Palmist Skincare Cosmetic Products
PALMIST SKINCARE COSMETIC
The line between contract manufacturing and private label manufacturing is a fine one. Contract manufacturers generally have a selection of basic formulas that customers can choose from, adding or subtracting ingredients to create a custom item, or they will make a client’s formula or develop something original. Private label suppliers have a catalog of finished products that a customer can order from, having the goods then decorated and labeled for their use.
Private label lines are now the choice of many retail channels—from television shopping networks, private spas and salons, to designer brands, as well as big box outlets and drug store chains. Contract manufacturing is the method for marketers—from large national and international brands to entrepreneurial lines—to have goods produced while they concentrate on what they do best—marketing.
Most companies Cosmetic Packaging & Design spoke to offer both kinds of services and a lot in between. Most are willing to create a totally unique product to a customer’s specification and many also have research and development staff to work with a client to come up with a custom formula.
ESTABLISHING YOUR OWN BRAND
Maybe that’s why it’s called “private” label? The outsourcing of beauty products is a confidential business as brand marketers guard formulas and image and contract manufactures protect their client’s privacy. There is also a fear that consumers will be horrified to find out that their favorite lipstick or night cream isn’t actually made by the name on the package. There are still some major contract manufactures that declined to be interviewed for this story—or at least didn’t return repeated phone calls. But most companies were ready to talk about what they do, even while not name-dropping any famous brands.
Market is Good to Excellent
The private label business is “Absolutely fabulous,” stated Roberta Bard, chief executive officer at Lady Bard Exclusive Cosmetics. Bard noted that the business is coming from a number of new as well as traditional sectors including creative lines featured on television shopping shows, retailers wanting to add house brands, and niche lines from makeup artists and designers. “Some are totally new, others are more established and are looking for a new partner. We expect the business to grow 100% this year,” said Bard, “and have built the infrastructure to be able to handle it—across the board.”
CONTRACT MANUFACTURING FOR SKIN CARE PRODUCTS
From a contract manufacturer perspective, business is excellent, according to Russ Fontaine, general manager for Harrison Specialty Company, Canton, MA. “It (contract manufacturing) is a way for a brand to have new products without the burden of new plants, equipment or staff.”
Agreeing that television shopping networks are generating growth, Michael Assante, president, Private Label Cosmetics Company (PLC), Fairlawn, NJ, explained, “There’s always a need for a new face as most celebrity lines last five to ten years.”
There is steady growth across the board, according to David Del Pizza, vice president of sales for Medici Corp., a full-service contract manufacturer based in Dayton, NJ. Having been in contract manufacturing since the late 1970s, Del Pizza noted, “For awhile, contract manufacturing was getting smaller and smaller, but recently it’s growing, as giants like P&G are moving production outside and retailers such as Victoria’s Secret and Bath & Body Works are so successful without any manufacturing.”
“Business overall is extremely strong,” said Ann Sbarro, vice president of sales for Accra Pac Group Inc. (APG), based in Elkhart, IN. “As more major marketers don’t want to invest in facilities to produce new products and so contract them out.” Some marketers are also contracting out “harvest” brands, products that are still selling but no longer growing, Sbarro noted.
RESEARCH AND DEVELOPMENT fOR sKINcare
How the Market is Changing
The market is changing as it grows. “Two years ago, there weren’t a lot of startups but now there are lots of new brands getting into the marketplace,” said Sandra Scott, president of Cosmetic Labs, Toronto, Canada. “The new growth is moving evenly through all types of retail as well as direct marketing,” she noted. “There are lots of entrepreneurs trying to get into the business. Cosmetic qualifies new customers carefully before accepting their projects.”
“Outsourcing is growing for marketing companies,” stated Paul Germaine, vice president of sales for CCL Custom Manufacturing, said to be the largest contract manufacturer of consumer products worldwide. “It (contract manufacturing) has always been good for new product launches until the marketer sees how the product will sell, but now a lot of permanent lines are being done outside too and a lot of marketers have said they intend to do more outsourcing,” Germaine explained.
Another change is that brand marketers used to be inclined to send production out in down times and bring it back in-house when the economy picked up, but now many are simply closing plants and relying on contract manufacturers and contract packagers to do production, according to Harrison’s Fontaine. “We have long term relationships with many of our clients to manufacture their products and can offer bi-coastal service, important because California accounts for 15% of the total hair care market.”
Regulatory issues are more and more of a concern to contract manufacturers across the country. Steven F. Scissor, owner and president of West Coast Cosmetics, said that WWC based in Chatsworth, CA, continually updates its information database to stay on top of all the new rules governing the industry, from raw materials to labeling issues. And as the cosmetics industry becomes a truly global market, “WCC is working diligently to remain current on rules governing importation of cosmetics to each country that our clients distribute to,” said Scissor.
Treatment/Natural Ingredients in Demand
With six chemists on staff, Lady Bard is continually developing new products. According to Bard, hot ingredients right now in skin care are vitamins and minerals, which are also in demand for cosmetic products such as a new Lady Bard shimmering foundation, which also contains aloe for added benefits.
“Spa-type body scrubs and body butters are hot,” said Laurence H. Levine, director of sales and marketing at Cordwood Labs. “Consumers are knowledgeable today and look for certain ingredients. Those that are into “natural” care, know what to look for and Cordwood has formulations with key ingredients,” he added. Dental care is also a growth category for Cordwood.
Natural and organic continue to be buzzwords, agreed Duncan Copland, vice president of sales and marketing for Body Blue Inc., based in Mississauga, Ontario, Canada. “We’re asked to help make natural products. In the United States, to be certified “organic,” 70% or more of the ingredients must come from a source that is organic certified with appropriate documentation,” Copland explained. He added “The greatest challenge is to find a natural preservative. Body Blue has developed a patent-pending all natural preservative system for use in natural products.”
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