Skin Care Franchise Business – Why it will Popularize and Its Future Prospects?

Skin Care Franchise Business – Why it will Popularize and Its Future Prospects?

Skin Care products are a booming business and their demand is increasing every year. People of all ages and from all walks of life are increasingly using quality skin care products from reputed and reliable dermatology companies in India.

People need quality skin care products not only to take care of their skin from natural elements but as well as increasing pollution and dangerous chemicals. Even people in rural areas of country are increasingly demanding quality skin care products to cure their seasonal skin ailments and to keep their skin healthy in general. This opens the space for the products from a derma products franchise of a reputed brand that is trusted by physicians, dermatologists and local pharmacies/medical shops.

For an enthusiastic entrepreneur the obstacles to own a strong franchise and start on their own have come down dramatically in the last few years. Earlier to operate a franchise one had to shell out large upfront payment, huge franchise annual fee, and very deep sales commissions. Not anymore, you can start your own franchise of skin care products today with minimum investments and least recurring bother.

Before launching your own skin care franchise business, it is necessary to know about its prospects and reasons for its growing popularity. The reason to enter a venture must come first, tricks of the trade can wait a little! What affects it, how is it different from other types of franchise, what are it models, what are the projected revenues and profits, and finally what and how much effort will be needed on your part?

What Is a Derma Products Franchise?

A franchise is a contract between the Franchiser, or owner of the brand, and the Franchisee, the licensed user. The Franchiser authorizes the franchisee to use it brand, product, designs, marketing material and other such trade related articles as are needed to increase the reach, visibility and sales. The Franchised brand must have strong recall value, a loyal and growing customer base and a value proposition for the Franchiser, franchisee and the customer all to benefit from it.

Depending on the terms of the agreement, the franchise holder may be responsible of any or all of the following operations – material procurement, production control, quality control, marketing, and distribution.

For skin care products, usually a franchise acts as a link between the manufacturer and the retail store, pharmacy, doctors, or even the customers. This is one industry that remains unaffected by any kind of economic headwinds and recession. In fact, during periods economic turmoil, this is one business that can grow.

The Franchise Model

The skin care franchise is structured like a pyramid where the distributors and wholesalers sit at the top of the hierarchy. The distributors, as the name suggests, distribute products from manufacturers to retailers and pharmacy stores. The wholesalers, on the other hand, buy products in bulk quantities directly from the manufacturers and sell them to retailers and pharma stores. As these distributors and wholesalers have credibility, they are preferred by skin care product companies.

If you have limited resources – investment, manpower, network, etc. – then you may opt to become a retailer for skin care products. You can sell as a:

  • Standalone pharmacy
  • Hospital pharmacy
  • General retail store – for OTC products
  • Internet pharmacy

If you want to start big, there are following models of distribution and wholesale operations:

  • Single party franchise – working with only one manufacturer
  • Multi-party franchise – working with only many manufacturers

For a new startup it is a good idea to test the waters and start as either a retailer or a single party franchise. You would need lesser investment space and your running costs would be lesser too. You can focus on building relations and network with doctors, retailers and local pharmacies. Once you get enough experience and idea, you can start multi-party operations.

Reasons for Popularity of Derma Products Franchise

Many factors come together to enhance the popularity of the skin care franchise business. Sample some:

  1. Guaranteed Results: Pharma products on general, and skin care products in particular, are always going to go off our shelves like hot cakes. The margins in skincare products is also handsome for you to not take this opportunity.
  2. Low Marketing Costs: As most products will be prescribed by doctors you don’t need to spend too much on marketing and advertising to bring the customers in. Once you tap the doctors and local stores, the customers find you and come in automatically.
  3. Low Administration Costs: When you franchise with a reputed skincare manufacturer, you will not need many sales and administration people on your team bringing down administration costs significantly.
  4. Fewer Efforts Needed: You need to make as much money with as little effort as possible to be a successful business owner. With a product with a ready and growing market, the burden is lifted, and you don’t work for anyone else anymore.
  5. Great Future Prospects: The skincare franchise sector has great growth potential and the option of moving into more product categories within the pharma sector.

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