Custom cosmetics production as the best method of introducing new products to the market

The modern customer wants to buy products and satisfy their needs quickly and effectively. They expect the quality of products in the stores they trust to be satisfactory and not bring disappointment. Buyers make quick, sometimes spontaneous decisions – there is no time for contemplation, the pace of life does not allow it. The modern customer, especially from the younger generation, does not attach themselves to products; they follow innovations, fashion, new scientific discoveries, influencers, and other temporary cosmetic trends. This growing dynamism of life, coupled with the dynamics of the cosmetic market, has led to a shortened product life cycle – the time from introducing a cosmetic product to the market to its decline has significantly decreased. The conclusion drawn from the above is that to successfully operate in the cosmetic market, one needs to produce and design quickly, in line with various customer preferences, and additionally respond flexibly to consumer needs.

Such a working model would require countless resources in production technologies, constant expansion of machinery, specialists, and numerous development laboratories – the result of such a strategy would be a constant increase in costs, and planning efficiency would not make sense. So, what is the most perfect operating model for companies introducing cosmetic products to the market? The only correct answer is – contract manufacturing.

Contract manufacturing is a business model in which a company outsources the production of products with specific specifications under its brand to another external entity. It can be described as a kind of outsourcing.

For whom is contract manufacturing of cosmetics?

Contract manufacturing of cosmetics is an excellent solution in case of limited or lack of processing capacity, while needing to produce in a specific quantity and within a known timeframe. The benefit for the outsourcing company is the avoidance of hiring its own employees or leasing an industrial plant or factory. It is an excellent solution when wanting to expand the range of offered products in areas where the outsourcing company lacks experience or considers that the required technology exceeds its capabilities for any reason. Contract manufacturing is also utilized when producing a specific batch in its own factory is not cost-effective.

Collaborating with a contract manufacturer of cosmetics, perfumes, and medical products is the most advantageous solution for:

• Companies creating their own products and wanting to reduce production costs,
• Companies wanting to offer something new to their customers beyond their standard portfolio,
• Celebrities wanting to create a new brand bearing their own name,
• Business people with a brand idea seeking a reliable partner to implement their concept and support them at all stages,
• Anyone wishing to invest their capital in cosmetics, perfumes, and medical products.

Key benefits of contract manufacturing of cosmetics:

• Flexible application: full or selective outsourcing depending on the area to be covered by the contract,
• Lower labor costs – outsourcing significantly expands production capacity without increasing employment,
• Project execution even at a great distance – for example, international project implementation in our facility,
• Elimination of production-related costs (technologies, machinery),
• Increase in production, product, and sales potential,
• Quick order fulfillment.

Benefits arising from avoiding threats such as:

• Technical problems (which always arise in production) occurring accidentally and spontaneously in all production processes,
• Complications resulting from staff shortages (the Covid-19 pandemic caused a 70% absence in some production staff),
• Pressure imposed by an unstable market situation for packaging and raw materials.

Summary

As evident from the arguments above, contract manufacturing of cosmetics by external entities is a very comfortable solution, but it’s not just about convenience. It is a kind of perfect arrangement: the client ensures safety and peace of mind while achieving the strategic goals of their company, and the contractor (manufacturer) utilizes technological resources and specialized know-how essential to their business. Such collaboration builds good relationships in the common market, bringing satisfaction to both parties, not only financially but primarily from the achievement of goals.