Five keys for implementing successful cosmetic OEM/ODM

It is worth noting that recently it has been showing a rising tendency for global cosmetic brands to look for Korean cosmetic OEM/ODM companies to develop their own brand. It is considered that the trend is mainly thanks to the powerful K-WAVE.  “MADE IN KOREA” cosmetics have been widely popular in Asian countries by the K-WAVE influence as well.  The K-WAVE still keep extending its fame to many other countries around the world including Europe and the USA and it is expected that Korean cosmetics will continually gain popularity in the world. Through this powerful K-WAVE syndrome, HANACOS, Korean Leading Cosmetic OEM/ODM Company, also has been spotlighted by global cosmetic brands.

As an Overseas Marketing professional, I am in charge of taking counsel of developing cosmetic products based on OEM/ODM process with our clients. However, I have faced many unexpected challenges to delay the projects. That is mainly due to the lack of preparations for both parties.

 

I would like to find the best solution to effectively implement OEM/ODM projects of cosmetic development and production.

Firstly, if you are a startup or running a cosmetic business, you should carefully consider the product competitiveness prior to develop and build sales channel or network. It will be useful for the OEM/ODM company to develop the product as well.

In addition, you had better check detail information of the OEM/ODM company. Major cosmetic OEM/ODM company generally has its own technologies and know-how to develop and produce high quality products by enough experience. One of the key points to choose an ideal OEM/ODM company for your project is to think carefully whether the company has the ability to utilize its technologies in developing and producing the products.

I have some experiences to meet unprepared customers who have no 4P strategy. I think that at least, they should build a plan and consider the product concept, core ingredients, containers, the design concept, and sales channel & strategy before they meet the manufacturer. If you are not confident of successful sales, even though you have already confirmed all the options such as formula samples, containers, design work and packages, I would like you to recommend not to start the business.

Secondly, as cosmetics are high fashion conscious products, you should keep in mind that the life span is very short. Accordingly, it is important to shorten the development and production period from planning to launch. In order for that, you need to have close cooperation with the OEM company.

It will be useful for both to prepare the various channels for quick and fast communication with each other like e-mail, SNS, real-time video call, and etc. And also you should frequently communicate with your OEM/ODM partner (and it is much safer and faster than old fashioned mailing system!). The more frequent communication with each other will have, the better cosmetic products will be able to be born.

Thirdly, you should prepare necessary documents in advance for customs clearance. Cosmetics are one of the difficult items for clearing the customs. When you and OEM Company send or take the cosmetic samples through air mail or shipment, sometimes you may have some difficulties in customs inspection. And also you can get a tax exemption if there is a FTA agreement between the countries. You had better check when you find the proper OEM Company which can handle this with care. In addition, before you confirm the cosmetic contents and mass production, you need to make a product registration in advance for the product import without any delays.

Fourthly, building  your brand identity is much more important than content sampling, design art work and packaging for the successful business. You need to find an OEM partner which can cooperate with and provide you with core information about main ingredients, function of the product and strong point for building your competitive brand.

If the OEM company has the certification like ISO 22716(Cosmetic GMP) for the quality control, it will be very helpful to build a better brand image with quality proven. For better idea, you can visit the factory and check manufacturing and quality check process.

The fifth is to find the honest partners. Generally it is not easy to have frequent face to face meetings in the international trade. Traders inevitably utilize tele-consultation by various methods. Accordingly, it will be necessary to consider the partner’s honesty.

 

As briefly mentioned above, I listed five ways to find a good Cosmetic OEM/ODM company in Korea. As you know, the most important thing is a “trust” and to keep trying to develop a good relationship with each other.

I always look forward to having a sincere partner. It may be that I have been working here as I have been satisfied with my great pleasure to meet new people in many OEM/ODM projects. I suggest building and developing a good relationship with each other (you & OEM/ODM Company) as the sixths way for the successful OEM/ODM project.