When discussing the diversity of Indonesia's cosmetics industry, particularly skin care and makeup, we cannot overlook the wide range of products filling the market with their attractive packaging. According to information from BPOM, the number of cosmetics companies in Indonesia had increased by 21.9% as of 2024. With such intense competition in the industry, brands are competing to attract customers from various angles, ranging from packaging and formulas to collaborations with well-known influencers. However, have you ever noticed that the packaging of several local brands looks almost identical? Some brands share similar bottle and jar designs, while others have nearly identical applicators and product compositions. This may not be a coincidence. There is a strong possibility that these products are manufactured at the same factory! How is that possible? The answer is contract manufacturing, also known as maklon.
Maklon, or toll manufacturing, is a product processing service provided by a third party or a company operating independently of the skin care brand itself. In this arrangement, a skin care brand owner hires a contract manufacturer to produce its product lines for a certain fee. This means the brand does not need to build its own factory, considering the substantial costs involved in factory construction and production. The process usually begins with the brand consulting the contract manufacturer to determine product specifications, production quantities, and target markets. Contract manufacturers also offer various services, ranging from producing products according to each brand's standards to product development, making it easier for brand owners to manage product quality and design.
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In product development within the cosmetics industry, contract manufacturers play a role in providing various packaging options as well as formulas for skin care and makeup products. However, brands can also develop their own formulas and designs to establish a distinctive identity before asking a contract manufacturer to produce them. If you have ever noticed similar packaging designs and applicator shapes across different brands, there is a possibility that those products were manufactured by the same contract manufacturer. In addition, some contract manufacturers also provide specialized inventory facilities where brands can store their products.
There are several reasons why many brands rely on contract manufacturing services. One of the main reasons is to avoid making substantial investments in building their own factories, especially considering the strict licensing requirements and lengthy procedures involved. By relying on contract manufacturers, brand owners can also focus more on building their brand identity, while product quality and manufacturing expertise are handled by professionals.
The continued growth of the skin care industry presents a significant challenge for brand owners looking to develop their products. The cosmetics contract manufacturing industry offers promising business opportunities for those who want to start building their own brands. With these services available, entrepreneurs no longer need to spend large amounts of money or deal with the high complexity of establishing a manufacturing company, even when starting on a small scale.
