Notable factors contributing to the boom include aggressive social media initiatives, a growing demand for natural and organic products, and robust middle class spending. Presently, there are roughly 4,400 licensed cosmetic distributors in the country. The local start-up scene in cosmetics is definitely on the rise.
From Fascination to Passion
One local cosmetics brand to watch out for is Get Ready With Me (GRWM), a brand under Chromaesthetics Inc., which was launched in May 2021. Just three years in the market, this startup business is the apotheosis of many years of hard work by its 30 year-old CEO Maryann “Mae” Layug Madriñan. A licensed nurse both here and in the US, she initially worked in the cardiac unit of Makati Medical Center. During her breaktime, she dabbled in makeup application and soon developed a passion for it. In 2017, Mae created makeup video tutorials and started a YouTube channel. Her creative endeavor became a big hit, enabling her to collaborate with different cosmetic brands. Madriñan then monetized her channel and solidified her status as one of the country’s top makeup influencers.
“I earned so much more as a makeup content creator than I did as a nurse. It just made sense to make the obvious career change. But after several years, I just wondered what my next step should be. Then the pandemic hit. It was then that I came up with the idea of starting my own cosmetic line. People were stuck in the house but still wanted to look good when they go online,” narrates Madriñan.
With the support of her husband Billy, she approached the owner of a local makeup brand (Miss X) who she had previously collaborated with to teach her the ins and outs of putting up a beauty business. “I’m so grateful to my business mentor. Miss X did not see me as a future competitor but as someone who had helped her with her own business. That mentorship changed my life. Today, it’s my mission to open doors for other people, too,” Madriñan enthuses.
Start-Up Struggles
Regulatory Requirements
Without any business background (and even with a mentor), the Madriñan couple found themselves victims of unscrupulous people. The regulatory challenges for SMEs in the beauty industry are the most difficult hurdles. Cosmetic brands often face strict regulations as well as arduous registration processes from different government agencies. She remembers wistfully, “We had to comply with FDA regulations on product registration, ingredients restrictions, labeling, etc. We understand the safety and quality requirements of the government so we sought the help of a regulatory expert. Unfortunately, the lawyer ran away with our hard-earned money. Not only did we have to come up with the seed fund of PHP 3 million for the actual production of the goods, we had to wisen up fast in order to get the proper documentation—which sadly involved more expenses on our part.”
Link for more : How a Cosmetics Local Start-Up Grew its Business (thebusinessmanual-onemega.com)