Understanding Private Label Cosmetics

Private labels (PLs) are generic products designed to be sold as flexible brands for those vendors that invest in the marketing. It's a concept that extends across multiple industries, including cosmetics. That means any retailer can market various generic products under its own branding. Here are more details and the benefits of private label cosmetics.

Private Label Packaging

One of the main attractions to private label cosmetics is flexibility. It allows a marketer to experiment with branding in an affordable way. The marketer does not have to invest in machinery to manufacture the product. As unique as this concept may sound, private label products actually account for 18% of retailing markets in North America (Nielsen, 2014). This type of marketing is more common in Europe, with private label products accounting for 45% in Switzerland and 41% in the UK.

Another advantage to private label cosmetics is that marketers can usually afford to sell these products at lower prices than what bigger name brands charge. For cosmetics, it's possible to sell products at prices nearly half off from established brands. On the other hand, it can also be a way to maximize profit margin by staying close to competitors' prices.

What to Consider for Launching Private Label Packaging

Since the cosmetics industry is all about enhancing beauty, its private label cosmetics products should still be packaged in a way that coveys beauty. In other words, even though private label packaging is a cost-cutting strategy, the marketer should not try to cut corners on packaging design. It should still be attractive enough to associate with beauty as a goal. Here are other factors to consider for packaging private label cosmetics:

suitable materials for protecting the product
design that evokes emotional impact
packaging that is difficult to tamper with in a retail store

The major factors that consumers consider for purchasing products are price, quality and package design. The design should be powerful enough to make a positive first impression. Ideally, the imagery and colours are memorable and stand out from competing products on the shelf.

Emotional Aspects of a Brand

Powerful branding can lead to an emotional connection between the product and the consumer. There are various strategies a private label cosmetics brand can use to help embed emotion into the product. Emotions can be associated with aesthetics, social norms, the element of surprise and a level of raised interest. Package designers can use these areas to explore a wide range of design ideas that convey emotional appeal.

One of the most important ways to associate emotion with a brand is through aesthetics, which play a key role in perception of quality. Aesthetics are shaped by sight, touch, smell, taste and hearing. People need to be able to envision themselves gaining the benefits of a cosmetic product that's associated with emotions triggered by beauty. Other factors that help capture the imagination are colours and style.

It's essential for designers to learn about which emotions are associated with specific colours. At the same time, designers must remember that every individual has his or her own unique emotional responses to different colours.

One of the best ways to generate an excitement level about a cosmetic product is to emphasize something new that it brings to the market. The more unique a product is, the better chance it can capture the feeling of freshness or a revolutionary trendsetter.

Regulatory Concerns

Entering the cosmetics market doesn't face nearly the amount of requirements as in the food or pharma industries. But new players still must comply with ISO standards and regulations made in the US, EU or wherever the product will be marketed. ISO 22715 shapes the standard framework for worldwide packaging of cosmetics. It determines the information that must be presented on the package including the ingredients, product function and instructions for using and storing the product.

While ISO is a non-governmental organization, cosmetic companies marketing products in the US must meet FDA requirements. The FDA does not approve which cosmetic products are marketed in America, but it still oversees the market and may request a product recall. That's why it's important to meet the FDA's minimum requirements, which involve preserving product quality and proving to be safe for public consumption. The packaging must protect the product from mechanical, thermal, biological, chemical and other effects during each step of distribution.

Another FDA requirement is label transparency to prevent false perceptions. A label must include the manufacturer's name and address along with the net quantity of contents. The label must be conspicuous and easy to read.

In order to sell products in the EU, marketers must comply with Regulation (EC) No. 1223/2009 of the European Parliament and of the Council on cosmetic products. The purpose of this law was to strengthen safety standards. The convenience of the regulation is that it makes all regulations consistent throughout EU member countries.

Manufacturers must submit a product safety report prior to placement on the market. They must also provide notification through the EU Cosmetics Products Notification Portal. Another EU requirement is that a responsible person must disclose serious undesirable effects (SUE). Additionally, the EU must approve of colorants, preservative and UV-filters. The EU has requirements that are similar to FDA regulations for information on labels.

Conclusion

A low cost way into the beauty market is through private label cosmetics. The products are already manufactured and can be branded to be consistent with a retailer or other marketer. Packaging designers need to consider the important factors that attract attention, regardless of brand. While there is a low barrier of entry into cosmetics, marketers must still stay in line with industry standards and government regulations.