YES, if you are starting out a new venture it is always better to have a unique name. That can create a distinct identity for your brand in the market. Often it is observed that confusion may arise among the buyers regarding the manufacturers or owners of the said product, which can lead to issues between the brands which could end up as a trademark infringement case.
For example, here, the trademark name proposed to be used is for cosmetics and clothing. Both can be considered as very similar life style products and due to this similarity its better to use a coined name than using an existing name.
Check out this blog to know how to create a seamless brand https://trak.in/tags/business/2018/10/01/5-trademark-protection-lessons-...