Cosmetics Business in Uganda: Will the Real Black Beauty Come Forth

The beauty industry in the Middle East and Africa was estimated at about $ 20.4 billion in 2011. Of this figure, South Africa accounted for only $ 3.9 billion, Nigeria the second and the Kenyan market more than 260 million. third place on the African continent.

Uganda has seen considerable growth in the cosmetics industry in recent years with pioneers such as Mukwano Group, Mwana Mugimu, Sleeping Baby, Movit and the eternal Samona Jelly advancing and opening up the market space for others. players.

The older reader might also remember Mekako, Jaribu and Sabuni Kanga among the soaps.

The cosmetics and beauty industry is very lucrative, but success depends on targeting the target markets and categorizing a particular product for sale.

What it takes to venture into this sector

There are two options for venturing into this business in Uganda:

Option 1: Sell local and international brands (act as an intermediary and agent)

Option 2: Create your own brand and product (the main focus of this article)

Being a very competitive retail sector, it must have a very succinct commercial strategy, especially since it will also compete with internationally renowned brands (such as L'Oréal, Mac and Clinique) that can be imported. freely in the country.

There are two options for venturing into this business,

Option 1: Sell local and international brands (act as an intermediary and agent)

Option 2: Create your own brand and product (the main focus of this article)

A strategic plan that addresses specific needs and a niche audience is the breakthrough or brand of any product in this industry, anywhere in the world, and Uganda in particular.

There is also a strong focus on branding, channel development, and product quality, as there is strong competition from established brands as noted earlier.

Being a locally made product, there will certainly be a series of challenges and perceptions about consumer behavior that need to be addressed before harvest in an important way.

However, one of the guarantees is that once a niche has been created and a loyalty base has been created, customer sales are continuous, since cosmetics belong to a specific category of products that create a link. for life between the user and the product.

Once this is understood and put into practice, such as the acquisition of an attractive name, the exquisite use of packaging and advertising, marketing strategies, this should be enough for you and the company to understand in detail how the industry and the neck work. of bottle.

Critical considerations

1. Basic education. Formal training in cosmetology and embellishment will allow you (or the staff you use for this purpose) to acquire the necessary knowledge about the different types of skin and their relationship with the different products you will make.

The last thing you need is to create monsters with your products: read destroy the skins and beauties of people. There are local educational institutions offering relevant courses, but it is recommended that you take an international course to give credibility to your product. Unfortunately, many courses in Uganda do not follow international progress, which is critical in this slashed throat industry.

However, one notable institution is the Uganda Industrial Research Institute (UIRI), which has a fully equipped laboratory and free training for new entrepreneurs.

2. Raw materials. It is essential to establish partnerships in advance with suppliers of raw materials. However, a key advantage of Uganda is that products like Aloe Vera, Avocado, eggs and shea butter that are used in many beauty regimes are available quickly and inexpensively in Uganda. Therefore, there is a real opportunity to establish a contract manufacturing plant here.

3. Quality guarantee. Rigorous product testing to meet potentially international standards is crucial. These tests should be announced regularly, as this guarantee is essential for a product that comes in contact with human skin and is manufactured in Uganda, where the reputation of quality control by regulators is not considered strict. Therefore, it is suggested to voluntarily subscribe to an internationally recognized program such as ISO requirements.

4. Cushion of money. Because of the great marketing need combined with the need for working capital, it is fundamental to have a cushion of cash in this industry.

5. Return on investment. Based on my estimates, a share capital of Shs.39m can achieve a return of 1.11 years.

For more than 10 years, I have worked with many clients who provide audit, accounts, taxes and advice in sectors ranging from agriculture, mining, entertainment, financial services and technology. .

My portfolio of clients in Uganda, the Bahamas and the Channel Islands, UK, was also diversified and this experience gave me a "balanced" view of businesses, including this sector.

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