Emerging Trend of Private Labeling in Cosmetic Industries

The cosmetics industry is growing at a very impressive pace annually. As per a recent study, the market in this domain is expected to grow annually by 6.5%. With increasing customer awareness, market demand for cosmetics is ever increasing. But, there is tough competition in the market due to the presence of many players. Those wanting to establish their own brands, have to offer exceptional products or distinction in their products to be able to survive and grow in the market. Taking advantage of this, more and more players are venturing into this area with their own brands to capture a market share. This has led to the emergence of the concept popularly known as private labeling.

 

Private Label - Concept 

 

If you are a business trying to start your own cosmetics brand, you can do so by hiring services of some of the most experienced manufacturers in this field. Without having to go through the hassles of research, manufacturing, testing, and production, you can buy such products and market the same under your label. The exporters in such a model even help with packaging as per the requirements. These products are ready-made and so the procurement time is usually not very high and supplies are in huge quantities and at wholesale prices.

 

OEM (Original Equipment Manufacturing) for Specific Requirements

 

If the ready-to-sell product with its existing specifications does not match the requirements of your brand, there are variants to this model which allow customizations encompassing retention of some of the features and changing the others.
 

  • For such businesses who do not want to go for their own production but still want the product to be developed as per their own specifications instead of procuring a ready-made product from the supplier, they can choose the contract manufacturing model.
  • In OEM, the buyer can specify everything from features to ingredients and even formula to the supplier who produces such customized products for the buyer.
  • This manufacturer is usually experienced in the production of such products and has the capacity for mass production. Combing these traits, the supplier is able to deliver the product as required.
  • Most importantly, contract terms in this model have to be defined and executed properly so as to ensure that production meets the specified quality and quantity specifications.
  • This model is widely used for producing value-added premium products which fetch good market shares.

Caution!

 

But, getting into it is not that easy. One needs to do a considerable exploration of the available products and their suppliers. One should keep in mind some factors on the basis of which the product has to be selected from the available pool. There are certain precautions to be taken by the business planning to venture. Apart from that, one has to obtain clarity from the supplier regarding the features, specifications, packaging services and, price structures. The most critical issue is to ascertain that the import of such products complies with the regulations specified by the US Food and Drug Administration (USFDA).

 

Common categories for private label products
 
The most popular categories of cosmetics trending for OEM and private labeling toothpaste, petroleum jelly, baby powder,  baby oil, diaper rash cream, face creams, body creams, hand & body lotions, face scrub, shampoo, hair oil, skin lightening cream, fairness cream, hair relaxer, hair serum, vitamin A & D ointment, Zinc Oxide, antifungal cream, Bacitracin Zinc, Periwash, shave foam, shave cream, hair food, Bergamot etc.

To conclude, private labeling for value products is a convenient, flexible, and economical alternative for businesses in cosmetics industry to venture their own brands in the market.