* The calculations use average data for Russia
Starting investments:
Average check:
Payback period:
Direct sales of cosmetics are still popular, as they benefit not only companies and their distributors, but also consumers, allowing them to bypass store markups. But the amount of profit in this business depends entirely on the seller.
Direct sales - suitable option For own business, especially if these are your first steps in entrepreneurship. The idea is relevant for women, mothers on maternity leave, students and anyone looking for a part-time job. Direct sales are an alternative traditional work and source additional income. If desired, direct sales can be used to build a full-fledged and profitable business. This option is also suitable for novice entrepreneurs. After all, organizing your own business based on direct sales is quite simple: you don’t have to rent premises, buy equipment and invest large amounts. The main element of direct sales is the entrepreneur himself. The success of the business will depend only on his personal qualities.
You can open your own business for little money. To do this, you will need to purchase an inexpensive distribution kit. To start making money from direct sales, you will need a budget from 0 to 15,000 rubles. This distinguishes direct sales from franchising and other types of investments that require significant costs. It is quite difficult to name the exact amount of investment: each company has its own strategy and policy (both in the matter of attracting distributors and in the matter of paying for their work). Therefore, study carefully different variants and choose the one that seems most suitable to your expectations and requirements.
Direct selling benefits not only companies and their distributors, but also consumers. Firstly, this is a high-quality service: product demonstration, personal consultation, home delivery and guarantees. Secondly, this is savings - often the prices for cosmetics sold directly are significantly lower. Thirdly, this is an opportunity to purchase unique goods that are not on the shelves of traditional stores.
Direct sales: the situation in Russia
In Russia, the direct sales market has been developing for 20 years. According to research, the main customers are women aged 30-55 years, and the average amount of each purchase is about 1,500 rubles.
Most large direct selling companies sell cosmetic products. In this area, there is high customer loyalty: when purchasing company products from one representative, most buyers return to him with other orders. This form of interaction with the client allows us to ensure individual approach and inspires buyer confidence. Therefore it remains relevant. So direct sales are still a popular channel for selling cosmetic products.
Currently, the direct sales market for cosmetics is actively growing. In 2016, it grew by 11% and reached almost 120 billion rubles and continues this trend. At the end of 2017, direct sales of cosmetics amounted to more than 58 billion rubles. The popularity of direct sales is due to the fact that consumers are trying to save money by bypassing intermediaries (stores), who charge a high markup.
You should also evaluate all the advantages and disadvantages of the business in order to understand what working conditions await you.
Advantages and disadvantages of direct selling for the seller
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Advantages |
Flaws |
|---|---|
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Interaction with the buyer. The seller sees the buyer’s reaction and can adapt to his needs. Personal presentation of the product for each consumer |
Different sellers may interpret product information differently. This makes it difficult to convey a single complete message to all consumers |
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No point of sale costs. No need to invest in store equipment, public utilities and protection of goods. |
Audience coverage is limited high cost this type of sales. It is quite difficult to reach a large number of potential buyers |
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The level of income from direct sales is proportional to the efforts made |
Reaching large audiences through the personal selling channel can be expensive |
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The obsessiveness of sellers who do their best to sell as much as possible |
|
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There are no education, work experience, financial or physical requirements. People of all ages and backgrounds can succeed in direct selling. |
The success of direct selling largely depends on the personality of the seller and his ability to communicate with people |
|
Can be used as a source of additional income, flexible work schedule |
|
|
Targeting a specific market and consumer |
|
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Unlimited potential for personal and financial growth |
|
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Opportunity to receive support from the company and undergo training |
|
Therefore, direct sales of cosmetics have advantages both as a business and as a service format.
How to start a direct sales business
Opening your own business selling cosmetics directly is quite simple. The main thing is your ability to interest people and the desire to succeed. They will teach you the rest of the nuances, and as you work you will gain the necessary experience.
First, let's understand the meaning of direct sales. This means the sale of goods or services, which occurs through personal contact with the buyer. Such sales take place in a place convenient for the client: office, apartment, restaurant, etc. – beyond standard retail outlets.
Features of direct sales:
Direct contact with the client in a convenient area;
Personal presentation of products or services;
Comprehensive consultation with the seller;
Opportunity to try the product before purchasing;
This is both a service and a presentation at the same time.
In general, the algorithm for doing business in direct sales of cosmetics includes 5 main steps. Next, we will analyze each of them in more detail.
Step 1. Selecting a company and product
All direct selling companies are members of the Direct Selling Association (DSA). Choose those that follow the rules and regulations of the APP ethics, conduct business ethically and provide quality service. The list of companies can be found on the APP website.
The main requirement for a product is that it must be unique and profitable proposition, which is not available for purchase in regular stores. The market is oversaturated with similar offers, so if you find something new (improved, adapted to a narrow target audience, more budget-friendly, but no less high-quality), it will be easier for you to sell such a product. Firstly, you will be able to interest customers. People are drawn to new products. Secondly, you will not lose interested consumers, since you are the only seller of such a product (the only one in the client’s field of view). Thirdly, it will be easier for you to highlight the key benefits of the product and create an attractive presentation.
Please note that the uniqueness of the offer is not only new product, but also services. Combine a new product and convenient service. Come up with a new service that will make you stand out in the market. Ideas will be suggested by the buyers themselves. Listen to them, take into account their interests and expectations. Your job is to offer optimal solution your client's problems.
When you choose a company to work with and products to work with, ask yourself the following questions:
How much money will it take to cooperate with this company?
Is there a demand for your product or service? How new is your product or service to the market?
What training system does the company offer? Give preference to the company that provides training and education.
What is the reward system in this company? Find out everything about income, bonuses, commissions and liabilities.
What guarantees does the company provide for the product? Is there a product return policy available? This is important for both you and your clients. The possibility of returning is part of the service.
What are the conditions for leaving the business? The reasons for leaving may be different: you did not like the actual terms of cooperation, you wanted to switch to another business, you did not receive enough profit, etc. Therefore, it is better to clarify all the nuances in advance in order to avoid unpleasant surprises later. The APP Code of Conduct requires member companies to accept back any unused product purchased within the last 12 months if the seller decides to go out of business. In this case, compensation for the return of products must be at least 90% of the original cost, if no bonuses or commissions were paid for these products.
Step 2. Determining the target audience and sales methods
It is necessary to decide on target audience and find clients. Your target audience will likely be women between the ages of 30 and 60. You will most likely find your first buyers among your friends. But to succeed in this business, you need to continuously recruit and develop a client base. The Internet will help. Find groups and forums where the female population of your city is concentrated. Leave an ad there. Create your work account on social networks and add friends to your potential clients.
The standard direct sales methodology involves 2 main ways to attract customers. The warm market is made up of your friends. Cold market - employees of offices, stores, where you come with catalogs. But it is not always advisable to spend money on buying a stack of catalogs. If you are looking for clients via the Internet, it will be enough to send a link to the electronic version of the catalog.
Sales of goods involve step-by-step interaction with the client. You need to think through the strategy and every stage: from acquaintance to concluding a deal.
The success of direct sales depends entirely on the professionalism of the seller, which includes the ability to:
identify client needs;
present the product;
affect people emotionally;
find an individual approach to each client;
work with failures.
Many beginning entrepreneurs are stopped by the stereotype that only “salespeople by nature” can engage in direct sales - i.e. people who are able to sell without special training. However, this is a misconception. Anyone can master the direct sales method – the main thing is desire and a well-developed strategy.
Step 3. Choosing a strategy
First of all, you need to clearly define your goals. In a cosmetics business based on direct sales, there are three key goals:
1. Find products that can be sold profitably;
2. Sell additional products to the same customers, increasing profits;
3. Collect a client base – i.e. create email and postal mailing lists.
Ready ideas for your business
Once you have decided what products you will sell, you need to choose a method of work. The first option is to purchase the most popular products and sell, first of all, the existing assortment. Two advantages come together here: product demonstration and the possibility of instant purchase. This makes the service more convenient for the buyer. After all, cosmetics are products that are best chosen not from catalogs, but in reality. Catalogs cannot convey the exact shade, structure, or smell of cosmetics. So the presence of the product offered will endear the client to you. In addition, people don’t always buy cosmetics for future use; many people remember that they need to buy mascara when they run out. In such cases, it is unlikely that the client will wait several days for the order to go through the entire chain from you to the manufacturer and back. Therefore, the opportunity to buy products “here and now” also increases consumer loyalty. The main disadvantage of purchasing goods is the money issue. This will require considerable investment, which may not pay off. There is a possibility that some items will not be sold, and they will hang like dead weight among the assortment. You can avoid this if you clearly understand the needs of your audience.
The second option is to act as an intermediary, thereby avoiding investments. In this case, you will proceed according to the following scheme: you fill out a receipt for each individual order and send it to the wholesale supplier, who creates the order and mails the goods directly to the customer. That is, in essence, the wholesale supplier acts as a warehouse. Your profit is the difference between the wholesale and retail price. An option is possible when the completed orders are sent back to you, and you personally transfer the order to the client. The main advantage is clear – you don’t have to invest own funds and take risks. But the disadvantages include:
time and postage costs for delivering orders to the supplier;
The wholesale purchase price increases, and your profit decreases.
In most cases, entrepreneurs use both options in their work: they invest in the stock of the most popular goods, and use intermediary for rarer items.
Another important stage is data collection. Be sure to record information about each customer, including what they purchased and when they purchased it. This will help estimate the demand for specific goods and determine the needs of each client in order to interest him in a new offer in the future. Also collect the names and addresses of your customers. This is how you build your mailing list. If you use the data you collect wisely, it will become the foundation of your success in direct selling.
It is best to create a computer database. The mailing list must contain the following information: client’s full name, email address and email address, phone number, notes with information about when and what exactly the client ordered. By the way, your mailing list itself can become a valuable commodity - some intermediaries will be willing to pay for the customer base.
Step 4. Research the legal issue
Whatever field of business you work in, it is important to know the legal nuances of your activities.
Direct sales in Russian legislation are considered as carry trade and are a type of non-stationary retail. IN given time In the course of their activities, direct selling companies rely on:
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Cosmetics and perfumes are among the top ten popular products that are sold online. After household appliances, books, clothes and shoes, flower and pizza delivery. At the same time, breaking into this market is no longer as easy as it was initially. True success can be achieved if you love a particular brand or create own production. Today, the procedure for creating creams and lotions has become much easier due to the availability of a wide variety of high-quality ingredients. That is why you can safely pay attention to the point of creating your own cosmetics. You can start with simple things like lip balms or eyebrow wax, and then expand the range. Fortunately, the country has no shortage of soap-making ingredients stores.
But, even if you don’t plan to create your own line of cosmetics, then you have every chance to conquer the market using our little tips. There are many advantages to selling cosmetics. Firstly, you can find a brand that you really like and sell only the products of one company, or even just one product. Secondly, you know the product so well that it allows you to provide professional advice. Thirdly, you don’t need to target the entire market and win a piece of the pie from companies that import mass-market products and have huge turnover. You find your niche where there is no competition at all. If you love a particular brand, you are unlikely to have difficulty finding customers and expanding your online store. And now the promised tips.
1. Find a product or a dozen products that you sincerely want to sell. As practice shows, if you love the product you are selling, then it is as if it sells itself. If you don't feel strongly about the product, it can really hurt sales. Especially at the first stage, when the network of clients has not yet been expanded and there are no sales. Your enthusiasm and ability to talk about a cosmetic product with fire in your eyes is the first and most necessary tool sales in the absence of an advertising budget. Do you have at least 1 product that you would like to sell? Get down to business, and later you can expand the range to 10-20 products. Remember that niche stores have one thing important advantage– they may be completely independent of the assortment. You can learn to sell even one single product and make a business out of it.
2. Write at least 3 articles on products every week. It's simple necessary condition to promote the product. Content has been declared king, and even if you are going to use contextual advertising, you cannot do without content. It is written not only for search engines, but also for people. Content increases people's trust in your project, so it is an extremely important component in promoting any product.
3. Use contextual advertising. Even a budget of several tens of dollars can bring success in sales, provided correct use contextual advertising. Learn to look for the most profitable words for promotion. Learn how to properly manage advertising budgets and get the best return on your investment - it will come in handy. Even with 10 dollars you can already start getting your first clients.
4. Conduct webinars and master classes. This is a great way to engage your audience and build trust. Nothing helps increase confidence more than conducting live master classes or webinars via the Internet. You can also record a master class on video and use it to constantly attract new audiences. One video can always work for your name, provided, of course, that it gives users valuable information.
5. Invite a good cosmetologist to visit. It is so important to take expert advice! Interview cosmetologists and makeup artists, indicate their real names and phone numbers. In general, agree on cooperation! Advice from a good cosmetologist will help you sell a lot more cosmetics. Professionalism is judged by the kind of consultations and advice a specialist gives. So take the trouble to find good professional. If you manage to get a good interview and advice, your content will seriously increase your credibility.
6. Go to forums and niche blogs. There you can find the “hottest” and most prepared audience. People may buy from you immediately if you convey your unique selling proposition and it suits them.
7. Show that people are already buying from you and orders are coming in constantly. For example, take a photo of the number of orders you have packaged and couriered today. Such photo reports clearly show what people buy and order from you, that they can trust you, and that it’s worth trying to buy from you.
8. Take photographs of cosmetics and conduct experiments with them. Do you sell cream or organic shampoo? Wonderful. Try experimenting with them. For example, add a little white or blue clay to your shampoo. Take a photo of the recipe. Apply the cream as a mask. All this advice is very rarely something outstanding. But they show that your cosmetics can not only be safely stored in jars, but that they are a working tool for beauty and youth.
9. Show your face and record some video messages. Record at least 1-2 videos with your participation. All for the same trust. Without it there will be no sales, no matter how you look at it.
10. Find your USP and don’t forget to remind your audience about it. Finally, remember your unique selling proposition. Without a developed USP, you will not be able to tell the buyer why he should try your product. And it doesn’t matter how wide your range is.
ABOUT network marketing Almost everyone has heard. Some even tried to make money from it. Some people just use cosmetics network companies and can’t get enough of the price-quality ratio. Someone was lucky enough to become a director and build their own network, which brings in very significant profits every year.
Probably the most famous cosmetic companies on the Russian market were and remain Mary Kay, Oriflame, Avon and Faberlic. Many have heard about them and many have used their products. Is network marketing business really as good as they say in advertising, and is it possible to make money on it during a crisis? And how to make money on cosmetics, in particular?
The real state of affairs.
Network marketing, like any other business, requires close attention, a lot of work and a lot of time spent on it. Of course, you can become a “golden” director and start earning very well, but this requires work and skill.
To get truly decent results, you will definitely have to part with your main job.
Next, you will have to thoroughly learn the mating part, i.e. know all the intricacies, pros and cons of the product. Get acquainted with similar products of competitors. Master the science of makeup so you can consult your clients like a pro. Of course, be in shape and look great, so that future clients know how beautiful they can become using the cosmetics you offer.
And, perhaps, the most difficult thing is creating a client base. You need to learn the techniques of “cold” and “hot” calls, the basics of marketing and advertising.
And, if by this time you have not changed your mind and still want to do business in network marketing, then you will definitely achieve success. The main thing is to understand in time whether this is your occupation?
Obvious advantages.
Regardless of whether you engage in network marketing promotion professionally or become just a user, you will win in any case. An agreement signed with a network cosmetics company opens up a lot of opportunities for you.
Discounts. Firstly, you receive discounts on products from 20 to 40%, which can significantly reduce your monthly budget for cosmetics and perfumes purchased for yourself. You can always buy guaranteed good quality gifts for family and friends (the likelihood of counterfeits in online products is reduced to zero). A wide range of products will help you choose what you need for any family member.
Present. Secondly, any cosmetic chain always offers a variety of gifts. These include samples of perfumes and cosmetics, gifts for selling cosmetics for a certain amount, and gifts for attracting new people to the network. In short, you can get a lot for free. Which is extremely pleasant in itself.
Education. You will be taught for free the art of makeup, skin care, correct application makeup. At master classes and seminars, they will tell you in detail how to do make-up correctly and show you exactly how you need to work with your skin so that it always looks fresh and smooth. And at the same time, it will adjust your makeup depending on the oval of your face, the depth of your eyes, the thickness of your lips, and so on. And, since this is first of all, commercial organization, they will share with you the secrets of marketing and successful sales.
Internet. You will have to master the Internet. Because all orders are made on the company's website. So, if before this you have not even come close to a computer, then your interest may well awaken not only in the field of work, but also in the development of other web resources. And new knowledge and skills will always come in handy.
Samples. If you want to give a suitable gift, you don’t have to guess which eau de toilette or which color lipstick to choose and ask the birthday person in a roundabout way about his preferences. All you have to do is buy a series of samples and offer them to your friend for review.
Range. IN big city There is no question of choice - you can always find something new. In small towns the situation is somewhat more complicated. As a rule, the stores offer a standard set of brands - bourgeois, loreal, maxfactor and a couple of others that are widely advertised on TV. A network cosmetics company can always offer something new.
Catalogs. If you don't have sales skills, no problem. You can always use the company's catalogs. It’s enough just to invite your friends and acquaintances to watch them. Or give them to relatives and ask them to show them at work. Just put it on the table. Colleagues themselves will ask you to let them see what’s new there. This way you can always get good orders and make money on cosmetics.
Based on materials from Marina Tumovskaya.
Daria Burkova met with the founder of the Citynature website, who spoke about working with Arab and Asian countries and price preferences for cosmetics in the regions of the country.
In 2012, Mikhail Pesterev founded the website wholesale cosmetics and began collecting orders, without having a single agreement with manufacturers. Its markup was several times lower than that of its competitors, and within a couple of months Citynature represented Weleda, Living Nature and EcoLab. Today he has more than 250 brands from Russia, Korea, Japan, Thailand, Morocco and Bulgaria as partners.
To begin with, please tell us how your business works, what partners do you have, where do you buy cosmetics and where do you sell them?
Our clients are retail chains, online stores and individual entrepreneurs countrywide. The cosmetics market is structured in such a way that a new brand without support large company It’s almost impossible to go to a large retail chain, online stores, or small shops. It is for such brands that we have our online platform, which presents new products and tells a wide audience about them.
Citynature.ru passes through up to 50 new brands a month, of which 15 eventually end up in the site’s assortment, and then we begin to promote them. The most interesting thing is that we were the first on the market to start collaborating with small entrepreneurs, giving them the opportunity to choose from 250 brands and 40,000 items of cosmetics and household chemicals. We select new brands and sell them at manufacturer or importer prices to both small entrepreneurs and large networks and Internet projects. Behind Last year everyone, including large retailers, began to look at niche brands due to the rising dollar.
I heard stories about how people from Asia came to you with suitcases of cosmetics. How do you select brands?
We are interested in brands that have not yet developed, but which have good potential. These are new selections, including from Russia, brands with production in Korea, Russia, Japan, companies with a large line of products and retail prices from 200 to 900 rubles.
We also highlight obscure brands, the so-called dark horses. There is something wrong with them: either the quality of the packaging does not match the price, or the quality of the product itself is confusing, or the manufacturer is alarming. Sometimes, among such new products, a brand suddenly pops up and explodes sales. We carefully study each new brand, then invite representatives to our place. It's good if they are in Moscow. If we cooperate with Asian companies, then people actually come with suitcases - this is typical for Indians and Koreans.
Do you work with fakes?
Of course not. This is not our story.
Why not?
When you are building a serious business, getting involved with fakes means putting an end to all your investments and efforts. They undermine the reputation. You can chase easy ways earnings, or you can build a normal business, survive the ups and downs, but do everything right. So that there is no shame. We are building a normal business, the turnover of which in 2016 amounted to 100 million rubles.
What if we don’t take straight fakes? I know you have a Korean brand called KeraSys. This is an obvious bias under Kerastase.
A fake is a fake. And KeraSys is a quite successful Korean brand produced by the Aekyung holding. In fact, this brand has proven itself very well in Russia. Yes, in our assortment there are a couple of brands with names similar to other well-known brands, but you need to understand that these are not fakes. KeraSys was released for a different target and price niche. These are different stories, and visually they are not similar.
Do you think KeraSys is successful in the market because it is really good quality or because girls buy it thinking they are just choosing the cheaper Kerastase?
Interest in this brand is caused not by the name, but by the general trend for Korean cosmetics and the properties of the product.
What other brands are there that look like something more expensive?
You know, many brands are similar to each other. Often there are some implicit hints, for example, in the brand name. It’s a completely different matter when they come to us from the Emirates, take some junk out of their suitcases and say that it looks like such and such famous brand. I have not yet forgotten the consequences of an allergy after a visit from one of these representatives, who, without my will, “spiked” me. This story only convinced me that we are not on the same path with such people.
Tell us about the financial side of your business, your first investments and choosing your niche.
Initially, we had the idea of creating a retail online store. We conducted a study and it turned out that the demand for cosmetics is indeed growing. There was such a situation on the market that no one was selling different brands wholesale, so that there was a large assortment and different directions. So I realized that small shops probably have the same problem as we do. And we decided: “Let’s do it ourselves.” They actually made a website in three days and launched advertising. You need to understand that by that time we had already spent several million rubles from our own savings on launching a retail store. By then I had already quit my full-time job.
As soon as we created a wholesale website, we immediately filled it with brands that we hadn’t even worked with at that time. We immediately received a bunch of calls: “Could you please post our catalog?” In the end they did it new channel sales in a week. Very quickly, all these brands that we published on our website came to us.
After two or three years, I realized that I wanted something more. That's why we started distribution. An Internet project or network wants to take goods for sale or with a long deferred payment, wants to return unsold goods, wants delivery to its retail outlets, wants promotions, promotional support and retro bonuses, and so on, but small importers or manufacturers cannot afford this. Therefore, we ourselves choose those brands that can shoot in the market, take risks and sell them. This is how we earn our margin. Yes, it is higher than that of resellers, but lower than that of a retail store.
Do you think it makes sense now for someone to do the same business as yours? Or is the niche already occupied?
In fact, some former employees also started doing something similar, but it didn’t work out. There is a good saying: “Not every good violinist can become a good conductor.” I think we grow because we are constantly looking for something creative ideas. If I were looking at such an idea, I would not repeat it, to be honest. This is a difficult market for beginners.
What else can you do with cosmetics? What do you think is not already occupied in Russia?
It seems to me that now good time to create new cosmetic brands. Beginning entrepreneurs can come up with something in this direction. Now cosmetics Russian production is relevant, this is proven by a number of cool brands. It is ideal if the components are found only in one place. This makes the product unique.
Has it ever happened that you place a bet on a brand, but it doesn’t sell at all? What does this depend on?
We still haven’t been able to identify the formula for success, so when we start brands, we warn: “Colleagues, only 30% of the dark horse brands can stand and shoot.” Those brands that actually develop and implement something achieve success. And those who try to quickly, excuse the expression, sell their products, rarely achieve what they want.
If some new brand comes to you, do you check if they have all the certifications and things like that? This required condition for work?
Of course it's mandatory. We always require all certificates and rights to use trademark. In the first deliveries, it already becomes clear whether the brand can work with us or not.
Do you have chemists on your staff? How do you check the product for compliance with all the paperwork?
There was a precedent when a brand came to us, and we somehow all had doubts about it; it delayed for a long time with certificates and photographs. A month passes and they send pictures of completely different products. That is, the guys redid everything within a month and brought another product, which we, of course, refused.
Do you have any people who try everything for themselves?
Yes. Beauty bloggers do this, but they are out of state. They try it and write reviews. We are interested in their opinion. Sometimes it happens that the opinion of bloggers differs from the opinion of the majority. When you look at reviews on the Internet, 80% of them are good. And bloggers sometimes say “average” in response to everyone’s “wow.”
Tell us about your work with different countries. They say a lot of unflattering things about China, for example.
China began purchasing products from us relatively recently, literally a year ago. They are especially interested in brands that are widely represented in Russian chains. They focus on everything cheap, but they constantly call us and want to buy some expensive transnational brands that are actively advertised.
The Vietnamese constantly buy goods from us, but they have their own specifics. If comrades from China send us orders from Blagoveshchensk and Irkutsk, then we ship all orders from Hanoi to representatives who are located in Moscow, and they then send them by air delivery to their home. The assortment is similar to what the Chinese buy. In Libya, it would seem, there is a war, everything is bombed - but no, they come, buy, cooperate.
What are your relations with other Arab countries?
Jordan supplied us with brands two years ago, but when at the end of 2014 all brands purchased for dollars sank in sales, Jordan, as well as the Emirates and Israel, lost their shares of sales to Korea and Japan.
By the way, how do you work with them?
Korea and Japan are currently on the rise. Korean cosmetics are distinguished by a wide range of products and a huge amount ingredients range from fruit extracts to snail mucin, and Japan excels in quality and technology.
Usually, brand representatives find us themselves and invite us to some conferences and forums where several manufacturers from a certain country are present. We will not invest our time and money in a brand that is unknown even in our own country; it is easier for us to buy and import into Russia brands that are already known and promoted in the region of their origin, which have proven their sales and effectiveness.
Do you have the feeling that interest in Korean cosmetics is now declining?
Many brands have gone into circulation. That is, the demand for one brand has fallen and it has become uninteresting, the demand for another brand has increased, and the demand for a third has remained unchanged.
Do you know why this happened?
I think it has to do with the distribution system. If a brand enters the market correctly, makes a pricing system that is understandable and interesting for everyone, and stands in retail chains and large Internet projects, constantly updates the range - then it lives. If someone simply brought in a product and sold it to everyone at a bargain price, then tomorrow this brand will be lost. Globally, Japan and Korea are selling very well.
Now it’s nice to look at some Russian brands that have a production base. They go out to new level and their sales are growing, but there are manufacturers who simply copy some other people’s ideas and end up producing junk.
What sells best? different regions Russia?
The regions need inexpensive brands of normal quality, not distributed. Nowadays everyone is looking for these brands. What is sold in Moscow is not successful in the regions. If in metropolitan networks the best-selling cosmetics are now with a price on the shelf in the range of 200–700 rubles, then in the regions it is 70–250 rubles. Now there are a lot of small Russian brands that produce and sell their products at exactly this price. Some use healing clay, others - mineral mud, etc. They produce products that are truly natural and in demand. It seems to me that the future of the Russian cosmetics market lies with such manufacturers.
That is, of course, anyone can try, what if! Only for one person such an activity will really bring a noticeable increase in their wallet, sometimes even comparable to the size of the average monthly salary, while for others it will only be a waste of time, effort, and perhaps even money.
First, really assess who could become your customers, analyze your social circle. For example, I have a friend who works at a university. Not only are there 7 women in her department, but she also constantly communicates with a couple of dozen teachers. As soon as the next catalog comes out, colleagues immediately rush to look at the new products and discounts of the month. In addition, she came up with another trick: as you know, there are two different prices- for the representative and for the buyer. And the difference is precisely the representative’s earnings. Usually it is 20−25%.
But in this system, with a large turnover, there is a system of bonuses and incentives, which I will talk about below. She already earns one and a half times more than her salary at work, and therefore she signed all her clients as her representatives, and they buy all goods at warehouse prices. Everyone is happy! And if there are any shower gels or creams on sale, she immediately tells everyone this good news, and everything is swept away in a couple of days!
What if you are a student or a young mother? Of course, I'm not saying it's not worth trying, but again, this is a double-edged sword. If you are a student, you have a lot of friends at the institute one way or another. And a considerable percentage are girls. It would seem that there is scope for offering goods. But, firstly, it may turn out that these girls - students just like you - do not have much money, and stable sales will not work. Secondly, perhaps someone has already done this before you. Consequently, there is competition, or even simply “the territory is occupied.” Although, if you have products different brands It is likely that you will not interfere with each other.
Well, if you live in a hostel, are involved in amateur activities or sports section or earn a part-time job, your opportunities expand. They say that in trade, including this type of trade, and not just “store” trade, everything depends on the seller, and an insecure person will not succeed even where others are raking in money with a shovel.
Something special needs to be said about young mothers. The fact is that their social circle is not so large and extensive. As a rule, relatives, several of the same mothers. A little. Of course, in this case too, it’s either luck or something else. For example, the young mother of a six-month-old daughter, Olga, started out very uncertainly. From the fact that I showed the catalog to the same mothers on the playground. Then she created her own team and has a good income. But she attends all trainings, master classes, and personally communicates with beginners. She has someone to leave the child with for half a day. And those who do not have such an opportunity should think about it. Of course, in service centers There are also a lot of people with children, but still not with babies!
True, for such busy people, mobile pick-up points, which are located in different areas and work according to a schedule, may be useful. In general, it’s not a bad idea, but you have to pay extra for this service. If the order is large, then 50 rubles will not fix the problem, but what if not? Is this beneficial for you?
Sometimes consultant-mentors offer to look for clients in their area almost according to the principle: if you went to a store, you left a catalog. I picked it up three days later. And they do that too. And this is also not for everybody, and it’s good, probably in moderation. It’s better if you have at least one really good friend in this store/school/clinic. Give it to him and let him show it. Still, it’s more likely than “some unknown girl ran in, handed over a catalog, and ran away.” More often they will look at it and just as safely return it without orders. Often the reaction to this manner of proposal is the same as to couriers who wander around offices and persistently offer to look at their miracle books/underwear/perfume... Personally, they just infuriate me. And not just me.
But ok, there are still shops in your area. So, some people go specifically to the other end of the city to look for clients! Of course, it’s good if you find them, who knows? But will it be convenient for you to deliver orders yourself? It seems to me that such a manner is justified if you offer a more or less unique service. And more pay. Let's say, if you are a hairdresser and you get more than 23 percent for a haircut from a couple of hundred rubles.
Nowadays the “third opportunity” in this kind of network marketing is widely developing. That is, not only sell from catalogs or buy for yourself at a discount, but recruit your own team. Moreover, now people often communicate and get to know each other through social media. Through them, many are invited to this business. Moreover, now you can even register without leaving your home. Yes, and browse the catalog on the Internet. True, they lure you in with words like, “You don’t have to sell, you can create a team.” And so it is, but in the end everything will come to the point that you just need to sell! Otherwise, what is the point of a team of, say, 10 people, where no one sells anything, and everyone is exclusively busy creating their own team? Where will the profit come from?
But the main thing is, regardless of the degree of success in this field, as in the case of any part-time job, it is better to have both a main source of income and, most importantly, a main profession.