OEM cosmetic products: innovation and customization in the beauty sector
The beauty and cosmetics industry is constantly changing and evolving: these advances are born to meet new consumer demands. Many companies are looking to renew and improve the formulas of their products to continue leading sales in this sector.
Faced with these changes and demands, some manufacturing methods naturally predominate over others, and this is the case with the production of OEM cosmetics. This process of making customized products for brands is becoming a powerful model in the cosmetic industry. If this is a topic of interest to you, don’t miss this article where we are going to explore the implications and development of OEM cosmetic products.
What are OEM cosmetics? How do they work?
When we talk about OEM cosmetics, we are using an acronym that stands for ‘Original Equipment Manufacturer’, which refers to specialized companies responsible for manufacturing products for other brands under a customized production contract.
OEM manufacturers establish a close relationship and collaboration with cosmetics firms, the main purpose of which is to develop and produce a series of customized products that adapt to the needs and preferences of consumers.
One of the advantages of this type of cosmetics is the ability to customize every aspect and part of the product: from the choice of ingredients to the design of the packaging. This allows brands to have greater control over the item, as they can offer their customers exclusive high-quality products at an affordable price.
What are the benefits of choosing OEM cosmetics?
There are many benefits of OEM cosmetics for brands and companies. If you are interested in knowing what their principal advantages are, read on:
- Total customization of the product. This is one of the main points of interest for firms, because OEM products offer the chance to create unique cosmetics which fit the specific demands of each brand.
- Production efficiency. Since these cosmetics are produced on a large scale, manufacturing costs are lower than if production were on a retail scale.
- Comprehensive quality controls. To be launched on the market, OEM cosmetics must meet a series of rigorous requirements and quality standards.
- Total customer control. In OEM manufacturing, the customer is responsible for product design. In other words, they can change and modify different aspects of the product such as its formula, packaging, and label, among other characteristics.
OEM-manufactured products have more advantages because, being totally to the customer’s liking, they can better focus on a specific sector and offer an improved service and product. Products from large-scale productions tend to be more generalized and of lower quality. It is true that lower quantity productions have a higher cost, but it is worth the initial investment. And once quantities are increased, the price adjusts to market competition.
At MS Laboratory, we are responsible for producing the formulation, packaging, documentation and other processes that allow us to create premium cosmetics products. Also, our laboratory is specialized in a fast production and launch process that can be perfectly adjusted to the needs of each client.
OEM products and private label products: discover their similarities and differences
Many times, the concepts of ‘OEM products’ and ‘private label products‘ tend to get confused, but even though they share some similarities, they also have quite a few differences. Both approaches offer companies the ability to market their products under their own brand, but the fundamental differences lie in the degree of product customization and control.
Here are the most important insights into these two terms:
Private label cosmetics. This type of product is characterized by being based on a pre-existing catalogue provided by the manufacturer. The margin of customization with respect to OEM cosmetics products is quite a bit smaller, but some aspects can be redesigned, such as the packaging. The formula itself is usually left essentially unchanged.
OEM products. OEM products allow personalization from the outset, meaning it is possible to modify the ingredients and formula of the cosmetic. For brands, this represents a competitive advantage in the market, since they can offer consumers exclusive and unique products.
What are the main differences between OEM and ODM cosmetic products?
If you are in the electronics or industrial sector, the concepts OEM and ODM may be familiar to you, but otherwise, it is likely you may be unfamiliar with these terms. Next, we are going to explain what they both mean along with their main differences.
To be sure you know what you are dealing with, it is important that you know what these two acronyms mean:
- OEM stands for ‘Original Equipment Manufacturer’, referring to products that are designed by a company, but manufactured by third parties.
- ODM means ‘Original Design Manufacturer’, and in this case it is the manufacturer who designs and develops the product.
Another difference lies in the advantages and disadvantages of importing OEM or ODM products; these types of decisions can be crucial when a company is about to ship its products.
About OEM manufacturing
OEM manufacturing is responsible for producing products for other companies – final finished products that could be sold under their own brand, but are not, as other companies take care of selling them, providing their brand to make it more attractive to the end user.
It is possible for an OEM to sell the products they make themselves, but this usually does not happen, because their main function is to produce the products that the brands ask for. That is, companies are responsible for designing and managing all aspects of the product, but it is the OEM who manufactures it. And, once the process is complete, the brand has to finalize the finishing touches so that the product can be sold.
Learn about ODM manufacturing
This type of manufacturing is widespread globally, and we can see it in large e-commerce stores such as Amazon, eBay or AliExpress. It refers to products that lack personalization and are very similar to each other, not only visually but also in terms of features and accessories.
Which of these two manufacturing processes is better?
Knowing which of these two manufacturing methods is better will depend on multiple factors: for example, it greatly influences whether the company you are working with is small and just starting to import its products. But, it is worth remembering how important it is to differentiate yourself from the competition, and for this, it is crucial to customize and create products that stand out from the rest.
These differences may be only in appearance, as in the logo, colors, shapes, and packaging, among other qualities. However, among the disadvantages of ODM products, one notable aspect is that quality control is the responsibility of the client company. It’s advisable to always have a sourcing partner that conducts ongoing inspections throughout the importation process. On the other hand, OEM cosmetics offer the possibility to customize beauty products, making them unique and exclusive – a very valuable quality within the beauty and wellness market.
At MS Laboratory, we adapt to the needs, requests and goals of each of our customers. The production of OEM cosmetic products is what we do: trust our work and development to achieve the premium category product you are seeking.