The global cosmetics OEM/ODM market is growing fast. Recent data shows the market was worth 56.77 billion in 2023 and could reach 80.99 billion by 2031, growing by 5.5% yearly. This growth means choosing the right makeup manufacturer is very important for brands wanting to succeed in the beauty industry.
Understanding OEM in the Cosmetics Industry
OEM (Original Equipment Manufacturer) in cosmetics refers to brands hiring targeted factories to produce products based on their designs. The brand provides the formula, packaging, and branding, while the factory is responsible for production. This allows the brand to focus on selling products rather than manufacturing them.
It is important to understand the difference between OEM and ODM. ODM factories design and manufacture products, while OEM factories only produce products based on the brand’s design. Many new brands use OEM services because they do not need to build their factories.
In North America alone, especially the United States, the OEM/ODM market was valued at $9.2 billion in 2020 and is expected to grow at a compound annual growth rate of 4% by 2030.
Determine Your Requirements
Before looking for a manufacturer, be clear about your needs. This will help narrow down your options and find the best match.
- Product Type: Determine what product you need – from makeup like foundation, lipstick, and eyeshadow to skincare like cleansers, moisturizers, and serums.
Different OEM Makeup Manufacturers often specialize in producing certain types of products.
- Target Market: If you want to produce luxury products with high-quality formulas, premium ingredients, and sophisticated packaging, look for some makeup factories that use premium raw materials.
For mass-market products, choose factories that produce large quantities at a lower cost. Countries have different markets with different regulatory requirements, so ensure your target manufacturer has production experience in your target region.
- Production Scale: Check how many units you need to order. Some factories require large minimum order quantities, which may not work for startups and new brands.
However, Kosmetik Xiran offers flexible options for emerging brands, allowing you to start with smaller amounts. This flexibility will enable you to test the market and gradually scale production as your brand grows.
By choosing an OEM Makeup Manufacturer like Xiran Cosmetics, you can ensure that you get the support you need to successfully launch your product without the pressure of a large upfront commitment.
Conducting Market Research
Finding the right makeup manufacturer can help companies reduce costs, increase sales profits, and ensure a stable supply of products. Here are nine supplier search channels summarized from practical experience. You can choose according to the company’s actual situation.
Industry Trade Fairs
Participate in events such as Cosmoprof Worldwide (held in Bologna, Hong Kong, and Las Vegas), in-cosmetics Global, and Paris/New York MakeUp. These events allow you to communicate face-to-face with factories and understand their work.
Internet Online Platforms
Whether search engines, various professional B2B websites, online trade fairs, or even various new media currently exist, they can be used for supplier development.
Industry Groups
Contact organizations such as the Personal Care Products Council to obtain a list of trustworthy factories.
Competitor Suppliers
Keep an eye on industry competitors and analyze material brand supplier resources from competitor products. It is also a standard method at present. It mainly targets strong competitors with high market share in various industries. Companies can cooperate with suppliers based on their actual conditions to improve their competitiveness.
Procurement By Bidding
Procurement publicly releases procurement needs to the public through bidding platforms or other public channels through bidding announcements, attracts potential suppliers to participate, and selects suitable suppliers through legal bidding procedures.
This supplier development channel is generally used by listed companies, state-owned enterprises, large-scale enterprises, and government procurement.
Corporate Website and Platform Promotion
Through market promotion, enterprises publish their own procurement needs on the corporate website and authorize relevant parties to enter the procurement platform docking interface to provide relevant corporate qualifications. This attracts potential suppliers to quote, which is also a commonly used search channel.
Manufacturer Introduction
As procurement staff, there must be a large number of sales staff who actively call or visit every day to recommend suppliers so that you can understand their preliminary information and keep relevant records. This is also one of the most commonly used channels for procurement to develop suppliers, and perhaps a high-quality supplier is right in front of you.
Domestic and Foreign Industry Associations
As market competition becomes increasingly fierce, many industries will set up industry associations to integrate resources and work together. The industry associations have many lists of similar companies and the operating conditions of related companies. This is also a channel for companies to choose high-quality suppliers with the help of associations.
Professional Third-Party Organizations
Suppliers and demanders focus on their competitive advantages in third-party procurement or third-party information platforms. There are already many professional procurement teams or data information-sharing parties with many supplier resources for companies.
Even for some personalized procurement needs of enterprises, third-party organizations can also make appropriate recommendations. This is also a more commonly used development method.
Evaluating Potential OEM Makeup Manufacturer
Once you’ve identified a list of potential Produsen Kosmetik Warna through market research, check for the following:
Certifications
ISO 22716 (Good Manufacturing Practice for Cosmetics), ISO 9001 (Quality Management), and possibly ISO 14001 (Environmental Management).
For specific markets, look for manufacturers that comply with regional regulations. For example, if selling in the United States, look for ISO 22716 (Safety of Cosmetics) or FDA approval.
Customer Reviews
Ask for references and check online reviews. For example, ask in online industry forums, LinkedIn groups, and business review platforms.
Factory Tours
Visit the factory in person for the most comprehensive assessment of the manufacturer’s capabilities. Check for things like modern equipment, clean facilities, and employee expertise.
Communicate and Ask Questions
When contacting a factory, ask clarifying questions:
Jumlah Pesanan Minimum
Ask about their minimum order quantity (MOQ), ranging from a few hundred to a few thousand units.
Production Time:
How long does it take to produce the product, from development to finished product delivery?
Formulation Capabilities
Ask if they have a standard formula you can customize or if they develop completely custom formulas.
Cost Breakdown
Details on material, labor, and packaging costs.
During this discussion, you will want to assess their knowledge of cosmetic formulations, familiarity with ingredient interactions, current industry trends, and understanding of regulatory requirements. For example, formulating for sensitive skin or developing long-lasting cosmetics.
Test Samples
Always test samples before signing a contract:
Minta Sampel
Request samples of existing or custom products. Some manufacturers may charge a fee for custom sample development, especially for complex formulas or when using unique ingredients. When making your request, provide precise, detailed specifications on formulation attributes, performance expectations, sensory qualities, and packaging requirements.
Check Quality
Test color, texture, and performance. For example, for the longevity of a color cosmetic lipstick, evaluate physical characteristics such as color, texture, scent, and appearance. Remember that initial samples often require refinement, so be prepared for an iterative process of feedback and adjustments.
Get Feedback
Distribute samples to trusted industry colleagues, beauty influencers, or potential customers to see if they like the product. Systematically record all feedback, noting both positive attributes and areas for improvement.
Sign a Contract
Make sure the contract covers the following:
- Quality Standards: Define precisely how the product will look and perform.
- Payment Terms: Agree on a deposit amount and payment terms.
- Confidentiality: Make sure the factory can’t share your designs with others.
Build a Long-Term Relationship
A good partnership helps your brand grow:
- Regular Communication: Schedule monthly meetings to discuss orders and issues.
- Visit the Factory: Visit occasionally to stay engaged.
- Provide Feedback: Tell the factory what’s working and what needs improvement.
Industry Trends
Keep these trends in mind when choosing a factory:
- Customization: Many customers want personalized products. Look for factories that can produce small batches of products with unique features.
- Keberlanjutan: Look for factories that use environmentally friendly materials and reduce waste.
- Technology: Factories with advanced equipment can produce products faster and more consistently.
Kesimpulan
Finding the right OEM Makeup Manufacturer takes time but is worth the effort. Focus on clear communication, quality checks, and building trust. Following the steps below, you can partner with a factory to help your brand succeed in the competitive beauty market.