Can a Makeup Brush Factory Help with Product Design or Only Production?

When it comes to choosing the right cooperation model for your brand, understanding the distinction between OEM (Original Equipment Manufacturer) and ODM (Original Design Manufacturer) is crucial. These two models offer different levels of involvement in product design and production, and the choice you make will have a significant impact on both your brand’s development and your profit margins.

• OEM typically refers to manufacturers that produce products based on your designs and specifications.
• ODM, on the other hand, involves manufacturers that may already have design capabilities and provide finished products based on their own designs, or they may assist with product development.

So, can a factory help with product design, or are they limited to only production? Let’s dive into this key question, as it will guide you in making the best decision for your business.

Can Factories Help with Product Design?

The simple answer to this question depends on the type of manufacturing model you choose.

In OEM arrangements, the manufacturer typically focuses solely on production and is not involved in the design process. This means you retain full control over the product’s design, from concept to final version. However, this also means you’re responsible for sourcing design support separately, whether through in-house design teams or third-party designers.

With ODM, the factory often offers a range of services that go beyond just production. Many ODM manufacturers have their own design teams and can assist with product design, provide suggestions for improvements, or even develop a new product design from scratch. This can be particularly beneficial for brands that lack the in-house resources to develop new products but still want to maintain some control over the design process.

Factors to Consider When Choosing Between Design Support or Production-Only

Deciding whether to choose a manufacturer that only handles production or one that also assists with design requires a clear understanding of your brand’s needs and goals.

• Brand Control: If your brand prioritizes full control over the design process, then OEM is likely your best option. It allows you to work with a factory that focuses solely on manufacturing, giving you full oversight of the design process. However, this comes with additional costs and complexity, as you will need to source design support elsewhere.
• Industry Expectations: Some industries, such as fashion or electronics, may have higher expectations for product differentiation, which makes the design involvement of manufacturers more critical. In industries like cosmetics, where the design is often closely tied to the brand’s identity, ODM manufacturers can provide design input that aligns with market trends.
• Product Complexity: For simpler products, a factory might be able to suggest design tweaks or adjustments without the need for an external design team. However, for more complex products, you may need a manufacturer with a high level of design capability to ensure the final product meets your brand’s standards.

Advantages and Disadvantages of Factory Involvement in Design

Let’s explore the pros and cons of having a factory involved in product design:

Advantages:

• Cost Savings: For startups or smaller businesses, partnering with an ODM that provides design support can significantly reduce upfront costs. You won’t need to hire a full design team or invest in the development process yourself.
• Faster Time to Market: ODMs with in-house design capabilities can often streamline the design process and get your products to market faster.
• Innovation: ODMs may bring fresh ideas to the table, offering innovative design solutions that can help your products stand out in the market.

Disadvantages:

• Less Control: While ODM manufacturers provide design input, you may lose some control over the final design, especially if they already have pre-existing templates or design concepts.
• Intellectual Property Risks: Sharing product ideas and designs with an external manufacturer could increase the risk of design theft or IP disputes, particularly if the factory works with multiple clients in the same space.
• Brand Identity: If the factory’s design doesn’t align perfectly with your brand identity, it may lead to inconsistencies in your product range, which could confuse your customers.

When is the Right Time to Shift from Production-Only to Design-Enabled Manufacturers?

As your business grows, so do your needs. Here’s when you might want to transition from a production-only partner to one that provides design support:

• Startup Stage: At this stage, your priority is to test the market and establish your brand. Private Label or ODM models allow you to launch quickly with minimal upfront investment, so they’re great options if you lack design resources.
• Further Reading: If you're looking to move from a Private Label to a Custom brand, read our article on Private Label to Custom: When and How to Upgrade.
• Growth Stage: As your brand grows and you start to build a customer base, having more control over product design becomes crucial. This is when moving to ODM or even OEM models can help differentiate your brand and boost profit margins.
• Maturity Stage: Once your brand is established and has a certain market share, you may decide to take full control over your product design, which would require transitioning to OEM or OBM (Original Brand Manufacturer) models.

📖 Case Study: Glossier's Brand Development and Transition from ODM to OBM

Background:
Glossier is a modern brand focused on skincare and cosmetics, founded in 2014. It rapidly grew through its direct-to-consumer e-commerce model. In the early stages, the brand adopted the ODM (Original Design Manufacturer) model, partnering with existing manufacturers to handle product design and production. This model allowed Glossier to quickly launch products that met market demand while maintaining a low initial investment cost.

ODM Stage:
In the early phase of its brand development, Glossier relied on ODM partners to provide design support and production services, without taking on all of the design work or high R&D expenses. This allowed Glossier to focus on brand marketing and customer relations, saving significant design and production costs. As the brand grew rapidly, Glossier began seeking greater independence in design, wanting more control over product development and quality.

Transition from ODM to OBM:
As the brand's market share expanded, Glossier gradually transitioned to an OBM (Original Brand Manufacturer) model in 2018, taking full control over its product design. This shift allowed Glossier not only to innovate based on consumer demand but also to enhance brand recognition through proprietary designs, which in turn helped increase product pricing power.

Outcome:
Today, Glossier is one of the most successful beauty brands globally. Its control over product design enables the brand to quickly respond to market trends and launch unique products. After transitioning to OBM, Glossier achieved greater product differentiation and enhanced profitability through higher margins.

Conclusion: Making the Right Choice for Your Brand

Choosing the right cooperation model for your brand is not just about the design – it’s about aligning your business goals, growth stage, and available resources with the appropriate model. If design control is important to you, OEM is the way to go. However, if you're looking to save time and costs while still maintaining some level of design influence, ODM may be a better fit.

To make the best decision, consider your current stage of business and think ahead to where you want to take your brand. As your needs evolve, you may find that switching from Private Label to ODM or OEM can help take your brand to the next level.

Further Reading: For a deeper dive into which cooperation model is best for your brand

👉 Profit Margin Breakdown: How Cooperation Models Affect Your Bottom Line