The Latest] 10 Manufacturers for Cosmetics OEM Small-Lot Production (from 50/100 units)｜How to Select the Best Cost and How to Avoid Failure - A Must-Read for Cosmetics Industry Professionals! Japanese Cosmetics News Online

There has been a rapid increase in the number of customers who want to produce their own original cosmetics but want to start with 50 or 100 units to avoid inventory risk. However, the minimum lot size for a typical OEM manufacturer is 3,000 units.

In this article, we carefully select 10 reliable OEM manufacturers that can handle very small lots of 50 to 100 units.

What is small-lot production for cosmetics OEM?

Normally, the production of cosmetics involves the use of large agitators and filling machines, making it efficient to manufacture in units of several thousand units. On the other hand, small-lot manufacturers utilize "manual labor" and "small equipment" to enable production with minimal inventory risk.

Advantages and disadvantages of small-lot production

Item	Merit	Disadvantages
Inventory risk	Extremely low. Ideal for test sales.	Easy to run out of stock.
Initial investment	Can be started at low cost, from several hundred thousand yen.	Cost per unit (unit price) is high.
Speed	Products can be introduced in accordance with market trends.	Delivery time depends on the availability of materials.

No failure! Three criteria for selecting a small-lot OEM manufacturer

Even if a company claims to offer "small-lot production," what it offers varies widely. Check the following three points.

1. Whether or not "ready-to-use formulation (bulk)" is available.

A "full order," in which ingredients are formulated from scratch, is more expensive for small-lot production. If you can choose a recipe (ready-made formula) that the manufacturer already has, development costs can be significantly reduced.

2. Flexibility of container/packaging

For small lots, container options are often limited. Check to see if you can bring your own or if there are standard containers for small lots.

3. Availability of Pharmaceutical Affairs Law support

Even if you are selling only 50 units, you must comply with the Pharmaceutical Affairs Law (formerly the Pharmaceutical Affairs Law) in order to sell them. Choose a manufacturer that will file the notification on your behalf.

What are the characteristics of Cosmetics OEM that excel in small-lot production?

Characteristics of cosmetics OEM (contract manufacturing) manufacturers that perform small-lot production are as follows.

1) Flexible production system

Cosmetics OEM that perform small-lot production have flexible production systems. They have a system in place to efficiently produce small-lot production of products according to customer needs.

②Customization and personalization

Small-lot production allows them to customize and personalize products according to customer requirements. Products are developed according to the customer's brand and concept.

(iii) High quality products

It is important to provide high quality products in small lots without sacrificing quality. Cosmetics OEM that engage in small-lot production pay particular attention to quality control.

④Diversity of materials and ingredients

Small-lot production allows for the development of products using a variety of materials and ingredients. Depending on the customer's requirements, products can be offered with a combination of naturally derived ingredients or ingredients with specific functionality.

⑤Rapid response and production

Small-lot production requires quick response and production. Cosmetics OEM can produce products with short lead times and provide support to meet customers' time-to-market requirements.

Cost of small-lot production

Estimated cost for small-lot production (about 100 units).

Initial cost: approx. 200,000 yen to 500,000 yen

Breakdown: Bulk cost (contents), container/label cost, material filling/light labor cost, Pharmaceutical Affairs Law notification cost, shipping cost

Point: The unit price per unit is generally two to three times higher than when manufacturing 3,000 units. This is suitable for phases where priority is placed on "first getting the brand into shape" rather than on profit margins.

What is the minimum lot size for cosmetics OEM?

The minimum lot size for cosmetics OEM depends on the manufacturer and product, but generally the minimum is 3,000 pieces. However, there are cases where small lots of several hundred to 1,000 units can be handled, or very small lots of a few dozen units can be handled.

The reason why the minimum lot size is often set at 3,000 pieces is because, from the standpoint of economic efficiency, it is cheaper to produce in this lot size.

Checklist before contacting an OEM manufacturer

If you contact the manufacturer and ask for a low-cost product, you will not get a good proposal. Prepare the following four points.

Concept: Whose problems does the product solve and for what kind of problems?

Target unit price: How much do you want to sell it for?

Sales channel: In-house e-commerce, SNS, or storefront?

Desired delivery date: When do you want it in your hands by?

Summary: The first step in giving shape to your "commitment

Small-lot production is the most powerful weapon for emerging brands and start-ups. The royal road to success is to start with 100 pieces to see how the market responds, and then increase the lot size as your fan base grows.

If you are not sure which manufacturer best fits your concept, start by sending a "concept sheet" to the top three companies to get quotes from them.

Which OEM manufacturer should I actually request?

Without some solidity in the direction of the brand, OEM manufacturers will not seriously face the market. Once that has been established, you should ask the OEM manufacturer to do so.

Many of you reading this column may be having trouble finding an OEM manufacturer, so beware of visiting the websites of OEM manufacturers, as they only have good things to say.

It is best to be suspicious of any content that is overly positive about your company or only one company. If you click the wrong button the first time, you could end up in an irreparable situation.

We recommend choosing from content that showcases multiple OEMs.

Finally, we will introduce you to several reliable OEMs with distinctive features. Please refer to the "Our Recommendations" section.

Click here for recommendations.

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Hoshi Chemicals Co.

Hoshi Chemicals Corporation provides a full range of services from concept planning to research, production, quality control, packaging, and all other aspects of cosmetics production.

Recommendations

Total support capability
Development and proposal capabilities
Raw material capability
Container Power

Products in which we excel

As a planning and proposal-based cosmetics OEM company, we provide total support for your company's original cosmetics, from product planning to manufacturing, quality control, and regulatory compliance, for a wide range of product categories, including basic cosmetics, quasi-drugs, OEM makeup products, as well as body, hair, fragrance, and oral cavity products.

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Tenshindo Co.

Tenshindo pursues "products that sell" and has planned numerous hit products based on the know-how gained from its own mail-order sales of 2 billion yen. Tenshindo offers one-stop services for quasi-drugs, cosmetics, functional foods, and health foods, as well as logistics, advertising, and other functions necessary for mail-order sales.

Recommendations

Product lineup to meet any request
Optimal containers in small lots at low cost
Product design that sells using our know-how
Fastest logistics through in-house operations
Low-risk, high-return growth strategy

Products in which we excel

We are confident in our ability to plan and develop highly effective formulations that "sell" and "continue to sell" to end users. We currently stock a large number of quasi-drugs (medicated cosmetics) by efficacy and effect as our OEM line.

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Fidica Corporation

We are an OEM manufacturer for the Cosmetics Honpo Group, which has many of its own brands in department stores, variety stores, and drugstores nationwide. We have a particularly strong reputation for mascara, foundation, and hypoallergenic skincare products, and we offer a wide range of proposals based on our extensive track record.

Recommendations

Capable of contract manufacturing in small lots
Promises detailed support that only a well-established manufacturer can provide

Products in which we excel

Facial cleansers (cream, foam, powder), cleansers, creams, milky lotions, toners, serums, packs, foundations (powder, liquid, cream), face powders, lipsticks, lip balms, cheek rouge (wet and dry), eye makeup, eyebrows, nail color, Nail Remover, Sunscreen and Suntan Cosmetics, Quasi-drugs, etc.

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OEM Corporation

Since its establishment in 2007, OEM Co., Ltd. has been engaged in the development and manufacture of high-quality cosmetics that meet the diverse needs of our customers. By flexibly responding to the ever-changing trends in the cosmetics industry and constantly pursuing the latest technologies and innovations, we are able to create new value for our customers.

Recommendations

One-stop support from planning to manufacturing, regulatory support, design, and sales channel proposals
In recent years, we have been focusing on overseas expansion, and the number of transactions with overseas companies has been increasing year by year

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RAPHAS JAPAN Co.

LAPAS Japan possesses DEN (DropletExtension) technology to produce soluble microneedle patches of drugs and active ingredients in a short time without using heat or UV. This enables us to produce beauty patches in the cosmetics field that deliver cosmetic ingredients efficiently into the skin for higher efficacy, and we are also engaged in research and development of pharmaceutical products such as biopharmaceuticals, immunotherapeutics, and vaccine patches.

Recommendations

Proven track record in the field of dissolvable microneedles
Expanding from OEM/ODM of cosmetics to research and development of pharmaceuticals

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Kindai Kagaku Co.

Kindai Chemical Co., Ltd. manufactures a comprehensive line of hair cosmetics, including permanent waving agents, hair color, shampoos, rinse treatment agents, and hair styling agents, as well as cosmetics and pharmaceutical products, including organic products.

Recommendations

Extensive OEM development of hair care products
Development professionals specializing in hair care products provide support from planning to production

Learn more

Toyo Shinyaku Co.

Toyo Shinyaku is an ODM manufacturer of health foods, cosmetics, and pharmaceuticals founded in 1997 with the aspiration of "creating health foods, cosmetics, and pharmaceuticals that defy conventional wisdom and stereotypes, and sending them out into the world" in its company name. The company also handles small-lot orders.

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Central Corporation

Central Corporation is a cosmetics manufacturing company that has been supporting small-lot manufacturing of "start-up and particular products" for 37 years since its foundation in 1980. The company manufactures cosmetics and health foods on an OEM basis, even in quantities as small as "100 units.

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Nobel Chemical Kogyo Co.

Nobel Chemical Hongyo has built a system of manufacturing and R&D departments, always from the latest research for better products.

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Clover Cosmeik Co.

As an OEM company specializing in makeup cosmetics, Clover Cosmetics has always been committed to creating skin-friendly cosmetics with flexible thinking and a spirit of innovation and creativity.

Learn more

List of Cosmetics OEM companies capable of handling small-lot orders [ Syukan Syogyo Publishing Selection] (Japanese only)

The following is a list of Cosmetics OEM (companies) that can handle small-lot orders. You can view a wide range of company information, from major companies to small and medium-sized companies and venture businesses, including their strengths and special characteristics.

Learn more

Application Page for Japanese Cosmetics Manufacturing Request Site（OSN）

Japanese Cosmetics Manufacturing Request Site（OSN） is a manufacturing request site that connects business opportunities in the cosmetics industry. This service supports the creation of opportunities for new projects for everyone.

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