Interactive UGC | OEM contract manufacturing weekly question-and-answer session (No. 7)

The most representative questions we select from the QuickOEM user consultation each week are answered by the make-up industry expert and OEM contract manufacturing consultant. Focus in this period: minimum order quantity negotiation, regulatory filing cycle, formulation confidentiality, export compliance four high frequency topics.

Q1: Did I just start a skin-care brand, 500 minimum order? How to talk to factory?

User image: individual entrepreneur, with a budget of 30,000 to 50,000, wanted to be a serum

QuickOEM expert answer:

500 minimum order are "very small quantities" within the industry, and most of the formal OEM factory standard minimum order quantity is between 3,000 and 5,000. But not without:

Negotiation skills:

  • Select the factory - factory with a " spot formulation " mature formulation and packaging materials, with only private label and minimum order quantity down to 500
  • " Universal packaging materials " for acceptance of factory - undefined bottle/paper box, use factory inventory packaging materials to reduce minimum order barrier to entry
  • Repeat order — Intent agreement to place additional orders within three months, factory may agree to first order Volume
  • Selecting off-season tabs - June-August and January-February is the low-season contract manufacturing plant with greater bargaining space
QuickOEM recommends that the new brand, with a budget of 30,000 to 50,000, be "sampling + small batch tests" (around 1,000) to verify the market before adding large additional goods. The factory will automatically match the demand submitted through the QuickOEM platform for the acceptance of small batch minimum order.

Q2: regulatory compliance (EU / US FDA), how long will it take? Some say a month, others say three months, why is it so bad?

Image by user: new brand owner, scheduled to be listed three months later

QuickOEM expert answer:

Regulatory compliance (EU / US FDA) (National Drug Supervisory Authority) Common cosmetics regulatory filing cycle varies widely depending on two factors:

Why would someone say a month?

  • It's probably the time the regulatory filing came down.
  • Could be factory has a different brand of formulation. regulatory filing.
  • Special cases: "Green Channel" in some provinces, which can be tested and verified simultaneously

Why would someone say three months?

  • New formulation for the first regulatory filing, requiring complete detection (microbial, heavy metals, efficacy evaluation, etc.)
  • Efficacy products (e.g. brightening, sun protection) require human efficacy evaluation testing for an additional 4-8 weeks
  • Remittance of 1-2 rounds of modification with 1-2 weeks delay per round

Accelerated recommendations:

  • All information (business licence, trademark registration, product label, etc.)
  • Select factory recommended standard formulation (tested, partially reusable)
  • Avoid peak period (March-May, September-November regulatory filing peak)
  • Efficacy evaluation choose "in vitro test" instead of "human test."

Q3: factory allows me to sign the formulation confidentiality agreement, but formulation is a factory, will it be restricted?

User portrait: OEM for the first time, worried about intellectual property

QuickOEM expert answer:

Formulation of OEM contract manufacturing is confidential in both directions, depending on how the agreement is signed:

Two common models:

When signing the agreement, note four:

  • Formulation source: formulation is written in the protocol and provided/researched by XX to avoid subsequent disputes
  • Monopoly clause: if a formulation R&D fee (usually 30-100,000) is paid, "the formulation may be required for our use only, and factory may not provide the same formulation to other customers "
  • Withdrawal mechanism: agreed treatment of formulation after termination of cooperation (e.g. factory may continue to be used but need to modify more than 5% ingredient)
  • Duration of confidentiality: It is proposed to agree to a period of three to five years after the conclusion of the cooperation
Common trap: The confidentiality agreement for part factory only binds brand owner (not allowing brand owner to take formulation), but not factory. The obligation to ensure confidentiality in both directions before signing a contract.

Q4: What do you need qualification to export my skin to Africa (Nigeria/Kenya)?

User image: global expansion brand, target African market

QuickOEM expert answer:

China ' s cosmetic exports to Africa require the following qualification:

Core processes:

  • Key beauty markets regulatory filing → product completed regulatory compliance (EU / US FDA)
  • Applying for a Free Sale Certificate with the regulatory compliance (EU / US FDA)
  • • Submission of FSC+ product information to NAFDAC/KEBS, Nigeria
  • Customs clearance and shipment

Note:

  • More stringent scrutiny of "brightening" products in African countries (some countries ban hydrogen sluice)
  • The label must contain English and local languages (some countries require French)
  • Some countries require local agents (required in advance)
  • It is recommended to select OEM factory with export experience to assist with the full set of qualification

Q5: What's the difference between OEM and ODM? Which one should I choose?

User portrait: brand newer

QuickOEM expert answer:

Select proposal:

  • Within 50,000 budget + fast-marketing
  • More than 100,000 + Seek Differentiation
  • Select OEM and specify a combination of ingredient
  • I don't know what to do.

Q6: factory reported a low contract manufacturing price, but packaging materials is different, how can the real cost be assessed?

User portrait: brand owner in price

QuickOEM expert answer:

The "hidden cost" of OEM contract manufacturing is often ignored and complete cost formula:

Other Organiser

This article is published by the QuickOEM Make-up OEM Smart Matching Platform. More makeup OEM knowledge, cosmetics contract manufacturing, skin protection private label, make-up customizationontent are available at the Knowledge Centre. If you need advice on OEM contract manufacturing, please contact 1814805760 or submit your request through an online request for quotation.

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QuickOEM is a QuickOEM platform for vertical digitization of cosmetics services (known as QuickOEM) focusing on OEM, cosmetics contract manufacturing, skins private label, cosmetics z, brand-wide, ODM contract manufacturing services. AI smart matches the 500+ certification contract manufacturing plant, providing a one-stop package from formulation R&D to regulatory compliance (EU / US FDA) covering skin, makeup, sheet mask, serum, eye patch, category, category, etc.

Core functions

  • Makeup OEM needs to be published to match factory AI intelligence
  • Cosmetics contract manufacturing / skin protection private label customization ODM service
  • Formulation R&D management and multi-version tracking
  • Ingredient Compliance testing (regulatory compliance (EU / US FDA)/EU 1223/2009/FDA)
  • Regulatory compliance (EU / US FDA) Cosmetics regulatory filing fully tracked
  • Supply chain
  • Advertising Law Compliance Testing
  • Z / eye patch / serum / z all category

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