Recently, there is a voice circulating on the Internet: It is believed that the quality of OEM products is not guaranteed, and everyone is advised not to buy them. Their reason is that if a certain brand's products are produced independently, the whole process must be under the supervision of the brand, which is more secure. After all, brands cherish their feathers and will not ruin their own jobs. On the contrary, there is no guarantee. Is this statement reliable?
In fact, the idea that OEMs are unreliable is pure nonsense. You know, OEM production is quite common in the fields of food, electronics, clothing and cosmetics. To give a few typical examples, all Apple mobile phones are produced by the Foxconn factory. In addition to independent production of Coca-Cola , Sprite and other beverages that are popular all over the world, they will also choose to commission OEM production. The international beauty giant and L'Oreal also have a considerable number of products manufactured by OEM.
As we all know, L'Oreal is a large multinational beauty company, firmly occupying the top spot in the beauty industry. L'Oreal has more than 40 production bases around the world, including three production bases in China: Suzhou Shangmei, Yichang Tianmei, and Shanghai Meike. Although it has its own factories, not all products are produced by its own factories. L'Oreal will select OEM companies around the world to produce some products.
Why does this happen?
It is difficult for a domestic factory to meet the needs of all its brands. The L'Oréal brand family is huge, with nearly a hundred large and small, most of which are acquired from all over the world. Each brand retains the characteristics of its birthplace and has different positioning. Each brand has its own product line, which can produce countless single products, including skin care, makeup, hair care, perfume, etc. Each category requires matching technology, equipment, and personnel for production and management. This is a very huge workload, and regional factors and circulation factors are issues that cannot be ignored. Its own factories cannot meet the needs of all brands in all regions, so L'Oréal takes the initiative to look for external OEMs.
At this time, someone will ask: Since L'Oreal is so powerful, why doesn't it choose to build another factory? We have to mention the cost factor here. There are both time costs and capital costs. Building a factory requires heavy capital investment, requires the purchase of land, and requires a construction period. The process is long and risky. At the same time, the trend of the cosmetics market is changing rapidly. The life cycle of a popular and can be as long as one year or as little as half a year. The contrast between fast and slow makes building your own factory an unwise choice. Therefore, it is not difficult to understand that many brands, including L'Oreal, choose to OEM cosmetics.
Secondly, it can absorb the advantageous technologies and categories of other factories. Even for a large company with strong technical capabilities like L'Oréal, it is difficult for to lead in all aspects of product innovation. There are so-called specializations in the industry, some factories are good at skin care, some factories focus on makeup, and some factories are leading in perfume research and development. By dispersing different products in different factories, you can learn from others' strengths, maintain richness, and avoid the homogenization of products into . This avoids the risk of putting all your eggs in one basket.
Sanlai OEM production can improve the cost and efficiency of product development. When you choose a foundry, it seems that you are only cooperating with this one company, but in fact you have links with hundreds of companies that have business dealings with that company. In other words, the foundry helps you select upstream and upstream suppliers, and you do not need to do it yourself or start from scratch, which saves time. Secondly, due to the integration of links, OEM production costs are also more advantageous. In this way, it not only speeds up the speed of product launch, but also makes the product more competitive in price.
It is not difficult to find that L'Oreal chooses relatively important OEM manufacturers in China. Due to its rich product line, skin care, makeup, washing and hair dyeing categories are scattered in dozens of factories, large and small. Such as Cosmax, Kema, Yingteli, Lixin Biotechnology, Yunfei Shi, etc., there are many and wide.Although it is OEM production, L'Oreal has consistent product quality requirements. It has a set of international factory inspection standards and a mature quality acceptance system. It can be said that all OEMs selected by L'Oreal have leading advantages in this field.
