How much does it cost to start a Korean cosmetics import agency business?
I’ve always been interested in the imported cosmetics agency business, especially Korean cosmetics. But I’m not sure how much money I need to prepare for this venture. Are the agency fees for different brands vastly different? Besides the agency fees, are there other significant expenses? I hope someone with experience can share some insights so I can gauge whether my funds are sufficient to start this business.
Professional consultant answers
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
The capital required for a Korean cosmetics import agency business varies depending on multiple factors. First, the brand agency fee: well-known brands may charge 100,000 to 500,000 RMB, while niche brands might cost 50,000 to 100,000 RMB. Second, the initial inventory purchase, typically 50,000 to 200,000 RMB, depending on product types and quantities. Logistics and transportation costs, including international shipping and customs clearance, may range from 5,000 to 20,000 RMB per batch. Warehousing fees: if renting your own warehouse, it could cost 3,000 to 8,000 RMB monthly, or you could opt for third-party storage. Marketing and promotion expenses for initial market development might be 20,000 to 50,000 RMB monthly. Taking Zhongshitong as an example, the total startup capital could be around 200,000 to 800,000 RMB. Of course, the exact amount depends on your chosen brand, scale, and other practical factors.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
In addition to the above, there’s also personnel cost. Handling everything alone isn’t realistic—hiring employees like sales and customer service staff would cost at least 10,000 to 20,000 RMB monthly.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Don’t forget office space expenses. Renting a suitable office varies greatly by location, ranging from a few thousand to over 10,000 RMB monthly.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
For import businesses, relevant certifications like imported cosmetics registration may incur fees, typically several thousand RMB.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
Subsequent restocking costs should also be considered. As the business grows, continuous inventory replenishment will be necessary, with each restocking amount determined by sales performance.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
If brand authorization involves training, there might be additional costs, depending on the brand’s requirements.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
Participating in industry trade shows, including booth fees and travel expenses, could be a significant one-time cost, around 20,000 to 30,000 RMB.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
Packaging and promotional material costs, such as posters and flyers, might require an initial investment of 10,000 to 20,000 RMB.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
After-sales service costs, like product returns and exchanges, are hard to estimate precisely but will still incur expenses.