Cosmetics factory for your revelation, why brand cosmetics OEM processing enterprises will choose?

by:Beauty Spirit     2020-09-16
Usually, we can know a lot of cosmetics brand company because of its itself does not have manufacturing capabilities, choose cosmetics OEM production is the only choice to launch its own brand. So, why some brand enterprise fully equipped manufacturing capacity will choose cosmetics OEM generation of processing?

the benefits of cosmetics companies choose OEM generation of processing

1. Reduce the mature product cost
for product soon by maturation into decline, reduce costs is the key to maintain profits. If it is almost impossible in the domestic cost reduction, then only look overseas, or to invest abroad, or the development of outsourcing production. Direct investment risks and costs could be far higher than expected earnings. Development outsourcing production, with their own brand marketing, still do not affect the price of the product.



2. Complementary product line
for eager to complementary product line manufacturers, OEM way also can yet be regarded as a shortcut. Find the market opportunity and launching products, after all, there is a time difference between firms can take advantage of the OEM products can quickly fill the blank of the market and seize market. At the same time, for the design and development of their products, when the time is right, can your product to replace the OEM products.
sometimes they find a blank products may bring deadly threat to their product line. Such as good at production of milk and cream products manufacturers may not necessarily can reach the level corresponding in lipstick, it can be used in a way of OEM, choose good lipstick from outside the processing production of cosmetics factory OEM factory, so we can save the cost, and obtain high quality lipstick, otherwise, alone milk and cream products in the market competition, not only lost the profit opportunities, and survival problems may occur.



3. Perfect the enterprise value chain
sometimes, cosmetics brand competitive advantage may not is in making, but in the sales channels and after-sales service, at this time, select cosmetics OEM cooperation is almost inevitable choice.
watsons not production product, basic by external replenish onr's stock, and then around the world with its sales channels and service network, provide the reputation of high quality products to win customers.

4。 Test market opportunity
OEM cosmetics brand enterprise sometimes choose to test the possibility of entering the market. Getting our products onto the market the enterprise in order to observe the reaction of the market. If the market reaction is good, the enterprise can launch its own products; If the market response, the enterprise can also terminate the OEM contract, plans to give up to enter the market. In this way, the risk to the manufacturer's horse than they are new project the risks are much smaller.


that as cosmetics OEM OEM cooperation have what advantage?

1。
modern production scale production and lower costs are widespread in the economies of scale, with the expansion of output and presents the unit costs decline trend. Choose cosmetics OEM cooperation, means that the expansion of production scale, not only increase the sale of products, and reduce the cost.



2.
learning experience to perfect management provide OEM companies often in OEM buyers products & other; Throughout the supply chain &; , OEM buyers can play an important role in production management, marketing, product development, etc, have stronger power, in the process of cooperation, can OEM suppliers in the product quality control, cost control and efficiency in operation control, the management of organize production according to the requirements of the purchaser, with advanced control, from their experience, improve the management level of enterprises.

3。 Product innovation ability to improve
if belong to innovative products, OEM products supply companies in addition to meet the needs of OEM buyers, can also with their own brand on the market at home and abroad, or increase the length of the line, to launch new products; Or deepen the depth of the product line, increase the variety of existing products. No matter from which side for enhancing the competitiveness of business.

OEM mode of operation for both buyer and seller, in addition to sharing products overall competitive advantage, also has a distinctive advantages, that is the flexibility of buyers and sellers in the market. As long as the buying and selling any party found more profitable way, you can terminate the OEM contract. From this perspective, the OEM market is highly effective.





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