Hair Product Manufacturers in USA – Everything You Need to Know
The hair care market keeps growing in the United States and across the globe. This competitive market can put pressure on brands to constantly deliver new hair product lines. While this kind of pressure drives you forward, it can be difficult to keep up. For that reason, many brands work with private label hair care manufacturers that make them a more competitive force on this market. In this post, you will learn everything you need to know about hair care products manufacturers in the USA.
Hair product manufacturers key facts
The first thing you need to know about private label manufacturers is that these businesses create products that hair care brands can release onto the market as their own - including shampoo and conditioner. It’s like outsourcing certain processes. In this case, you outsource formulation and manufacturing, product development and products manufacturing to other companies. The same is true for most body lotion manufacturers, lip balms and many cosmetic products.
A vast majority of hair care manufacturers are located in the United States. The numbers show (1) there are 203 contract manufacturers of hair care products in the US, whereas other countries have a few of them only.
In Canada, 16 companies do contract manufacturing compared to four private label hair product manufacturers in Germany, China, and India. Three companies are registered in Turkey, Switzerland, and France.
What are the advantages of hair product manufacturers?
If you have never worked with hair care product manufacturers, you are probably interested in the potential advantages of such an important business move. The advantages include:
- Exclusivity – products suppliers allow you to stand out and separate yourself from the competitors. Probably the best thing about hair or body care manufacturers is that you have the exclusive right to sell a specific haircare product or more of them. So, if you hire a private label to develop and manufacture hair oil, hair masks, or a complete hair care line with numerous products, you own the exclusive right to sell those particular products, in most cases.
- Lower costs – making hair and skin products is not the cheapest endeavor, but it is even more expensive with in-house manufacturing. Keep in mind the facility should be FDA-approved and FDA-registered, adhere to domestic and international standards and regulations, have all the equipment that enables optimal manufacturing capabilities, and much more. However, if you want to deliver a quality product, you need to have top-notch conditions. But you have other costs such as marketing. To reduce the costs and cover all processes that require finances, it's easier to work with custom manufacture companies.
- Loyalty – the core of long-term success in the hair care product industry is a loyal customer base. Branding and marketing are the most common strategies to make it happen, but the quality of the private label is equally significant. The customers become attached to a specific brand and their hair care and skin care products. Demand for those products goes up. As a result, your brand needs to put more products into the market, and the cycle continues. Consistency is vital in this market, and private labeling is the best strategy to achieve that goal. Keeping customers happy and delivering products for all hair types is bound to give you the much-needed loyalty. (2)
- Increased productivity – it's not just about product capabilities, but whether you can produce sufficient quantities to accommodate the market needs. Many brands fail to produce enough, and it shows in their revenue. Product labels such as KBL Cosmetics work with high volumes, and their productivity is outstanding. This also means there are no delays that could jeopardize your business.
What mistakes to avoid?
Private label hair products allow brands to stand out, thrive in the competitive market, and earn higher revenue. But, to get the most from this endeavor, you need to avoid some mistakes. They are:
- Not knowing what you want – many brands make the same mistake – they don’t know what they want exactly. Failing to define your objectives prevents you from getting the most private labels have to offer. You need to know your goals regarding business growth and the products you want to place on the market. Decide whether you will focus on complete product lines or specific items like a hair serum or, maybe, African American hair care products or something else. Maybe you want the product to contain coconut oil, argan oil, or other specific ingredients. All these things should be defined before you decide to work with a private label.
- Not doing your research – even though there are many private labels on the market, not all of them will provide the same quality of service. If you don't do your research, you risk making a bad investment. Always make sure you are working with a reliable hair care manufacturer.
- Not defining the minimum quantity – many contract manufacturers have a specific minimum quantity they accept. For example, the minimum quantity in KBL Cosmetics is 5000 pieces. You won't be able to make a good choice regarding the private label if you don't specifically define the minimum amount. Choose the number that meets your needs the most. Of course, your needs are shaped according to market demand.
- Failing to check certifications – customer loyalty requires optimal quality and safety of the products. The last thing you want is to sell products that will harm your customers. For that reason, it's crucial to make sure the private label adheres to all the rules and standards. That way, the risk of cross-contamination and other issues is brought to the minimum.
- Choosing a contract manufacturer that doesn't offer full-service solutions – one of the main goals of contract manufacturing is to decrease costs and keep up with market demands. Delays are not welcome here, but they could happen if you opt for a private label that doesn't offer full service. Why? You would have to look for those services elsewhere and thereby spend money. To avoid this problem, you need to choose a hair care manufacturer that offers all services you need, from product development to other processes, including printing labels. Having one place for all solutions is a lot better than having several companies that don't always keep up with one another
Quality is vital
Even though brands want to reduce manufacturing costs, you need to keep in mind the quality of products should not suffer. In many cases, it does. Customers won't return to products and brands whose quality is questionable. Your contract manufacturer should still offer high-quality products for the price. That way, you can truly get the maximum from this endeavor. It's useful to ask for samples just to see them for yourself.
Conclusion
The increasing demands in the hair care industry don’t have to be a pitfall for your brand. You can shine in this competitive market by making reasonable decisions. In-house production may seem like a great idea, but it has a lot of disadvantages. For many brands, the best thing to do is to work with private labels. That said, make sure the contract manufacturer offers quality products, necessary certifications, and a reasonable price. Do your research and choose the private label that meets your needs the most. Always know what your goals are and make your decisions accordingly.
References
2) https://www.business.com/articles/private-labeling-details/
