If you own a company which sells cosmetic products of any type whether it’s the high-end expensive brand name type or a low-cost high-volume alternative; either way, it makes sense to outsource the manufacturing of these products and your private label. Interestingly enough, all of the top luxury brand cosmetic products do not own their own laboratories or manufacturing facilities, oh, I suppose a few do, those that have been in business for many decades, but most all of them outsource.
Why you ask? It’s simple really most of these big brand name companies which sell cosmetic products such as anti-aging skin cream, lotions, and foundations are really marketing companies. They spend all their time marketing, branding, and advertising their products. They are busy putting on promotional events, and sending people out in the field to represent their products.
That’s what they are good at and that’s what they do. For instance you’ve seen top level products in the shopping malls where a pretty gal will give you a sample of a skin cream, serum, toner, or even a spot treatment. Once they put this sample on your skin, you can feel its soothing process, and thus you are more apt to buy it. This is what they specialize in, and they do it because that’s what they’re good at.
Companies do much better when they can extend their product lines to solve all of their customers and clients needs. For instance they might want different types of skin cream which help in different situations. For instance exposure to UV light to prevent sunburns, or cream which soothes the skin after contact for long periods with salt water. Also, the ingredients in these products must be able to interact with chlorine water, and at all different temperatures.
Does your company have the laboratories to do all that, do they have the experience, and where are you going to find the top chemists in the country to do all this for you? Are you beginning to see the incredible capital expenditure required to have your own labs and manufacturing facilities? Now you can see why so many of the top companies outsource the manufacturing of these products to companies which specialize private-label manufacturing.
There’s a lot more to moisturizers, skin creams, suntan lotion, and skin products. You can’t know everything, and that’s why you need a good solid laboratory, and manufacturer behind you. You need someone who can coordinate the private-label, a specially branded container, and just the right product to present to your brand loyalists who are willing to pay you big money to solve all of their cosmetic needs. You also have a responsibility to do it right, and still retain a profit.
In this case, outsourcing and contract manufacturing works. It’s not only logical, when you stop and think about it, it is really the only answer. Outsourcing is the solution, now it’s your job to execute that strategy. Indeed I hope you will please consider all this.