Introduction
Starting a new private label makeup line with an innovative idea is undoubtedly challenging, but there is always room for better options and quality products.
The cosmetics industry is the one that never misses its target. The versatility and innovative ideas in this beauty industry are always welcomed.
But the truth is, there are already big players that have taken the market by all means. People trust them and show loyalty by only purchasing their brand, which captures the maximum market share.
How can anyone enter such a field and make a space in the client’s mind? Well, here is some good news!
Yes, you can enter the beauty industry if you are determined and passionate about the idea you have been dreaming of for so long. Just be creative and consistent and know your market trends.
This article will provide you with an overview of the cosmetics industry and a step-by-step guide to starting your makeup line.
Understand Cosmetic Industry
Market Overview
The primary category of the cosmetic industry includes skincare products, haircare, makeup, toiletries, deodorants, and perfumes. As per the statistics for 2020, the market for the cosmetic industry has decreased by an estimation of 8% than 2019.
The projected growth of the cosmetic industry for the year 2021 is from 287.94 billion US dollars to 415.29 billion US dollars in 2028. During this period (2021-2028), the growth will be at a CAGR (Compound Annual Growth Rate) of 5.0 %.
This industry’s decline and decreasing trend are due to the pandemic effect. Once the pandemic is over, the CAGR returns to the boom side (Fortune Business Insights, 2020).
However, the following are the percentages according to the market profitability (global cosmetic industry market):
- Skincare 42 %
- Haircare 22 %
- Make-up 16 %
The above-mentioned global cosmetic market has covered decorative cosmetics, including makeup, lip colors, mascara, nail colors, and the natural cosmetics segment for the statistics.
The annual revenue for 2021 is 80.74 billion US dollars, which means the global cosmetic market has increased by 8 billion US dollars. According to the forecast for 2022, the estimation for the increasing trend in revenue will surpass 100 billion US dollars.
So, with the increasing trend in revenues, we can see the cosmetic industry is in a boom position; therefore, starting a cosmetic business is a good idea.
Advantage
Cosmetics have become a significant part of the lifestyle for women, but the rising trend of using makeup by men can also be seen. The main advantage of the cosmetics industry is that anyone, regardless of age, skin color, or gender, is a potential buyer group.
Working women tend to explore more beauty care solutions. In this regard, product usage will boost, directly impacting the overall cosmetic industry globally.
Another advantage of starting a cosmetic company is that you can skip the manufacturing process and create your private label makeup. You need to pick the products you want to add to your makeup range and put your name on them.
However, how to start own private label makeup line, and where to find private label makeup manufacturers?
Here are all the answers that you need to know:
Research the Market and Pick a Product
Before starting any business idea, you need to research the market, check the feasibility, allocate your budgets, and then decide whether you can begin it or not!
So, the cosmetic industry is no different. We need to make sure if we want to get into this specific industry and then start making our budgeting. Anyone can create a private label makeup line for $1000, including the product, packaging, shipment, and online business setup (website).
Starting a private label makeup line is just a rough idea for you, but if you wish to launch a luxury personal label makeup, you need to invest more.
Follow the Trends
You need to follow what is trending, so you need to watch YouTube reviews, follow bloggers, and read critics thoroughly for this very purpose. It will help you find the target audience to create a private label makeup line.
Either you want to start with organic products or natural cosmetics? This question is perhaps the most important because you can identify your target market, yet sales, growth, share, and profits will depend on it.
Private label makeup manufacturers specifically work for organic and natural cosmetics and on that ingredient that precisely serves your purpose and description mentioned on that product.
Make a business plan for your private label makeup line, position your products, and market accordingly. Now, establish a goal of where you want to see your company in the next five years or so.
It would be best to research the private label makeup line regulations. What do your state or federal regulations say about the labeling and selling the products? The private label makeup manufacturers can do this procedure but make sure you read them too and know them wisely.
What product do you want to start with, skincare, makeup, or haircare? Select your products and just come to the next step.
Design Your Brand Image
Brand image in the mind of customers should be strong enough that they will trust you by all means. Designing a brand is as important as choosing your target audience.
There are private label cosmetic manufacturers that help develop your brand, so choose your manufacturer for private labeling wisely.
Credibility
The credibility of your brand will help you to become a successful business. Your brand image might depend upon the packaging, imagery, color palette, logo, mission and vision statements, and corporate values.
Consistency Is the Key
The most important key to branding is consistency. The logo, printing, and packaging matter to buyers to maintain the standards and quality of the product. Besides being consistent towards the product, you have to be consistent on social media and the website.
Build Trust
Make your audience aware of the new products you are introducing and make them aware of the usage of the product.
Let them know about the ingredients present in your product and how genuinely they are being produced by fulfilling all the hygiene and quality standards. This branding technique will build trust among the audience.
Flexibility
The cosmetic industry is rapidly evolving; therefore, your private label cosmetic company should be flexible. If something is not working for your brand or something new is coming for the cosmetic industry, you need to be flexible to adjust your brand strategy.
Find a Supplier
Now that you have decided to start a private label cosmetic line, it’s time that you look for private label cosmetic manufacturers that best suit your strategy. Find a supplier that meets your requirements the way you want them.
Following are a few requirements for you that you can complete to find a private label cosmetic manufacturer:
Through Internet
The Internet is the best place to find private label cosmetic manufacturers. Google can assist you in several ways. There is a world of information about the whole market of private label cosmetics manufacturers, and the most crucial part is that you will find a suitable solution for yourself.
Through Google, you can easily find the market leader, the newly launched private label cosmetic manufacturers, the lesser-known suppliers.
If you have decided to go for organic products, specific private label makeup manufacturers are there. So, your search for this particular range will be easier to filter out these private label cosmetic suppliers through Google.
Trade Shows
You can quickly locate your private label suppliers through trade shows. This solution of finding manufacturers is considered an old-school thought, but this is a fun way of interacting and finding your ways.
With the physical presence, you can observe many things in the suppliers, like the culture and their way of treating others, you can connect with them directly, and you will have the opportunity to make your point more clearly. Also, you can have samples of more products in a short time.
Alibaba / Made-In-China
On Alibaba.com, private label cosmetic manufacturers can easily be found worldwide. These private label makeup manufacturers will be reputable, trustable, and verified by Alibaba or Made-In-China.
After finding a verified supplier, you can label the products under your brand name. Production costs which include materials will be a headache for the supplier. You will get the finished products ready to sell, labeled with your brand’s name.
So, visit Alibaba.com and Made-In-China to find your supplier according to your product. For example, you can search ‘private label nail polish’ or ‘private label cosmetic manufacturers.’
While finding your supplier, keep the following points in mind:
- Find a supplier that will help you in packaging as per your requirement.
- Find a credible and reliable supplier.
- The supplier should be stable to have a long-term business relationship with them.
- The supplier should agree to all the terms and conditions of the country for a private label makeup line.
- You should have the authority to design your packaging, prints, products, ingredients, etc.
Get Samples to Test Products
Private label cosmetic manufacturers send samples to their potential clients. So, once you have shortlisted your suppliers, it’s time to request the pieces for each.
Upon getting samples from listed private label manufacturers, test your ordered models for the products you wish to launch, like lipsticks, lip gloss, mascara, foundations, skincare items, etc. Test these products and have your opinion about the best supplier among them.
Just sit them with your samples, take your time to choose the best, and see the supplier who best matches all the standards and requirements you are looking for.
But remember, samples are free, not the shipping cost. So carefully order your models and make your decision wisely.
Pick Cosmetic Packaging and Discuss Details
Here comes the best and the most exciting part: you have to pick your designs for the packaging. It is a fun part but doesn’t take packaging lighter. This step will have a more prolonged effect on the consumer’s mind. How well and presentable you pick your packaging. Packaging and labeling both can pitch sales of your product significantly.
Select Color
Now, it is the time for you to select the colors of your lipsticks, gloss, eye shadows, cheek stains, etc., whether you like matte, shimmer, metallic, radiant, satin, or glitter. Just custom make your eye-shadow lip palettes.
Quality
Quality of the products you want for cosmetics, for instance, waterproof, sweatproof, long-lasting, etc.
Quantity
How much do you want to order your product for a specific item? If a particular color is in demand, you can ask for it more than others. MOQ for each color line should be carefully seen. And also, check the private label makeup manufacturer’s MOQ policy.
Formula
Whether you want a lightweight, vegan, cruelty-free formula for your product, discuss it with your supplier and decide carefully.
Labeling
Labeling comes next. Which printing method do you want for your product? Silkscreen, hot stamping, paper label, choose your pick! Glossy labels are for the product with vibrant advantages, while matte labeling is for organic and all-natural products.
Packaging
Effective display of your product will help to gain more success. Packaging should stand out. Choose your color box, display box, neutral box, and outer box accordingly. More durable and environmental-friendly packaging is now trending.
Printing
What type of printing do you want for your product? Silkscreen, hot stamping, and engraving are easy options you can select from.
How Much Does It Cost?
It may be the very first thing you want to know from the supplier, but a quote is not an easy thing. But once you confirm the above items, it will be closer to the final quotation.
Meanwhile, finalizing the packaging, you need to calculate your costing for material, containers, MOQ, the profit suppliers will take, labor cost, etc.
Price
It would help if you kept the prices per the product’s value. The most trending and demanding products should be priced accordingly.
Identify the profitable products and research those products which are market leaders. Typically, starting a cosmetic brand needs 40 US dollars to 100 US dollars in case of samples, whereas the whole product range might need 1000 to 5000 US dollars.
Use online tools for best-selling product knowledge, like Google trends and Amazon Bestsellers. Ordering samples will be the most significant expense, then setting up logistics for your brand like the website, mode of payment, processing, and order fulfillment will be the challenge in terms of cost.
After pricing, you need to decide on either FOB (Freight on Board), CIF (Cost, Insurance, and Freight), or EXW for your shipping arrangements. This shipment’s cost should be calculated earlier so that no other or uncalculated cost appears later on.
Sign a Contract
It is the most significant step you will take to start your own private label cosmetic line. Don’t be afraid because you have done your homework and will get through this one.
You can use PI contracts for contracts. PI is an institution employee who is not empowered to state a legal signatory.
The terms entailed in the contract should be on the PI where both parties agree. Direct costs, including personal services, materials, consumables, equipment, etc., should be allocated and signed on the contract.
Main Payment Methods
Some manufacturers require half pre-payment, so once you get your product done with them, you need to pay half of the payment. Therefore, payment is made upfront via credit card.
This payment method should be on the contract to avoid any misconduct in the future. Also, make sure you have worked well on pricing and label printing.
Mass Production & Delivery
Production time required by the private label makeup manufacturers is usually three weeks after you have approved labels and placed an opening order. The fast production of the products depends on the order size.
While making orders to the private label makeup manufacturers, always be sure because they are non-refundable and non-returnable.
Shipping methods are numerous, like drop shipping, in-house order fulfillment, outsourced fulfillment, and hybrid fulfillment. Choose the one that best suits you.
The orders are shipped within 10-15 business days. All the products delivered will be retail-ready, finished items, and packed in individual boxes.
Selling
Selling your product is the final step you have been waiting for so long. Choose the optimal solution for yourself from the following:
- In-store
- Online
- Amazon
- Alibaba
- Made-in-China
- Social media
- Local markets
- Other retailers
Decide whether you want to sell your products to B2B or B2C, or both because it will determine your branding and strategy. For B2B, start selling your products to spas, gyms, and other small stores more accessible to end-users.
Conclusion
The cosmetic industry is vast and profitable, where new and innovative ideas are always welcomed.
Private label makeup companies are there for your comfort. You need to pitch ideas or order them from their existing products and have your brand name.
It is as simple as anything, but consistency and flexibility will make your brand go places.
We hope you make the best product and it will be the most demanding brand everybody wants in their bag.