The cosmetics industry has been growing rapidly over the past few decades and is still attracting more and more newcomers.
With thousands of outsourced manufacturers around the world, it’s now easier than ever to build your roster and get into the game, even on a personal level.
In this article, we’ll take a general look at OEMs in the cosmetic industry, and then discuss the pros and cons of using an OEM company to build your own cosmetic line from the inside out.
Finally, we will share some of the features we offer as an OEM Co., Ltd.
Might be a bit “too much information”, but it’s always good to start with the basics. Let’s take a look at what OEM stands for and how it differs from ODM.
What is the difference between OEM and ODM?
You may have seen the term “ODM (Original Design Manufacturer)” before, sometimes in the same paragraph as “OEM” and may be wondering what the difference is.
Simply put, an ODM is a company that designs and manufactures products. In the cosmetics space, many companies use the word as a “we do everything for you” statement. However, this actually means that ODM companies rebrand existing products in their catalogs for other companies to bring to market.
Aside from the branded prints on Amazon, you’re likely to come across a lot of products that look exactly the same. This means they are products from the same ODM.
OEM, on the other hand, is the manufacturing company that originally designed the product for you or produced the product designed by you. If we go back to our Foxconn and Apple example, you’ll see why it’s an OEM and not an ODM.
The benefits of using an OEM cosmetic manufacturer.
So, what are the benefits of using OEM in the cosmetic industry?
- 1 – Higher profit margins
2.2 – Originality
3.3 – Intellectual Property
Disadvantages of using OEM in the cosmetic industry?
1.1 – High initial cost
2.2 – Inventory Management
3.3 – Production Limitations
OEM cosmetic manufacturing or private label? We can do both.
With OEM, you can develop formulations and package them from scratch.
This solution gives you more flexibility when creating new beauty products. You work with cosmetic manufacturers to design your own formulas, shade ranges, and packaging. This means that you still have more room for differentiation in the market, as you can develop a variety of cosmetic products that are completely unique and communicate your brand values.
If you are confident enough to put your efforts into every step of the production process, then this is the right path for you!
With private labeling, you can pick up some “off the shelf” products, customize and give them your name.
Compared to OEM or contract manufacturing, private label has less room for customization, but startup costs are much lower because you don’t need to invest in R&D.
In fact, we are a private label cosmetic company that has developed and tested all of our products. With so many formulas in our library, you can pick and choose to curate the perfect collection for your beauty brand.
You can enjoy high-profit margins by buying products at wholesale prices and charging customers a premium for the brands you create. Note that choosing this solution doesn’t mean you’ll get a cheap product, not at all! Even if you rely on a manufacturing company partner to produce your hair or skincare products, you can get high-quality products (even luxury beauty products).
Blur Cream-To-Powder Liquid
Soft matter formula, light-as-air texture that provides a gentle hug to lips from our OEM lipstick.
Pro Eyeshadow Palette
Matt & Glitter velvet-like eyeshadow palette made in South Korea and available for fast OEM with a diamond look.
Cream Fix Stick Shadow
Rich-pigmented and long-lasting stick shadow, which has cream-to-powder formulas.
Vitamin Hydration Primer
OEM Primer: silicon-free, vitamin bomb, fresh grapefruit fragrance. Improves, brightens and cleanses skin tone.
Want to get to know more about our OEM Cosmetic Manufacturer Formulations? Get in touch: HERE
See more of our other formulations here: Private Label Makeup Manufacturer – Our Private Label Formulations – (sourcing-lab.com)