By specializing in the wholesale of Korean and Japanese cosmetics, we’ve opened the door to business relationships with various players in the expansive cosmetics market. Our partners range from the manufacturers in Korea and Japan to distributors, business-connecting agencies, beauty salons, and other retail outlets. Throughout our years of partnership, we’ve navigated through numerous challenges that have impacted the efficiency of our collaborations. We hope the insights shared here will serve as valuable guidance for those engaged in the wholesale cosmetics trade.
The Key to Successful Collaboration with a Cosmetics Distributor
Initially, it’s essential to address what constitutes effective collaboration between a manufacturer and a distributor. For manufacturers, sales volume plays a crucial role in determining the success of their distribution; more sales equate to higher satisfaction. While communication ease, order forecasting, and other factors matter, sales volume remains a critical metric.
However, for distributors, sales volume, though important, isn’t the sole determinant of a fruitful partnership with manufacturers. Product readiness for sale is a paramount concern for distributors, encompassing several critical aspects we’ll explore.
Wholesale Pricing of Cosmetics
Pricing is a critical component. It needs to align with market conditions to ensure profitability for both manufacturers and distributors. Issues arise when prices are hiked shortly after sales commence. For distributors, price stability is key, as frequent changes can strain customer relationships. Furthermore, the distributor’s price attractiveness is vital, influenced by the markup from the recommended retail price. Distributors bear additional costs, such as transportation, storage, marketing, and labor. These expenses, added to the cosmetic’s wholesale price, must leave room for distributor profit.
Equally important is adjusting retail prices to market conditions. If competitors offer similar products at significantly lower prices, convincing customers to choose our product becomes challenging.
Product Packaging
Packaging is crucial for imported cosmetics for several reasons. Compliance with local language regulations is a must in many countries, necessitating language-specific labels for both the product and its outer packaging. Manufacturers failing to meet these requirements add to the distributor’s burden, incurring extra costs and effort. Multi-language labels from manufacturers simplify distribution across different markets. Packaging material is another consideration. Shifts from glass to plastic, for example, necessitate new compatibility tests and can disrupt sales, affecting the brand’s image. The packaging’s weight also matters for long-distance transport, with glass requiring more protection and incurring higher costs. Packaging choices must be thoughtful, reflecting the product type and environmental values.
Minor elements, like seals or vegan labels, while important, can complicate labeling in different languages for distributors if not planned properly. Frequent changes in packaging design by manufacturers can erode product identity and necessitate new marketing materials, particularly impactful for online sales where product visuals must match their real-life counterparts.
Marketing Support
From the distributor’s perspective, essential marketing aids include product samples, testers, and promotional materials. Experience shows that customers appreciate testing products firsthand. Yet, many brands overlook the importance of providing samples. Graphic materials such as photos, videos, and social media posts, along with traditional marketing tools like catalogs and flyers, are crucial for educating customers and alleviating doubts.
Supply Continuity
Ensuring product availability is fundamental. Manufacturers should communicate stock levels and production plans proactively, while distributors are expected to forecast upcoming orders. Effective communication prevents uncomfortable shortages.
Conclusion
Achieving effective collaboration with a cosmetics distributor is not only possible but crucial for boosting sales. Manufacturers must recognize the need of delivery ready to sell product which allows distributor to put products directly to shelves or online platforms on various markets. This should be provided with the necessary promotional tools. Such collaborative efforts lead to mutual benefits, including sustained brand promotion and sales growth.
As a distributor of Korean and Japanese cosmetics we invite to cooperate. We can offer advise in case of EU markets entering and building distribution chain. Please contact us here.