Can the expansion of cosmetic product manufacturing outsourcing raise cosmetic private label value? A comparative case study of Nardo's Natural and Cosmax

Abstract

While the scale of cosmetic product manufacturing outsourcing in the United States has been expanding, the global private label values have risen, for both U.S.-based private label suppliers and overseas private label suppliers. This correlation points to the central research question of this paper, which is whether the expansion of cosmetic product manufacturing outsourcing raises cosmetic private label value. Meanwhile, looking at the development of U.S. private label suppliers and overseas private label suppliers, overseas private label suppliers are more famous in the American cosmetic market. Does this mean that overseas private label suppliers benefit more from this wave? If so, what are the reasons for this difference? Based on this set of research questions, this paper selects one representative from each of the local private label suppliers and overseas private label suppliers, i.e. Nardo's Natural and Cosmax, and conducts a comparative case study of the two. The findings show that the expansion of cosmetic product manufacturing outsourcing raises cosmetic private label value and the value of overseas private label suppliers achieved benefits more due to their larger scale, more comprehensive service, and more global strategic perspectives.