Why choose cosmetics OEM, processing?
With the social division of labor becoming more and more detailed, many companies pay more and more attention to the in-depth discussion of products, outsourcing some processes with high production costs and redundant processes. Many big brand manufacturers of skin care products do not have their own production factories, they prefer to choose OEM cosmetics processing factory OEM production products.
1. Reduce the cost of commodity maturity. For cosmetic commodities entering recession, reducing production cost is the key point to maintain profits. If 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 and production 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. If you want to expand and develop more types of commodities, OEM processing method is a shortcut, there is usually a gap between commodity development and shopping mall orientation. Brand owners can use OEM to process and produce commodities only by their own commodity formula, quickly filling the market gap and seizing the shopping mall.
For example, a brand manufacturer is good at producing milk and cream products, but it lacks masks. At this time, OEM processing methods can be used to select professional mask processing manufacturers from outside, which not only saves time, it also cut production costs and obtained high-quality facial masks.
3. Show the company's own advantages. The competitive advantage of some cosmetics brands lies not in production and production, but in having a variety of 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 itself, but can provide the reputation of high-quality goods to win the trust of customers.
4. Take advantage of the opportunity of trial and error to reduce losses. The market is changing rapidly. Some brands often enter the market by trial and error. They will choose OEM to detect the possibility of entering the market.
Brand owners outsource their products to cosmetics OEM manufacturers for small production, and then push them to the market to observe the market response. If the response is good, they will produce in large quantities, thus launching their own new products and brands. If the market response is flat, brand owners can terminate the OEM contract and give up the intention of the product to enter the market. They can use the trial and error method to obtain more opportunities and reduce the risks they bear.
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