How To Start Cosmetic Retail Store – In India

Introduction on How to Start Cosmetic Retail Store in India

Currently, the cosmetic & beauty industry in India has a value of $4.5 billion and is rising at a fast pace.  According to a yearly report, it is observed that the industry is growing at 15-20% yearly, which is again splendid.

A step by step guide to start a Cosmetic Retail Store business in India

If you plan to be a part of this huge industry and gain a significant amount of profit, we are here to support you with some important particulars on how to start beauty care & cosmetic retail shop business in India and about its business plan.

Note the competitors in your business:

You are alone here who wants to be in this business. There will be many competitors in your place, where you live. The main key to success is to know what your rivals are selling. Before getting on with your own business, start to know what they sell in these shops and make a list of what they are selling. In this case, you should be a bit smart. They must not know what your idea is. Just get a rough picture of the various brands, and what special products they are selling, and then you can move further. You can also work part-time at these shops, to get a proper idea about the products, customer needs, and marketing strategies.

Registration, license, and permissions required to start Cosmetic Retail Store in India

You should have all the relevant licenses and permission to start a beauty and cosmetics business legally in India to avoid any trouble in the future. As you know everything should have a license these days. Contact a legal consultant for all the information in getting a license for this business.

Finding Beauty Care and Cosmetic Suppliers in and around your area

If you have worked sometimes in a similar cosmetic shop, you can have the details of the supplier’s contact number from there. Despite that, you can even get the contact numbers online, visit the brand sites, and you will have an entire list of distributors near your locality.

Plan to sell only reputed brand products

Choosing Beauty Care products

You are initiating a new business of skin and beauty products. We hope you never want your customers to be negative about the quality of products and get allergies by using your products. You must select every product properly by making sure it has all government approvals and licenses. Sell products only from trusted and reliable brands. In this way, your customer will get to use quality products, and you will not have any problem.

Market potential for Beauty Care Products and Cosmetic Store in India

Beauty Care Products
Beauty Care Products (Pic Source: Pixabay)
Demand for natural Organic Beauty Care products

While setting up a new business, it’s always recommended to sell a special product which will only be seen in your retail shop. It can enhance your market a lot. Ayurvedic and herbal products have a good market presently since they are organic and good for the body. You can also place a particular section for men only products or you can also endorse a new brand in the market.

Choose a Location to start a Cosmetic Retail store

Finding a great place for arranging up your shop is yet another essential aspect. As you are setting up a cosmetic shop, it’s recommended to do it in a region having high footfalls. Road facing shop is mandatory. Make sure the shop has an appropriate electricity supply and stuff. Availing a shop located in the proper location will be higher but it’s very much essential for the success of your business.

Equipment and furniture required to setup the Cosmetic Retail Store

  • It’s not a place where people will come and stay for hours.
  • They will come, do purchases, and leave the shop. Below are some of the important things and equipment that you might need while you are building the shop.
  • There should be a lot of space in the shop, for customers to move around freely and look for the products.
  • Product shelves, where all the items will be arranged properly.
  • You can also keep a showcase table, to display the most essential and expensive items in your shop.
  • A billing desk where you place the billing machine, and computer.
  • Installing one or two widescreen television will be added on. You can display recent product launch videos, offers on upcoming products, etc.
  • A good paint job is very important. Choose sober colors. It creates a peaceful environment. We would suggest you consult a professional before doing it.

Marketing strategies to promote your store

It is based on how you and your staff sell the products. As you are setting up a new store it’s better to buy stock in low quantity so that your loss is minimized and in case the business doesn’t run well. Keep good products of various ranges and later on get the products according to the customer type.

  • Print visiting cards and brochures- Pamphlets can be of the products available in your shop and can include the catalogs of the brands.
  • If any product is not available at the shop, try to take the order of the products and grab the customer.
  • In these initial stages, if you can develop a website, it is recommended to sell your products directly from there, and offer free delivery.
  • Make membership cards for repeated customers and provide offers.
  • Sell products in combinations and allow them to purchase as combos.
  • Go for special offers for new customers like discounts on specific essential products.
  • Be Polite and Friendly with Your Customers
  • Maintaining good relations with customers is very important. Just one behavior and you might miss a loyal customer. Be polite to them, analyze their needs, and provide them with the best service.

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Investment required to start Cosmetic Retail Store in India

This is the major and crucial aspect of any business. In a typical Beauty Care and Cosmetic business, in the beginning, you need around 1, 00,000 INR to 2, 00,000 INR. The amount is needed for the deposit fee, rent for a few months, furniture cost, etc.


We have tried our best to highlight all the basic expenditures in arranging this business. All the costs are just for an idea and the actual prices might vary depending upon place and market.

Security deposit for the shop- 50,000 INR

This is a one-time investment, and refundable. You can anyway negotiate with the landlord regarding the money being charged. You should sign a few legal papers for this purpose. If there is already a pre-owned shop, then there is no need for this investment.

Rent of the shop- 10,000

This should be paid every month. It won’t be a big burden if you have repeated sales. You can again discuss with the landlord about the rate. The rates might be sky soaring when you select a city center or a posh area.

Monthly staff salary 10,000 INR

Keep one person for the starting days. You can find many people if you search in the right place. Many college students plan for jobs for extra pocket money. Finding the ideal candidate is never a problem.

Buying products- 80,000 INR

As the products that you will be purchasing are of reputed brands, they will be costly. But the mid-range products are not that much costly. For the initial few months try to buy those products that have a high shelf period as this will help you to keep them for a long-time and you need not worry about the expiry dates.

Furniture and equipment- 40,000 INR

Purchase good quality and durable furniture so that you can use them for a long time. You can customize the furniture or buy a ready-made one.

A working computer and a printer- 30,000 INR

This is essential for all businesses. You can save your data and manage your website using the PC. The billing machine is connected to your computer, so it will aid you to manage your accounts as well.

Re-furnishing the shop- 20,000 INR

It is suggested to give a decent paint and a good ceiling without investing much on it.

Power bill- 2000 INR

You need to pay for the bills as per the regulations laid by your landlord. Keeping an AC might consume more electricity but to satisfy the customer and for their comfort, it is necessary nowadays.

Designing a website and updating it-5000 INR

Websites can be developed online at a very low cost. You may appoint a freelancer to design your website because if you hire a professional designer it will increase your capital costs.

Profit margin in Cosmetic Retail Store in India

You should be careful and earn money as well as deliver the best products at reasonable prices to the customers. If you want a good number of customers, then it is suggested to give offers. On the other hand, if you plan to earn a high profit then you may not provide offers. Typically beauty and cosmetics stores gain a handful of profit on all the products- margins usually range from 20% to around 60-70%. So the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.


Beauty Care and Cosmetic Retail Shop business will surely get you on the path of success. The initial period is relatively difficult, but later on, it will be smooth. You must frequently update yourself according to the demands of your customers. Later on, if the business runs smoothly, you can also begin selling your own labeled items. We hope you had detailed information from this article. We have many more of this type of business ideas which can be initiated with low investment with proper returns.

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