Enterprise News

What is OEM cosmetics?

2020-08-18 18:06:09 Joes 11

OEM (original equipment manufacturer) means "OEM" or "OEM"; in the daily chemical industry, OEM is commonly known as "OEM" or "OEM". The consignor (distributor) requires the OEM to process qualified products according to the specified raw materials, production process, equipment and packaging conditions; or requires the OEM to independently develop and produce qualified products meeting the requirements of the consignor according to the brand demand, while the consignor is only responsible for the market operation and product marketing. OEM cosmetics are customized for brand manufacturers by the entrusted party. After production, only the brand name designated by the consignor can be used. It is not allowed to produce OEM cosmetics under the name of the manufacturer.

For example, the products sold by many foreign big brand companies in China are not produced by their own companies, but are customized by a domestic cosmetics manufacturer according to their requirements, which can save a lot of product costs. Therefore, although the products we bought in shopping malls are also named as foreign brands, the manufacturer is a domestic cosmetics manufacturer. The price of OEM products of this foreign big brand in China is often much lower than that of the products in the country of origin.

Another example is that a domestic enterprise has a market and sales channel for its products, but its production capacity is limited. In order to increase production and sales, reduce the risk of new production line, and win market time, it entrusts other manufacturers of similar products to produce the products through contract order. The ordered products are sold out at low prices and directly pasted with their own brand name. This kind of cooperative mode is produced by entrusting others to produce Our products are also OEM products.