How to Choose OEM ODM Cosmetics?

OEM is often the word that comes to mind when one thinks about producing their own cosmetic products.

You can find more information on our web, so please take a look.

In this article, we will be explaining details regarding cosmetics ODM and its difference with OEM. In the end, we will also be introducing the 3 points we think are important when choosing a cosmetics ODM partner in Japan.

Definition of Cosmetics ODM

ODM stands for &#;Original Design Manufacturer&#;. ODM is an abbreviation for Original Design Manufacturing. Cosmetics ODM is a manufacturing method in which an ODM company plans, designs, develops, and manufactures cosmetic products under the brand of the buyer.

This enables the buyer to pick an off-the-shelf cosmetic product that is ready to go without any planning or know-how.

There are also ODM companies whose support extends to marketing and logistics.

Difference Between Cosmetics ODM and OEM

Let&#;s take a look into the differences between cosmetics ODM and OEM.

In short, an ODM is a company that designs and manufactures a product. In the cosmetic sector, a lot of companies use this term as a &#;we do everything for you&#; statement. However, it actually means that the ODM company rebrands existing products from its catalog for other companies to market.

You probably come across a lot of products that look the same except for the brand print on Amazon. That means they are products coming out of the same ODM.

OEM, on the other hand, is when the manufacturing company designs a product originally for you or produces a product that was designed by you.

Pros of Cosmetics ODM

We think there are 3 key benefits of using cosmetics ODM.

No need for know-how

As the seller will be re-branding an off-the-shelf product of the manufacturer, they will not have to think of a concept or plan the product.

This is useful for people who want to launch a product without having to do the necessary research and obtain the know-how.

Much shorter lead time

Developing an original product from scratch requires an R&D process which can take up to months. This is not limited to formulation but also the packaging materials and design as well.

When it is an ODM product, none of this will be necessary and the product will be ready to order and delivered in a much shorter span compared to an OEM product.

Lower MOQ

Making an original OEM product requires a certain quantity. This can be 500 or 3,000 depending on the product.

However, ODM products are often in stock and can be delivered in a few days.

Even if the manufacturer does not have it in stock, they will still manufacture a certain amount of products and provide the required quantity from their inventory.

You will get efficient and thoughtful service from Doriff.

Cons of Cosmetics ODM

There are also downsides of cosmetics ODM which makes it not for everyone.

Lack of Originality

As these are off-the-shelf products, there will be no originality to the product. For companies that aim to differentiate their products from others in the market, cosmetics ODM products will not be a viable option.

Inflexible Packaging and Design

In the case of an OEM product, the buyer has the freedom to choose from thousands of different containers and packages.

However, for cosmetics ODM products, this is different. Buyers will be limited to the options that the manufacturer has in their inventory, in most cases.

One way to work around this is, using an off-the-shelf formulation with original packaging.

Of course, this will bring the MOQ quite a bit up since the containers will be required to be procured.

3 Key Points When Choosing Your Cosmetics ODM Partner in Japan

In this section, we will be explaining the 3 key points we think you should keep in mind when choosing your cosmetics ODM partner.

Do they have a wide range of products?

At least in Japan, it is difficult to run into ODM-only companies. It is mostly OEM companies that also offer a set of ODM products.

Some companies will only have 1-2 products while others have dozens. Working with a company that offers a wide range of products will be more practical in the long term when you want to add new products to your existing catalog.

How much flexibility do they offer?

Cosmetics ODM products are off-the-shelf products that are often preferred for their speed and practicality. By nature, this comes at the cost of flexibility, which is inevitable.

However, the extent of this also varies from manufacturer to manufacturer. Some companies may be able to offer minor changes to the formulation and a few different options on the packaging materials.

What is their MOQ policy?

One of the reasons why many people prefer ODM over OEM is the minimum order quantity.

If the cosmetics ODM company has the product in their inventory, they can swap the label very easily. Some companies may do this from as little as 20-30 products while others may require 100 or more.

Also, there are companies that do not hold stock and require OEM-like quantities also.

Conclusion

In this article, we explained cosmetics ODM with its pros and cons while comparing it to cosmetics OEM.

Even though we mainly specialize in OEM -as can be seen in our company name- we are also experienced with cosmetics ODM.

We will appreciate any inquiry from your end regarding cosmetics ODM and OEM via the button below.

Are you interested in learning more about OEM ODM Cosmetics? Contact us today to secure an expert consultation!

The demand for cosmetics in the global beauty market is increasing year by year, and there are still many new start-up companies that are poised to capture the beauty market. In order to make finished products and sales volume meet expectations, many companies will ask cosmetics OEM manufacturers to design outer packaging and formulas and even entrust them to plan brand and sale channels. Want to know what are the services of cosmetics manufacturers? How does the manufacturing process work? What are the key points to pay attention to? If you want to start a cosmetics brand, don't miss out on this article.
 

What are the cosmetics manufacturers' services?

Cosmetics manufacturers' service items are divided into OEM, ODM, and OBM. The three are also entrusted by customers to manufacture and mass-produce cosmetics products, but the scope of acceptance to produce is slightly different. How each item works is described in detail below, let's see it together.
 

OEM

OEM is short for Original Equipment Manufacturer. Cosmetics OEM manufacturer, which means to make mass production according to the client's cosmetic ingredients, and do not participate in the packaging and formula design. In the OEM service content, the product formulation design, specification size, packaging appearance, etc. are all determined by the clients. When the experiment is completed and mass production is ready, the cosmetics manufacturer will be entrusted to carry out mass production according to the information provided by the customer.Place the customer's trademark and logo on the packaging of the cosmetics.

ODM

ODM is short for Own Designing & Manufacturing. ODM covers packaging design, formula design, and the production of finished products. Experienced cosmetics manufacturer, familiar with the appropriate ingredients of each cosmetic, and able to make differentiated products that meet client's requirements. Cosmetic packaging, bulk, and packaging design are all covered, and the manufacturer provides advice and design assistance, so the cost is higher than OEM.
 

OBM

OBM is short for Original Brand manufacturing. OBM manufacturer assists clients who want to create their own brands to build brands step by step from scratch. In addition to the design and mass production of the above two products, market analysis, brand positioning, and brand planning are all handled by the manufacturer. OBM allows cosmetics manufacturers to become clients' marketing consultants, and also provide advice on pricing strategies and sale channel selection, becoming the best partner for clients to create their own cosmetic brands.
 

OEM/ODM/OBM Comparison Table

OEM ODM OBM Service Content Make mass production according to the client's cosmetic ingredients, and do not participate in the packaging and formula design. Covers the packaging design, formula design, and the production of finished products Market analysis, brand positioning, brand planning, packaging design, formula design, and finished products are all handled by the manufacturer Suitable for Those who own established products, or have the ability to develop and research formulas by themselves. Those who have no idea about the production of cosmetics products and can not develop their own products. If you want to build your brand, you should pay more attention to the experience and market familiarity of cosmetics manufacturers, and leave most of the planning and design matters to the OEMs.

 

How does the OEM manufacturing process work?

 

1.Communicate with clients and understand product information

Communication in the early stage of the cosmetics OEM can be said to be very important. The manufacturer will confirm the needs of customers and provide suitable solutions. At this stage, clients should try their best to inform the manufacturer of their needs, and at the same time, pay attention to whether the specialty of the manufacturer meets their needs.
 

2.Confirm product details, quantity, quotation

In this stage, in addition to confirming details such as product formula and outer packaging with the manufacturer, the minimum quantity of production and quotation should also be confirmed. After confirming that the plan provided by the manufacturer meets the budget, you can ask how many times the same product sample can be adjusted.

3.Making samples and testing

After the sample is produced, if the clients have any doubts about the texture, color, product packaging, etc., they can discuss it at this time, and after the adjustment and repeated tests by the manufacturer, the most ideal product can be made.
 

4.Sample final confirmation

Once the samples have reached the confirmation stage, will enter the formal mass production stage. So make sure to pay attention to all product details at this time, and after confirming that they are correct, ask the manufacturer to proceed to the next stage.
 

5.Enter the mass production stage

The mass production stage is the formal production process of cosmetics manufacturing. You can arrange your follow-up product launch plan in advance by knowing the lead time and transaction terms of the manufacturer. With a huge professional division of labor OEM manufacturer, it can accurately measure the production time and complete client's commissions on time.
 

6.Delivery

Before delivery, professional manufacturers must carry out strict quality control inspections to control the quality of finished products.
Inspections are conducted according to government regulations and standards to ensure that consumers are safe to use. While the manufacturer is managing the inspection, you can start to prepare for the product launch, log in to the product registration platform of the Taiwan Food and Drug Administration, and create a product information file in hard copy or electronic file following the "Measures for the Management of Cosmetic Product Information Files", so that the product can comply with cosmetics listing regulations.  

4 considerations for entrusting cosmetics OEM

Confirm the MOQ of cosmetics manufacturer

MOQ means minimum order quantity. First of all, you need to know that in order to develop cosmetics, the manufacturer will need to start the production line, and therefore there will be corresponding costs. If the cosmetics you want to develop use better quality ingredients, or the packaging design is more special, it is reasonable that the cost is higher.
The MOQ will also be much higher. Therefore, before entrusting a cosmetics manufacturer, you must know the MOQ of the products in advance, so that you can choose the corresponding style according to your budget and marketing ability.
 

What are the factors that affect the cost?

Many factors affect the production cost of cosmetics, including the selection of raw materials, the selection of product packaging, the complexity of processing, the production volume of products, and the overall quality inspection and design details. It is suggested that at the stage of negotiating with cosmetics manufacturers, you can know more about the cost factors mentioned above.
 

Can the manufacturer maintain quality consistency?

Good cosmetics must consider the consistency of quality. The finished product must undergo a long-term stability test, and countless product tests and trials to ensure product functionality. All BEAUNION products have passed -hour stability tests, and passed high-temperature environments of 45°C and high-low temperature cycle tests from -5°C to 40°C, challenging product quality with the most severe temperature. Even 3 years after shipment, we will continue to observe the product retention situation.

Whether the manufacturer has obtained cosmetics GMP certification

To develop innovative, stable, and safe products, it is recommended to choose a large-scale manufacturer for production. It is very important to obtain the two major indicators of a cosmetics factory, such as passing the cosmetics GMP certification of Taiwan and the ISO international certification, to ensure that the finished product is excellent.

  Third-party inspection
The safety of cosmetics is very important, and it is recommended to send them to a third-party inspection before going on the market to ensure compliance with safety specifications. BEAUNION provides the service of sending products to third-party inspection on behalf of clients and recommends clients choose the most effective inspection plan. SGS and SuperLa are common cosmetic and skin care product inspection agencies. The inspection content includes sunscreen efficacy tests, function evaluation, antibacterial tests, stability tests, safety tests, etc.  

In conclusion

I believe that you already know the cosmetics OEM process and the key points that need to be paid attention to now. The next step is to choose an excellent cosmetics manufacturer to produce high-quality and stable finished products for you.

BEAUNION has rich experience. BEAUNION is cosmetics manufacturer with more than 50 years of experience. We are the supplier of many well-known global brands and provides high-quality products. We have a professional technique, complete equipment, professional research and development, and excellent quality, and the mission you entrust us must be achieved. We are a large-scale cosmetics factory that you can trust.

Are you looking for a cosmetics manufacturer or a makeup manufacturer, please contact us.