While top brands like L’Oreal hold the lion’s share of total revenues in the cosmetics market, one size definitely does not fit all. Small artisanal cosmetic lines are making inroads on even the major brands. Men and women are looking for more natural alternatives, less preservatives, eco-friendly manufacturing and packaging, companies that are cruelty free or do not use animal products in their formulary, and products that they can trust. Hair care and skin care products make up the largest part of the beauty industry, taking nearly 50 percent of the total sales. Cosmetics and perfume follow-up with roughly another 25 percent. While deodorants, feminine products, oral hygiene, and other toiletries take up the percentage points.
Smaller Can Compete
Making a name for yourself as a small, new cosmetic company can be an arduous process. After all, you’re not Unilever or Procter & Gamble. However, small cosmetics companies can be killed by success as much as failure. All it takes is a positive review in a fashion magazine or on a beauty blog, and you can find yourself drowning in orders that you just can’t fill fast enough. As you build your brand and your sales trend upward, it’s time to think about how you get your cosmetic product packaged and fulfilled, without breaking the bank or the time clock. The answer to these questions is, “outsourcing.” Working with an experienced, local company can help you compete with the big names, without the big budgets.
Many companies resist outsourcing vital functions until they are staggering under the weight of trying to do too many things At once. Warehousing, inventory, packaging, and fulfillment are labor-intensive and budget intensive items for any business, and while you might be thinking that these services are going to cost you money, delays in filling your orders are going to cost you customers. In fact, over 65 percent of businesses do not calculate the costs of carrying inventory, including warehousing costs, meaning that many of these businesses have a huge blind spot in their budget. Outsourcing these functions to a company that can handle all four in one bundle can free up your time so that you can address customer satisfaction, and continue to grow your brand unimpeded. A company like Simplicity Filling Systems can help you get a grip, before things get out of control.
Supply Chain Management
Packaging and fulfillment of cosmetics isn’t just for every fulfillment company. You need experience not only in warehousing, inventory, and fulfillment but in mixing, filling, packaging, and even in date coding. Lotions, creams, shampoos, conditioners, body washes, and even essential oils require specialized know-how and handling from an experienced staff. You want to contract with a company that takes your product and your brand reputation seriously as you do. Whether your product is being shipped to an individual consumer from your e-commerce site or to a B2B customer, you want that product to be fresh, with the packaging in just off-the-shelf condition and ready for its close-up.