Since the introduction of the first "customized" beauty product in the late 1980s, the marketing strategy for cosmetic companies has become much more clear. They have sought to establish exclusive territories - often exclusive of other companies - by offering specialized, limited-edition product lines, packaging, advertising, and customer service. By doing so, they have created a niche market that buys their products and then submits requests for similar items, often without even looking at similar offerings from other companies.
They call this process "unlocking the market".This is exactly what a new company called "OPT" hopes to accomplish. Operating as a wholesale distributor of skin care, weight loss, personal care, and cosmetics products, they plan to "unlock" the consumer market by bypassing the major cosmetics companies and exclusively selling off unique inventory. OPT promises its customers that each and every product will be different, with each offering a unique blend of antioxidants, vitamins, herbs, essential oils, and other plant-based or animal-based ingredients. In some cases, the company will create a completely new product based entirely on a customer request.
OPT will deliver its products directly to retailers, allowing customers to buy the products, evaluate them, make an order, and have them shipped directly to the customer.To do this, OPT must expand into a brand name, develop packaging and other related infrastructure, hire sales representatives, obtain FDA approval, and secure distribution channels. Once the company is established, it will need to focus on expanding into new niche markets. In addition, OPT will need to compete with other companies selling similar skin care and cosmetics products. By creating a niche within a larger product category, or by designing packaging and advertisements to differentiate its product from competitors, OPT hopes to build customer loyalty and increase its profitability.
OPT's direct-to-retail business model may also be beneficial to consumers as it offers a chance for them to try new products before buying them.For small businesses, however, introducing a product into a niche market can prove difficult without specialized knowledge and experience. OPT's direct marketing strategy will allow the company to bypass much of the initial competition by focusing on selling to the customer directly. The makeup artist may want to try a special face cream, rather than a product designed for dry skin.
Direct marketing allows her to buy the product and send it back for a refund or replacement if she isn't satisfied.While some cosmetic companies work with well-known celebrities, such as Oprah Winfrey, who is known for their huge fan base, others have a much smaller following. The reason for this is that a celebrity can attract the attention of millions of people through traditional advertising. Popularity can also help cosmetic companies sell more products because the product will not only be well received by customers, but it will also be remembered. Personalized beauty products allow customers to remember the brand they have purchased long after the celebrity has left. This helps the company make money in the future.
As technology continues to improve and create new ways to sell products, the customized beauty products industry will continue to grow. OPT will continue to expand as well. The company plans to introduce more products in the future, allowing the consumer to shop based upon their own personal preferences. While many consumers are used to seeing celebrity faces on television and in magazines, these same faces may be seen on the product packaging, helping make customized beauty products even more popular.