OEM vs. ODM vs. Trading Companies: Which Model Is Best for Your Makeup Brush Brand?

If you are considering starting your own makeup brush business, it’s crucial to understand which type of supplier you will be working with. In fact, whether you are in the makeup brush industry or any other product category, you will likely deal with one of these three models: OEM , ODM , or Trading Company.

Choosing the right manufacturing model is essential for entrepreneurs, makeup artists, and established brands looking for reliable suppliers. This guide provides a detailed analysis of these three models, listing their pros and cons, along with a structured decision-making framework to help you determine the best option for your brand’s growth.

PS: Practical decision-making tips are included at the end of the article.

What is OEM (Original Equipment Manufacturer)?

OEM refers to a model where the brand provides product designs and specifications, and the manufacturer produces accordingly. The brand controls everything from formulation, packaging, branding, and quality standards, while the manufacturer only handles production.

Simply put, you define the details—style, materials, brush shape combinations—and I help bring your vision to life.

Pros and Cons

✅ Full control over design – You have complete autonomy over product design, formulation, and packaging to ensure uniqueness.

✅ Higher profit margins – Since the products are uniquely tailored, brands can implement premium pricing strategies.

✅ Scalability – As your brand grows, OEM allows you to expand production while maintaining consistent quality.

❌ Higher upfront investment and longer lead time – Since the product is developed from scratch, costs are higher, and production time typically ranges from 10 to 25 days.

❌ Requires strong supply chain management – From design blueprints to sample testing and mass production, OEM demands extensive coordination and expertise.

What is ODM (Original Design Manufacturer)?

ODM refers to a model where the manufacturer provides pre-designed product templates, allowing the brand to customize elements like packaging, colors, and branding while keeping the core design unchanged.

If you don’t have a specific makeup brush design in mind, you can choose from our collection of over 1,000 existing designs, replace the logo, test the product, and proceed with mass production.

Pros and Cons

✅ Faster time-to-market – Since the product design is pre-developed, your brand can launch quickly.

✅ Lower initial costs – No need for complex R&D, reducing upfront expenses.

✅ Stable production process – Manufacturers have an established supply chain to ensure efficiency.

✅ Lower MOQ (Minimum Order Quantity) – With pre-existing designs, raw materials are readily available for rapid production.

❌ Limited customization – Only basic modifications are allowed; full customization is not possible.

❌ Highly competitive market – Many brands may use the same ODM designs, making differentiation harder.

What is a Trading Company?

A trading company does not produce products directly. Instead, it acts as a middleman, managing the procurement process by sourcing from different manufacturers.

Trading companies help brands save time by handling multiple suppliers. They typically have a network of established suppliers that can quickly meet your needs, whether for makeup brushes, beauty sponges, puffs, or packaging. You don’t have to spend extra time searching for manufacturers or handling direct factory negotiations—simply select from the options provided by the trading company.

Pros and Cons

✅ Reduces communication efforts – Trading companies offer a variety of product choices, eliminating the need for direct factory coordination, allowing brands to focus on marketing.

✅ Simplifies procurement – They handle supplier sourcing, negotiations, quality control, and logistics.

❌ Higher costs – Since they act as intermediaries, the price is typically higher than working directly with factories.

❌ Limited quality control – Brands rely on the trading company’s selection, which may not always have in-depth expertise in every product category.

How to Choose the Right Model for Your Makeup Brush Business?

This decision is more complex than just comparing pros and cons. The makeup brush industry has its unique characteristics, meaning that even if you understand the differences between OEM, ODM, and Trading Companies, you still may struggle to make the best choice.

Your final decision depends not just on the models themselves but also on your brand vision, business stage, industry regulations, and knowledge of the makeup brush market.

As a long-time professional in the makeup brush industry and a senior partner at a makeup brush factory, I want to share my insights to help you make a more practical decision.

(1) OEM: The Best Choice for Most Brands & Entrepreneurs

If you are an entrepreneur starting a makeup brush brand or a professional makeup artist, OEM is almost your only choice. As demand for customization grows, a Statista report shows that approximately 70% of makeup brush brands worldwide opt for OEM production, as it allows brands to have full control over product design, materials, and packaging, enhancing market competitiveness.

Most entrepreneurs already have a clear vision of their ideal makeup brushes—the softness of the bristles, the shape of the brush, the material of the handle, and even how it feels in hand. These details can only be achieved through OEM.

The cost of OEM customization depends on your requirements, manufacturing processes, and the expertise of the factory.

• A professional factory can guide you through brush design, material selection, and process choices to optimize costs and improve efficiency.
• An inexperienced factory may cause delays, higher costs, and inconsistent quality.

Choosing the right factory is more important than choosing the model itself.

(2) ODM: Rarely Used in the Makeup Brush Industry

Unlike other beauty products, ODM is uncommon in the makeup brush industry.

Only 20% of brands adopt ODM in the makeup brush industry, mainly for fast-market-entry low-cost products. (IBISWorld, 2024)

Most customers don’t rely entirely on ODM, because if you don’t even have a rough idea of your product, why are you entering this business? Some newcomers ask, "Do you have ready-made designs that I can sell?" But in reality, makeup brushes are not simple off-the-shelf products.

• You can modify existing designs, such as changing brush shape, upgrading bristles, or adjusting handle colors—but that’s still considered OEM, not ODM.
• If you only replace the logo without any other changes, it may not be suitable for brands that value differentiation.

Before choosing ODM, make sure you truly understand what you want.

(3) Trading Companies: Suitable for Established Brands, Not Startups

Most trading company customers are established beauty brands.

From our 15 years of experience working with 30+ beauty brands, we’ve observed that large brands focus more on marketing and distribution rather than product customization.

Thus, they outsource supply chain management to trading companies, despite the higher cost and limited product differentiation. Research shows (WGSN 2024) that over 65% of international beauty brands prefer sourcing makeup brushes through trading companies, as this helps reduce supply chain management complexity and allows brands to focus on marketing and product promotion.

However, this has created opportunities for smaller brands to emerge. As the market moves toward more specialized product offerings, different makeup needs will drive demand for customized brush designs.

Trading Company vs. Direct Factory: Which Is Better?

If you're starting a makeup brush brand, working directly with an OEM/ODM manufacturer is often the best choice, unless you're an established beauty brand.

Leading beauty brands like Sephora, MAC, and Hourglass typically partner with trading companies because they focus on brand marketing and global expansion rather than product development. By outsourcing sourcing, quality control, and logistics, they can streamline operations and scale efficiently.

In contrast, emerging brands and independent makeup artists benefit more from working with OEM/ODM factories as it allows them to fully control design, materials, and pricing, ensuring a unique and differentiated product line.

Why Direct Factory Collaboration is Preferred for Most Brands

Makeup brushes are not standardized products but rather highly customized tools, requiring expertise in brush shapes, functions, and materials.‍

• ‍Industry expertise matters – Only experienced users and professionals truly understand the nuances of brush craftsmanship.
• ‍Trading companies often lack deep product knowledge – While they can help filter suppliers, they may not provide expert guidance on customization and material selection.
• ‍Complex communication can slow down production – Information gets relayed multiple times between factories, trading companies, and brands, leading to misunderstandings, delays, and higher costs.

That said, if a trading company specializes deeply in beauty tools, collaboration can still be efficient. Some international beauty brands provide detailed specifications and technical data, allowing factories to seamlessly convert requirements into production blueprints, prototypes, and mass production.

💡 Final Takeaway: If you decide to work with a trading company, ensure they have deep industry expertise and are not merely acting as a middleman.

FAQ

1. Which is better for new brands: OEM or ODM makeup brushes?

OEM is ideal for fully customized products and entrepreneurs looking to create a unique brand, but it requires higher upfront costs and a longer production timeline—making it a long-term investment. ODM is better for fast market entry and testing customer response, but customization options are limited, making it more suitable for brands with a smaller budget.

2. Can small brands use OEM makeup brushes?

Yes, but it requires a sufficient budget and a clear market strategy. OEM manufacturing typically requires a higher MOQ (Minimum Order Quantity) of 500-3000 pieces and a longer production cycle, making it more suitable for brands with a long-term vision.

3. How much does OEM makeup brush customization cost?

Pricing depends on the bristle material, handle type, and manufacturing process. Estimated costs:

• Basic models: $2-$5 per brush
• Mid-range models: $5-$10 per brush
• High-end models: $10-$50 per brush
  MOQ typically starts at 500 pieces, and the final price depends on specific customization requests.

4. Is ODM makeup brush customization worth it?

If you want a quick market entry with a limited budget, ODM is a good option. However, it lacks uniqueness. If brand differentiation is your priority, OEM is the better choice.

5. Are trading companies reliable for sourcing makeup brushes?

Trading companies are suitable for large brands that don’t want to manage the supply chain and prefer to focus on marketing rather than product innovation. However, this model comes with higher costs and less control over quality. For small brands, working directly with an OEM factory is recommended to reduce costs and maintain better control over product development.

Still have more questions about OEM or ODM makeup brushes? Contact us, and we’ll help you find the best manufacturing solution for your brand! 🚀

Conclusion

We hope this article has given you a clear understanding of the makeup brush industry. If you already have manufacturing partners, this guide can help you better understand your collaboration model. If you are still looking for the right supply chain partner, we hope this article will assist you in making a more informed decision.

📌 Want to learn more about how to choose the right makeup brush manufacturer? Check out How to Find the Right Makeup Brush Manufacturer: A Must-Have Decision Guide for Brands.