How to choose a suitable way to cooperate with a makeup factory?

There are many ways to cooperate when makeup brands are looking for makeup factory to produce products. Each way has its characteristics and risks. Brands must choose the most suitable cooperation model according to their situation and needs. In this article, we will detail several common cooperation methods to help brands make wise decisions.

Common Makeup Factory Cooperation Model

OEM Cosmetics Processing

Definition: OEM is the abbreviation of “Original Equipment Manufacturer”; that is, brand producers do not directly produce products but use their key core technologies to design and develop new products, control sales channels, and entrust other manufacturers of similar products to produce specific processing tasks through contract orders. After that, the ordered products will be bought out at a low price and directly affixed with their brand trademarks.

Features: The makeup processing manufacturer assumes the role of processing and manufacturing, and the brand has mature marketing channels, brand strategies, product research and development departments, product packaging design departments, etc.

Suitable:OEM cooperation can reduce the production costs of brand owners, improve production efficiency, and ensure that product quality meets brand requirements.

ODM makeup processing

Definition: ODM is the abbreviation of “Original Design Manufacturer,” which means that the manufacturer designs and produces products according to the requirements of the brand. At the same time, the manufacturer designs the product and owns the intellectual property rights of the product; the brand is allowed to produce under its brand.

Features: Suitable for brand owners who have just entered the makeup processing industry and do not have a mature operating system. The manufacturer provides services such as brand planning and packaging design.

Suitable For: brand owners who are new to the market or lack R&D capabilities, the ODM cooperation method can quickly launch products that meet market demand.

Customers provide processing materials

Definition: The customer provides the makeup formula, raw materials, and packaging materials required for production, and the cosmetics processing factory is only responsible for providing equipment, production sites, and production personnel.

Features:The customer has a certain material supply channel and can independently control costs and product quality.

Suitable: Brands that hope to independently control costs and product quality and have material supply channels

Customers provide samples for commissioned processing

Definition: The customer only has makeup samples and hopes to produce the same cosmetics based on the samples. The makeup processing manufacturer studies and designs the formula based on the samples and then makes the samples. After the customer confirms, the makeup processing manufacturer is commissioned to complete the process.

Features: Suitable for brands that have specific product needs but lack production capacity.

Suitable: Brands that have specific product needs but lack production capacity.

Customers entrust manufacturers to process all materials

Definition: Customers entrust makeup manufacturers to be responsible for formulas, raw materials, packaging materials, and production packaging, and customers are responsible for the packaging design LOGO and internal material quality standards of cosmetics.

Features: Brands can focus entirely on branding and marketing, while the production process is entirely the responsibility of the OEM factory.

Suitable: Brands that want to focus entirely on branding and marketing.

Processing of semi-finished makeup

Definition: The material body has been processed and not filled into the packaging material; it is only packed in a large barrel. Customers can fill it themselves, use it directly, or pack it into samples for external transportation.

Features: Suitable for customers who need a large number of semi-finished products for further processing or customization.

Suitable: Customers who need a large number of semi-finished products for further processing or customization.

Customized processing of color makeup samples

Definition: Customers take existing products on the market or products they make themselves to the cosmetics processing factory for imitation and customization.

Features: Only a strong OEM factory can provide such services, which can meet customers’ customization needs for specific products

Suitable for: Brands with specific customization needs and seeking strong OEM factory services.

Which cooperation method has the lowest risk

OEM makeup processing has relatively low risks. The OEM cooperation method allows brands to focus on marketing and brand management while handing the production process to strong factories. Brands must ensure the factory has high-quality production standards and a strict quality control system.

ODM makeup processing risks are also relatively low. In the ODM cooperation method, the factory is not only responsible for production but also participates in product design. This can reduce the pressure on brands in product design and R&D, but brands must ensure that the factory’s design and R&D capabilities meet their requirements.

The risk of customers providing processing materials is relatively high. Brands provide their own raw and packaging materials, meaning that brands need to bear greater supply chain risks, including material quality, supply stability, and price fluctuations. In addition, brands also need to monitor the production process strictly to ensure product quality.

The risk of customers providing samples for commissioned processing is moderate. Brands provide samples, and factories produce according to samples. This method requires the brand to ensure the accuracy and representativeness of the samples and whether the factory’s production capacity matches the samples.

The risk of the customer entrusting the manufacturer to process all materials is relatively low. The brand will hand over all production links to the factory, including raw material procurement, production, and packaging. This method can reduce the production pressure of the brand, but it is necessary to ensure that the factory has reliable quality control and supply chain management capabilities.

The risk of processing semi-finished cosmetics is moderate. The brand purchases semi-finished products for subsequent processing or direct use. This method requires the brand to have the corresponding processing capabilities and technology to ensure the quality of the final product.

The risk of customized processing of makeup samples is moderate to high. The brand provides samples and requires the factory to customize processing. This method requires the brand to ensure the accuracy and representativeness of the samples and determine whether the factory’s technical capabilities and production scale can meet customization needs.

Considering all factors, the risks of OEM and ODM cooperation methods are relatively small because they allow the brand to hand over the production links to factories with strength and experience, thereby reducing the pressure on the brand in production and management. However, no matter which cooperation method is chosen, the brand needs to strictly screen and evaluate the factory to ensure that the factory has reliable quality control and supply chain management capabilities to ensure the quality and safety of the final product.

The most common mode of cooperation with makeup factories

OEM processing is the choice of most customers. The OEM cooperation method allows the brand to hand over the production process to professional OEM factories so as to focus on marketing, brand building, and channel expansion. This cooperation model is particularly common for makeup brands with a certain market foundation and brand awareness. The OEM factory produces according to the brand’s requirements to ensure product quality and delivery time. In contrast, the brand can use the production capacity of the OEM factory to launch new products quickly or expand the production scale.

The ODM cooperation method suits brands that have just entered the makeup industry or lack independent research and development capabilities. The OEM factory not only provides production services but also participates in product design and development to help the brand quickly establish product lines and bring them to market. Although this method can reduce the R&D pressure of the brand, it is used less frequently than OEM.

The customer provides processing materials. This cooperation method requires the brand to master the supply chain of raw and packaging materials and bear greater cost risks. Therefore, few brands will choose this method to cooperate in actual operation.

The customer provides samples for commissioned processing. This method is suitable for brands that have specific product needs but lack production capacity. The brand provides samples or design requirements, and the OEM produces according to the samples or requirements. Although this method can meet the brand’s specific needs, it requires a certain amount of R&D and proofing time, so the frequency of use is relatively moderate.

The customer entrusts the manufacturer to process all materials. Although this method allows the brand to focus entirely on branding and marketing, the OEM has greater freedom in selecting formulas, raw materials, and packaging materials, which may increase the risk of product quality control. Therefore, the frequency of use is relatively low.

The cooperative method of semi-finished makeup processing suits customers who need many semi-finished products for further processing or customization. The brand can purchase semi-finished products according to their needs and perform filling or secondary processing. However, this method requires the brand to have a certain production capacity and technology level, so the frequency of use is moderate.

The method of customized makeup processing requires the OEM to have a certain R&D and production strength and to customize production according to the samples or design requirements provided by the customer. However, due to the high cost of customized processing and the long production cycle, the frequency of use is relatively low.

Summary

In the makeup industry, OEM processing is one of the most commonly used cooperation methods because it can fully use the foundry’s production capacity and technical advantages to help the brand quickly launch products that meet market demand.

ODM processing and customer-provided sample processing are also relatively common cooperation methods, but the frequency of use is slightly lower than OEM processing.

Other cooperation methods, such as customer-provided processing materials, customer-entrusted manufacturers to process all materials, cosmetic semi-finished product processing, and cosmetic sample customized processing, are relatively less frequently used for various reasons.

Cooperation model suitable for startup makeup companies

ODM processing may be the most suitable cooperation method for startup cosmetics companies. It allows startups to quickly launch products and test market reactions without investing many resources in product research development and design. In addition, the factory’s expertise and technical support can also provide valuable help to startups. Of course, when choosing a cooperation method, startups must also make comprehensive considerations based on their actual situation and market demand.

Cooperation methods suitable for mature cosmetics brands

For mature makeup brands, OEM processing is the most suitable cooperation method. It allows the brand to maintain full process control over product design, research and development, production, and sales, ensuring the uniqueness and market competitiveness of the product. At the same time, by cooperating with professional factories, brands can ensure product quality and delivery time to meet market demand.

In summary, different cooperation methods are suitable for different brands and situations. Startups can consider ODM processing to quickly launch products and test market reactions. Mature brands are more suitable for OEM processing to maintain control over the entire product process. No matter which method is chosen, brands need to strictly screen and evaluate factories to ensure product quality and safety. I hope this article helps you! If you have any other questions, please continue to consult.