Use Private Label Cosmetics to Increase Your Profits
Use Private Label Cosmetics to Increase Your Profits
7-minute read
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If youre looking for ways to increase revenues think about adding private label cosmetic products to your lineup. Its a great way to quickly broaden your product offerings, build your brand, and increase profits for very little costs.
Private label packaging refers to product manufacturers that will sell, and brand products under your brand name. There is a private labeler for just about any manufactured product you can think of.
You see private label products everywhere in retail. Store branded products found in Trader Joe's, CVS, Target, Costco, and other retailers are typically made by private labelers and branded with the stores product name. Think Costcos Kirkland Signature, or Targets Good & Gather. Even Amazon has gotten into the private label game. And many of these generic labeled products are made by national brands!
Private label cosmetics (PLC) is an aspect of private label packaging that focuses on the cosmetic and beauty markets. Products from these companies will quickly fill any hole in your cosmetics line. And using PLC products is a low-cost way to quickly test your target market with new offerings without the expense of research, production, and product testing.
Private labeling is quite prevalent in cosmetics; youd be surprised how many of your competitors are using private labeled products to augment their cosmetic and beauty product lines.
A good example is private label skincare. There are a number of companies specializing in manufacturing sunscreens and moisturizing creams, gels, cleansers, and other skin care products with very low minimum order requirements. Contract with the manufacturer, and within a few weeks youll have proven products branded in your name ready to go to market.
And if you think private label cosmetics are just for cosmetics manufacturers, think again!
Private Labeling for Spas and Salons
If youre a spa, salon, or other body-care establishment, think about private labeling your own line of branded products to sell to your clients. Its easy to do and is quite lucrative!
The salon and beauty industries are by their nature very social. You have a captive audience for an hour or two that likes to chat. Use your branded skincare and hair care products on them as you perform your services. While you do so, it gives you an opportunity to gently upsell them on your products. Many of these clients will purchase your branded products for use at home.
Not only are they paying for your branded beauty products while theyre at your salon, they are also purchasing your branded products for use at home. With a clientele that returns on a regular basis, you couldnt ask for a better opportunity!
The Benefits of Private Label Cosmetics
There are a lot of good reasons for using private label cosmetics. Chief among them is being able to quickly get up and go for very little cost.
Here are 7 reasons to consider Private Label Cosmetic Packaging:
A low-cost way to add new products quickly and easily.
Higher profit margins no development or production costs.
Products are already formulated no need for development or testing.
Products are branded under your name.
Products are retail ready.
Low-cost way to test the market.
Very low minimum order requirements.
Private labeling is popular because its so easy to jump into the game. And its profitable. In fact, many of your competitors are using private labeled products against you, and why not? For very little cost and commitment, you can quickly test new markets and find out if adding new products to your lineup makes sense.
And if youre a start-up, private labeling is a great way to go! You can be up and running quickly. Let the private labeler do your manufacturing. The cost and time savings from not having to invest in production, equipment and employees can be put into areas like sales and marketing, areas that really make a difference to your bottom line.
Whats not to like?
The Downside of Using Private Label Cosmetics
While PLC has many advantages, there are a few downsides to consider:
1) There is very little, if any, customization to the products.
2) Everybody buys the same products.
Using private labeled cosmetic products is an excellent sales strategy, and many successful businesses sell nothing but private labeled products. The quality of the products is generally very good. However, what you see is what you get theres little opportunity to customize beyond the private labelers standard product formula.
Also, if everybody is buying and selling the same product, then the only differentiation between competing companies is branding. And that may not be enough, especially in a competitive market.
So, how do you stand out? It gets down to sending the right message that resonates with your audience. And thats where secondary box packaging comes in.
Secondary Box Packaging The Way to Differentiate
Private labeling is an excellent way to bring new products to market for very little cost. However, everybody is in the same game. Theres a good chance you will be competing against other companies selling the same PLC product packaged in the same bottle, tube, or compact as you are. Branding will be the only differentiation, and if youre not a known brand you have no competitive advantage. On a retail shelf everybody looks the same. As a consumer, how do you choose?
Give Consumers a Reason to Select Your Product Over the Competition.
By adding secondary packaging, you have an opportunity to stand out from the crowd, and more importantly, to define your product the way you want consumers to see it. Equally important is showing the benefits of your product over your competition. After all, the goal is to outclass your competitors by making your product appear more premium or beneficial than theirs.
How To Make Your Private Label Cosmetics Stand Out
Custom printed product boxes are the secondary packaging of choice in the cosmetics and beauty industry for good reasons. Printed boxes give you large canvases to work with to create just the right message that resonates with your audience. And by layering the box with foils, glosses, soft touches, embossing, and other effects, you tug at consumers emotions by appealing to their preconceived notions of what constitutes quality, luxury, beauty, and other attributes.
In short, custom product boxes dress up your compacts, bottles, jars, skin cream tubes and lipstick cases with packaging that implies your product is something more than it is. Consumers subconsciously transfer these qualities to your product.
The Story You Tell Through Your Product Packaging is Just as Important as the Product Inside.
Cosmetics manufacturers discovered decades ago that packaging that dazzles us, or hints at what we perceive as high-quality, elegant, or luxurious results in much higher sales. This packaging illusion simply amplifies what we have been conditioned to believe what quality is, and it lures us in. Cosmetics companies have found the increase in sales easily justifies the higher packaging costs. Thats why they do it.
Using your packaging to send subtle messages to your audience about quality, luxury, sexiness, and other desirable attributes is a concept known as value added packaging. It doesnt have to cost much; we discuss value added packaging and a related idea, premium product positioning in our blog section. They are easy to read, and applying these concepts to your product packaging will supercharge your sales.
Its More Than Retailers!
Dont think value added packaging just applies to retail packaging! What youre really doing is increasing your brand, and that is the real value. Whether your product is going on a retail shelf, or purchased through the internet, you are using your printed box packaging to influence how customers see you by defining and implying the qualities you want them to perceive. And in the process, you are building your brand.
Ultimately, its the consumer who defines your brand. What you want to do is steer them towards viewing your company and products in a positive light. Consumers seek out known brands, and its the successful brands that win the sales and profits game.
For more Private Label Skin Care Lineinformation, please contact us. We will provide professional answers.
Contract Manufacturing A little different twist on things
Private label cosmetics manufacturers sell you their proprietary cosmetic and beauty products branded in your name. A contract manufacturer will take your formulas and create products that are solely yours. Private label and contract manufacturing are very closely related, in fact many companies do both.
The only difference is with contract manufacturers its the client that controls how and what goes into their products. Other than who owns the formula, the processes are very similar. They are doing the manufacturing for you. However, once the products are produced, whether its through a private label or contract manufacturer, you still need packaging that attracts and differentiates you from the competition.
Private Label Cosmetics for Newbies
If youre new to the private label cosmetics game a good source is Mana Private Label. They have been around a long time and have a wide range of quality cosmetic products from skin creams and mascaras to brow tints, lipsticks, foundations, and everything in between. If you cant find it here it probably doesnt exist. They have very low minimum order quantities, and their program is designed to easily walk you through the process.
Short-Run Box Packaging
The Box Co-op works very closely with cosmetic and beauty private labelers like Mana. While its easy to get cosmetic products in small volumes from private labelers, its not so easy getting cost-effective custom product boxes for these low-volume products.
We have a short-run box program that is specifically tailored to fit the low-minimum requirements of cosmetic private label manufacturers. It works particularly well for customers needing 1,000 units or less. In addition, we let you split your orders into smaller lots to accommodate products that need individual packaging that vary by shade or color.
For cosmetic private labelers we work with we keep a database of their product sizes. Simply give us the product name and we can give you costs for custom printed boxes that fit these products right over the .
To find out more please give us a call!
Final Thoughts
Private label cosmetics are a great way to go whether youre an established company or just getting started. You can be up and running in no time. And whats not to like? It doesnt require a big investment, profit margins are great, theres no need for new equipment or employees, low minimum order requirements, and retail-ready products branded with your name just add sales!
If you need help creating premium brand packaging for your cosmetic products or choosing which custom packaging works best for your brand, the Box Co-op can help.
We'll assist your business in finding a custom cosmetic packaging strategy, cosmetic product package design, and a packaging solution that stands out from the competition.
Partner with Box Coop to create custom cosmetic product packaging and see the results for yourself.
The Pros and Cons of Selling Private Label Products
Private labels are growing in a fast-paced manner. It can be a solution for you, especially if you want to start selling products in the skincare and cosmetic industry. Are you interested in selling your brand? What are the pros and cons of selling private labels? This article will guide you.
What is a private label?
A private label is one of the forms you can take if you want to sell products made explicitly by a manufacturer and sold under your name. For instance, manufacturers will produce the entire product, form formulation, packaging, labeling, branding, etc. You will be in charge of selling the products with your brand.
Why is selling private label products a good move for your business this ?
Private label is indeed a profitable business venture this ! You can sell the proper trending skincare and cosmetic products and partner with the best manufacturer. When you sell high-quality margins to your target customers, it can result in a substantial profit.
Pros Of Selling Private Label Products
There is a broad range of opportunities and possibilities in private label products. If you want to start venturing into this industry, here are the pros you can obtain:
Offers Cheaper Initial Cost
Costs are one of the problems of many businesses, primarily start-ups. Do you have the same concern? Dont worry; private label products got you covered! Private label manufacturers in China price their products reasonably. Depending on skincare products, services, customization, and shipping, you will generate low initial costs.
Reduced Competition
If you own a retail skincare business, private label skin care products are a godsend for you. You will obtain products at a much lower price and then charge whatever you want. Compared to your competitors, which sells their price higher and at a discount. In short, you will allure customers by marketing high-quality yet affordable skin care.
Guaranteed High-Profit Returns
The private label process allows sellers to put their brand on the products. That means the seller will not have any additional costs. Everything is ready for youeven the marketing and branding. Private label products also have enough exposure. You will not have to spend more to promote your skincare and body products.
Better Control Over The Pricing
Selling private label skin care products or private label body products gives you better price control. You can price your products according to your target market, marketing strategy, and expected sales. It also allows you to focus on branding while having enough stocks.
Increase Brand Reputation
Private label products encourage uniqueness and uniformity. That means there is a pattern and standard within your brand. For this reason, your customer will remember your trademark and love your product. This case leads to a higher brand reputation.
Customer Loyalty
In the skin care retail sector, it is challenging to gain loyal customers. Given the fact that this industry, you have lots of competitors in terms of brand and product! Consumers might switch from other sellers who have better pricing than you. This issue wont happen if you choose the private label since you can price consistently and expand your product lines based on their demands.
Vast Opportunities
Private label offers vast opportunities in profits, shipping, production, packaging, etc. It will function as your stepping stone to taking advantage to grow your brand.
Easy To Expand Product Lines
When you private label products, you are not creating the products from scratch. Instead, you will innovate and brand an existing product into your own. This concept will make it easy for you to add and market more products in your skincare and cosmetic business.
Provide Flexibility
One of the best benefits private label provides is flexibility. You can respond fast to trends and your customers expectations. It also implies that you have the flexibility to change products, from skincare to body care and so on.
Have Already Established Market
The private label industry is already established, meaning it is stable and adaptable. You can obtain products quickly and are guaranteed to earn high profits. When you enter this market as a buyer, your business will have a higher chance of success.
Cons of Selling Private Label Products
In any industry, you will encounter not only pros but also cons. It is the same concept as private label skincare and body products. So what are the cons of selling private label products? You can refer below:
Minimum Order Quantity (MOQ)
One of the most common rules of different private-label skin care companies is MOQ. This MOQ will depend on the product, manufacturer, and other services. In TY OEM Cosmetic, we offer a low MOQ, around pcs.
Hold A Low Operation Control
As business owners, you want to ensure that your product is quality and effective. However, if you choose private label products, your control over your product expectations might fall short. If you still want to be an in-partner in creating your brand, private labels like TY OEM can allow you to do so!
Quality Control
One of the concerns of many importers is the products quality. It might be true, especially if you have chosen a poor type of manufacturer. To prevent this, TY OEM is to the rescue! We are a certified and licensed private label company. From private label products to services, you will get the best experience from us!
Possible Fraud
Watch out for red flags! Like any other industry, you might also fall for private label scams. Some manufacturers present themselves as number one, but they return you with poor-quality products. Others front their prices low, but youll be surprised how it changes without informing you. These scenarios will not happen if you partner with a trustworthy private label manufacturer like TY OEM Cosmetics.
Manufacturers Dont Innovate
Some manufacturers dont innovate their private label skin care products and private label body products. They go over the marketing of other big brands and make product variations of what the consumer wants. If you are a business owner, competitive, and want uniqueness in your brand, you must avoid this.
The Best-Selling Private Label Products in the Cosmetic And Skincare Market
Based on the data provided by Cosmetics Europe, personal, skincare, and body products are essential to clean, beautify, and enhance our appearance. Under this category are cosmetics, skincare, and body products ranging from face cleansers to lotions and shampoos. With this variety, here are the best-selling private label products you must take advantage of to sell!
Cleanser
A facial cleanser is a skincare product that eliminates dirt, oils, grease, and pollutants on your skin. This product also exfoliates dead skin cells and renews healthier skin. It is the first step in the skincare routine and an essential product for the skin.
Toner
A private label skin care is ideal for deep hydration, and moisturization is toner. Because it has a liquid-watery consistency, it penetrates the skins layer and does what it intends to do without stripping it.
Sheet Mask
A sheet mask is made of thin cloth that has a shape mimicking the face. This product is infused with various vitamins in the form of serum. That would absorb the ingredients and stay on the skin rather than rinsing it off.
Moisturizer
Moisturizers are skin care products meant for hydration and moisturization. This product is suitable for dry, acne-prone, and flaky skin. It would address the issue of dryness by infusing vitamins and minerals into the skins layer.
Sunscreen
Today, sunscreen has become a must-have for many consumers. This private label skin care product protects the skin from UVA UVB rays, which leads to aging and various skin issues.
Shower Gel
The primary purpose of shower gel is to cleanse and exfoliate the skin. As its name implies, this skin care product is in the form of gel which later lathers up and washes away dirt, oils, grease, and other pollutants.
Liquid Shampoo
A shampoo is commonly formulated in a liquid, gel-like form. This private label product aims to cleanse the hair, specifically the scalp. This product can lead to healthier, nourished skin when consumers regularly use it.
Conditioner
Conditioner has the purpose of after-care hair. That means this product will seal out the hair moisture and hydration, keeping nutrients in and pollutants out.
Deodorant (Roll On)
As the name suggests, the deodorant roll-on has a packaging design with a ball-shaped applicator. As the consumer roll the product on the armpit, there would be a release of antiperspirant.
Deodorant (Aerosol)
Aerosol deodorant is in the form of a spray. That puts the product in in-direct contact with the skin. It needs to be a few distances away from the underarm when applied.
Hand Moisturizer
The hands also need some love and skincare. For this reason, a hand moisturizer is responsible for moisturizing, nourishing, and boosting unhealthy, dry skin.
Toothpaste
Toothpaste is an essential personal care product for hygiene, specifically for the mouth and teeth. This product will clean, exfoliate, and whiten the teeth with regular use.
The Things To Keep In Mind When Starting Private Label Products in the Cosmetic And Skincare
When you want to build a skincare retail business and start with private label products, you must keep in mind the following:
Meet the Legal Standards
There are varieties of legal standards and ethical codes. When you partner with a private label manufacturer, you must require them to present their licenses. At the same time, they must adhere to the standards of the FDA for the products to be legal for selling.
Focus on the Price
The private label products you will sell must be profitable for your business. If not, its better to avoid starting from scratchinstead, invest in other famous brands. So, to gain profits, learn how to price your skincare and body care products correctly.
Build Customer Loyalty
It is essential for your products to be consistent, high-quality, and priced well. It would help if you had a strategy that would sell, at the same time, retain customer loyalty. One of the ways you can make this happen is to release a sequence of private-label products and expand slowly.
Pick a Top-Tier Products
Lets be honest. No one would buy a product that is poor in quality and that they dont need. For this reason, you must also be strategic in choosing which products you want to start with. May it be private label skin care products or private label body products. Its your call, as long as its consistent.
Plan Time and Production Schedule
When launching private label products, it is necessary to plan ahead of time. Many factors are involved in the private labeling process, such as sample products, testing, production time, etc. That is why you must set a schedule 2 to 3 months prior.
The Advantage Of Choosing TY OEM Cosmetic To Be Your Private Label Partner
Partnering with the best private label partners benefits many businesses and owners. If you are gearing towards choosing to private label your skincare and body products with TY OEM Cosmetics, here are some of the advantages you will get:
Offer High-Quality Products
TY OEM Cosmetics has a broad range of private label products, from skincare to body care to cosmetics. You can get your desired products with us at the highest quality and affordable price. We will also ensure that everything is fitted to your set requirements.
Hold Years of Experience
Among the best private label manufacturer in this business is TY OEM Cosmetics. We have been in this industry for more than ten years. Throughout those times, we have evolved to become a top producer of products and services. We guarantee you will get the best experience, prices, and suppliers with us!
Partner With Leading Cosmetic and Skincare Companies
Among the goals of TY OEM is to provide sustainable, clean, and effective products. However, partnering with excellent and reliable companies will only be possible. That is why, we have we source our raw material from our proud partners: BASF, SePPIC, Lubrizol, DOW, Ashland, etc.
Certified Manufacturer
TY OEM Cosmetics proudly states that we are a certified and licensed manufacturer. We hold various certifications, such as ISO, MSDS, GMPC, FDA, COA, etc. All our products and formulation comply with GMP, European, and North American regulations.
Have a Team of Professionals
We understand that professionals are a must for our clients businesses to succeed. For this reason, we have in-house teams of professionals, such as private label skincare experts, chemists, dermatologists, etc. We assure you that all our employees have years of experience and can cater to what products and services you need.
The Bottom Line
Choosing private label skin care products and private label body products is one of the best business decisions you will make. You can leverage this market by partnering with the best manufacturer like TY OEM Cosmetics. Our company produces different private label products in the cosmetic and skincare market. If you want to start your skincare and cosmetic business, we can be your one-stop solution! Contact us now.
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