Best Market to Start a Successful Private Label Cosmetics Business

Recently updated on April 17th, 2021 at 10:05 pm

Venturing into cosmetics & skin care business has never been easier and it seems every week there’s a new brand of beauty products emerging. Big brands, vloggers, bloggers, KOLs and celebrities are trying all means to advertise their latest private label cosmetics, hoping to get a slice of the multi-billion-dollar industry.

Big players usually have capital and resources for product R&D and have their secret weapon – private formula for contract manufacturing. But for small and medium companies, start-ups that neither have a big capital to invest nor a chemistry background, how do they do it?

The best solution out is creating private label cosmetics.

What’s private label cosmetics?

Private label cosmetics are developed and produced by cosmetic manufacturers to be sold and branded by another company. Simply put, somebody else created the cosmetics, and I put my brand on them.

Why sell private label cosmetics?

There’re many advantages to sell your private label cosmetics. Here’re the top 5.

Reduce R&D costs

Private label cosmetics manufacturers usually have their base formulation but also offer options for brands to make some variations. Hence, you don’t have to spend thousands or tens of thousands of dollars on R&D.

Reduce liability

When you’re manufacturing cosmetic products, you’re responsible to make sure the products comply with safety regulations, Good Manufacturing Practices, environmental friendly, etc. When you create private label cosmetics through contracted manufacturers, they take on lots of liability off your shoulder.

Reduce burden

For entrepreneurs that are starting the cosmetics business from scratch, there’re already so many tasks to get the business running, Why not outsource the manufacturing to professional cosmetic manufacturers and reduce the burden?

Increase profit margin

Private label cosmetics offer higher profit margin while compared to resale products as the cost for producing cosmetics in bulk is much lower. Supermarkets often use private label products to increase the profit margin.

Build customer recognition

Private label branding lets you reach out to your customers with something distinctive, in this way, it can promote a stronger customer recognition and loyalty.

Where to find private label cosmetics manufacturers?

Whatever products you are looking for, there’s pretty much a China wholesale market on every corner. If you are buy-in-bulk bargain hunter looking for beauty and personal care products from China or are thinking about to start a private label cosmetics business, the Xingfa Plaza cosmetic wholesale market in China has everything you crave for.

Transportation: Exit A, Feixiang Park subway station, line 2.

Product range: eyelashes, lipsticks, eyeliners, perfumes, nail polishes, brushes, rollers, hair dye, straighteners, Brazilian hair, wigs, skin care products, etc.

The huge wholesale market in China is dedicated to makeup and personal care products. It’s located in the outskirt of Guangzhou, away from the chaotic and bustling Guangzhou wholesale markets in the city center. Basically you can find almost any kind of cosmetics in this huge China makeup market with a scale of 90,000 square meters and about1, 427 shops dedicated to your private label cosmetics needs.

In the past years, Xingfa has seen the rise of demands for beauty and cosmetic products from China, and has built a second phase of cosmetic wholesale market in the opposite side.

Xingfa Square Phase 1 is a bit backward and old with some indoor shops and also rows and rows of outdoor shops filled to the brim with great stocks of wholesale cosmetics from China.

The first phase of Xingfa Plaza consists of various blocks specializing in different kinds of beauty products, including daily necessities&nail beauty&small commodities.

Nested beside the first phase of Xingfa Plaza cosmetic wholesale market is another building with amazing ranges of shops dedicated to packaging for beauty and cosmetic products.

The second phase of Xingfa Plaza is more modernized with air-conditioned shops and better facilities.

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