The contract manufacturing body care products manufacturers produce cosmetic products that offered to other companies under their own brand. The advantages of using these types of cosmetics manufacturers are fast production introductions and no product development costs.
There are four general areas in which the cosmetics business is divided into where a new private labeled brand goes to for marketing purposes. They are:-
- Color Cosmetics or Makeup
- Treatment or Skin Care
- Health and Beauty Aids which is a broad area that includes everything from shampoo to food products.
Types of Brands
Depending on the quantity of the product, which a privately labeled manufacturer is producing, there are two types of brands which sell cosmetic products. These are:-
The brands which produce a small number of products and can easily blend in with national brands are called private labeled houses. They have no contract with the sellers and as soon as the seller/user faces heavy losses in the business for these products he/she can stop selling these products.
The brands which produce large quantities of a single type of product and have a lot of stores (chain store) where they are supplying their products that come under contract filter private labeled brands. They have a contract with the seller before the supplying is made and even if the seller is facing losses in the selling of these products, he/she cannot stop selling these products until the contract is over without having to pay some compensation.
Where is the ideal place where Private Label Body Care Cosmetics when produced in small quantities
The private labeled cosmetics produced by contract manufacturing body care products are ideal for the following three major types of personal care places:-
- Beauty Salons
- Single Stores
Advantage of using them
There is an advantage of using private labeled cosmetic products in the locations mentioned above. The advantage is:-
- The company/retailers who are selling these products will get into business fast without the need for large setup or inventory cost.
Disadvantage of using them
The way you do this task contains some disadvantages as well. These are –
- The brand owner is limited to the shades, products, and packaging carried by the supplier.
Where is the ideal place where Private Label Body Care Cosmetics when produced in large quantities
When the private label body care products are produced in large quantities, then brand owner generally sells these products to two places. These places are:-
- Chain Store
- Organizations which are looking to create either a single product or a series of products that they can use for large distribution
Advantages of doing this
There is an advantage of using only these kinds of places for selling your product if you are producing your product in large quantities, the advantage is:-
- Custom made products from the ground up and lower per piece cost.
Disadvantage of doing this
When you do this, it has its own drawbacks as well. The disadvantage is:-
- One requires a large investment and support staff for manufacturing large quantities of a single type of product.
Cosmetic products that are generally manufactured from Private Label Body Care Products Manufacturers
There are 6 types of cosmetic products which are generally produced and sold by private label manufacturers. These are:-
- Skin Care Products
- Cosmetic Products
- Personal Care Products
- Herbal Health Care Products
- Herbal Soaps
- Hair Products like Shampoos, Conditioners. Hair Treatments
Advantages of Contract Manufacturing Body Care Products
There are a few advantages one can get these private label manufacturing products. They are:-
- Demand for any type of cosmetic product in India is great.
- They can easily get into this type of business and have initial success if they advertise their product correctly irrespective of how much quantity of that product they have produced. The more they will spend in their marketing, the better they will be able to present their product to their target audience and more business they can expect out of it.
- The initial cost involved in the selling of these products is not much.
There are a few disadvantages of using these products. They are:-
- Backlash if the product goes wrong is very big. It is easy for the people to back out from some products and completely reject it.
- Getting a contract for large scale producers from stores or companies who would be selling their product can be difficult. One of the challenges is to find the relevant audience and pitch them.
- Getting an initial investment for your product is not easy.
There are a lot of companies which sell cosmetic products in India. It would be difficult for new Contract Manufacturing Body Care Products manufacturers to get into the business. But, people are ready to try any type of cosmetic product on their body. This is because of the good advertisement for that product and trusting someone who suggests them using this product.
It should be a good way for the manufacturers to spread their product among the people. These are all about taking your product to first 1000 people initially and then hope for its expansion in the sales.