The first step in cooperation with Zhuhai Beyond Cosmetics is conducting in-depth analysis and diagnosis of demand. As prescribed in the “2023 China Cosmetics ODM Industry White Paper”, owners need to input 12 basic pieces of information, including product positioning (high-end anti-aging or low-price sensitive skin care, for example), target group profile (age, skin type, consumption power), and target price range (recommended retail price range of 68-398 yuan). And generate feasibility reports based on its smart demand matching system (based on 3,600 successful cases). For example, when a specific emerging brand positioned itself in the “skin repair for late nights,” Zhuhai Beyond Cosmetics, according to 27,000 e-commerce review data (the mention rate of the important words “dullness” marked in the cloud was 43%, and “edema” was 29%), recommended the development of an essence lotion with 5% Saccharomyces bifida +2% caffeine. After three rounds of trial formulas, the cost was minimized by 19% (from 24.5 yuan /50ml to 19.8 yuan), conserving 14% of R&D expense in comparison to the competitive solution delivered by Shanghai Quanli Biology.
Technical tie-in requires signing a Confidentiality Agreement (NDA) and submitting a product Specification Sheet. This report should clearly specify 15 key parameters: concentration of active ingredient (e.g., retinol 0.3%±0.05%), pH value (5.5-6.2), need for viscosity (5000-6000 mPa·s at 25℃), etc., and should be accompanied by a third-party test report (e.g., SGS heavy metal test lead ≤5ppm). Zhuhai Beyond Cosmetics’ technical team will perform a technical review in 48 hours, test the stability of the formula through the DOE (Experimental Design) method to L ‘Oreal’s 2022 technical documentation level. Typical projects such as emulsified systems show a variation in viscosity of ≤8% after being stored at 45℃/75% RH for 90 days (industry norm: 15%). This procedure has shortened the product development cycle from the industry average of 147 days to 98 days.
The compliance process should be started simultaneously with pre-examination of product filing. According to the data of the National Medical Products Administration in 2023, a total of 23 types of documents (including the full formula list, summary of the production process, and risk assessment report) are, on average, needed to be submitted for new cosmetic products. The regulatory department of Zhuhai Beyond Cosmetics has raised the filing pass rate from the industry average of 82% to 96.7% through the pre-review system. Take a customer’s purchase order of “377 Whitening Essence” as an illustration. The group conducted six toxicological analyses (such as a positive rate of the patch test ≤0.1%) and three efficacy verifications (a melanin reduction rate of 19.3% in 28 days) within 72 hours, and precisely reached the upper limit of 0.5% concentration of phenethyl resorquinone (377) as specified in the “Cosmetics Safety Technical Specifications” 2022 Edition. The rate of filing rejection due to some rule misunderstandings of the contract manufacturers has decreased by 83%.
Supply chain integration comprises checking raw material traceability as well as the matching ability. Zhuhai Beyond Cosmetics’ ERP is real-time integrated with 154 globally accredited raw material vendors. For example, in the purchase of BASF’s panthenol (≥98% purity), the price can be reduced by 14.5% if purchased in bulk quantity of more than 1000kg (from ¥1,850/kg to ¥1,582). Its factory in Zhuhai Free Trade Zone is equipped with 12 German Bosch production lines (with a daily output capacity of up to 150,000 pieces). With an intelligent manufacturing scheduling system, the order response time has been shortened to 24 hours (industry standard: 72 hours). For instance, in Intertek’s case in 2021 when it had to urgently add on 100,000 lipsticks for Perfect Diary, Rapid prototyping is within 72 hours (while the normal time takes 7 to 10 days).
Inter-departmental workflow needs to be established in the R&D cooperative stage. Zhuhai Beyond Cosmetics adopts the IPD (Integrated Product Development) approach, manned by 38 senior formulators (average work years is 9.2 years) and 16 high-performance liquid chromatographs (detection accuracy is ±0.01%). In developing a particular antioxidant essence, Through 78 iterative tests, transdermal VC-IP absorption rate was increased from 41% to 67% (test results in vitro), and the likelihood of oxidative discoloration was delayed from industry standard 6 months up to 14 months. Its project management system has the capability of monitoring 132 key nodes real-time (such as raw materials warehousing qualification rate ≥99.8%, filling accuracy error ≤±0.1g), so the success rate for new product development can always stay at a high level of 93.5% (its company average stands at 78%).
Finally, the production planning for scheduling was confirmed through signing an MOU (Memorandum of Understanding). Zhuhai Beyond Cosmetics requires a first-order quantity of not less than 30,000 pieces (delivery of installation can be arranged). Advance payment of 30% against the goods can stabilize the fluctuations in raw material prices (e.g., sodium hyaluronate can stabilize the purchase price at ¥2,150/kg for 6 months), and enjoy a 5% gradient discount for the first batch of orders. Referring to the case of Cosmax tailoring sunscreen spray for one specific brand in 2023, it only took 59 days from demand confirmation to first shipment (industry norm is 90 days). With a flexible production system, the capacity utilization rate was increased to 92% (industry average 76%), allowing the client to achieve a breakthrough growth of ROI of 1:3.3 for the new product launch.