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Private Labeling in Cosmetics, How it works and Benefits?

  • 22/11/2022
  • Bo International

The global market of cosmetics is predicted to reach $429 billion by the year 2022. Therefore, budding entrepreneurs or established businessmen might think of the cosmetics business as a lucrative means to rake moolah. It is because people want to look young and dynamic all the time. Also, the demand for cosmetics made from natural ingredients is also growing around the world. However, if you want to enter into the cosmetic business, you should analyse several aspects in advance. 

For instance, you might be able to book early profits by targeting the customers who prefer natural cosmetics over artificial ones. However, procuring ingredients that are pure, natural, and safe is not an easy task. Therefore, you will have to determine the suppliers first before starting a cosmetic manufacturing company. Similarly, there are several other factors like cosmetics packaging, marketing, distribution, etc. that need to be taken care of. In this article, we will provide you some great insights that will help you start a cosmetic business on your own. This article will be focussed on shedding light on several factors that can help you build a cosmetic brand with ease. So let’s dive into the major factors that can impact your cosmetics business:

Decide your market niche & audience

If you are a startup, you must decide your market niche and audience before raining products in the market. It will help you decide the kind of marketing strategies that can help you establish a trust in the market. For instance, if you are keen on developing men’s grooming products, identify the age groups, location, profession, and other demographic details of your target audience first. You can look at the promotional campaigns and marketing strategies adopted by the established brands in the business before taking a huge leap in the market. 

Gathering enough data about your target audience and market niche will help you grow your business smoothly. For example, if you choose the market niche of lip care products, your target audience would be all the women who are older than 18. It will help you design products that appeal to your audience and cater their requirements. You can create lipsticks for working women that can be carried even in a small purse. Similarly, you can create campaigns for lip glosses, lip balms, etc. that help to keep their lips moisturised and plump throughout the day. Taking the support of a professional marketer would help you decide your market niche and target audience easily.

Finalize the niche products 

Once you get all the information required for moving forward, make the list of products that you would be selling. Also, ensure that the products are in line with the target niche and expectations of your audience. Don’t start manufacturing all the niche products at once. Run the products in batches as it will help you to evaluate their performance over a time. The products that catch the interest of the buyers will eventually sustain your product line. However, those that don’t appeal to the audience should be eliminated from the product line immediately to save on the production cost. 


Finding the niche products itself is a big task sometimes. It is because you can find two products that sound and work similar and get confused which one to choose. For instance, if you are going to start with body care products, you can reach a point where you need to decide whether to make body scrubs or body washes first. Here is where data analysis comes into play. The data mining and analytics that you have performed for identifying the target market and audience will help you decide which one is best for your business. For example, if your business is targeting groups living in the coastal regions, creating a body wash containing cooling ingredients like menthol and aloe vera can be a great option. 

Deep Research Your Competitors 

If you don’t carry out deep research for analysing the policies and strategies adopted by your competitors, you will be soon wiped away in the market. Though the cosmetics business market is huge, the hundreds of brands that get launched every year make it a cutthroat business. You will have to look at how your competitors advertise, promote, and launch their products. Also, digging into their marketing gimmicks can help you with your marketing campaigns. 

For instance, if you manufacture makeup products, look how your competitors are scaling their business. The manner in which they link themselves with fashion brands or fashion icons should be observed. It will help you to scale your business and establish your foothold in the market. Analysing the competitors closely will also help you to avoid the mistakes made by them. If a particular cosmetics brand made a huge mistake by considering dark and ugly as the same thing, you can avoid it. Moreover, you can preach how your product benefits people of all skin tones and skin types to winover the audience that your competitors have ignored.

Find out the gaps in the cosmetic industry 

There could be certain gaps left by your competitors that you can fill in. For instance, the lack of informative blogs and articles on the website of a cosmetics manufacturer company can impact their business negatively. These days, people are into DIY products and recipes. Therefore, provide such informative blogs on your website and subtly promote your cosmetic products and ingredients in the blogs. It will not only boost your online sales but also help you win the trust and admiration of your customers. 

Similarly, there could be many gaps in the cosmetic industry. The cosmetic manufacturing companies might not be providing a customised experience to the users on their web portal. People like to get identified by the brands that they are using. Therefore, if you note down the birth dates and other details of your customers and send them customised emails on the special dates, it can help you to turn them into loyal customers. 

Many cosmetic brands don’t provide a dedicated customer support helpline whereas some don’t have mobile apps that can help the customers to order the products seamlessly. These things can hurt your business in the long run. Therefore, you must identify these gaps and try to ignore them to grow your business without any hassles.

Private Labelling – Design and Packaging 

If you think all cosmetic brands manufacture their products on their own, you are wrong. Many of them get all the things done by a private label cosmetics manufacturer. It means that everything from procuring the ingredients to product formation and from design to packaging is done by the private label manufacturer. You only have to suggest the kind of products, the ingredients, how the packaging will look, and some other things to the manufacturer. 

It is a profitable preposition especially if you don’t have the necessary setup and expertise to manufacture the products on your own. You just need to purchase the products from the private label cosmetics manufacturer and pay them for their job. By determining your profit margins, you can set a price for the finished products and earn decent profits by selling them through offline and online means. Once you start generating a decent revenue through this method, you can enter into manufacturing some products on your own. 

You can also adopt the policy of contract manufacturing. It means that part of your manufacturing can be outsourced to another manufacturer. It will save both time and effort and help you focus on marketing and other aspects of the business. By adopting contract manufacturing, you can grow your business and scale it to newer heights.

Test your products 

Testing products before they are launched or distributed in the market is essential to avoid entering into legal obligations. These days, customers are completely aware of their rights and can drag you to the consumer court if your product harms them in any way. Therefore, get your products tested thoroughly before they are available on your offline and online stores. 

Some products can have ingredients that might not suit everyone’s skin. Testing products comprehensively will help you understand such flaws or defects in your products. For instance, suppose that you have developed a face cream that does not work for people with oily skin. Now, you can either change its composition to make it work for everyone or sell it with a label that suggests only people with dry and combination skin use it. To make the testing product work, you will need to set up comprehensive testing procedures in your company.

Create a Sound Marketing Plan 

Once you have ensured that all your products are good enough to be launched in the market, you must figure out a marketing plan as well. Your marketing strategies should be such that it should help you add more loyal customers into your customer base. You can use email marketing to keep your customers informed about your new products. Similarly, you should try to bring new customers to your store or app through social media posts and campaigns. 

Your marketing plan should enable you to connect and converse with your customers frequently. Also, it must provide you with multiple ways of connecting with your customers. While making a marketing strategy, you must focus on creating attractive content that appeals to your existing and potential customers. Also, each campaign should be addressed to a particular audience and type of people. It will help you to analyse the age, occupation, gender, and other details of your customers. You can take the help from a digital marketer to set up comprehensive campaigns on social media channels like Facebook, Instagram, YouTube, etc. 

Sometimes, offline marketing can also generate some revenue for your company. Fliers, brochures, product catalogues, etc. are some materials that can cater to your offline marketing requirements. Press releases, promotional blogs, and affiliate marketing are some of the other ways that can improve your online presence in the cosmetics industry.

Launch your business online 

As a startup, you might not have the financial backup to open physical stores and outlets for your brand. However, you don’t have to worry as you can create a stunning website to promote and sell your products online. By linking your website to an e-commerce platform, you can sell products online without any issues. Though it is not much difficult to start a cosmetics business online, sustaining the interest of the customers and making them visit your ecommerce portal is definitely a challenge. You must consistently produce high-quality content that can keep users glued to your website. Similarly, you need to adopt marketing and SEO strategies to keep your website in the top of Google search rankings. 

Also, your website should be user-friendly and attractive enough to keep the customers interested in your products. If your website provides a hassle-free experience to the users, it will improve your online sales. As your products begin to create an impact in the market, you can launch a mobile app to sell your products. It is not a secret that people tend to use apps instead of mobile browsers. Therefore, if you allow them to go through your product catalogue through a smartphone app that has a responsive and impressive GUI, it will boost your revenue. You can also notify your customers easily about your new offerings through a mobile app. 

Provide Social Proofing for Your Products 

Case studies, testimonials, user reviews, etc. are the examples of social proofing. It is essential to provide interesting and real testimonials on your website that don’t sound fake. While social proofing validates your products, it also ensures that your products are widely accepted by the audience. These days, brands also use influencer marketing strategies to convert visitors into loyal customers. Influencer marketing is done with the help of social media influencers who have a considerable influence on a wide group of audience. When they promote your products subtly through blogs, vlogs, and other ways, it extends the reach of your products. 

User reviews on platforms like App Store and Google Play Store are also important because countless customers go through the user reviews and ratings before buying any cosmetic product online. Therefore, if your user reviews are positive, it will definitely help you earn more customers.

Study FDA Regulations

As someone who is involved in the cosmetics business, you must understand the FDA (Food and Drug Administration) regulates the labelling part of the cosmetic products. It ensures that the cosmetics are safe for public use and are not misbranded. For example, you cannot sell body lotion as face scrub as the FDA has set strict guidelines to prevent misbranding. As a cosmetics manufacturer company, ensure that the colours and additives used in the cosmetic products are approved by FDA. 

Some ingredients are also banned by the FDA. Therefore, you cannot use them in your products. If you are found using such products in your cosmetic products, you might be charged a penalty and selling of such products will be completely restricted. Also, all the products that are used for cleaning or beautifying the human body come under the category of cosmetics. Therefore, hair care, bath and body products, baby care, and skin care products come under the cosmetics. You need to be aware of all the products that are not considered as cosmetics but come under drugs. Nail polishes, perfumes, hair dyes, makeup products, hair straighteners, hair removers, colognes, etc. are also included in cosmetics. 

To avoid the intervention of the FDA, use as many natural products as you can in your cosmetic products. Refrain from using chemicals and ensure safe formulation procedures while making and packaging them. If you follow the FDA regulations and guidelines, you won’t have any difficulty in obtaining safety certificates from the regulatory bodies. 


We hope that you now understand all the things you have to go through to make your cosmetics business a success. These days, herbal and natural cosmetics are preferred by a majority of the people as they want to avoid using chemical-based cosmetics. If you are into making cosmetic products from natural or herbal ingredients, Bo. International can be the ideal place for buying all the ingredients and supplies. You will find everything from essential oils to floral powders and from herbal powders to carrier oils and much more on their portal. Get your cosmetic supplies from their official website at discounted rates and give a new brand value to your cosmetic business! 

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