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Daao Cosmetics In Guangzhou, Guangdong, China:Why is the cosmetics OEM processing model more suitable for small and medium-sized enterprises?

2025-09-02 Click: 

Many people are probably familiar with  cosmetics OEM, though the traditional term "private label manufacturing" is more familiar.


Daao Cosmetics In Guangzhou, Guangdong, China:Why is the cosmetics OEM processing model more suitable for small and medium-sized enterprises?(pic1)


Let me explain: Cosmetics OEM is suitable for clients who have already registered their brand and completed specific product design and direction. With this approach, clients need to provide product formulas and have business requirements, or they may have business requirements for product formula development and product development.


OEM is a common practice in the cosmetics market, with both top-tier brands and small, micro-businesses employing private labeling. When choosing a cosmetics OEM manufacturer, brands often opt for contract manufacturing to save costs. The investment required to build their own factory and hire production staff is not suitable for asset-light small brands.


For top-tier brands, they focus on product development, then connect with OEM manufacturers, produce finished products, and then release them to the market.


For small and medium-sized enterprises and brands, many of the facial masks and cosmetics you see on WeChat Moments are produced by cosmetics OEM factories. The production cost of facial masks depends heavily on the packaging, mask cloth, and concentrate. The cosmetics industry has entered a white-hot stage. For cosmetics companies that want to have their own brands, choosing a good cosmetics OEM manufacturer is undoubtedly one of the keys to the success of their own brand operations.