Luxury natural beauty products

Idea of the project 

Develompent and sales of cosmetics individually for every client. Likewise cafes and restaurant specialize in cooking fresh food on the order, our company is doing the same in the sphere of cosmetics. We prepare fresh products for our clients: hands and face creams, shampoos, balsams, tonics, face washing gels, wheys, etc. Our assortment includes everything needed for face skin care, body and hair 

Our project will solve the following issues:

• Danger of some cosmetic components
• Choice problem caused by the wide assortment so that consumer does not know for sure which product will suit him perfectly
• Fail to consider consumer’s individual peculiarities
• Inability to differentiate between dangerous and safe product
• Lack of 100% organic and safe cosmetics
• Dependence from the constant use of cosmetics
• Absence of educational program available
• Consumer does not feel the proper care  from cosmetics producing companies 

Market analysis

Cosmetics market is huge having been formed during ages. The mass market of body care was formed in the industrial revolution era when several series production cosmetics factories were built. Super-mini-megamarkets, internet shops were introduced offering cosmetics of doubtful quality which often contains petro-chemical synthesized ingredients (with part ranging from 10 to 100%). Petro-chemical cosmetics market is full of competition, being already divided. Low quality cosmetics with harmful components is displayed everywhere on the shelves.  Market share of such cosmetics makes up  99,99999 %, for today – that is actually a major part. Consumers suffer, producers undercut the prices and so on. 

Thus, it is high time to create revolutionary market of natural cosmetics. As we can see, its share makes up approximately 0,00001 % of all the cosmetics market. There are few of such producers but the plan is to become one of those (VELEDA, ECO COSMETICS, etc) so the major task is to develop cosmetic with 100% of natural ingredients

So far, we succeeded having developed perfect recipes for 7 years period. Our cosmetics is competitive with European analogues, leading in several types of innovative products. Individual approach of personal care in this sphere is being formed.  There is a market when some beauty salons provide such services but the cost is much higher and not that convenient for the client as the person has to spend much time, gets short-term result and pays more than the cost of our service

Competition advantages

• The team involves a qualified professional technologist cosmetics-developer who has 7 years of experience being able to develop any recipe of any product (shampoos, balsams, masks, pastes, gels, creams, etc.)
• Lady definitely feels herself unique with us obtaining high quality product together with individual service – thus, the highest service level in cosmetics market
• Cosmetics developer provides consultation concerning any questions
• The recipe is developed specially FOR HER (natural ingredients only, though sometimes on customers request petro-chemical/synthetic components may be added)
• Flavour and odour preferences are considered depending on type of skin, hair and age
• Using components not included in competitors’ recipes (biogel “Lamidan)
• The best quality in cosmetics market
• No analogues in Ukrainian market
• Growing demand. New market start. Out of competition business at the high competition market 

Business-model

Specially equipped beautiful kitchen where fresh cosmetics is prepared according to individually developed recipes. A client makes an order via web-site or application according to his personal preferences: age, type of skin or hair, number of times of hair washing per week, aroma, volume, etc

Considering selected parameters a unique formula is developed, the product is created, chosen aroma is added. Then the product is packed and delivered locally or via Nova Poshta service. The customer is happy

Consumers

Mainly ladies of different age groups 

Value offer

Development and preparation of fresh, unique cosmetics on individual recipes

Sale channels

Internet, social nets Vkontakte, Facebook, Instagram, messengers Viber, Telegram, recommendations

Relations with clients

There is a short while since the moment of the first personal contact with our client. Within a month the customer comes again with the product purchasing. After this we agree on adding the client to our messenger group to follow the news and receive useful content

Our client is proved to stay with us. There was time when we failed to advertise the production via internet posts but our clients were always trying to find us to order high quality product which is out of competition in Ukrainian market

Income sources

We have been obtaining income from the sale of developed cosmetics for 4 years already and work with more than 100 clients

Key resources

Technologies are key resources of the company. We possess intellectual property: recipes, opportunities to develop unique cosmetic recipes in short period of time with individual approach to any customer

Types of activities

Cosmetics production and e-commerce (on-line sale of cosmetics) 

Main partners

Ingredients suppliers: raw materials, packing, labels

Cost structure

• Ingredients purchase: raw materials, packing, labels
• Utilities
• Achievements in the sphere of cosmetics production: recipes upgrade, experiments, verification and hypothesis proof, laboratory analysis, etc
• Marketing research 

Figures

Profitability

At the moment – profitability is approximately 50%. In case of investment: premises lease, hiring staff, rent of equipment, increase of number of clients, turnover and profit, the raw materials can be purchased for wholesale prices. Thus, business profitability can be increased for hundreds of percents making up nearly 300% on the stage before franchise, after franchise the profitability will grow in geometrical progression

Investment implementation

• 1-6 months - $20 000
• 7-12 months - $20 000

Investments return period

3 year 

Team

The team consists of 3 people at the moment: 2 founders and 1 designer.  Some more staff is planned to be invited to join the business. There is an understanding of which professionals are required

Results achieved with the current staff: 

• Minimum functionality products are developed allowing to solve the problem
• Project got first users (little more than 100 regular customers) who are invited to test our products and give a feedback in order to advance the product for the market. 

Offer for investor

10 % of share in business for $20 000 of investment