Beginner’s Guide to Cosmetics Branding – Part 2
Once you decide to launch a cosmetics brand, the next big question arises: “How do I actually manufacture my product?” The two most common approaches in the beauty industry are OEM and ODM.
1) What Is OEM (Original Equipment Manufacturing)?
In an OEM model, the brand is responsible for product planning, including the formulation, ingredients, and packaging design. The manufacturer’s role is to handle production only.
Example: A brand already has a formula for a whitening cream and a finalized package design. The manufacturer simply produces the finished product.
- Advantages: Full creative control and unique product differentiation.
- Disadvantages: Requires technical knowledge, time, and larger budgets.
2) What Is ODM (Original Design Manufacturing)?
In an ODM model, the manufacturer provides existing formulations and designs. The brand only needs to share a product concept or idea.
Example: A startup founder wants to launch a sunscreen for oily skin. The manufacturer suggests suitable formulas, provides samples, and finalizes packaging—all under the brand’s name.
- Advantages: Faster time-to-market, lower barriers for beginners.
- Disadvantages: Less customization, higher dependency on the manufacturer.
3) OEM vs ODM: Key Differences
| Aspect | OEM | ODM |
|---|---|---|
| Product Planning | Brand | Manufacturer |
| Formula Development | Brand | Manufacturer |
| Production | Manufacturer | Manufacturer |
| Best For | Experienced brands with resources | First-time founders and startups |
4) Which Approach Should You Choose?
- If you are a first-time entrepreneur with limited resources → ODM is recommended. - If you already have expertise, formulas, and a clear brand vision → OEM may be the better fit.
5) Final Takeaways
OEM and ODM are two different paths to cosmetics manufacturing. Your choice impacts cost, time, flexibility, and brand identity. Carefully assess your resources and goals before deciding.
In the next part, we will discuss product sampling, clinical testing, and packaging selection—critical steps that shape both quality and brand image.