Private Label Cosmetics 101 - Module 1

Times are a little difficult for most people. Financial issues would often hound people these days. As much as they would want to work on things, the lack of jobs could stop them. But there are those who found business opportunities with private label cosmetics.

Beauty products are hitting it big in the market. Apart from food, clothes and other basic needs, these products stay afloat for a long time. One reason is that many women and even men, find it necessary to look their best. Healthy skin and a touch of color are necessary to meet people confidently.

The market for the products are established. There are teenagers and adults, men and women, sensitive and non-sensitive skin types which are categories that set the bar. Since the markets already exist, the only thing to do is to package products according to the market needs. Distributors of the products on a retail system can consider this an advantage.

Since the products are manufactured to fit the qualifications of the market, branding is easier to do. The retailers could then think of a logo and marketing moves. As long as it suits the interest of the market, the chances of success will be high.

Walking the talk is a marketing strategy that has been used for a long time but maintains effectiveness. As the retailer use and serves as a walking model of the products, the public will take it more warmly. Retailers should then patronize their own product to effectively market it.

Patience is a necessary tool in making a business out of something. Since there is tough competition in the beauty product arena, the only way to survive is by having a good marketing scheme. With patience, there is a better chance that the products would sell well amidst the competition.

The capital to have a business out of private label cosmetics is relatively low. This serves as a good stepping stone for many people. With little capital, they are able to generate income. If the business goes well then they can choose to expand the business.

The secret to business success is always the drive and passion to succeed. The recipe is about finding good products and setting an achievable goal. At the end of the day, there is nothing that could fuel a person but the determination to do better. As long as there is that burning fire within, there will be no way that obstacles would knock the business down.

Okay so your company is doing quite good and you have a loyal following of customers and consumers willing to buy your products health care products - your branding and marketing is absolutely excellent, and you even have special containers which set your product apart from your competitors. You've done a great job with differentiation and you have a product line, which can compete with the top brand names in the country for cosmetic products, but just having the best containers, best marketing, and best branding is not enough.

What you need is a good solid laboratory and liquid filler manufacturing contractor to help you with your private label needs. Someone who can take your containers and fill them up with the lotions, creams, toners, and even spot treatments that you need to sell. A fulfillment house if you will for your liquid products. And, since your products may be seasonally needed by customers, or your retail customers wish to stock up for the Christmas holidays, you need a fulfillment house with a flexible service.

Also, you need a fully compliant company with the best management practices in the industry, and one which is certified and registered with the FDA. They must have a competent staff so that when they are mixing the various chemicals they know what they can and cannot do. They need to know how much of each to put in the formula, and even how to modify the formula to get the results that you intend, the results that your customers demand.

That's a tall order isn't? Sure it is but that's the minimum required if you want to compete in this business. After all, just about every grocery store, drugstore, and large retailer has their own private label products. And every high-end cosmetic company also has a complete product line, not only for their high-end users, but often, for their second-tier customers as well. That is who you will be competing with, and that's why you need the best.

More and more these days your customers will require safety seals, so they can feel comfortable using your product. Also, oxygenation of various ingredients that are used in lotions, and creams can cause irritation to the skin. For instance, many of the most popular fragrances used in nearly 80% of all of the skincare products, shampoos, and soap products must be kept sealed and stored in a cool environment once opened. Therefore, any company you hire must be entrusted to deliver flawless liquid filler for your product lines. Indeed, I hope you will please consider all this.

Additional Reference:

1.-"Wharton on Dynamic Competitive Strategy" by George S. Day and David J. Reibstein, Wiley Publishers, 1997, 465 pages, ISBN: 0-471-17207-3.

Lance Winslow believes that companies should remain efficient by doing what they do best, and hiring out the rest!

Every leading sector has some big brand names associated with it. These brand names have high market reputation and consumers are always eager to lay their hands on such branded products. Not only do these branded products sell like hot cakes, the companies which manufacture and own these products also play in riches.

The demand for branded products would never fade off, what with the huge amount of infrastructure spent on their promotion and marketing strategies. However, another genre of products are making their presence felt in the consumer goods section, which are gaining equal popularity as their branded counterparts and giving a tough competition to the big names. These products are coming from private label manufacturing companies. Private labeling has long existed but over the years with rising demands for products such as cosmetics, health care supplements, FMCG products and other consumer goods, private label manufacturers are basking in the market rush.

You might be wondering how are private label companies different from the branded private undertakings. Well, most private label owners are new independent start-up ventures running on small or medium scale. Anyone can start off with private labeling, which can be transformed into a brand with expertise, goodwill and serious efforts.

Private Label Manufacturing means having own range of products with indigenous formula. This rising trend has good profit and more and more people are taking up private labeling . The road to start your own Private Label Company is easy, provided a few basic directions are followed. There are limitless possibilities once a business gets started, because demand for such products is huge in every sector of market. Not only in terms of direct sales, but private label manufacturers also profit by selling their products to reputed brands. These days most of the big brands source their products from private label manufacturers and then sell them off in the market under their own brands.

Say for example, if you own a health spa in some city and have started your own line of Private Label Cosmetics, then there is a probability that some reputed retail cosmetic brand will approach you for your products. These tie-ups are usually on contractual basis and private label products are sold in the market by the name of popular brands. So although private labels are sold off at cheaper rates, the shares after their sales return huge payoffs.