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White Label Manufacturing

Manufacturing Of Cosmetics the OEM Way

Owing to the awareness amongst the masses regarding their appearances and looks, one of the industries that has witnessed exponential growth in the past few decades is the cosmetic industry. Let’s face it – despite the fact that not every one of us has been blessed with the most stunning looks, yet each one of us wants to look smart, attractive, and appealing to others. Alas! Is there, then, no way, we, the average-looking ones, could look good? Well, there sure is – cosmetics! From lips to face to eyebrows and even skin – the cosmetic industry manufactures products catering to every aspect of one’s appearance and looks. With such incredibly high demand for cosmetic products, everyday new entrants are trying to establish their line-up and join the game. Most of these newcomers prefer OEM beauty products. Let’s see what it means.


OEM Cosmetic Products

OEM in the cosmetic industry stands for Original Equipment Manufacturer and it refers to a company or production facility that makes products in private labels based on designs that the client provides. Most of the cosmetic products we see or buy from the market today are manufactured by OEM companies upon request. Since it would neither be possible nor feasible for every other brand to own and run a factory, therefore, the concept of OEM makes a lot of sense. Many of you would be surprised to know that things are no different in the pharmaceutical and nutraceutical industries as well. In these industries, a private label supplements manufacturer is akin to an OEM in the cosmetic industry. These manufacturers produce nutritional supplements in a supplement factory and label them for the client companies to sell.


Pros of opting for an OEM cosmetic manufacturer

Owing to the ease, practicality, and quality assurance that OEM cosmetic manufacturers provide, many brands choose to work with them. The most significant advantages associated with OEMs are:-

  1. Originality – With cosmetic OEMs by your side, you are free to create the product you feel is right and thus challenge the market. You could even create products that no one ever thought of.
  2. Increased profits – The way the cosmetic industry sets the retail prices of products is astonishing. Oftentimes, the manufacturing cost is a meagre 20% to 30% of the retail cost. That’s how huge the profit margins are in the cosmetic industry. With OEMs by your side, you could lower the production costs to even 10% of the retail costs.
  3. All-around consultation – Most OEM companies offer their clients an all-around consultation that may include assisting the clients with efficient and cost-effective productions, sharing the knowledge gained through experience, introducing the clients to designers, marketing consultants, etc.


The key takeaway

To enter the lucrative and highly potent cosmetics market, you may need to partner with an Original Equipment Manufacturer (OEM). While it has its benefits, one of the biggest reasons for partnering with a cosmetics OEM is the ease of making a foray into the cosmetics business. To leave your mark in this industry vertical, you may partner with APD Pharmaceutical Manufacturing Pte Ltd, Singapore.

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