OEM means that brand manufacturers do not directly produce products for some reason, but use their own "key core technologies" to design and develop new products and control the "channels" of sales, but their production capacity is limited, and there are no production lines or factories. In order to increase production and sales, reduce the risk of entering new production lines, and even win market time, they entrust other similar product manufacturers to produce through contract ordering, and the ordered products are bought out at low prices and directly labeled with their own brands and trademarks. This kind of cooperation mode of entrusting others to produce is OEM.

The biggest feature of OEM is that technology, capital and market are outside, including only production.

What are the advantages of cosmetics OEM?

reduce costs

Reducing production costs is the key to maintaining profits, and cosmetics OEM can help you effectively reduce costs. Merchants' limited funds will be put into sale smoothly, and the cost of production will be minimized. The emergence of OEM just solved the problem of product production of merchants, so that merchants can produce their own products with little money. Many European and American cosmetics brands use overseas OEM production to directly reduce the risk and cost of investment in order to obtain higher returns.

It saves the investment in building a cosmetics processing factory, the tedious management, the trouble that agents are limited by manufacturers and prices are depressed by the market, improves the market response speed, quickly captures the unfavorable space in the market competition, and gains a competitive advantage.

Increase product diversity

Cosmetic OEM can help more brands and increase the diversity of products.

Give full play to the advantages of enterprises.

Enterprises have corresponding technical and brand advantages. Design open new products. OEM companies have huge factories and packaging technology, so they can help each other to achieve the result of 1+ 1 >:2.

Use the opportunity of trial and error to reduce losses

The market has been changing. Some cosmetics brands often enter the market by trial and error, and all choose OEM to test the possibility of entering the market.

In fact, simply speaking, cosmetics OEM is to borrow other people's venues to produce their own things, and the ultimate ownership of things is still their own. You just need to give others a small amount of production costs.