Skincare is one of the products that has promising business prospects and opportunities. This is driven because the need for skincare will definitely continue to exist. Everyone wants to have healthy and well-maintained skin. The available products also continue to develop, both in terms of formula and packaging, so that there are always new things that encourage consumers to buy the skincare products offered. Not surprisingly, this skincare business has long-term profit potential because this product will be used regularly so that it will continue to be repurchased when it runs out. If so, you are on the right page because in this article, we will explain the opportunities regarding the skincare business in 2023 and tips for starting it. Curious, right? Come on, see the explanation until the end!
What are the Skincare Business Opportunities 2023?
The skincare business is an attractive option to run because of the increasing market demand. Based on data from Kompas.co.id, in early 2021, the beauty care category excelled in e-commerce sales transactions by 46.8 percent, and the total value of transactions in the online market has exceeded IDR 40 billion. Then, based on data from the Ministry of Industry, the cosmetics and skincare industry in Indonesia also continues to grow. Since 2018, there has been a growth of 15 percent, then increased to 29 percent in 2019, and is predicted to continue to increase in the next few years. This is also in line with the global skincare market report, where this industry is even projected to reach a value of US$108 billion by 2024. From these data, it can be imagined that the increase in sales of skincare products is not only due to high consumer interest, but also the interest of business people who see promising opportunities from the skincare business. On the other hand, the skincare business also has the opportunity to provide positive benefits to others, such as helping to repair damage or other skin problems and giving more confidence. Starting a skincare business is also possible to do with relatively small capital by becoming a dropshipper or reseller. This business can even be started from home by utilizing social media to market products and e-commerce for the transaction process.
5 Skincare Business Product Ideas that are in High Demand
Now, you already know how the opportunities of the skincare business. Well, does Friend KH itself already know what type or skincare product to sell later? Or are you still confused about what skincare products are most in demand? Here we summarize some skincare business ideas that are in great demand, so that they can be an inspiration for KH Pals:
Organic and Natural Products
Organic and natural skincare products are increasingly in demand by most people, because they are not only good for skin health, but also environmental conditions. This business opportunity can be utilized by developing products that are environmentally friendly and use natural ingredients and are suitable for people with sensitive skin types.
Anti-Aging Products
The anti-aging skincare industry has great potential in Indonesia. Products that are able to overcome the problem of premature aging of the skin still have a high demand, especially from consumers over the age of 30. However, nowadays, many people under the age of 30 are also interested in using anti-aging products because they can brighten, fade fine lines, and in the long run can make the face youthful.
Products for Sensitive Skin
Sensitive skin is a common problem for many people. Not only natural products, there are various safe and effective skincare products for sensitive skin that are made with certain active ingredients to relieve redness, acne, or other problems that appear on the face.
Skincare for Men
Skincare is not only a necessity for women, but also for men. Men’s skincare products have a huge market potential. Because as mentioned earlier, more and more men are now starting to care about their appearance and skin health. Business opportunities can be utilized by developing products specifically for men with formulas that suit their skin needs.
Skincare with New Technology
Technology in the industry continues to grow rapidly. If you’ve noticed, lately many skincare products are made with more sophisticated applicators, packaging or even the ingredients in them with certain technologies. To develop your skincare products, take advantage of the development of skincare products with new technology that can provide more effective and efficient benefits for the skin. Examples such as active delivery technology that can optimize the absorption of active ingredients on the skin.
Tips for Starting a Skincare Business
As is the case for other fields, to do skincare business, of course, KH Buddy must have the right planning. In addition, there are some tips that can be a guideline for starting and running a skincare business:
Do Research
Research is an important thing that needs to be done at the beginning. In this research, KH pals can get various kinds of insights ranging from skincare products that are in great demand by the public, to the competition in the existing skincare business. These insights will help you determine the skincare products you will sell and how to provide them.
Define Target Market
If in the research section you get insight into products that can be sold, then the next thing is to determine the target audience. By determining the target audience, you can clearly know who you will target to become your business consumers and you can also formulate specific marketing and promotion strategies according to the targets you have determined.
Online Promotion
After you have a clear foundation, the next step is to have the right promotion strategy. You can utilize social media as your weapon in promoting your business to your audience. In utilizing social media, Sobat KH makes various posts that have interesting copy or visuals and attractive promos to increase engagement from your audience so that they can become consumers.
Utilize E-Commerce
E-Commerce is an ideal place to sell because just like a supermarket, in E-Commerce we can find anything. People tend to buy many items at once when using it. On the other hand, E-Commerce also offers attractive benefits for sellers and buyers such as free shipping vouchers.
Legality Documents for Skincare Business
Selling skincare products cannot be careless. In addition to the six tips above, there are other things that are no less important in starting and running a skincare business, namely the fulfillment of legality documents. KH pals must ensure the safety of the products you sell and certainly have official legality, starting from trademarks registered with DJKI, NIB and KBLI, industrial business licenses, and BPOM distribution permits. What does that mean? Here’s the discussion:
Trademark Registration to DGKI
In the skincare business, KH Buddy must definitely have a trademark. But not only that, the trademark also needs to be officially registered with the DJKI Kemenkumham to further obtain a trademark certificate. This is important to avoid brand or product plagiarism, and registered trademarks have a higher commercial value than unregistered skincare trademarks. To register a trademark, KH Buddy needs to prepare documents such as a trademark application form, identity, and a complete description of the skincare product for which the trademark will be registered.
NIB and KBLI
In Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (PP Number of 2021), every business actor is required to have a Business Identification Number (NIB) as an identity for conducting business activities. Therefore, business actors must know the KBLI for the skincare processing industry. The possible KBLI is designated with code 20232 with the title “Cosmetic Industry for Humans, Including Toothpaste” In the description of KBLI 20232, skin care products are included in the cosmetic manufacturing business group.
BPOM Circulation Permit
One of the business licenses to support skincare business activities is a distribution permit from the Food and Drug Administration (BPOM). The BPOM distribution permit ensures that the skincare products that KH Friend sells have gone through rigorous testing and evaluation to ensure their safety and quality. This gives consumers confidence that the products they use have met the set standards. The document requirements that must be met to apply for a BPOM license include NIB, Identity, NPWP, Certificate of Good Manufacturing Practice (CPKB), and brand certificate.
Business Entity
If you want to run your skincare business as a separate legal entity, you will need to set up a company. A common option is to form a Limited Liability Company (PT). This procedure involves applying for a company establishment license to the Ministry of Law and Human Rights or related agencies. The establishment of a PT gives your skincare business a professional image and higher credibility. The public and business partners tend to trust and take businesses run in the form of a PT more seriously, as it shows long-term commitment and seriousness in running the business.
KH Contact
That’s the full explanation of the skincare business, from opportunities, product ideas, to tips and legalities for running it. Well, for KH Pals who currently want or are running a skincare business, but are still confused about what and how steps to take, you can consult anytime and anywhere for free with Kontrak Hukum.
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Together with our professional experts, we can help you to take care of all the needs of establishing and operating a skincare business, including the required legal documents such as trademark registration, NIB and KBLI, BPOM distribution license, and establishment of a business entity. Let’s make your skincare business easier with Kontrak Hukum! For more information about services that suit your business needs, you can visit the KH Services – Starting a Business page. If you have any questions about your business type or other legal needs, please consult with us at Ask KH or via direct message (DM) to Instagram @kontrakhukum.
