I'm thinking about starting a business that sells American cosmetic products (skin whiteners and a few others) in Hong Kong. I know this is the Kunming forum but since some of you have traveled around Asia, maybe you can give me some advice. I'm not against starting in mainland China, but HK has no import duty on cosmetics and is somewhat business friendly to foreigners.
I was thinking about openining a few storefronts and maybe an online ordering website.
Do you think my idea is feasible or would I get squashed?
it's a bit risky to ask a bunch of strangers on a forum (especially a non-business forum) for advice. someone who maybe knows nothing about business let alone the cosmetics industry might talk you out of a good idea.
Been there, done it. My wife opened a business in Kunming. We traveled to the US and bought fantastic bath and beauty products to sell here.
The fact is, customers would always complain her prices were too high because they can buy the same product MUCH cheaper at the markets. Of course the fact that the cheaper ones are fake, makes no difference to them. I think they only wanted these products to show off, even if they are fake. So price point is everything, and people here only want to buy cheaper.
I would not recommend you pursue this line of business.
My wife also worked in this industry. Fakery is rife. If you bring in a product, expect clones to appear within weeks.
There are also a lot of OS companies around like Mary Kay and Avon. Mary Kay have a big HQ in Shanghai, a franchise might be an option. That way someone else takes all the risk of brand management, and any import issues.
The cosmetics business has very low barriers to entry, as such competition is also fierce. As hinted at by @bucko, the Chinese consumer is predominantly price focussed. If you are trying to develop a quality offering, remember that the big names are well established here, and getting people to try something new (with no brand recognition) can be difficult in the brand conscious end of the market.
Opening a store front is a colossal waste of money.
Well, my plan just went out the window....
i warned you that you might be talked out of it. maybe it's not a great business idea. or maybe there is a way to make it work.
What about a dog walking business? lol
