The way new beauty businesses are being built is changing. Starting smaller, finding the right partners and building a loyal customer base before chasing the biggest possible opportunity can make for a much smarter beginning.
Retail doesn’t have to be the first step
For a long time, the dream looked something like this: create a product, get it into a major retailer and watch your brand take off.
There’s still something undeniably exciting about seeing your products on those shelves, but getting there too early can put a growing business under pressure.
Large retailers have significant buying power. Margins can become tighter, payment terms longer and promotional requirements more demanding. Meanwhile, the cost of producing the stock, ingredients, packaging, manufacturing and everything in between has already come out of your pocket.
For a young beauty business, cash flow matters.
So perhaps the goal isn’t to avoid retail. It’s to arrive there when your brand is ready for it.
Build your audience first. Find your hero products. Learn what customers…
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Read Full Article by Jade McGee at www.womanandhomemagazine.co.za
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