Many companies and retailers looking for a comprehensive line of cosmetics without increasing operating costs or investing in product development budgets should consider contracting cosmetic manufacturing from a private label cosmetics manufacturer. Private label cosmetics manufacturers produce high quality products at a much lower cost than established cosmetics companies. By using a private cosmetics manufacturer, companies can avoid the costly product development expenses and product testing costs. By developing a proprietary line of cosmetics, these manufacturers are able to reduce their manufacturing costs and pass on those savings to consumers. Here are four reasons why companies should consider contracting cosmetic manufacturing:
Private label brands make it possible for customers to select which cosmetics manufacturer or makeup artist supplied their preferred items. Private label brands provide customers with the assurance that quality control is consistently maintained. A cosmetics manufacturer or makeup artist may supply products that have been specifically developed and tested by the private labeler. These manufacturers often retain rights to use specific names, descriptions and logos for the sole purpose of marketing and selling their products. Therefore, a customer will receive products that were made by the private cosmetics manufacturer, but they will also be receiving exactly what they are paying for quality product made with trusted ingredients and top-notch craftsmanship.
Many private label cosmetics manufacturers contract with third-party distributors, dropship depots and online distributors. In turn, these companies sell their private label cosmetics to retailers, professional makeup artists and individual buyers. When using a third-party distributor, dropship depots and online distributor companies, you benefit because you eliminate product development cost. Dropshipping allows you to sell off-branded items without additional investment upfront. Your profits will instead be determined by the actual sales volume that you achieve.
When using an online distributor, you benefit, too, because you eliminate product development cost and marketing expense. Dropshipping eliminates the need for product development activities like research, packaging design and catalog creation. You also eliminate distribution costs because you do not need to rent or own expensive display facilities for your private label skin care line. Finally, dropshippers cater to a broader customer base than your boutique could. Since many people shop online for skin care products, you have a much wider customer base to draw from.
In addition to selling skincare products online, a cosmetics manufacturer might also create and produce a range of makeup lines for retail establishments. If the manufacturer is well-established and has an excellent product portfolio, a department store chain might be interested in carrying their line of makeup. The beauty manufacturer could also sign a licensing agreement with a major fashion house, allowing the manufacturer to distribute their line of cosmetics in their store. A major cosmetics manufacturer with deep pockets could even pursue venture capital financing in order to fund the development of a new line of cosmetics.
Private label cosmetics manufacturers can profit from a number of different verticals within the beauty industry. They can focus on one niche or create a number of different lines. The manufacturer can also focus on clinical cosmetic products, such as serums and facial exfoliators. Many cosmetic companies have introduced new serums that are specially designed for treating acne, aging, redness, blemishes, or dry skin. These serums are typically sold as part of a package of beauty products that also contain moisturizers and anti-aging creams.