Building a skincare brand from the ground up can take years, but what if you could launch in a fraction of the time?
Private labeling lets you do just that—without compromising on quality or innovation.
The global skincare market is booming, with private label brands making waves due to their affordability, flexibility, and unique branding opportunities. In fact, the private label cosmetics market was valued at over USD 8 billion in 2023 and is expected to reach USD 14 billion by 2031. Additionally, 59% of consumers think private label brands offer an above-average value for their price.
Unlike traditional beauty brands that require extensive research and development, private label skincare offers a cost-effective, streamlined way to quickly bring high-quality products to market.
By leveraging existing formulations and focusing on branding, entrepreneurs can create standout beauty lines without the overhead costs of manufacturing from scratch. So if breaking into the beauty industry has been a dream of yours, private labeling is the game-changer you’re looking for.
This guide breaks down everything you need to know—no fluff, just the essentials—to help you successfully launch a private label skincare line.
Step 1: Define your brand & niche
Before making product selections, you need to clarify your brand identity. The beauty industry is growing, but that also means more competition. So, having a clear identity, brand message, and personality will help your skincare line stand out.
Ask yourself questions like:
- What’s your brand story? Are you focused on clean beauty, high-performance anti-aging solutions, or sensitive skin? Why have you made this your focus?
- Who’s your ideal customer? Define your target audience based on demographics, skin concerns, and shopping habits.
- What’s your unique selling proposition (USP)? Are your products cruelty-free? Do they feature innovative ingredients like adaptogens or probiotic skincare?
Finding your niche will help guide product and branding decisions that resonate with your audience.
Step 2: Choose the right private label partner
When it comes to private label skincare, the success of your brand relies heavily on the quality of your products. Thus, choosing the right private label manufacturer and partner is crucial.
Key factors to consider when choosing a private label partner:
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Minimum Order Quantities (MOQs): Do they fit your budget? Do you need to order a high minimum upfront? Or are they more flexible to adapt to your brand’s growth?
- 💡 Did you know? Blanka has ZERO Minimum Order Quantities! Learn more.
- Formulation options: Can you choose between stock formulas or custom formulations?
- Certifications: Do they offer vegan, cruelty-free, or organic options?
- Turnaround time: How fast can they produce and deliver?
- Branding & customization: What branding elements can you add to your products to make them unique to you?
And questions to ask potential partners:
- Do they assist with packaging and labeling compliance?
- Can they provide samples before committing to bulk production?
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What are the costs for additional services like formulation tweaks or custom packaging?
Partnering with an experienced private label provider like Blanka ensures that your skincare line meets industry standards while allowing you to focus on branding and marketing.
Step 3: Select your product line & formulations
Stretching yourself too thin at the beginning can (and will likely) lead to more problems later on.
Start with a small, curated selection rather than an overwhelming lineup. This will ensure that each product receives the attention it deserves in production, branding, and marketing.
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Decide on hero products vs. full collections:
- Hero products include best-selling item(s) that can represent your brand (e.g., a powerful vitamin C serum or hydrating face mist).
- Whereas a full collection consists of a range of complementary products (e.g., cleanser, toner, serum, and moisturizer) for a complete routine. It’s great to work towards a full collection but avoid overwhelming yourself at the beginning.
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Stay on-trend with ingredients:
- What ingredients is your target market placing the most value on right now? Maybe it’s niacinamide for brightening, ceramides for skin barrier repair, or adaptogens for skin resilience. This will also depend on the skin problems you’re looking to solve in your product line.
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Stock vs. custom formulations:
- Stock formulas are pre-made, tested, and ready to brand, typically making them faster and more affordable. Whereas custom formulations allow full control over ingredients but require a higher investment and longer development time.
- Both are great options but depend on your goals, budgets, and vision for the brand.
Step 4: Branding & packaging
As Steve Forbes once said, “Your brand is the single most important investment you can make in your business.” And therefore, it’s a critical step in the process of launching a private label skincare line.
Your branding is what makes customers connect with you and your products. It should make your customers feel something whether that’s excitement, nostalgia, joy, or inspiration. This should also influence how you design your product’s packaging.
Here are the areas to think about when it comes to this step in your process:
- Branding: We discussed your brand’s niche above, but in this step, define your voice—are you minimal and sophisticated, bold and vibrant, or natural and earthy? Develop a consistent visual identity with a cohesive color palette, typography, and logo.
- Packaging: Invest in high-quality packaging that aligns with your brand identity while enhancing the unboxing experience. For example, Merit’s product packaging is minimalistic and elegant, aligning with their mission of simplifying the world of beauty.
- Labeling & compliance: And of course, make sure to follow FDA or EU cosmetic labeling regulations. Include ingredient lists, product benefits, and usage instructions on your packaging.
Step 5: Pricing & profit margins
Pricing strategies can vary depending on the industry you’re in, the market you’re going after, and your unique selling proposition.
The price you set will also set the tone in the market. On one end, some brands want to be above the average cost in their industry to show luxury. For example, it wouldn’t make sense for Dior to have the same priced products as e.l.f. Cosmetics. And on the other end, some brands want to be known as the more affordable option, such as The Ordinary.
What to think about when pricing your skincare line:
- Understand your costs: Identify your Cost of Goods Sold (COGS) which includes manufacturing, packaging, and shipping expenses. You should also factor in marketing and distribution costs.
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Set the right price: Once you have how much your products cost, use a standard retail markup - Retail Price = COGS x Markup (typically 50-80%).
- From here, you can also find your profit margin (Profit Margin (%) = [(Selling Price - COGS) / Selling Price] x 100)
- Wholesale pricing: If you offer wholesale, apply a lower markup (usually 5-40% COGS) to attract bulk buyers while maintaining profitability.
- Competitor research: Research competitors with similar products and compare their pricing models and value propositions to position your brand effectively.
And of course, monitor sales and customer feedback to determine if your pricing aligns with perceived value. Be flexible to adjust based on demand and competition.
Step 6: Compliance & legal considerations
Thankfully, the beauty and skincare industry is regulated. So you need to ensure your products meet all legal requirements.
Depending on the private label partner you choose, they should already have FDA & EU-approved formulas.
But let’s still cover what to look for:
- FDA & EU cosmetic regulations: Follow labeling laws and ingredient safety guidelines.
- Required certifications: Cruelty-free, vegan, or organic certifications can boost credibility.
- Business licensing & trademarks: If necessary, you can protect your brand name and logo with trademarks.
Step 7: Marketing & sales strategy
A great product means nothing without an audience.
And after you’ve put in all of the hours and labor to bring your skincare line to life, you want to make sure it’s a hit.
Your marketing and sales strategy will help to build hype and get your products in front of the right customers, at the right time. Months before you officially go to market, strategize on marketing messaging, channels, tactics, and measurement.
Pre-launch tactics:
- Tease product drops: Create buzz on platforms like Instagram, TikTok, and Pinterest using sneak peeks, behind-the-scenes content, and countdown timers.
- Email list building: Set up landing pages with early-bird discounts, exclusive offers, or VIP access to foster a sense of exclusivity. This will be the base of your email marketing.
- Press outreach: Reach out to beauty bloggers and editors to secure pre-launch coverage.
Post-launch marketing strategies:
- Content marketing: Develop blog posts, skincare guides, and tutorials that highlight product benefits and educate your audience.
- Paid advertising: Put paid spend towards platforms like TikTok, Instagram, and Google to get in front of your audience.
- Social media campaigns: Use user-generated content (UGC) and customer testimonials to provide trust signals.
- Email marketing: Implement automated sequences for welcome emails, cart abandonment recovery, and personalized product recommendations.
- Influencer marketing campaigns: Engage relevant influencers for product reviews, skincare routines, and "day-in-the-life" content featuring your products. Encourage them to share discount codes or affiliate links.
Sales Channels:
- Direct-to-Consumer (DTC): Sell through your website via platforms like Shopify or WooCommerce for full control over customer experience.
- Wholesale partnerships: Collaborate with salons, spas, boutiques, and retailers to expand your reach. View Step 5 for recommendations on pricing!
- Marketplaces: Leverage platforms like Amazon or Etsy to tap into established customer bases.
Key metrics to measure:
- Customer Acquisition Cost (CAC): The cost of acquiring a new customer through marketing campaigns.
- Conversion Rate: The percentage of website visitors who complete a purchase.
- Return on Ad Spend (ROAS): A measure of the revenue generated from paid advertising efforts.
- Customer Lifetime Value (CLV): The total revenue expected from a customer throughout their relationship with your brand.
- Engagement Metrics: Track likes, shares, comments, and click-through rates (CTR) to measure the effectiveness of campaigns.
Showcase what makes your brand special—whether it's your mission, your founder’s story, or the standout benefits of your products. Telling genuine, relatable stories helps create emotional connections that inspire trust and keep customers coming back.
Combining pre-launch activities with continuous post-launch efforts ensures your skincare brand can maintain momentum, build strong customer relationships, and reach sustainable growth.
Step 8: Launch & scale your business
And finally, launch day.
The launch phase is exciting but also critical—plan it strategically to maximize sales and visibility.
Think about creating an engaging launch campaign with elements like:
- Limited-editions: Have limited-edition releases or special launch bundles to create urgency.
- Discounts: Offer discounts for first-time shoppers or even launch-day shoppers to encourage early purchases.
All throughout your brand’s life, but especially in the beginning, customer feedback is essential. Make sure to:
- Monitor feedback: Monitor reviews and adjust product offerings based on customer needs. Post-purchase, you can send customers a simple scale for them to rate their experience with your brand and product.
- Watch demand: As you learn which products are top sellers and which ones aren’t hitting the mark, introduce new ones based on demand.
Launching a private label skincare line
Launching a private label skincare brand is an exciting, achievable goal when you have the right strategy and partners in place.
From defining your brand to selecting the best products and marketing them effectively, this step-by-step guide ensures you’re on the right path to success. It’s time to turn your skincare brand dreams into reality.
Looking for a trusted private label partner to help you launch? Chat with Blanka today!
