Iris Cosmetics Lays Out a 101 Guide on How to Start a Cosmetic Brand

The beauty industry has become an ever-evolving segment in the market. As per a report by Statista, as of 2024, the global market is valued at approximately $646.20 billion, and is projected to generate a revenue of US$677.2 billion in 2025. With the beauty industry disrupting traditional rules, brands and businesses are flourishing. From global brands like Rhode’s creative take on food marketing to MARS Beauty offering dupes at affordable prices, though many might call it a saturated market, it has taken a wild turn. If you are someone who wishes to begin their entrepreneurial journey in the beauty industry, then in this guest blog by Nupur Shah and Tejus Dixit, founders of Iris Cosmetics, Local Samosa sheds light on the ABCs of starting a beauty brand.

 1. Research

Before creating a single product, we at Iris spent months understanding what customers needed and searching for real gaps in the market. Here’s what you need to do:

• Find what’s missing in the market and why.
• Talk to your audience (needs, budgets, habits).
• Analyse your competitors — what works, what flops.
• Study textures, packaging, formats, and preferences.

Bring the Product to Life

This is where things get real. Here we focus on formulation, packaging, legalities, and testing:

• Always have backup vendors.
• Ensure lab reports and certification of analysis (COAs).
• Create a keyline diagram (logo, placements, design, etc.).
• Partner with GMP-certified labs offering custom formulations.
• Test product and packaging compatibility (heat, leakage, etc.).
• Ask for PPS (Pre-Production Samples) before final production.
• Don’t skip professional photoshoots — you will need them for your website, reels, and online retailers

Certifications and Legal Licenses

• GST and MSME registration.
• Build Your Instagram Strategy.
• Manufacturing agreements and NDA.
• Trademark your brand name and logo.
• Packaging compliance (Legal Metrology Laws).
• Get cruelty-free/vegan certifications (if applicable).

No beauty brand in 2025 can survive without a strong digital presence. Here's how to leverage digital media at its best:

• Define your brand voice (playful, bold, clean).
• Plan launch teasers, GRWMs and UGC reposts.
• Build buzz with influencer seeding, countdowns, and BTS.
• Create story highlights (shade guides, FAQs, how-to videos).

What skills or tools are helpful?

Starting a beauty brand takes more than just a love for makeup — it’s a mix of creativity, strategy, and hustle. Here are the most helpful skills and tools to have. Key skills one should possess:

• Customer Insight.
• Product Knowledge.
• Branding and Storytelling. 
• Marketing and Content Creation.

USP (Unique Selling Proposition)

In today’s crowded beauty space, a strong USP is what makes your brand not just visible — but unforgettable. It’s the core edge that separates you from the dozens of other makeup brands on the shelf. For many new cosmetic brands, a strong USP lies in offering:

• Clean, vegan, cruelty-free.
• Solving local market gaps.
• Premium quality at accessible prices.
• Multi-functional, skin-loving formulas.
• Innovative packaging and category-first ideas.
• A brand voice that clicks with Gen Z and millennials.

Initial Setup Requirements 

Building a cosmetic brand from the ground up requires more than just a great product idea — it demands a thoughtful setup across manufacturing, legal, and brand execution. Here's what the initial setup should include:

1. Product Development and Sourcing

• Pre-production samples (PPS) for both product and packaging before bulk orders.
• Lab testing reports and COA (Certificate of Analysis) to ensure safety and performance.
• GMP-certified manufacturers for custom formulations (avoid white-label unless it aligns with your brand goals).

2. Raw Materials and Tools

• Packaging materials (tubes, jars, bottles, labels, boxes).
• Branding assets like logo files, fonts, and brand colour codes.
• Base ingredients depending on the product (e.g., Hyaluronic Acid, Niacinamide, plant-based oils).
• Keyline Diagram (KLD) for packaging layout — used mainly to check placement of design elements like logo, barcode, MRP, claims, ingredients; all additional details are added later on mono cartons.

3. Marketing and Content Prep

• Website and social media content.
• Influencer seeding kits for pre-launch buzz.
• Video content (Reels, tutorials, GRWM, unboxings).
• Product photography (texture shots, swatches, lifestyle visuals).

Approximate Investment Range

If you’re planning a homegrown brand with a small setup, expect an investment of around Rs. 5–10 lakhs. This would typically cover:

• Small-batch production costs.
• Sample creation and trial runs.
• Initial packaging and label printing.
• Photography for product listings.
• Basic lab testing and mandatory certificates.
• Website development (basic e-commerce setup).

If you’re going for a larger, professional-scale setup, the investment can be Rs. 50 lakhs or more. This would include:

• Branding and design assets.
• Warehousing and logistics setup.
• Full-scale production and manufacturing.
• Multiple sample iterations before finalising.
• Professional website with advanced features.
• Large-scale photoshoots and marketing content.
• High-quality custom packaging with larger MOQs.
• Complete testing, certifications, and compliance (GMP, COA, stability tests, etc.).

Common Mistakes in Cosmetic Product Pricing and Planning

Even the best product can fail if pricing and planning go wrong. Here are some common mistakes new cosmetic brands often make:

• Forgetting Platform Fees.
• Under-pricing the Product.
• Ignoring Packaging Costs.
• No Backup Budget for Marketing.
• Offering Free Delivery Too Soon.

Low-Cost Marketing Ideas for Cosmetic Brands

You don’t need a huge budget — just creativity and consistency. Here are smart, budget-friendly ways to get noticed

• Mini Giveaways.
• Unboxing Moments. 
• Word-of-Mouth Magic.
• Flea Markets and Pop-Ups.
• Collaborate with Micro-Influencers.
• Swatches, mini tutorials, GRWM, and fun challenges — all shot on your phone.