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How to create a cosmetics private label and market it well?

July 17, 2023
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creating a cosmetics line that caters to a wide range of customers

With the development of the economy, the number of small and medium-sized enterprises has increased, and many start-up brand owners have opened the cause of brand customization, and the cosmetics industry is no exception.

Why should entrepreneurs join the private cosmetics brand industry?

private cosmetics brand industry

The cosmetics industry is one of the most valuable markets in the world, and some statistics illustrate this very well. As more and more people across the country are buying personal care and beauty products, the growth of the cosmetics industry is accelerating. Research shows that the global market size of the men’s personal care and beauty industry is expected to reach $166 billion by 2022. Male demand and participation in the personal care and beauty industry is increasing, with nearly 40% of adults interested in beauty and cosmetics regardless of gender. Just last year, sales of men’s skincare rose 7 percent. According to another study, women spend an average of $69 more per month on cosmetics than men. The average American woman spends $313 per month on cosmetics, or $3,756 per year. Seven percent of young women never leave the house without makeup. Research shows that girls are learning to wear makeup at an earlier age. Among the young girls aged eight to 18 surveyed, 58%(about three out of five) wore makeup. In addition, of the girls who admitted to wearing makeup, 65 percent began to learn to wear makeup between the ages of 8 and 13, and 50 percent began to learn to wear makeup between the ages of 11 and 13.

According to the study, the value of the global cosmetics industry is expected to reach $463.5 billion by 2027. In the next six years, the global cosmetics industry is expected to grow by $83.3 billion. As of 2019, the industry was valued at $380.2 billion, and current growth projections suggest this figure will reach about $463.5 billion by 2027. From 2021 to 2027, the global cosmetics industry will grow at a compound annual growth rate of 5.3%. Around the world and nationally, the beauty and cosmetics industry continues to be profitable. Currently, the global cosmetics industry is valued at $571.1 billion, with the United States generating at least $49.2 billion in cosmetic sales annually. The industry shows no signs of slowing down and the future of the cosmetics industry looks bright.

What is the appeal of private cosmetics brands to consumers?

By offering private label products, retailers can establish their own brand identity

There are several reasons why the private cosmetics brand circuit can flood entrepreneurs: First, private cosmetics brands often offer personalized products to meet individual needs, allowing customers to solve their specific skincare problems. Private cosmetics brands often prioritize transparency by disclosing the ingredients used in their products to appeal to consumers seeking natural and organic formulations.

Private cosmetics brands tend to create a sense of exclusivity, offering unique formulations and limited-edition products that are not readily available in the mainstream market. Some consumers believe that private cosmetics brands are more trustworthy and authentic because they operate on a smaller scale, have a specific consumer group, and have a specific product efficacy. Not only that, private cosmetics brands are more committed to ethical and sustainable practices, with many emphasizing ethical and sustainable practices, such as using cruelty-free testing methods, environmentally friendly packaging, and supporting fair trade initiatives. These practices can appeal to consumers.

  • How to create a private label?
  • How to do supplier screening?
  • How to start brand marketing?
  • How to sell online?

Let’s explore together.

Budget for your own brand

startup-cosmetics-business-brand

For the initial establishment of a brand, all aspects of the budget costs need to be considered in advance, understanding the start-up costs is very necessary. The budget includes the cost of ingredients in the product formula, the cost of product packaging, the cost of product production, the cost of self-owned logo design and the cost of product transportation, the cost of certificate processing, and the cost of import.

(1)Overall product budget

First of all, for the various costs of products, if there is a one-stop solution to the service provider, it will be a lot of worry. Inner material production, packaging production, filling and packaging, logo design, etc. are all completed in one factory, and the money and time costs and communication costs will be greatly reduced. Xiran factory can provide one-stop customized services to help brand owners save money and energy. With pre-defined packaging options for you to choose from, Xiran manufacturers can provide skin care samples with proven formulas for brands to confirm in advance the quality and care results. As a result, you don’t have to spend extra time on product testing, designing or having suppliers design custom product packaging. What’s more, the process of placing an order will be faster. Cumulative contract manufacturing costs will vary depending on the number of products you order. The higher the quantity ordered, the cost of each product will decrease accordingly. For an initial order for a product, a minimum order quantity is usually used to test the market. Bulk orders are a good choice for subsequent orders of products.

(2)Product transportation budget

Secondly, for the measurement of the transportation cost of the product, we can predict the weight and specifications of the product in advance from the product factory, and find the logistics company to calculate the estimated freight in advance. Select from more logistics companies, and make a choice after multi-party evaluation of logistics channels, logistics security, logistics speed, etc.

(3)Product certificate and import and export qualification budget

Finally, for all kinds of import certificates and inspections of products, brands need to have a thorough understanding of their own Cosmetic import regulations and the rules of the sales platform, sort out the required types of certificates, and seek the help of Cosmetic suppliers. Xiran has customized experience for multinational cosmetics brand customers, and can provide some corresponding certificate application rules and assist in applying for relevant certificates.

(4)Stand-by budget

A brand budget allows you to be prepared for any financial situation that may arise. For all the basic costs mentioned above, we need to prepare the corresponding start-up capital. At the same time, we also need to have reserve funds, for example, the increase in transportation costs caused by inflation, the cost of prenatal samples, etc.

How to create a private label?

Creating a private label cosmetics brand requires several steps, in which partner factories play an important role.

creating a cosmetics line that caters to a wide range of customers

(1)Market research for product selection

First, start-up brands should conduct thorough market research to identify gaps or opportunities in the skincare industry. Identify the brand’s target audience, their needs, preferences and competitive landscape. The direction of market research can be the sales data of e-commerce platforms such as Amazon, Aliexpress, Shrimp PI, or the product update direction of local well-known brand websites and big-name websites in the target market. Through the market trend to find the current market is not fully saturated, not by brand share monopolized blue ocean products, also known as potential products. Xiran factory has rich experience in international cosmetics market customization, and also has a mature market research department, which can help brand customers to collect products and market information, and also can commission customized suggestions on trend ingredients.

(2)Create a brand unique logo

Secondly, to define the brand logo, the brand owner needs to find a professional designer to help establish a clear brand identity, while including the design of the iconic elements of the brand’s products, to establish a good brand story, so as to determine the core value, mission and positioning of the skin care brand. A brand logo is an integral part of a brand’s corporate identity. It should be unique, memorable, and help brands stand out from the competition. Potential customers of the brand owner need to identify the brand by the brand trademark. If brand owners and consumers build brand trust, the brand will gain a steady stream of customers. Work with professional designers to create a positive logo that represents your brand.

(3)Product Formula customization

Next, screen vendors for product development and customization, formulate your cosmetics or work with cosmetic chemists to create custom formulations. Factors such as ingredients, product efficacy, safety, and regulatory compliance need to be considered when customizing. At the same time, it is also necessary to examine the production qualification of the supplier, customization experience, the professionalism of the laboratory team, and whether the quality control measures and testing are strict. The consistency, safety and effectiveness of cosmetics require the necessary testing, including stability testing, microbiological testing and safety assessment. Xiran factory provides a range of product testing, has a professional team of engineers and mature formulations for each category, in line with the standards of a good partner.

(4)Product packaging design

Then, after determining the product line and primary products, we need the assistance of our suppliers or a designer to design the packaging and labeling to design attractive and functional packaging for our own branded products. Ensure that labels comply with regulatory requirements, including ingredient lists, product declarations, and any necessary warnings or instructions. Xiran factory has a professional team of designers, can customize the outer packaging according to customer requirements, but also according to the market trend elements for customer design advice.

(5)Supplier selection

Next, supervise the production of the quality and quantity of the cosmetics you need with a manufacturer identified as reliable. The steps for selecting suppliers are described in detail later.

(6)Understand regulatory requirements

Last but not least, you only need to comply with your country’s laws and regulations on imported cosmetics: Familiarize yourself with local and international regulations on cosmetics and skincare products. Ensure that your products meet safety standards, labeling requirements and any necessary registration or certification. Then turn to branding and marketing and develop a comprehensive branding and marketing strategy to promote your private label skin care brand. This includes creating a website, building a social media presence, creating compelling product descriptions, and implementing marketing campaigns. The choice of sales channels is varied, and brands need to identify distribution channels, whether through online platforms, retail partners, or direct-to-consumer sales. Develop pricing strategies and sales plans to effectively reach the brand’s target audience. After officially entering the sales process, for the long-term development of the brand, it is necessary to initiate and continuously manage, monitor customer feedback, and continuously improve the product based on consumer insights. Keep up with industry trends, research and customer needs to ensure brand success.

How to do supplier screening?

For brand owners, supplier selection and partnership work is the key to success. Reliable factories will help brand owners in the corresponding links, help brand owners save time, provide more professional customized suggestions.

supplier selection and partnership work is the key to success

(1)List filtering

First of all, determine the initial product category of brand development, and then search for potential suppliers through various channels, such as industry catalogs, trade shows, online platforms, recommendations and industry associations. Draw up a list of potential candidates based on their reputation, industry experience, and relevance to your requirements. Some platforms and websites can be used to select suppliers, such as China Supplier Blacklist website, Made in China network and other platforms for merchants to connect with factories. Experienced brands in the industry will give you more help, Guangzhou Xiran Cosmetics Co., Ltd. has 15 years of custom experience, is a specialized in skin care, body care, hair care, baby, maternal and child care professional cosmetics OEM/ODM company. At Xiran, we thrive when you thrive.

(2)Qualification screening

Second, brands need to focus on reviewing cosmetics factories’ websites, online presence, and company profiles to gather preliminary information about their capabilities, products/services, certifications, and customer reviews. The ability of a supplier can be examined through a number of cosmetic industry certificates that require potential suppliers to provide relevant information about their company, experience, financial stability, production capacity, quality control processes, certifications, references, and any other important factors. Xiran is committed to producing high-quality natural and organic products, using sustainably sourced raw materials and adhering to a personalized high-end product line. The company has a number of production lines, with 100,000 level sterile clean production workshop. Our services include processed skincare products, essential oils and washing products. Comply with GMPC and FDA international standards, accept third-party inspections and provide the necessary certifications. We have advanced technology and efficient management system to ensure high quality production and timely delivery. With our professional R&D team and strategic partnerships, our products are well received in domestic and international markets. Our integrity in business has led us to establish long-term relationships with many brands around the world. Our customers are located in North America, Europe, Africa, Asia and Oceania. Certification: GMPC, ISO 22716, BSCI, FDA, MSDS, COA.

(3)Professional screening of staff

In product customization and production, professional designers, engineers and sales teams are essential. Experienced, professional and highly cooperative suppliers make the brand get twice the result with half the effort. Guangzhou Xiran Cosmetics Co., Ltd. has a professional R & D experimental team, designer team and sales team. The R & D team will customize products with good efficacy based on the mature formula according to the efficacy and ingredient customization needs of customers. The designer team is able to design products that belong to the brand according to the customer’s brand positioning. The sales team will give professional advice on brand design and production according to market dynamics, and follow up the entire order process to ensure that the packaging is tested for sealing, filling volume testing and formula stability testing before mass production.

(4)Ability to provide marketing assistance

Marketing is also an important sector for brand owners. The professional Marketing Department of Xiran will provide professional suggestions on product composition customization, packaging customization, skin texture customization and other aspects according to the market trend and sales feedback of the C-terminal platform, combined with the uniqueness of the brand. At the same time, we assist customers to carry out market testing of product sales, and regularly provide corresponding market information sharing and product development suggestions.

(5)After-sales service capability

In the after-sales service, the sales team of Xiran factory will assist in product transportation, help brand owners to connect with the logistics providers of various channels, assist in the quotation of logistics freight, arrange logistics companies to pick up goods and load containers, and do a good job in import and export work. After the successful arrival of the product for sale, the sales team of Xiran will visit the customer regularly, and make corresponding adjustment suggestions and product development and upgrade suggestions for the customer’s products according to the suggestions of the Marketing Department and the sales feedback of the customer’s C end.

How to start brand marketing and sell online?

Marketing needs to rely on online and offline, for start-up customers, online trial and error costs will be lower, online marketing channels will be more. Online sales channels are diversified, including independent sites, online retail platforms, online retail stores, products into online consulting websites and other forms.

beauty-products-during-online

(1)Brand independent website

It is necessary for brand owners to build a professional website, creating a user-friendly and visually appealing website that showcases your brand, products and brand story. Make sure your website is optimized for e-commerce features, including easy product browsing, shopping cart integration, and secure payment processing. In the brand independent website optimization, the page layout of the brand web page, the fluency and experience of the page jump, the collocation of website pictures, and the quality of the copywriting are all crucial. These elements can determine whether the website is able to attract consumers to enter, continue to browse, and click to view, whether the product can be successfully added to the cart, favorite and purchase goods. The quality of the article will also determine whether the website can be included and ranked by the global website platform. Therefore, professional website setup staff and copywriting graphic designers are a must for brand companies to hire.

(2)Advertising

Invest in online advertising and leverage online advertising channels such as Google Ads, social media ads, and influencer partnerships to reach a wider audience and drive traffic to your website. Target ads based on demographics, interests, and behaviors to maximize their effectiveness. Develop an engaging content strategy and create high quality and relevant content to engage your target audience. This can include product tutorials, skincare tips, makeup tutorials, beauty advice, and customer referrals. Use social media platforms, blogs, and newsletters to distribute your content. Use social media marketing to build a strong presence on relevant social media platforms such as Instagram, Facebook, YouTube and TikTok. Share engaging content on a regular basis, partner with influencers, host contests and giveaways, and leverage social media advertising to expand your reach and drive traffic to your website. The audience, target market countries and regions of advertising need to be as accurate as possible and constantly adjust according to market trends. Advertising should conform to the brand’s target market positioning and customer group positioning, and the content should be high-quality and attractive, which can give consumers a certain visual impact and brand value transmission. This is the standard of whether a brand advertisement is in place.

(3)Explore online sales platform

Explore the online marketplace, the online sales platform provides a large customer base and existing infrastructure for online sales. Consider international sales platforms such as Amazon, eBay and Tmall Global. Each platform has its own registration process, which can usually be found on their respective websites. Be sure to follow their guidelines and provide accurate product information and images. Also consider selling in an e-commerce store, where platforms such as Shopify, WooCommerce, or Magento offer user-friendly solutions to set up and manage your online store. Customize your store design, integrate secure payment gateways, and optimize the shopping experience to drive conversions. Implement customer relationship management (CRM), using CRM software to manage customer interactions, track sales, and build customer loyalty. Obtain customer data, send personalized offers and promotions, and implement customer feedback systems to improve your products and services. Monitor and analyze performance, regularly track and analyze your marketing efforts and sales performance. Use analytics tools to measure website traffic, conversion rates, customer engagement, and ROI. Make data-driven decisions and adjust your marketing strategy accordingly.

All in all, the steps of cosmetics brand creation are interlinked, and each step is very important. A good supplier can provide you with quality service and save you time and money on the road to brand creation. Guangzhou Xiran Cosmetics Factory is honored to be your most loyal and professional partner.

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