Beauty manufacturers promote their own brands, and reverse attack from "workers" to "industry leaders"!

05-09-2022

The awakening of the younger generation's awareness of beauty, the improvement of the consumption level of the Chinese people, and the diversification of beauty demand have directly or indirectly led to the rise of cosmetics processing factories.

As the upstream manufacturer of cosmetics, the OEM has gradually moved from behind the scenes to in front of the stage, realizing the importance of independent brands for enterprises. At the 26th China Beauty Expo, many beauty manufacturers launched their own brands, changing from "migrant workers" to their own masters.

1. Demand is behind the development from "working" to self-reliance

In recent years, with the rapid development of the beauty industry, the whole industry chain has entered a bonus period. Among them, as an important nut in the rapid development of China's beauty industry, the OEM naturally reaps a lot. The impact of the epidemic has become the best opportunity for many OEM manufacturers to build their own brands to a certain extent.

The Internet under the epidemic has become the best link platform between beauty manufacturers and consumers. In the past, it was difficult for the OEM to make its own brand, and the biggest difficulty was the need to connect agents and service terminals. Now, with the Internet platform gradually becoming the main sales channel, the OEM can directly reach consumers.

The cost of land, raw materials and so on is rising year by year, and the contract factories are pushing down each other's prices, so the market is vulnerable to shocks. In addition, after May 1, the regulations on the administration of registration and filing data of new cosmetics raw materials and the catalogue of used cosmetics raw materials (2021 Edition) were formally implemented. Therefore, in the view of many beauty OEM enterprises, only by taking the branding route, creating their own strong IP and brand, and occupying both ends of the smile curve, can enterprises get rid of the embarrassing situation of not making money and looking at others' faces.

For example, in recent years, Huaxi bio, the global leader in hyaluronic acid, has a number of brand series including runbaiyan, bio-meso, mibel, etc. the product categories include secondary throwing solution, various creams and water emulsions, facial mask, hand mask, spray and some color makeup products. Among them, the number of fans in runbaiyan tmall flagship store exceeds 2.03 million, and hyaluronic acid secondary throwing solution ranked first in tmall's domestic essence on November 11, 2020, with sales of more than 200 million pieces. Shandong Furuida group, the biggest competitor of Huaxi biology, has been making layout in the skin care product line for a long time. At present, it has 11 independent brands, including Yilian, Dr. yu'er and Shanyan. The main brand, Yilian hyaluronic acid moisturizing spray, sells 100000 + a month in tmall flagship store. In addition, isjia owns many brands such as isjia, Zhenmu, modern classic, etc. meiaisi enterprises have its own brands such as meiaisi cosmetics, Shuixiang beauty mask, and duoai washing products.

2 behind the scenes vs in front of the stage, is it an accelerator or a stumbling block?

Whether to be a brand or a OEM is a question that has puzzled countless Chinese enterprises. Many people think that there is only a thin line between OEM and private brands, but to cross this line, we have to undergo a transformation of traditional industries.

"Maybe every factory has a brand dream". After all, OEM still depends on others to "eat". Therefore, it has become the choice of different stages in the transformation process of the factory to make its own brand and support new brands. Many enterprises believe that keeping walking on two legs is the best choice at present. However, some people in the industry said that from behind the scenes to in front of the stage, the identity of a OEM is not only an accelerator of its own brand but also a stumbling block for enterprises. After all, the technology industry has expertise.

The advantages of beauty manufacturers lie in formula research and development and product production, and the advantages of brands lie in brand planning and marketing, which are complementary to each other. The OEM does not make its own brand because of various considerations, such as cost and operation. Compared with "making a brand," making a product "is the specialty of the OEM. As a brand, the factory has formed a competitive relationship with customers. The customer's product factory knows the root and the bottom, but the brand side knows its friends but not the other. In particular, the real difficulty in building a self-made brand is actually the change of business thinking. We should learn to switch from to B to C.

As a matter of fact, when contemporary processing factories are making their own brands or supporting new brands to carry out transformation, traditional beauty brands instead look at the OEM business of the former and carry out their own OEM business. After all, if a brand or a OEM wants to maximize its profits, it must closely follow the changes in the market for strategic layout.

In the past, the threshold for OEM of beauty products was low, but with the improvement of industry regulations and the background of the information age, consumer demand has become more and more diversified, which will promote the development of OEM of beauty products in the direction of high quality and high quality.


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