Private label cosmetics what it is all about and the advantages and what we should be looking out for when we want to private label our own cosmetics. We should consider our unique selling points, packaging volumes, ingredients we prefer and even packaging materials. 

Introduction

Do you want to private label your own cosmetics but don’t know where to start? In this post, we will talk about private label cosmetics and the advantages of private label. We’ll also go over what you should be considering before private labelling your own cosmetic product such as production volume, ingredients, and packaging materials.

1. What is private label cosmetics and why should you consider it

Private label cosmetics is the process of private label your own cosmetics. It’s an interesting way to get to know about cosmetic manufacturing and private label packaging. You can private label your own cosmetics without actually manufacturing them, or you can private label the finished product. Sometimes private labelling means you are private labelling a finished product, but private labelling can also mean you are private labelling ingredients that you want to sell separately to other cosmetic manufacturers who will then put their label on it.

Simply put, some factories will accept preblended formulations provided relevant supporting documents such as:

• Ingredient List
• Certificate of Analysis
• Letter of conformation

This is due to regulations required to be adhered to by GMP Cosmetic factories.

You should consider private labelling because it’s a great way to get into the business of private label packaging which includes differentiating your products from competitors. Because of this, private labelling can be a great supply strategy for small businesses with fewer resources. So you can focus on sales and marketing and leave the production to GMP cosmetic experts.

2. Benefits of private label cosmetics

Private labelling can be a good way to sell your products as private label packaging. It’s a great strategy for those that don’t have the time or resources to produce their own private labelled product. Private labelling cosmetics will help you stand out from the crowd as you will be able to get your unique selling points achieved with certainty and speed as you will gain access to GMP factories with decades of experience.

Stable products and product accountability, as opposed to yourself formulation and manufacturing your own products.***

3. How to get started – what to know before you start 

I know private label cosmetics can seem overwhelming, especially when you’re just getting started. There are a lot of factors to cover and it’s difficult to know where to start. But don’t worry! Here is your private label for dummies cheat sheet to help get you started.

Start with the decision-making process: what are your unique selling points? When I was starting out, one of my unique selling points was that I had access to ingredients like Moroccan oil that was hard for private labels to get their hands on. So, I built my private label around these rare oils that helped me stand out in the crowded private label market.

You should also consider packaging volumes: private labels usually buy in bulk which requires a minimum order quantity. So, before private label your own cosmetic products you have to check that the supplier accepts private label orders and what their MOQ is.

Target cost per unit to match your retail margins

Map out the margins you have to give out. Advertising Costs, Distribution Costs, Retailers Margin, Logistic Costs & even merchandising costs

There are many other things you should consider when deciding whether or not private labelling cosmetics is right for you? I will be covering these topics in future blog posts so stay tuned!

4. Resources for starting a beauty line

One of the resources for starting a cosmetic line is private labelling. That’s when you private label cosmetics that are already being produced by another company. There are many private labelling companies available, but you have to take some precautions before private labelling your own cosmetics. First, private labelling has to be approved by the supplier. Second, you should also know what their MOQ or minimum order quantity is before private labelling your own beauty products.

Marketing, sales and distribution strategy (we will go through this in mode depth in another article here)

5. The pros and cons of private label cosmetic products 

Private label cosmetics are private, but they also carry private burdens. The private label business has its pros and cons.

Pros:

– private labelling cosmetics you won’t have any competition with your private label product which is great for gaining traction in the marketplace very quickly with little cost

– private label means you don’t need to invest in building up an infrastructure or buying inventory

– it can save you money by not having to manufacture your own product

Cons:

– private labelling requires a lot more work on the front end before private labelling cosmetics because of all the research you have to do before private labelling your own cosmetic products

– private labelling also costs more upfront because of all of the extra work you have to do in private labelling your own cosmetics

– private label manufacturers typically don’t give out discounts

In sum, private labelling is a good way for new business owners and entrepreneurs to get started because it doesn’t require as much upfront investment. On the other hand, private labelling has its disadvantages like lower margins

6. Where can I find more information on how to get started with my own line of beauty products (online resources, books) 

Malaysia DRGD is a great reference to what ingredients can and cannot be used in cosmetics. Some of the dosages which are permitted and which category certain ingredients will fall under.

Youtube & Google is valuable resource for both formulations tips and tricks.

Market trends check out our latest trends on the FurleyBio Blog

I hope this article has given you some ideas on how to get started with private labeling cosmetics.

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Furley Bioextracts has been in business for 15+ years, has combined experience of 50+ years experience in manufacturing creating over 10,000+ formulations. Certifications include ISO22000, ISO13485, cGMP, HACCP and Halal

We work with small microentrepreneurs to large multinational companies to develop their products.

We are a contract manufacturer, OEM, business partner, mentorship that specializes in manufacturing food, cosmetics, traditional, capsules, medical devices and supplements. We serve clients from all around the world including Asia-Pacific, Europe, Middle East/Africa and North America regions.