“OEM” is a commonly used term in product development-but many aren’t sure of what the abbreviation “OEM” stands. OEM is Original Equipment Manufacturer. Sometimes the OEM definition can be misleading because OEM manufacturers produce components that are used in their products or applied to design specifications when working with a partner. A request from another company for products they wish to sell under their brand or label is also known as “ODM” or original design manufacturer.
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Common product categories in the OEM/ODM industry include products with high-volume output such as toys, plastics, and plastic parts, garments, and cosmetics among others. Researching the type of OEM company that can deliver the necessary component/s for any product can be time-consuming and frankly confusing.
There are many variations & levels of OEM/ODM manufacturing and several paths to travel down on the road to product development, but there are core factors that should exist with any OEM/ODM company positioned an original product manufacturer.
The task of selecting a quality manufacturer for your product design can be a daunting task. Many questions & problems can arise in the product development process. It’s important to know that the company you are working with is capable of problem-solving and this should be a factor in your selection criteria.
Clients usually commission the manufacturer to produce components or a subsystem of components, according to the client’s desired design specifications, rather than full products. Some OEM/ODM companies, however, are fully vertical and can deliver a complete packaged product to the client. The value in selecting an OEM/ODM manufacturing company is it allows both companies to benefit from each other’s strengths. OEM/ODM manufacturing solutions traditionally offer cost-effective benefits to multinational corporations (MNCs) with large-scale order requirements, but OEM/ODM production is also becoming popular among smaller clients.
Finding an OEM/ODM manufacturer that understands both the established business client as well as the start-up business client and also demonstrates a willingness to work with small to large scale manufacturing will give you more flexibility as you scale your new product line.
The global cosmetics OEM/ODM market is growing fast. Recent data shows the market was worth 56.77 billion in and could reach 80.99 billion by , growing by 5.5% yearly. This growth means choosing the right makeup manufacturer is very important for brands wanting to succeed in the beauty industry.
OEM (Original Equipment Manufacturer) in cosmetics refers to brands hiring targeted factories to produce products based on their designs. The brand provides the formula, packaging, and branding, while the factory is responsible for production. This allows the brand to focus on selling products rather than manufacturing them.
It is important to understand the difference between OEM and ODM. ODM factories design and manufacture products, while OEM factories only produce products based on the brand’s design. Many new brands use OEM services because they do not need to build their factories.
In North America alone, especially the United States, the OEM/ODM market was valued at $9.2 billion in and is expected to grow at a compound annual growth rate of 4% by .
Before looking for a manufacturer, be clear about your needs. This will help narrow down your options and find the best match.
Different OEM Makeup Manufacturers often specialize in producing certain types of products.
For mass-market products, choose factories that produce large quantities at a lower cost. Countries have different markets with different regulatory requirements, so ensure your target manufacturer has production experience in your target region.
However, Xiran Cosmetics offers flexible options for emerging brands, allowing you to start with smaller amounts. This flexibility will enable you to test the market and gradually scale production as your brand grows.
By choosing an OEM Makeup Manufacturer like Xiran Cosmetics, you can ensure that you get the support you need to successfully launch your product without the pressure of a large upfront commitment.
Finding the right makeup manufacturer can help companies reduce costs, increase sales profits, and ensure a stable supply of products. Here are nine supplier search channels summarized from practical experience. You can choose according to the company’s actual situation.
Participate in events such as Cosmoprof Worldwide (held in Bologna, Hong Kong, and Las Vegas), in-cosmetics Global, and Paris/New York MakeUp. These events allow you to communicate face-to-face with factories and understand their work.
Whether search engines, various professional B2B websites, online trade fairs, or even various new media currently exist, they can be used for supplier development.
Contact organizations such as the Personal Care Products Council to obtain a list of trustworthy factories.
Keep an eye on industry competitors and analyze material brand supplier resources from competitor products. It is also a standard method at present. It mainly targets strong competitors with high market share in various industries. Companies can cooperate with suppliers based on their actual conditions to improve their competitiveness.
Procurement publicly releases procurement needs to the public through bidding platforms or other public channels through bidding announcements, attracts potential suppliers to participate, and selects suitable suppliers through legal bidding procedures.
This supplier development channel is generally used by listed companies, state-owned enterprises, large-scale enterprises, and government procurement.
Through market promotion, enterprises publish their own procurement needs on the corporate website and authorize relevant parties to enter the procurement platform docking interface to provide relevant corporate qualifications. This attracts potential suppliers to quote, which is also a commonly used search channel.
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As procurement staff, there must be a large number of sales staff who actively call or visit every day to recommend suppliers so that you can understand their preliminary information and keep relevant records. This is also one of the most commonly used channels for procurement to develop suppliers, and perhaps a high-quality supplier is right in front of you.
As market competition becomes increasingly fierce, many industries will set up industry associations to integrate resources and work together. The industry associations have many lists of similar companies and the operating conditions of related companies. This is also a channel for companies to choose high-quality suppliers with the help of associations.
Suppliers and demanders focus on their competitive advantages in third-party procurement or third-party information platforms. There are already many professional procurement teams or data information-sharing parties with many supplier resources for companies.
Even for some personalized procurement needs of enterprises, third-party organizations can also make appropriate recommendations. This is also a more commonly used development method.
Once you’ve identified a list of potential Color Cosmetics Manufacturers through market research, check for the following:
ISO (Good Manufacturing Practice for Cosmetics), ISO (Quality Management), and possibly ISO (Environmental Management).
For specific markets, look for manufacturers that comply with regional regulations. For example, if selling in the United States, look for ISO (Safety of Cosmetics) or FDA approval.
Ask for references and check online reviews. For example, ask in online industry forums, LinkedIn groups, and business review platforms.
Visit the factory in person for the most comprehensive assessment of the manufacturer’s capabilities. Check for things like modern equipment, clean facilities, and employee expertise.
When contacting a factory, ask clarifying questions:
Ask about their minimum order quantity (MOQ), ranging from a few hundred to a few thousand units.
How long does it take to produce the product, from development to finished product delivery?
Ask if they have a standard formula you can customize or if they develop completely custom formulas.
Details on material, labor, and packaging costs.
During this discussion, you will want to assess their knowledge of cosmetic formulations, familiarity with ingredient interactions, current industry trends, and understanding of regulatory requirements. For example, formulating for sensitive skin or developing long-lasting cosmetics.
Always test samples before signing a contract:
Request samples of existing or custom products. Some manufacturers may charge a fee for custom sample development, especially for complex formulas or when using unique ingredients. When making your request, provide precise, detailed specifications on formulation attributes, performance expectations, sensory qualities, and packaging requirements.
Test color, texture, and performance. For example, for the longevity of a color cosmetic lipstick, evaluate physical characteristics such as color, texture, scent, and appearance. Remember that initial samples often require refinement, so be prepared for an iterative process of feedback and adjustments.
Distribute samples to trusted industry colleagues, beauty influencers, or potential customers to see if they like the product. Systematically record all feedback, noting both positive attributes and areas for improvement.
Make sure the contract covers the following:
A good partnership helps your brand grow:
Keep these trends in mind when choosing a factory:
Finding the right OEM Makeup Manufacturer takes time but is worth the effort. Focus on clear communication, quality checks, and building trust. Following the steps below, you can partner with a factory to help your brand succeed in the competitive beauty market.
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