Private label cosmetics are becoming increasingly popular thanks to the unique benefits they offer. If you are not familiar with the term private label cosmetics, you may have heard these products referred to alternatively as white label cosmetics or ODM cosmetics. Whatever term is preferred, experts agree that these cosmetics are only going to increase in importance in a marketplace where the demand for new products far outstrips the supply of new formulations. Private label cosmetics are produced by independent makeup manufacturers who market them to 3rd party cosmetics brands across the globe. Today, we take an in-depth look at the world of private label cosmetics and compare them to OEM products.
What Are Private Label Cosmetics? A Guide for Aspiring Beauty Brands
For those who are not sure what private label cosmetics are, here are the key facts to be aware of:
- Pre-Formulated
When you purchase private label products from a reputable manufacturer, there’s no need to worry about research and development costs: all products are pre-formulated by industry experts.
- Manufactured on Demand
Private label cosmetics are manufactured on demand. When new orders arrive, they are sent to the relevant production centers for fulfillment. Larger private label cosmetic manufacturers may carry some stock, but in most cases, advance orders are required.
- Produced by Reputable Manufacturers
Private label makeup manufacturers are reputable organizations with teams of cosmetics experts to create and tweak formulas. Most such companies have well-established industry connections and are familiar with the needs of modern cosmetics brands.
- Fully Customisable Labelling and Packaging
While the products themselves are ready to sell, the labeling and packaging can be customized to suit each brand’s specific requirements. The only limitations as far as branding is concerned are those relating to copyright infringements and national laws governing what can and cannot be displayed on retail packaging.
Because private label cosmetics can be branded according to each customer’s requirements, smaller cosmetics companies can offer comprehensive product ranges at competitive prices.
The Benefits of Private Label Cosmetics
The product ranges supplied by makeup manufacturers in the private label sector offer many benefits to modern cosmetics brands, especially smaller organizations with fewer financial resources.
- Pre-Approved
All products sold by reputable cosmetic private label manufacturers have already been approved by the relevant authorities for sale in most international markets. This is a major benefit for smaller operations that cannot afford to spend years on R&D, followed by years waiting for government approval.
- Cost-Effective
Because there is no need for lengthy development and testing cycles with private label cosmetics, they are very cost-effective. Whether you are putting together a small, exclusive range aimed at a specific demographic or a large collection that women of all ages and appearances can enjoy, you’ll be able to complete your task more economically with private label cosmetics.
- Proven Performers
When you purchase from well-established makeup manufacturers, you have access to a wide range of proven performers, ie. cosmetics that have already been sold successfully under other brand names. This means you can add new products to your collection without taking major financial or reputational risks.
- Rapid Market Entry
With private label cosmetics, most of the friction associated with entry into global beauty markets simply disappears. For companies that wish to introduce new ranges of cosmetics in several national markets simultaneously, private label products are an invaluable aid. No longer forced to spend years developing and testing, companies can effect new market entries quickly and easily.
- Lower Running Costs
Private label cosmetics don’t just reduce start-up costs for new brands and ranges; they also reduce ongoing business costs. With the ability to place orders shortly before stocks need replenishing, there’s no need to maintain large warehouses of costly inventory.
Perhaps the biggest benefit private label cosmetics offer is the ability for smaller cosmetics brands to focus on advertising and marketing, knowing there is no need to worry about production.
What is the Difference Between OEM and Private Label in Cosmetics?
If you’re building a new range of cosmetics and do not have your own manufacturing facility, there are two options to consider:
- OEM
OEM cosmetics are manufactured to each brand’s specifications by 3rd party makeup manufacturers. Because brands provide their own formulas for OEM cosmetics, lead times are necessarily longer than for comparable private label cosmetics.
- Private Label
Private label cosmetics are products that have already been formulated, tested, and approved. They are made by experienced private label makeup manufacturers. Because private label products do not have to be reformulated in between manufacturing runs for different brands, production times are significantly shorter in most cases.
Whether OEM, private label, or a mix of the two is the best solution for your brand will depend on various factors, including your specific requirements, business goals, and target demographic.
How to Choose Between OEM and Private Label for Your Brand
When choosing between private label and OEM cosmetics, we recommend focusing on the following factors:
- Customization Requirements
If you wish to use your own formulas, OEM cosmetics will be the best choice.
- Time to Market
If time to market is a concern, private label cosmetics are the obvious choice.
- Quality Control
OEM products offer greater control, but with reputable private label cosmetic manufacturers, this should not be a major cause for concern.
- Financial Resources
Unless you have access to generous funding, private label cosmetics are likely to be the most practical option.
Having considered all the above factors carefully, the choice should be quite easy to make.
Moving Forward With Your Choice
Whether OEM or private label is the right option for your business, you need to find a reliable manufacturer. As a leading OEM and private label cosmetic manufacturer, we can meet all your needs at competitive prices, so don’t hesitate to call or email us if you’d like to discuss your needs. Our makeup – private label and OEM – is manufactured to the highest standards in purpose-built facilities.