Research and Development
Research and development of new and existing products is a key area of importance to Anika Natural Products. Including two qualified aromatherapists our development team is consistanlty testing new ingredients and materials as they come on to the market ranging from emulsifiers, preservatives and essential oils.
Our customer’s success is our success, so we can either use an existing formulation provided or utilise one of ours. We are currently formulating skin care products for the Asian, European, and Australian markets.
Coordinating research & development with a strategic third party manufacturer is imperative during the initial stages of a product. Anika Natural Products is constantly striving to develop new and exciting products with a natural plant base for the benefit of our customers.
Five reasons for outsourcing production
The advantages of employing a contract manufacturer or a private labeller depend on a company's strategic views: retailers, start-up manufacturers or multinationals have different expectations, varying from the creation of turnkey basic cosmetic ranges to supplementing their own productions with innovative, trendy or niche products.
#1. Fast responses
The main reason for outsourcing the production of a cosmetic product is often to respond to a fast evolving market. In an increasingly competitive environment, it is increasingly important that products be placed on the market while the trends are hot. With immediate availability of technology and manufacturing facilities, contract manufacturers and private labellers can provide fast responses to companies that wish to expand quickly on new emerging markets.
#2. Minimising investment
Minimising research and development investment, eliminating the need of technical expertise and personnel, especially in areas which are not the core of the company's success, is the other important reason for outsourcing production. Even for companies that have their own manufacturing facilities, it may be useful to outsource the production of certain goods that are not key in the company's range, and thus allowing more resources for marketing, advertising and promotion.
#3. Product innovation
In a move to propose services with a higher added value and to increase their margins, most contract manufacturers and private labellers have created and developed their own Research & Development departments. They propose not only standard formulas but also new and innovative concepts following the latest trends.
#4. Entering new overseas markets
Running with local contract manufacturers can be a good option for investigating new overseas markets. Local manufacturers are not subject to customs tariffs and do not have the same difficulties in coping with the technical barriers that may hinder market access for imported goods.
Where the markets are open, local contract manufacturers or private labellers may also be very useful for their knowledge of local consumers. They can advise to adapt products to their needs. They may be also useful for testing local markets before starting to produce locally.
5. Eliminating product disruptions
In certain cases, using contract manufacturers may allow extending production capabilities in order to avoid product disruptions.
Exert from – www.beauty-on-line.com
Newsletter N83
