Launching a cosmetic brand often starts with a deceptively simple question: How many products should we develop?

The temptation is to build a complete range from the beginning. A cleanser, toner, serum, moisturiser, eye cream, mask, exfoliant, body product and perhaps a few variants can make a new brand look established before it has sold a single unit.

But a large product range is not necessarily a strong product strategy.

In new product development, the better question is:

What is the smallest product portfolio that can solve a meaningful customer problem, establish a distinctive brand position and create a viable business?

This shift in thinking is important because product planning should take place before substantial development resources are committed. Product strategy is connected to business strategy, market positioning, technology, capabilities and available resources—not simply to a list of products a founder would like to sell.

For a new cosmetic brand, this means deciding the portfolio systematically rather than choosing an arbitrary number of SKUs.

Why the Number of Products Matters

Every additional cosmetic product creates more than another formula.

It can mean another:

  • formulation and development project;
  • set of raw materials;
  • packaging configuration;
  • stability and compatibility programme;
  • specification;
  • regulatory documentation;
  • production requirement;
  • inventory commitment;
  • marketing message;
  • forecasting problem;
  • and customer-service consideration.

The product portfolio therefore represents a concentration of both opportunity and complexity.

This is why successful new product development treats portfolio decisions as resource-allocation decisions. A portfolio should balance expected reward with risk and ensure that available resources actually support the company's strategic objectives.

For a young cosmetic brand, the consequences are particularly significant. Limited capital and management attention can be spread too thinly if too many products are developed simultaneously.

The objective should not be to launch as many products as possible.

It should be to launch the right products.

Start With the Brand, Not the Product List

Before deciding whether the launch should contain three, five or ten products, define what the brand is trying to achieve.

A useful starting framework is:

Target customer → customer problem → desired benefit → positioning → product strategy

For example, imagine a brand aimed at consumers with sensitive, dry and increasingly reactive skin.

A vague product strategy might be:

“We want to create a premium skincare range for women aged 30–50.”

A much stronger strategic starting point would be:

“We want to develop a premium skincare system focused on helping consumers manage the needs associated with sensitive and barrier-impaired skin, using a simple and credible routine.”

The second statement already begins to constrain the portfolio.

It suggests that products should have a clear role within a particular solution rather than being added simply because the category exists.

Trott's treatment of product strategy makes this connection explicit: new product strategy is derived from and linked to broader marketing, technology and corporate strategy, while differentiation and positioning determine how products compete in the market.

Step 1: Define the Customer Problem

The first practical question should be:

What problem are we trying to solve?

This needs to go beyond demographic descriptions.

Consider the difference between:

  • “women aged 25–45”
  • “people interested in natural skincare”
  • “consumers with sensitive skin”

and a more useful problem definition:

“Consumers who experience sensitivity and dryness and want a simple routine without having to combine multiple incompatible products.”

The last statement has implications for product development.

It may suggest that the brand should prioritise compatibility, simplicity and routine coherence rather than building a large catalogue.

Customer research can help at this stage. The NPD literature distinguishes between exploratory qualitative research, which helps identify customer needs and possible solutions, and quantitative research, which can help estimate how many customers may want a particular proposition, feature or price point.

Neither should automatically dictate the product.

Research is an input into the decision.

Step 2: Map the Customer's Routine

Once the problem is clear, map the customer's actual product journey.

For a skincare brand, this might look like:

Cleanse → Treat → Moisturise → Protect

Now ask:

  • Which steps are essential to the brand's proposition?
  • Which products solve the core problem?
  • Which products merely complete the range?
  • Which products could be purchased together?
  • Which products encourage repeat purchase?
  • Which products could be introduced later?

This produces a product opportunity map rather than an arbitrary product list.

For example:

Cleanser – Supports the core routine and addresses the cleansing step.

Hero Serum – Main differentiated product and central product of the brand.

Moisturiser – Completes the core skincare solution and supports the hero product.

SPF – Potentially important complementary product, depending on the brand concept and positioning.

Eye Cream – Possible later extension; should only be included if it has a clear strategic role.

Mask – Possible supporting product that can be introduced later.

Body Lotion – Potential expansion beyond the initial core customer problem.

The important distinction is between a product that is useful to the brand strategy and one that is merely possible to manufacture.

Step 3: Identify the Hero Product

Most new brands benefit from having a product that communicates what the brand stands for particularly clearly.

This does not mean that the hero product must be the most technically complex formula. It means that it should have a strong strategic role.

A useful question is:

If a customer could remember only one product from the launch, which product should represent the brand?

For a barrier-focused skincare brand, this might be a treatment serum.

For another concept, it could be a cleanser, scalp treatment, body product or sunscreen.

The answer depends on the market opportunity and positioning.

The important point is that the hero product should emerge from the strategy—not be selected simply because serums currently appear attractive as a category.

Step 4: Build Around the Hero Product

Once the hero product is defined, ask which additional products genuinely strengthen it.

This is where the concept of product platforms becomes useful.

A platform is a common foundation from which multiple products can be developed. The NPD literature describes product platforms as a way of creating families of products rather than treating every product as an entirely independent development effort.

In cosmetics, the idea can be applied strategically.

For example:

Barrier-support platform

→ cleanser
→ treatment serum
→ moisturiser
→ overnight mask

The products are not necessarily identical formulations. Rather, they share a coherent technological and brand logic.

This can create a more meaningful product family than a collection of unrelated formulas.

Product-family research also highlights the fundamental trade-off between the benefits of variety and the complexity created by that variety. The optimal family should therefore be considered before detailed development decisions are made.

Step 5: Score Every Potential Product

At this point, there may still be ten or fifteen possible products.

Do not immediately choose all of them.

Instead, evaluate each candidate against the same criteria.

A practical framework might include:

Customer Need – Does the product solve an important and relevant customer problem?

Brand Fit – Does the product reinforce the brand's positioning and overall concept?

Differentiation – Does the product help the brand stand apart from competitors?

Market Opportunity – Is there a credible market opportunity and sufficient customer demand?

Commercial Potential – Can the product contribute to a viable and sustainable business?

Portfolio Role – Does the product strengthen the other products in the range, for example through routine completion or cross-selling?

Development Complexity – How difficult and resource-intensive will the product be to formulate, test and manufacture?

Risk – What technical, commercial, market or development risks could prevent the product from succeeding?

The exact weighting should depend on the business.

The underlying principle comes directly from portfolio-management thinking: candidate projects should be assessed using multiple measures rather than a single financial estimate. Strategic alignment, business value, financial performance and risk all matter.

A weighted scoring model can make this process much more objective.

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Step 6: Check the Economics of the Whole Portfolio

A product can be attractive individually and still make little sense within the portfolio.

Consider an eye cream with good margins.

If it:

  • addresses only a secondary customer need,
  • has little differentiation,
  • requires a separate packaging system,
  • does not strengthen the hero product,
  • and consumes development resources needed elsewhere,

its apparent attractiveness may disappear.

Conversely, a relatively ordinary moisturiser may be strategically important because it completes the routine, increases basket size and gives the hero treatment a logical companion.

The question is therefore not:

“Will this product make money?”

It is:

“Does this product make the overall portfolio stronger than the resources required to develop and support it?”

This is portfolio thinking rather than SKU thinking.

Step 7: Validate Before Committing to the Full Range

One of the most valuable principles in the NPD literature is that concept development, testing and product development are iterative rather than completely separate activities.

Market research can be used before significant production and promotional expenditure is committed, helping teams assess customer needs, purchase intention and reactions to the proposed concept.

For a cosmetic brand, validation might include:

  • concept testing;
  • positioning testing;
  • packaging concepts;
  • price testing;
  • prototype evaluation;
  • product-use testing;
  • customer feedback;
  • and eventually market testing.

The amount of research should be proportionate to the investment and uncertainty involved. The purpose is not to eliminate uncertainty completely. That is impossible.

The purpose is to reduce expensive uncertainty before making irreversible decisions.

So, How Many Products Should a New Cosmetic Brand Launch?

There is no scientifically valid universal number.

A portfolio of three products can be too large for one concept and too small for another.

However, as a strategic starting hypothesis, a focused launch of approximately 3–5 well-connected products can often be more defensible than launching a large catalogue immediately.

For example:

A highly focused launch

3 products

  • Hero treatment
  • Supporting cleanser
  • Supporting moisturiser

A complete routine

4 products

  • Cleanser
  • Hero treatment
  • Moisturiser
  • Complementary protection product

A broader but still focused launch

5 products

  • Cleanser
  • Hero treatment
  • Secondary treatment
  • Moisturiser
  • Complementary product

These numbers are not rules. They are examples of what a minimum viable strategic portfolio might look like.

The correct number should emerge from the analysis.

The Best Launch Portfolio May Be Smaller Than the Final Brand

A common mistake is to confuse the launch portfolio with the long-term portfolio.

They do not need to be identical.

A new brand can launch with a small group of products, learn from actual customer behaviour and then expand.

Post-launch monitoring can reveal whether customers understand the proposition, whether the intended positioning is working, how frequently products are used, what additional needs emerge and whether new market opportunities are developing. Trott specifically describes product-platform evolution, market evolution and competitive evolution as factors that should influence decisions after launch.

This creates a much more intelligent development cycle:

Strategy → Research → Product concepts → Portfolio selection → Validation → Launch → Learning → Portfolio expansion or pruning

Importantly, pruning is part of good portfolio management too. Poor-performing products should not automatically remain in the range simply because money has already been invested in them.

What This Means for Professional Cosmetic Product Development

The number of SKUs is ultimately only one part of the decision.

Once the portfolio has been selected, each product still has to work technically and commercially.

That means considering:

  • formulation architecture;
  • ingredient compatibility;
  • sensory profile;
  • manufacturing process;
  • packaging compatibility;
  • stability;
  • testing requirements;
  • regulatory requirements;
  • cost structure;
  • minimum production quantities;
  • and the relationship between the individual products.

This is why product strategy should precede formulation development.

Developing ten formulas and then trying to construct a coherent brand around them is fundamentally different from defining the brand strategy first and using that strategy to determine which formulas deserve development resources.

A Better Question Than “How Many SKUs?”

For a new cosmetic brand, the most useful decision framework is therefore:

  1. Define the target customer.
  2. Identify the problem worth solving.
  3. Define the brand positioning and differentiation.
  4. Map the customer's routine and unmet needs.
  5. Identify the hero product.
  6. Define the supporting product architecture.
  7. Evaluate each potential SKU against strategic, customer, commercial and risk criteria.
  8. Build the financial case for the portfolio as a whole.
  9. Validate the strongest concepts before committing to full development.
  10. Launch the smallest portfolio that can credibly deliver the brand promise.
  11. Use post-launch data to decide what to expand, improve or remove.

That approach turns the question from “How many products should we launch?” into a much more useful one:

“Which products deserve to exist?”

For a new cosmetic brand, that is usually the decision that matters most.

References

  • Karol, R. & Nelson, B. (2007). New Product Development For Dummies. Wiley Publishing.
  • Trott, P. (2005). Innovation Management and New Product Development, 3rd ed. Pearson Education.
  • Barkley, B. T. (2008). Project Management in New Product Development. McGraw-Hill.
  • Loch, C. H. & Kavadias, S. (Eds.). (2007). Handbook of New Product Development Management. Butterworth-Heinemann.
Marketing & Branding
Product development