What is a cosmetics OEM?

by:XJ BEAUTY     2020-06-15
The abbreviation of OEM is in English the Original Equipment , literal translation is: the Original Equipment , is actually commissioned production. Commonly known as 'stick a card'. Not direct production product brand producer but use their mastery of the 'key core technology' is responsible for the design and development of new products. Some manufacturers of these brands itself production ability is limited, and even some doesn't even have production line, factory. Yet they to control sales channels, in order to increase production and sales, in order to reduce the risk of a new production line, in order to win the market time, even by commissioned by means of contract order other similar products manufacturers, the products ordered to buy at a lower price, and directly with your own brand logo. The entrust others to OEM production cooperation way, carries on the processing tasks are known as OEM manufacturers, their products is OEM products. OEM convenient mode prompted many cosmetics companies, cosmetics brand will choose products and cosmetics OEM development suited to its own brand characteristics. What are the advantages of cosmetics OEM? 1. Reduce the cost to reduce the production cost is the key to maintain profits, cosmetics manufacturer OEM can effectively reduce the cost for you. Merchants limited funds will arrange into sales, used in the production costs relatively will be reduced to a minimum. OEM's just merchants solve production problems, make businesses can spend a little money, produce their own products. Many European and American cosmetic brands are using overseas OEM production, and reduce the risk of the investment and cost directly, in order to obtain higher returns. Dispense build cosmetics factory investment, dispense cumbersome management, dispense as agents to be restriction of distress, the list of goods by the market demand, improve the market reaction speed, rapid invasion of negative space in market competition, gain a competitive advantage. 2. Increase diversity of cosmetics manufacturer OEM products can help more brands, increasing product diversity. 3. Give a full play to the superiority of the enterprise owned enterprises have corresponding technology, brand advantage. Open new product design. OEM company has large factories, packaging and design technology, so that both can helping each other, realize the 1 + 1 & gt; The results of the two. 4. Advantage of trial and error to reduce loss of market is changing all the time, some cosmetics manufacturer brands often use trial and error into the market, and they will choose OEM way to test the possibility of entering the market.
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