Cosmetics manufacturers: how to quickly grow a lasting brand
Cosmetics manufacturers have found themselves booming in the D2C world recently. Question is, how do you stand out amongst all this outstanding competition?
Last updated: 23.08.2022
Nurme cosmetics are a great example of cosmetics manufacturers that have managed to find themselves a comfortable space in the market. But establishing a connection with customers that keeps your business growing is not so easy if you don’t have the right tools to support you.
We live in a world that highly values aesthetics and presentation.
Largely thanks to the advent of personal branding and social media, the way we look is as central to our identities as ever before.
And there’s no industry that has benefited more from this than that of cosmetic manufacturers.
They are everywhere we look.
Their products line the bodies of people all around us and consume our virtual vision too. From social media influencers to politicians and celebrities alike.
But as many opportunities as this have brought to manufacturers, there is no doubt that it has also come with plenty of challenges too.
Consumers are now looking for products that match their specific needs, whilst also displaying a consciousness for green manufacturing and ethical concerns.
They don’t just want products that are easier on the skin or have nicer scents. Now it’s a matter of offering products that line up with individuals in terms of elements like age, ethnicity, gender, climate, lifestyle, and health.
And considering the number of resources that need to go into developing new cosmetics products, there is very little room for error.
That’s why we’ve come up with a list of must-dos for growing cosmetics manufacturers that are looking to build long-lasting brands.
Understanding the regulations that apply to your set of cosmetic products is vital to making sure business runs smoothly. Cosmetics manufacturers often use cosmetics manufacturing software to track their materials and ensure they are always compliant.
Cosmetic products are those that we use on a daily basis to help cleanse and beautify our bodies. Whether that be lipstick, moisturizers, facial masks, concealer, foundation and so on.
Technically, it also includes shampoos, conditioners and hair products too.
As long as it applies externally to our bodies then it fits.
Generally, they are made from a mix of organic and inorganics compounds, which could include oils, dyes, spices, synthetic colors, and even crushed insects.
And the processes which go into the final products can be incredibly vast too. From emulsifying mascara solution to melting and molding lipstick.
It can often be a complex process with intricate product recipes and precise use of raw materials.
So, as you can imagine, any manufactured products which are intended to be smeared onto our bodies have to be dissected quite carefully. It’s any cosmetics manufacturers worst nightmare to be uncovered for a lack of quality control, and potential contaminations.
That’s why there is a huge emphasis on cosmetics manufacturers to follow regulations and make sure they are testing their products properly.
Alongside the precious modern need for manufacturing branding and marketing efforts, this makes it quite a challenge for cosmetics manufacturers to stay on top of their businesses.
Because not only do consumers want innovative products which are tailored to their needs, but also a brand with which they can connect and rely on.
Next up then, we’ll dive into some of our tips on how you can make sure to spend time on your brand, without losing sight of the gritty details which make cosmetics manufacturing so tricky.
How to become successful cosmetics manufacturers
Selling D2C is pretty much a given for cosmetic manufacturers these days. That’s a great indicator to the importance of branding and engagement, considering customers don’t even expect to see the product in person anymore to make a purchase.
Considering that cosmetic products are so wide-ranging, there’s simply no one single formula to finding success. However, some elements ring true for all cosmetics manufacturers.
On one hand, are the elements that relate to the processes of manufacturing, and on the other are the heightened expectations of consumers.
Strike the right balance and you’ll be in it to win it.
Manage raw materials efficiently
Inventory is of major concern for cosmetics manufacturers.
We’re talking about the use of raw materials and making sure that you have enough in stock to match demand. It’s not always so easy to optimize your consumption of materials, especially when product recipes and bill of materials can be so complex in cosmetics.
That’s why you should take extra care to optimize your material inventory. Because if you are under stocked then your orders will take longer to be fulfilled, whilst overstocking will lead to an increase in carrying costs.
Ideally, using ERP manufacturing software will allow you to harness the power of automation and get real-time updates on your inventory.
That way materials will be committed to separate manufacturing orders so that they don’t overlap. Plus, the use of reorder points will let you know exactly when to purchase more materials.
Gone are the days where the retailer was king. Now the middleman is only a hindrance in the way of cosmetics brands getting closer to their customers and increasing profit margins.
Online platforms like Shopify and Woocommerce have gone a long way to helping make this a common reality for aspiring D2C manufacturers. There are fewer middlemen to take a slice of the pie and you have a great chance to show customers that you are in it for the long run.
However, be aware that this phenomenon has also meant an increased expectation from customers for a more direct sense of communication.
You need to invest time into engaging with your customers on social media, employing influencer marketing, providing quality customer support, and taking opportunities to connect in person too.
Otherwise, you’ll quickly get left behind.
Know your regulations
We’ve already mentioned how important compliance with regulations is for cosmetics manufacturers.
And concerns for shelf life and safety of ingredients are only going to rise in the future.
So, the first thing you need to do is become familiar with your country’s regulatory bodies. For US businesses your port of call is going to be the FDA, which has more than a few rules regarding ingredients, labeling, and quality control.
You should also become acquainted with regulations abroad, in countries which you are planning to sell to. It might initially seem like a tough ladder to climb, but there’s a good reason many have turned to the D2C business model and sold their products abroad.
The second point is that you take the time to implement practices that put these regulations at the forefront of your business’s consciousness at every turn.
Make sure quality control is being practiced in every stage of production and that you are using ERP manufacturing software to track the appropriate use of materials.
Become a conscious manufacturer
Research has shown that consumers are as conscious as ever as to how brands source their materials and tailor their products for diversity.
And even more importantly, they are more likely to buy from brands that do this too.
Creating green cosmetics is a great place to start here. That means using natural ingredients that are produced from renewable raw materials.
People care as much about your processes now as they do about your product. So, show them that you care, and they will respond in kind.
But that’s only one side of the coin because you should also be aware of your consumer diversity too.
Manufacturing products and displaying models which are directed at different demographics can clearly make a huge difference for your business.
If you hit both of these points on the nose, you’ll be well on your way to becoming a successful cosmetics brand.
Natural Native is a manufacturing business that produces CBD-infused products for those looking to lower blood pressure, receive pain relief and combat cancer cells from developing.
Founder Madeline White adopted Katana into their business and had this to say, “At first, we approached work ad-hoc, mainly doing everything by estimations. But once we got started with Katana, we were able to formulate a schedule and get our stock under control. Before, we would quite often experience delays but, since using Katana, we’ve been able to be on top of our order fulfillment.”
But not only that, Katana helped Natural Native:
— Improve production planning to increase fulfillment rate by at least 50% and avoid delays;
— Implement a more automated inventory management method; and
— Improve communication between staff to avoid bottlenecks during production.
ERP manufacturing software for cosmetics manufacturers
Katana ERP manufacturing software streamlines the order fulfillment process for cosmetics manufacturers. That means you can follow your orders from inventory to production and sales, making sure that your customers get their deliveries on time.
Beauty and cosmetics are heavily on the public’s consciousness.
D2C brands have swooped in and won consumer’s hearts with influencer marketing and a conscious approach to manufacturing. And it certainly doesn’t look like it’s stopping any time soon.
That means there is plenty of scope for cosmetic manufacturers to take their business to the masses and make their millions.
However, that isn’t to say there aren’t caveats to consider.
After all, customers have increased their expectations now of brands in a way that didn’t exist a decade ago. Offering an awesome product simply won’t cut it anymore.
Now you have to spend time to build a brand, engage with customers and develop products that are consciously designed.
These can be incredibly time-consuming endeavors and to some extent will mitigate the extended profits made from cutting out the middleman.
But to really make the most out of it you need to ensure you are using the right tools.
Katana ERP Manufacturing Software is an all-in-one solution that is ideal for cosmetics manufacturers looking to grow their business. It streamlines your inventory, production, and sales, whilst also integrating with your favorite platforms.
We already mentioned how tough it can be to manage your raw materials in an industry where product recipes can be incredibly complex and precise.
The way it works is that once manufacturing or sales orders come in, your materials will be automatically allocated to them. That means you won’t have orders using the same materials and causing confusion.
Your inventory is always up to date, working in real-time and optimized to reduce waste.
But that only just begins to scratch the surface as Katana also offers: