Can you distinguish cosmetic OEM, ODM, and OBM? 5 ...
Can you distinguish cosmetic OEM, ODM, and OBM? 5 ...
What are the cosmetics manufacturers' services?
Cosmetics manufacturers' service items are divided into OEM, ODM, and OBM. While all three involve producing and mass-producing cosmetics on behalf of customers, their scopes differ slightly. The details around how each service works are outlined below.
OEM
OEM stands for Original Equipment Manufacturer. An OEM cosmetics manufacturer produces products in bulk based on the client's specified ingredients and does not participate in packaging or formula design. Clients determine product formulation, size specifications, and packaging aesthetics. Once the formulation is validated, the manufacturer executes mass production while incorporating the client's trademark and logo on the product packaging.
The global beauty market's demand for cosmetics is growing annually, leading many new startups to explore opportunities within the sector. To meet desired sales volumes, many companies engage OEM manufacturers for assistance with packaging design and formula development, and even for brand strategy and sales channel planning. Those interested in launching a cosmetics brand should explore the servives offered by cosmetics manufacturers.
Please visit our website for more information on this topic.
ODM
ODM, or Own Designing & Manufacturing, adds a layer of complexity by including packaging and formula design along with production. An experienced ODM cosmetics manufacturer possesses in-depth knowledge of suitable cosmetic ingredients and can create unique products tailored to client requirements. As ODM encompasses more aspects of product development, costs are generally higher than OEM.
OBM
OBM stands for Original Brand Manufacturing. OBM manufacturers support clients wishing to establish their own brands, guiding them step-by-step through the process. In addition to product design and mass production, OBM services encompass market analysis, brand positioning, and strategic planning. This allows manufacturers to act as marketing consultants, offering insights on pricing and distribution channels, thus becoming ideal partners for clients seeking to launch their cosmetic brands.
OEM/ODM/OBM Comparison Table
| Service Content | OEM | ODM | OBM |
|---|---|---|---|
| Production Method | Mass production based on client specifications; no involvement in packaging or formula design. | Includes packaging design, formula design, and finished product production. | Handles all elements: market analysis, brand positioning, packaging design, formula design, and finished products. |
| Best Suited For | Companies with established products or those capable of developing their own formulas. | Businesses unfamiliar with product development or lacking the capacity to create their own products. | Brand builders looking for extensive manufacturer support in planning and design. |
How does the OEM manufacturing process work?
1. Communicate with Clients and Understand Product Information
Initial communication is crucial in the cosmetics OEM process. The manufacturer must confirm customer needs and offer suitable solutions. Clients should articulate their requirements while ensuring that the manufacturer's specialties align with these needs.
2. Confirm Product Details, Quantity, and Quotation
This stage involves confirming product formulas, packaging details, minimum order quantities (MOQ), and quotations with the manufacturer. Customers should ensure the proposed plan fits their budget and inquire about possible adjustments to product samples.
3. Sample Production and Testing
After sample production, clients can review aspects like texture, color, and packaging. If adjustments are necessary, manufacturers will conduct further tests to refine the product before final approval.
4. Sample Final Confirmation
Final confirmation of samples is necessary before proceeding to mass production. Clients must ensure all product specifications are accurate before advancing to the next phase.
5. Enter the Mass Production Stage
The mass production phase signifies the official manufacturing process. Clients should plan product launches in conjunction with the manufacturer's lead times and conditions to meet delivery schedules.
6. Delivery
Prior to delivery, manufacturers perform rigorous quality control inspections to ensure finishing product quality adheres to regulatory standards. Clients should simultaneously prepare to launch their products and ensure compliance according to guidelines provided by governing bodies such as the Taiwan Food and Drug Administration.
4 Considerations for Entrusting Cosmetics OEM
Confirm the MOQ of the Cosmetics Manufacturer
MOQ stands for Minimum Order Quantity, crucial for understanding the financial commitment involved in initiating production. Higher-quality ingredients or unique packaging designs typically increase costs, and thus MOQs. It is essential for clients to be aware of their MOQ to align it with their budget and marketing capabilities.
What Are the Factors That Affect Costs?
The production costs of cosmetics rely on various factors, including raw material selection, packaging type, processing complexity, product volume, and overall quality checks. During negotiation with manufacturers, clients should seek clarity on these cost factors.
Can the Manufacturer Maintain Quality Consistency?
Quality consistency is critical for cosmetics. Products undergo long-term stability testing and numerous trials to ensure functionality. Exceptional products demonstrate resilience in testing conditions, such as high and low temperature cycles. Manufacturers should monitor product stability even after three years post-shipment.
Does the Manufacturer Have GMP Certification?
Choosing a large-scale manufacturer for production helps guarantee the innovation, stability, and safety of products. It is vital for manufacturers to pass key indicators like Taiwan's GMP certification and ISO international certification to ensure product excellence.
Conclusion
Having explored OEM processes and critical considerations, the next step involves selecting a reputable cosmetics manufacturer capable of producing high-quality, stable products. Doriff, a cosmetics manufacturer with over 50 years of experience, supplies many renowned global brands with premium products. Our expertise, top-tier equipment, and dedication guarantee fulfilling the commitments made to our clients. If you seek a cosmetics manufacturer or makeup partner, please visit Doriff.