Why choose cosmetics OEM, processing?
With the social division of labor becoming more and more detailed, many companies are paying more and more attention to the in-depth discussion of products, outsourcing some processes with high production costs and complicated processes. Many big brands of skin care products do not have their own production plants, they prefer to choose cosmetics OEM processing plants to produce products.
1. Reduce the cost of commodity maturity. For cosmetics products entering the recession period, reducing the production cost is the key point to maintain profits. If the production cost cannot be reduced at home, look overseas, for overseas investment or outsourcing OEM production, many European and American cosmetics brands use overseas processing to directly reduce production risks and costs in order to obtain higher returns.
2. Increase the diversity of commodities. For a single brand, its own brand is already very famous and has a certain customer base. OEM processing method is a shortcut to expand and develop more types of commodities, there is usually a gap between commodity development and market orientation. Brands can use OEM to process and produce commodities only by their own commodity formula, quickly filling the market gap and seizing the market.
For example, a brand manufacturer is good at producing water emulsion and cream products, but it lacks facial masks. At this time, OEM processing methods can be used to select professional facial mask processing manufacturers from outside, which not only saves time, it also cuts production costs and obtains high-quality masks.
3. Show the company's own advantages. Some cosmetics brands have competitive advantages not in production but in having various sales channels and improving after-sales service. At this time, OEM processing cooperation is almost a win-win method, for example, Watsons, relying on sales channels and service networks all over the world, does not produce goods themselves, but can win the trust of customers by providing the reputation of high-quality goods.
4. Take advantage of trial and error to reduce losses. The market is changing rapidly. Some brands often use trial and error to enter the market. They will choose OEM to detect the possibility of entering the market.
Brands outsource their products to cosmetics OEM manufacturers for small-scale production, and then push them to the market to observe the market reaction. If the reaction is good, they will produce in large quantities, thus launching their own new products and brands. If the market reaction is dull, brand owners can terminate OEM contracts and give up their plans to enter the market. They can use trial and error to gain more opportunities and reduce their own risks.
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