Business in Cosmetology: Private Label Cosmetics
I'll be the first to admit quarantine had me feeling a little under the weather with no social interaction. There's only so much banana bread you can bake and TV shows to binge. With so much time on their hands, people started new hobbies (rollerskating got huge) while others started their own business in cleaning products (not a bad idea tbh).
And you? You're aiming to start a business with cosmetics. There's a lot of fun coming up with the perfect name and designing an eye-catching logo, but it's important you understand the lingo.
Let's begin!
Intro to "Private Label Cosmetics"
Learning about private labeling your cosmetics is the perfect place to start! If you're looking for an extended and more in-depth take, check out our guide from 2018. If you're searching for a quick explanation, read on!
Essentially, private label cosmetics means taking a product made by someone else and putting your brand name on it.
It sounds like plagiarization, but I promise it's not! The most popular example of private label cosmetics is Kylie's Cosmetics and ColourPop. Their formulas are similar but just different enough that they have different names and prices. Additionally, there are separate areas and workers for each company, which adds to their individuality.
Now that we've defined private label cosmetics let's move on to the pros and cons of private labeling your cosmetics.
Pros of Private Label Cosmetics
Starting a business translates to making several choices and devoting all of your time to the right areas. Time is money, and private label cosmetics has all the advantages for you and your brand in the long run.
1. Easy to Start
Private label cosmetics is super helpful if your team is small or doesn't have the expertise you need, and it's easy to do! Once you find the best maker for you (peep Genie Supply), you won't need to worry about formulas. Instead, all that time devoted to figuring out the chemistry and waiting for test results from labs, you can put towards working on your brand and putting your name out there.
2. SPEED
Since the created formula has successfully gone through testing, all you need to do is plug and play around with the different options offered by your manufacturer. Once you find your favorite samples, you can immediately move forward with that product and onto the manufacturing. Think waiting six weeks instead of a year because of lab results.
3. Save $$$
Another huge benefit with private label cosmetics is all the money you'll save! This cost-effectiveness comes in two different ways. One, you keep your research and development costs super low by devoting your time and energy to other aspects of your brand instead of thinking about formulas. Second, you can bypass high order quantities and go for that low MOQ (minimum order quantity). Factories make the formula in large batches, allowing you to take some of that inventory, add your individualized packaging, and send it to market faster.
Cons of Private Label Cosmetics
Not everything is perfect, so yeah, private label cosmetics do have a couple of cons.
1. Limited Customization Options
One disadvantage is the limited customization options available. You'll only be able to make minor changes such as the scent, flavor, or color. This limitation comes from needing to resubmit a formula anytime you make a major change. And that makes things more expensive and time-consuming.
2. Possibility of People Finding Out
This drawback sounds scary, but you shouldn't worry. There is a small possibility that people will find out you have the same formula as other brands. This discovery isn't good for your image because it doesn't distinguish you from the competition. It can also become a discrepancy when it comes to price (e.g., ColourPop's matte lip at $7 compared to Kylie's price of $17).
However, it's unlikely that people will find out you use the same formulas as others. Despite the confirmation that Spatz Laboratories makes products for Kylie and ColourPop, it hasn't kept either one from gaining revenue.
You can also turn this risk into a benefit. When starting your business, it's a great idea to use private label cosmetics as a launchpad when you're on a limited budget. Once you've gained the initial sales, brand loyalty, and the traction you need, more doors will open. From there, you can start creating your own chemistry in cosmetology that would further differentiate yourself from the competition.
Genie Supply as Your Private Label Cosmetics Manufacturer
If you're interested in the idea of private label cosmetics, let me recommend Genie Supply! It may sound biased, but we're dedicated to helping entrepreneurs like you reach your goals (hence the blog to answer all your questions!). And if you happen to use our products on your journey, then that's just an added bonus.
Our specialties include lipstick, lip gloss, highlighters, dry body oils, and much more! You receive the freedom to basically do whatever you want with what we have that will differentiate you from others. While we're not the only lab you can work with, we are the only one that has several unique options for printing logos on the packaging and expanding your branding at a low MOQ.
You can also choose if you want custom outer cartons for retail-ready or skip the box altogether and go straight to e-commerce. Our lipgloss lines start at just over $2000. With Genie Supply, you can start your brand, test the market, and make tons of money when you sell your products at MSRP (market sale retail price).
Takeaways
Private label cosmetics is a fast, easy, and effective way to jumpstart business in cosmetology. It allows you to dedicate your time to developing your brand rather than focusing on formulas and testing. Plugging and playing around with the available options lets you leap straight into the marketplace and put your name out there. While there are plenty of labs out there, I highly recommend reading more about Genie Supply and how we can help you.
Ready to begin private labeling your cosmetics with Genie Supply?
Browse through our samples of lip formulas and highlighters and start creating your own private line!
Not Ready for Private Labeling? Try White Label!
