If you own a business that sells cosmetic products of any kind, be it the expensive high-end brand name type or a high-volume, low-cost alternative; Either way, it makes sense to outsource the manufacturing of these products and their private label. Interestingly, all top luxury brand cosmetics don’t have their own labs or manufacturing facilities, oh I guess some do, those that have been in business for many decades, but most of them outsource.
Why do you ask? It’s simple, actually, most of these big brand name companies that sell cosmetic products like anti aging skin creams, lotions and foundations are actually marketing companies. They spend all of their time marketing, branding, and advertising their products. They are busy organizing promotional events and sending people into the field to represent their products.
That’s what they’re good at and that’s what they do. For example, you’ve seen high-end products at the mall where a pretty girl will give you a sample of a skin cream, serum, toner, or even a spot treatment. Once they place this sample on her skin, she can feel its soothing process and is therefore more likely to buy it. This is what they specialize in, and they do it because it’s what they’re good at.
Companies do much better when they can expand their product lines to solve all the needs of their customers and clients. For example, they may want different types of skin creams that help in different situations. For example, exposure to ultraviolet light to prevent sunburn, or a cream that soothes the skin after prolonged contact with salt water. In addition, the ingredients of these products must be able to interact with chlorinated water and at different temperatures.
Does your company have the labs to do all of that, do they have the experience, and where do you find the best chemists in the country to do all of this for you? Are you starting to see the incredible capital expense required to run your own labs and manufacturing facilities? Now you can see why so many of the major companies outsource the manufacturing of these products to companies that specialize in private label manufacturing.
There’s so much more to moisturizers, skin creams, suntan lotions, and skin care products. You can’t know everything, and that’s why you need a good solid lab and a manufacturer to back you up. You need someone who can coordinate private label, specialty brand packaging, and just the right product to present to your brand loyalists who are willing to pay you top dollar for all of their cosmetic needs. You also have a responsibility to do well and still keep a profit.
In this case, outsourcing and contract manufacturing jobs. Not only is it logical, when you stop and think about it, it’s really the only answer. Outsourcing is the solution, now it’s your job to execute that strategy. In fact, I hope you will please consider all of this.
