OEM cosmetics manufacturing is one of the optimal solutions chosen by many cosmetic vendors with the benefit of saving a lot of costs and time. Besides, there are also some points to note due to the misunderstanding of the OEM cosmetics manufacturing concept and it will be explained in detail by Viet Huong in this article.
What is OEM cosmetic manufacturing? What is the difference between OEM and ODM
Nowadays you can easily learn the concepts but the information is not always accurate and can make readers confused. Let’s find out the basic concept as well as the difference between OEM and ODM with Viet Huong Cosmetics!
The concept of OEM
OEM stands for “Original Equipment Manufacturer” which is a form of production in which a unit like Viet Huong will manufacture cosmetics based on existing recipe, packaging design of customers. All your recipes will be strictly confidential according to the strict contract and internal regulations of the factory.
The difference of ODM from OEM
ODM stands for “Original Design Manufacturing“, which is generally understood that the company will manufacture a complete product for you. But the reality is that you will choose a product from the ODM company’s product portfolio then change the brand and go to market. You can easily identify when you see many items on Amazon that are exactly the same and only have different brands printed on the products.
However, with cosmetic ODM, it will be a little different, you can choose to add or remove ingredients based on your needs, from which the product will have a difference and good competition in the market.
Advantages and disadvantages of OEM
Understanding the advantages and disadvantages of OEM cosmetic production will help you imagine the difficulties in advance to consider whether this type is suitable for the company’s financial and development orientation or not.
Advantages of OEM cosmetic production
Save millions of dollars: you will not have to build a factory, have no worries in operating with heaps of costs such as salary, production line, expensive modern technology, maintenance…
Save time: Viet Huong Cosmetics has factories which can meet the variety of product lines with a modern and closed system that helps to save maximum time and money for customers.
Disadvantages of OEM cosmetic production
Need a separate formula:
If you are a newbie in the cosmetics industry, then to get the formula you will need an R&D team or buy back the proprietary formula. To solve this problem you can use ODM/Private Label Cosmetics service.
Minimum Quantity (MOQ):
- Whether you are starting with 1 or more products, many factories require MOQs from 3000 to over 5000 for 1 product. Assuming a product is priced at $3, your order will be between $9,000 – $15000
- Inventory risk: inventory will be your first hurdle. With MOQ requirement over 3000 products, can you guarantee to sell out of stock? This is the starting point that any company has to go through.
There are many different fees such as packaging, printing, stamps, registration fees…the more products, the higher the initial cost.
Why should you OEM cosmetics at Viet Huong Cosmetic Co., Ltd.?
With many years of experience in manufacturing cosmetics for many brands, Viet Huong understands and always accompanies to solve the difficulties that companies have to face. That’s why you should choose Viet Huong as your OEM partner.
Various OEM/ODM/Private Label Services
If you don’t have your own formula for OEM service, you can choose ODM/Private Label service at Viet Huong Cosmetics. We have over 300 exclusive cosmetic formulas with a variety of different cosmetic lines. It makes it possible to quickly start your service business or easily expand your product line if you already have a brand in the market. Learn more here:….
Flexible MOQ policy
Instead of demanding high MOQ like many cosmetic factories in the market. We have a separate MOQ policy for each customer. Simultaneously combine with delivery service to help you have the most optimal price. You just need to contact and share with us immediately about the product and you will be surprised with the MOQ from us.