Glossary · Business & Sourcing

What Is OEM?

OEM (Original Equipment Manufacturer) manufacturing means the factory produces goods to the buyer's specification and the buyer sells them under its own brand. In cosmetics, an OEM factory manufactures your formula — or a formula you select from its library — and packages it under your label, while you own the brand and the market.

Why it matters when you source

OEM is the fastest route to market because the production system already exists: you choose a validated formula, your packaging, and your brand. The trade-off to manage is exclusivity — ask what the factory's policy is on selling the same formula to other brands.

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