Here’s How to Make a Grand Foray into the Cosmetic Industry
The cosmetic industry is ever-expanding. With people all over the world getting more conscious about their outer appearances, their looks, and their physical beauty, the availability of quality cosmetics and skin-friendly beauty products has become the need of the hour. Gone are the days when the cosmetic and beauty industry was the fiefdom of just a handful of established brands. With a myriad of contract manufacturers out there in the market, one can now, even on an individual level, build one’s cosmetic lineup. If you are looking to outsource your brand’s cosmetic or skincare product manufacturing to an OEM skincare, Singapore abounds with humongous options. Let’s quickly take you through the ins and outs of contract manufacturing in the skincare and cosmetics industry.
OEM – What does it really refer to? How is it beneficial for you?
An acronym for the phrase “Original Equipment Manufacturer”, OEM essentially refers to a company that produces upon request, products or some parts thereof, in private labels so that other companies could market those parts/products under their brand name. This is how things work in the cosmetic industry too.
Outsourcing the manufacturing of your cosmetic or skin care lineup to an OEM brings with it the following advantages:-
- Less capital-intensive– It saves you the exorbitantly high costs of having to build and own a factory to manufacture products for your brand.
- Freedom to create what you want– With an OEM by your side, you have the freedom to create products with the right kind of ingredients of your choice – a convenience that established brands never extended their customers. However, quite obviously, you will have to make sure that the ingredients, as well as the process of manufacturing, have to comply with all the regulations.
- Higher profitability– The actual manufacturing cost (of any product for that matter) seldom exceeds 30 per cent of the retail price of the product. In some cases, it may plummet to as low as 10 per cent. If you choose the right model for manufacturing your products, you are sure to reap higher profits, a part of which, of course, you could invest in the marketing of your brand/product to establish your brand name and brand image in the industry.
- Winning customers’ trust– By putting in the right ingredients in manufacturing your product, you win the tacit trust of your customers the moment they browse through the ingredients section on the label of your product. Customer trust means a better brand image, which, of course, implies more business.
The takeaway
For making a foray into the skincare and cosmetics industry, the most prudent approach nowadays is to get in touch with a reputed pharmaceutical contract manufacturing company. This approach does not just take away the significant burden of having to manufacture your products in your factory or plant but also leaves you with higher profit margins. The only thing needed to be sure of is the necessary certifications. The contract manufacturing company you choose to partner with ought to be GMP certified, besides complying with all the government regulations and having all the other mandatory certifications.
