Summary: With the impact of COVID-19, more and more consumers' consumption habits have changed, and their preference for brands has become more and more abundant. This trend has not stopped. So private label cosmetics is very suitable for everyone to start their own business because cosmetics with emotionally valuable, you can easily build a brand image! And cosmetics are considered a necessity
Shopping Habits Is Changing
According to data from the U.S. Department of Commerce, in January 2022, U.S. retail sales data increased by 3.8% month-on-month, the highest since March last year. But consulting firm Customer Growth Partners estimates that about one-third of U.S. retail sales growth in 2021 will be driven by inflation, rising to about 60% in 2022.
In the most recent year, the U.S. consumer price index (CPI) jumped 7.5% from a year earlier, the highest level since 1982, U.S. Labor Statistics said. However, according to the University of Michigan's US Consumer Satisfaction Index report, measured by the quality of consumption, the actual annualized inflation rate in the United States may be about 10%.
Inflation is eating into Americans' budgets, and Americans have begun to change their shopping behavior in response. According to data research firm IRI, 45% of shoppers are looking for products with special offer more frequently, 31% are buying less non-essentials, 19% are buying products from more private label brand, 12% are shopping Now turn to cheaper supermarket shopping.
Why You Should Choose Cosmetics Industry?
Generally speaking, the profit level of the cosmetics industry is affected by factors such as brand awareness, technical level, and sales model. Companies with high brand awareness, leading product technology, and direct sales models can usually achieve higher profits.
The changes in the profit level of the cosmetics industry are affected by many factors: on the one hand, the industry competition intensifies, the number of competitive cosmetics brands in the industry continues to increase, and the market maturity level continues to improve, which will lead to a decline in the overall profit level of the industry;
On the other hand, the constantly updated product technology and the new products emerging have promoted the rise of the overall profit level of the industry.
Cosmetics directly act on the sensitive parts of the eyes and facial skin. So the product safety and effectiveness are critical to consumers. The production process and technical level of the cosmetics determine the product quality and effectiveness. The improvement of the technical level of the makeup industry can bring a better product experience to customers, so it will lead to an increase in the level of industry profits.
At the same time, cosmetics, especially makeup products, usually contain strong fashion elements. Cosmetics manufacturers will regularly launch new products with different concepts and styles. it can promote the overall profit level of the industry.
Private label makeup is more like a modern religion, the highest guiding ideology for adjusting a product or service. If cosmetics has only one provider, then there is no need for a brand to exist.
There are multiple providers in the cosmetics market, brands are needed to differentiate product sources. Each brand needs to highlight its differences from other brands to gain more consumers' favor.
Product design, quality, technology, other characteristics of the brand, can be the product of a certain concept as a guide. The idea, the name, the symbol, and the brand, is the representative, or rather simplified, symbol of the collection of all the characteristics of the product.
Why Choose FINCOCOSMETIC?
FINCOCOSMETIC is a factory with the top production technology in the industry and strictly controls every production process. Bring 3000+ formulas and high-quality cosmetics to private label brand owners.
All the cosmetics we produce are certified by MSDS and ISO, so you can sell them to your customers with confidence. and we are a cruelty-free cosmetic company.