Private label Cosmetics

Traditional cosmetic manufacturers catering to the nationally or globally branded products are feeling the pinch from the new kids on the block, the "private label manufacturer".

Whilst branded products command a premium price for manufacturers compared to those produced for private label retailers there is still the room for the niche.

Private label cosmetics are growing at a rapid pace, increasing their share of the global marketplace and eating into the market share of brands according to ACNielsen.

An ACNielsen global study conducted in May across 38 markets found that cosmetics represent the fastest growing private label sector, at a rate of 23 percent ( 25 percent in Poland ) based on product sales.

Branded manufaturers should not worry just yet as even though the growth is large, in terms of overall market share, they are at the bottom of the pile with just 2 percent. Personal care has a 5 percent share, but is growing considerably more slowly - at just 3 percent.

The introduction of the Plastic Cosmetic Tube has helped contribute to this growth enabling more application and portable cosmetic to be introduced into the market.

This shift in trend with supermarkets, spas, even hotels creating there own private label has enabled some forward thinking manufacturer to focus on this market including co-operation with branding and marketing image companies so that the client can be offers a one stop concept of the start to finish of there private label cosmetic program.

Private label grows in Europe

Private Label Growth predicted in Europe dispite the global slow down but experts warn that for long term planners that quality has to be addressed.

It is not hard to see why the Private Label sector would grow during an economic down turn, as people every where from all class's start to feel the pinch those no-branded products on the shelves now seam to be more an more attractive due to the lower prices of there branded counter parts, So where does this growth go. In the short term more an more supermarkets, buying agents and buying services companies are truning to the private label to help increase sales whilst maintaining margins. Creating a Private label is quick and cost effective to put to the market with lots of European manufacturers gearing up to provide such services.

Initially the traditional manufacturers saw private labeling as a trend a phase one that did not command a large enough market share to justify opening new department and shaking things up a little to focus on getting a private label soloution out to the people who were at the time exploring this new outlet. This has now changed. Even though the private labels market share is still small it is increasing. In Eastern Europe for example there are been reports of over 23% increase in the cosmetic private label markets.

Many experts warn however simply jumping on the private label band wagon, whilst in the short term can be effective, can not be sustained without addressing the issue of quality. In effect turning out cheap low quality Private label products in the short term and especially in a global slow down will work as customers look to stretch there household budgets, however an increasing number of people are still expecting high quality and when the