The cosmetics OEM model has, to a certain extent, lowered the barrier to entry for emerging brands. However, the cosmetics formulas and raw materials used by many brands are largely similar, leading to significant cosmetics homogeneity, increasingly fierce market competition, and a looming price war.

Today, the cosmetics industry has a low barrier to entry, and many investors are interested in investing in the cosmetics business. However, due to limitations in R&D, significant product homogeneity is now evident in the market. Many products on the market share similar efficacy and selling points. This is especially true for popular products, which often feature identical promotional features across various brands, often mimicking each other.

1. How can brands avoid homogeneous competition in the cosmetics contract manufacturing era?

Such companies without distinctive features will eventually be eliminated in the fierce competition. So, how can product homogeneity be avoided? In addition to strengthening their own R&D capabilities, brand owners should also consider the following aspects to ensure their products stand out in this competitive market.

1. Differentiated product marketing strategies

When a product sells well in the market, most brands will commission cosmetics contract manufacturers to produce it and subsequently launch similar products. Promotional methods and marketing activities are similar, with discounts, promotions, and buy-one-get-one-free deals. This applies both online and offline, with promotional information everywhere and similar marketing tactics. This can stimulate consumer spending in the short term. However, over time, consumers become numb to these promotional messages, and the market enters a vicious cycle. Therefore, exploring new marketing strategies to satisfy consumers in multiple ways is key.

2. Differentiated Product Positioning

Across the cosmetics market, brands often employ similar product packaging, concepts, and efficacy positioning. When faced with a popular product, cosmetics manufacturers simply produce it to their specifications. Faced with a plethora of choices, consumers ultimately choose the big brands.

Consumers are inherently skeptical of small brands. If a brand's products exhibit significant homogeneity in production, packaging, and brand philosophy, it will be difficult to establish a new presence in the market. Therefore, brands should thoroughly understand customer needs and explore untapped needs. If they lack R&D capabilities, they can outsource this to cosmetics manufacturers. A differentiated product strategy can help brands quickly gain market share.

3. Product Quality Assurance

In addition to ensuring differentiated product marketing and positioning, ensuring product quality is paramount. If the product isn't good, consumers won't buy it, no matter how good the promotion or product concept.

Therefore, when choosing a cosmetics manufacturer, it's recommended to look for one with independent R&D capabilities and robust production capacity. Only in this way can the quality of cosmetics be guaranteed at the source.

The cosmetics market is highly competitive, so careful planning is crucial before embarking on a journey. Only by adopting differentiated marketing can brands escape the vicious cycle of homogeneous competition and ensure stable and sustainable development.