This document will explain what you need to prepare when you consider manufacturing cosmetics by consigning to OEM makers in Japan before actually starting to do so. While OEM makers will support you in various aspects, your own company should also plan well on concepts / schedules, which will make your business much smoother.
This will first explain “necessary preparations” to avoid typical troubles to be incurred and “how to plan on your concepts” next.
What you need to confirm in making / manufacturing OEM cosmetics
It is important to grasp problems that may occasionally occur in manufacturing cosmetics through OEM; check them one by one as a part of your risk management.
What you need to have in mind among all: no discrepancies with your consignees to be seen on “delivery dates (deadlines for delivery)”, “budgets” and “concepts”.
1.Make schedules carefully for delivery dates.
It can be said that it is wiser to set meticulous schedules on everything in making your business plan to command the whole scheme and for various troubles not to be caused.
It is also important to set delivery dates / days to commence selling carefully for cosmetics businesses. If you are prepared enough to proceed based on such plans made, your consigning to OEM makers will be smoothly scheduled; communication with them thereafter will be, too.
You have to avoid extended schedules and resulting delays in such deadlines; thus, you need to carefully set delivery days, make realistic schedules retroactively and meticulously procced with them to avoid such possible damaging delays.
2.Plan well on budgets
Budget issues can cause discrepancies, too. For example, cases where you have finished productization but have to stop manufacturing for the lack of profitability (to be in red by doing so).
Major costs to be incurred in selling cosmetics: contents / bottles / packages (variable costs) and designing (fixed costs), etc; you need to determine on the prices of your products with such costs in mind (marginal prices) to avoid monetary troubles. Check such costs as finely as possible.
3.Make your concepts clear and be ready to convey them without any misunderstanding
Unless you have made clear the concepts of cosmetics to sell, you can’t convey them to OEM makers, etc. well, which may cause troublesome delays.
While OEM makers will proactively help you make clear your concepts, your company had better first solidify your concepts by yourself and receive such advices to reduce the possibility of troubles incurred. Clear concepts will also enable setting up PR strategies smoothly, thereby leading to a structure that naturally ensures revenue growth.
How to set concepts for your cosmetics
As to newly entering the cosmetics industry, it may be difficult to set concepts you are not so accustomed to. This document will next explain points in determining your concepts.
Firstly, think about “what products” you hope to manufacture.
You are to think about what products to manufacture in starting up a cosmetics business, specifically such as lotions or foundations, etc., which will be important especially in selling various products as a series. As selling too many products entails high hurdles in the beginning, you should start with a few and gradually increase the number of products watching consumer responses / needs.
Typically you are support to start with 3 items or so and increase the number of items for good responses observed.
Go think about your products based on “5W1H”.
To think about your products with 5W1H in mind will make it easier to clarify your concepts, where 5W1H are comprised of: who, when, where, what, why and how.
“Who” means who(m) to target for your products. Planning well on who(m) to sell your products to, for example, “housewives at the age of around 40” or “men in their 20-30’s”, will make your concepts clearer accordingly. “When” means when to use such products. “Where” likewise means where to use them (for instance, at home or at beauty salons).
“What” means literally what kinds of products to manufacture. “Why” means why such products will be needed. “How” means how consumers will purchase them (for instance, at department stores or through ordering on net).
You should be able to gradually narrow down / solidify your concepts by classifying such factors one by one.
Conclusion
This document has explained what your company need to plan on in advance and how to find out good concepts in manufacturing your original cosmetics through consigning to OEM makers.
While it is important to react to changing market environments following OEM maker’ advices, to solidify such bases first by yourself will enable such agile reactions.
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