund it?
Finding
On Skincare Specialization
Where new founders of skincare lines can win is in identifying audiences that are underserved by current brands in the market. There is no clearer example of this than in the cosmetics field, where independent brands have led a makeup revolution for a wide range of skin tones.
Understanding trends as soon as they emerge is important, but beware of passing fads and ensure there is a sustainable plan. “Recently, I’ve noticed that people latch onto any hot ingredient at that moment,” says Megan. “While the product development cycle has accelerated in recent years, it can’t keep up with passing trends. ‘You’re already four months too late,’ Megan tells those clients. ‘By the time you actually get to market, that trend may have ended.’
Innovation, rather than jumping on the bandwagon, is how independent skincare brands can avoid these pitfalls. While traditional brands target a broad audience, independent brands have the ability to hone in on a specific audience or address a specific issue – and issues change much less frequently than trends.
If you want to expand or stick to the basics regarding formulation or product type, you can rely on a strong philosophy and a brand story to connect with your audience. “If you’re going to formulate in a certain way or exclude or include certain ingredients, you should be really intentional about it,” says Megan. Plant-based skincare products
Responding to a diet or specific lifestyle choice is a common way to find a niche in the food industry. But the same is true in skincare. Cruelty-free and vegan beauty and skincare products are slowly becoming the norm rather than the exception. Ensuring that your products meet this standard from the beginning means you won’t have to make modifications later when the market demands it. Natural skincare products
The clean beauty trend shows no signs of slowing down. The health and wellness movement has transferred to skincare as well, as many consumers pay attention to what goes into their bodies – not just what goes on them. If you’re looking to start a skincare line within this specialization, pay close attention to your inventory and supply chain – products without synthetic preservatives will spoil faster. Other Trends and Specializations in Skincare
Typology is characterized by its multifunctional products that blend skincare and color. Typology
Find a niche for your skincare business by researching current and emerging trends as well as markets that are underserved. Some ideas include: skincare for specific skin conditions (like oily skin, eczema, dry skin, or rosacea), adaptive skincare (like ingredients that respond to your skin’s needs), multifunctional products (like all-purpose face and body moisturizers), beauty products that care for the skin (like cream blush with hydrating properties), innovative products (like hydrocolloid patches, concentrated skin vitamins, home spa tools), targeted skincare for a specific audience (like cancer survivors), hot ingredients (like retinol, probiotics, hyaluronic acid), simple formulations that exclude common allergens or are offered at lower price points (like organic ingredients, natural ingredients, clean cosmetics).
Investing in Your Skincare Brand
Before you even think about product development, decide what you stand for. You can build your skincare brand and establish an audience before you create products or launch an online store. This time allows you to understand your audience, gather feedback, and build trust. Use this period to refine your brand story and generate buzz around your upcoming launch.
Assumed
Meghan believes that her customer persona will be similar to hers: younger people who have damaged their natural lashes through extensions or their hair-pulling disorder.
Surprisingly, her product attracted another audience. “We discovered that it resonates greatly with older women and people who have just gone through cancer treatment,” says Meghan. “I never expected that at all.” She embraced this unexpected market and actively supported cancer survivors by donating one product to a cancer survivor for every bottle sold during the campaign.
This shift in branding and marketing was made possible by Amalie’s scale, but it’s crucial to identify some key elements early on. Maintaining a consistent brand voice and presence can enhance market recognition and build trust.
The brand’s visual identity is also extremely important in the skincare industry. Convincing packaging that speaks to the target audience through its aesthetic gives your brand a professional edge. Make sure to develop a clear set of brand guidelines to ensure that wherever your brand name appears, it adheres to a set of rules.
Leverage Your Available Resources
“I had no money or experience,” Meghan says regarding her decision to start a business. Her initial investment was exactly $1,812 (twenty parts of Tarte’s original startup costs) – it was every penny she had.
Meghan founded the company for $700, buying 500 bottles and a few boxes, and paid for her first month on Shopify. She had only $6 left in her account.
With no funds left for marketing, Meghan had to get creative. She went to an online forum for cancer survivors, resulting in a few sales. But a simple call to a local newspaper in her hometown was the catalyst for her big breakthrough. The newspaper interviewed her, leading to a few more sales, but the turning point came when the story was picked up by the state newspaper and its affiliated reporters. “I went to sleep, and when I woke up, we had $10,000 in sales, and we had sold out,” she says.
When starting your own skincare line, look for creative ways to leverage your funds, whether that’s launching your business from home, experimenting with organic marketing ideas, or self-funding your growth.
Stay Connected with Formulating and Manufacturing Skincare Products
There are several ways to formulate products: making them by hand at home, renting dedicated manufacturing space, working with a lab to create custom products, or adopting a white label or private label approach with a beauty manufacturer. Creating a skincare line at home
Simple formulations like facial oils can be made at home. However, to manufacture cosmetics in the U.S., you’ll need to follow the FDA guidelines for ventilation, air control, and surfaces. While your manufacturing processes must comply with FDA standards, there’s flexibility for companies that produce in short timeframes. Mobile clean rooms – which are pop-up tents – are designed for this purpose and are ideal for small businesses.
Meghan says, “If you’re starting small, there’s value in working with the ingredients by hand and trying to figure it out. But at some point, you will need to work with a manufacturer.” Many successful beauty founders, like Melissa Butler of The Lip Bar, started their lines from their own kitchens and moved to a manufacturing facility as they grew.
Experiencing formulations yourself will help you understand the properties you’re looking for in a formulation – viscosity, appearance, and scent – which will equip you to engage in informed discussions with your manufacturer.
Develop
Relationship with a Skincare Product Manufacturer
While she had her first business, Megan worked with manufacturers in the United States and China. There are pros and cons to each, depending on your production volume and how close you are to the process. Megan spent a lot of time in China, where she oversaw the production. “I wanted to know where my ingredients came from. I wanted everything to be documented. I wanted to be there,” she says.
Megan has softened her stance since then. “I think it’s important to negotiate all quality control checkpoints and to be really clear about what you expect,” she says. “But at some point, you need to trust the manufacturer to do their job. You can’t argue every little point or haggle with them over every penny,” she says. “The beauty industry, in general, is a black box.”
While there are benefits to working with manufacturers in China, like price and availability of options, Megan and her partner decided to move Genie Supply to the United States to help bring the manufacturing process closer to the customers and improve the overall experience.
Megan states, “The beauty industry, in general, is a black box,” and she had to learn the ropes on her own. That’s why her new company invests resources in educating its customers and providing transparent information directly on the site. If you’re new to skincare, look for a manufacturer like Genie Supply that can help you through the stages of the process.
Leveraging the Resources You Have
“I had no money or experience,” Megan says regarding her decision to start a business. Her initial investment was exactly $1,812 (twenty parts of the original startup costs for Tarte) – it was every penny she had.
Megan founded the company for $700, bought 500 bottles and a few boxes, and paid for her first month on Shopify. She had just $6 left in her account.
With no money left for marketing, Megan had to get creative. She went to an online forum for cancer survivors, resulting in a few sales. But a simple call to a local newspaper in her hometown was the catalyst for her big leap. The paper interviewed her, leading to a few more sales, but the turning point was when the story was picked up by the state paper and its affiliated reporters. “I went to sleep, and when I woke up, we had $10,000 in sales and had sold out,” she says.
When you start your skincare line, look for creative ways to leverage your funds, whether that’s launching your business from home, trying organic marketing ideas, or self-funding your growth.
Handling Formulation and Manufacturing of Skincare Products Yourself
There are a few ways to formulate products: make them handmade at home, rent dedicated manufacturing space, work with a lab to create custom products, or take a private label approach with a beauty manufacturer. Creating a skincare line at home
Simple formulations like facial oils can be made at home. However, to manufacture cosmetics in the United States, you will need to adhere to FDA guidelines for ventilation, air control, and surfaces. While your manufacturing processes must comply with FDA standards, there is flexibility for companies that produce in short time frames. Mobile clean rooms – which are pop-up tents – are designed for this purpose and are ideal for small businesses.
Megan says, “If you’re starting small, there is value in working with the ingredients manually and trying to figure it out. But at some point, you will need to work with a manufacturer.” Many successful beauty founders, like Melissa Butler from The Lip Bar, started their lines from their own kitchens and moved to a manufacturing facility as they grew.
Experience
The formulations you create yourself will help you understand the characteristics you are looking for in the formulation – viscosity, appearance, and scent – which qualifies you to engage in informed discussions with your manufacturer.
Developing a Relationship with Your Skincare Product Manufacturer
While owning her first business, Megan worked with manufacturers in the United States and China. There are pros and cons to each, depending on your production size and how close you are to the process. Megan spent a lot of her time in China, overseeing production. “I wanted to know where my ingredients came from. I wanted to have everything documented. I wanted to be there,” she says.
Megan has softened her stance since then. “I think it’s important to negotiate all quality control checkpoints and to be really clear about what you expect,” she says. “But at some point, you need to trust the manufacturer to do their job. You can’t argue every little point or haggle with them over every penny,” she says. “The beauty industry, in general, is a black box.”
While there are benefits to working with manufacturers in China, such as price and options available, Megan and her partner decided to move Genie Supply to the United States to help bring the manufacturing process closer to customers and improve the overall experience.
Megan says, “The beauty industry, in general, is a black box,” and she had to learn the ropes on her own. That’s why her new company invests resources in educating its customers and providing transparent information directly on the website. If you’re new to skincare, look for a manufacturer like Genie Supply that can help you through the stages of the process.
Subjecting Your Skincare Formulations to Rigorous Testing
Megan learned the hard way that testing at every stage is important. While Amalie’s product formulation was tested, when the ingredients reacted with the packaging, the result was disastrous. The product turned out to be incompatible with the glue – and the brushes fell apart. “Packaging was a huge issue for me,” says Megan. “I lost a lot of my customers because it was unreliable.”
Experienced labs are assets for beginners
Source: https://www.shopify.com/blog/start-skincare-line
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