If you want to run a B2B (business to business), becoming a wholesaler who provides retailers with products to sell, you should look into the Private Label business model. By forging successful relationships with retailers in your niche, you’ll be able to begin winning client confidence once retailers appreciate how much you can contribute to their business with your more personal approach.
Why Skin Care Is A Profitable Niche
If you’re interested in a (B2B) company that sells other businesses your private label supplements, you can create your own unique formulas, labels, and fulfillment from a private label skin care company. You will not run out of stores who would be willing to offer skin care products.
How profitable is the skin care industry?
Perhaps, an illustration will make this clear:
Liliane Bettencourt, a retired French businesswoman is a principal shareholder of L’Oréal. She has a fortune estimated at $31.4 billion. Her company focuses on skin and hair care products.
The reason she is one of the richest people in the world is because she built her business in the skin care industry.
The reason why this industry does so well is because it is rare for a woman not to use at least one kind of skin care product. Generally, many women use two or more beauty and skin-care products. While women are the biggest consumers in this market, there is a growing market of men and children (usually babies or adolescents) who also use skin care products.
7 Strategies to Build Your Business
Here are some core strategies to help launch your brand:
1. It’s easier now than ever. The poor economy has opened up more space for private label companies. Brand loyalty to established, well-marketed brands has fallen. If you can position your product as offering higher-quality at a lower price, it will be fairly easy to step up to the plate.
2. Prove brand superiority. How do you convince consumers that you offer superior quality to the competition? You have to explain through your company literature, website, labels, and salespeople how your company uses safe, reliable testing that does not harm animals and uses ingredients obtained from natural sources. You also have to make clear why you chose your particular raw materials and the level of potency these offer. Finally, you have to assure your customers that your business does not add toxic chemicals in the manufacturing process.
3. Establish your company’s transparency. Besides talking about the product itself, consumers also want to know about the packaging. Specifically, they want to know if the packaging is recyclable and what materials are used to make it? This additional information can be communicated through conference calls to the sales team so that they can pass the information on to your retail accounts.
4. Avoid radical innovation. While uniqueness is important, most consumers prefer to buy the type of products that mirror national brands. A new way of removing blackheads, for example, is much less likely to be successful than simply reintroducing an established facial cleansing product. People prefer to buy familiar products..
5. Make it easy for retailers to agree to carry your product line. Keep the cost of entry low—for example, reduce ordering and shipping fees. Make it easy to order a minimum number of orders. Once retailers see your products sell well, they will be more willing to order more. Initially, then, make it easy for them to say yes in terms of pricing and delivery.
6. Be open to offering custom formulas. If some big retailers are not willing to carry your standard line of products, be willing to offer them a custom formula that they have exclusive rights to provided that they order in a sufficiently large quantity for this to be cost-effective
7. Assuage fears retailers might have about your product. Often retailers are afraid to try out some new product line because they feel that it is not safe. You can assuage these common concerns by showing you are GMP compliant, have passed FDA inspection, have third-party certification approved by an authority industry group, and belong to an association that can advocate for them in case of litigation issues.
Final Thoughts
While there may be others in the skin care space with bigger operations and an established reputation, you can compete in terms of consistently high-quality, a more targeted product selection, and better, faster service. Focus on quality, over quality. Your volume will increase over time.