What is cosmetic OEM? What is OEM processing? The OEM processing flow of cosmetic factories

The meaning of OEM and contract processing in cosmetics

Cosmetics OEM

The full name is Original Equipment Manufacturer, literally translated as Original Equipment Manufacturer. In the cosmetics field, it refers to a brand owner who owns the brand, trademark, sales channels, and product concept and positioning, but does not produce the product themselves. Instead, it entrusts cosmetics factories with production qualifications and capabilities to complete the production and manufacturing of cosmetics according to the formula, packaging design, quality standards, and other requirements given by the brand, using the factory's site, equipment, and manpower. Finally, the finished products are labeled with the brand's trademark and sold in the market. For example, a niche beauty brand plans to launch a new moisturizing face cream and entrusts a professional cosmetics factory to produce according to its formula requirements, which is the cosmetics OEM mode.

Contract processing

Cosmetics contract manufacturing is a broad concept that includes both OEM and ODM (Original Design Manufacturer) models. ODM is not only responsible for product production, but also provides brand manufacturers with overall product design solutions, including formula research and development, packaging design, etc. Brand manufacturers only need to choose their preferred solutions and affix their own brand trademarks to promote them to the market. Cosmetics outsourcing is essentially a division of labor and cooperation between brand manufacturers and production factories, using the factory's professional capabilities to fill in their own shortcomings and quickly push products to the market.

OEM processing flow of cosmetics factory

Brand preparation

Brand planning: Brand owners first clarify product positioning, identify target audience, efficacy demands, price range, brand image and other elements. For example, it is planned to make an affordable soothing facial mask for young office workers, focusing on repairing skin barrier and quickly replenishing water.

Trademark registration: Apply for a trademark with the National Trademark Office, obtain an acceptance notice or registration certificate, and ensure that you have a legal brand logo. This process usually takes 6-12 months.

Select cooperative factories

Qualification review: Check whether the factory holds valid "Cosmetics Production License", "Business License" and other certificates, and verify whether the scope of the license covers the intended products, such as the production license for special purpose cosmetics (whitening, sunscreen, etc.).

Capacity evaluation: evaluate the progressiveness of production equipment and capacity scale of the factory, and understand whether the daily and monthly average output can meet the expected order quantity; Assess the professional level of the R&D team, the distribution of personnel's educational background and R&D experience. We also need to research the factory's past reputation and inquire with peers about timely delivery, product quality stability, and other related information.

Product sampling

Demand communication: the brand manufacturer and the factory exchange product details in detail, such as product dosage form (essence, lotion, gel, etc.), composition, fragrance, color, and packaging form (bottled, canned, soft packaging, etc.).

Initial sampling: The factory prepares samples based on the communication content, which takes about 15-30 days, and then delivers the samples to the brand manufacturer.

Test feedback: Brand owners organize internal trials or invite target consumers to try, collect feedback on texture, effect, odor, comfort, and other aspects, and organize and provide feedback to the factory.

Sample optimization: The factory adjusts the formula and packaging multiple times based on feedback until both parties are completely satisfied with the sample, and determines the final version of the sample.

Contract signing

Clause drafting: Clarify core contract terms such as product price, order quantity, delivery time, quality standards, acceptance method, payment method, confidentiality clause, etc. The quality standards need to specify in detail the upper limits of key quality parameters such as microbial indicators and heavy metal content.

Review and signing: The legal personnel of both parties carefully review the contract, avoid potential legal risks, and confirm its correctness before officially signing it.

Packaging material procurement and production preparation

Customization of packaging materials: Brand owners can purchase packaging materials themselves or entrust factories to purchase packaging materials, such as customized bottle bodies, bottle caps, labels, paper boxes, etc. The procurement cycle is usually around 15-45 days.

Scheduling preparation: The factory arranges production plans based on the order volume and the idle time of its own equipment, prepares raw materials in advance, and debugs production equipment.

Production, Inspection, and Shipping

Formal production: The factory strictly follows established processes and procedures to carry out batch production, strictly controls the quality of each link during production, conducts random inspections of each batch of raw materials, and monitors key production parameters.

Finished product inspection: After production is completed, the factory first conducts self inspection, and after passing the inspection, invites brand merchants to come to the factory for sampling. The qualified products are labeled with the brand logo and have complete packaging.

Delivery of goods: According to the logistics method agreed upon in the contract, the factory delivers the goods to the designated location of the brand, accompanied by production batch reports, quality certificates, and other documents.

After sales follow-up: When brand merchants encounter quality complaints and other after-sales issues during the product sales process, they should communicate with the factory in a timely manner, investigate the causes of the problems together, and negotiate solutions.