Haircare Products
.avif)
The Challenge
Our Solutions
The key in helping this client achieve their goals is to find a high-quality factory that has the R&D capabilities to help them make their custom formulas.
- Conducted thorough due diligence to identify quality haircare factory and bottle factory. Through extensive research and communicating with over 15 formula manufacturers, we were able to identify a high quality haircare factory that specializes in manufacturing custom haircare formulas. For haircare (and body care in general), the bottle is as much part of the experience as the formula; as such, our team also performed due diligence to find a suitable bottle factory that has extensive experience making bottles for haircare. Our team met in person with both the haircare factory and the bottle factory to build working relationships with both and to fully examine the factories in person.
- Renegotiated pricing and payment terms after product launch: As the client began scaling their business, we focused on strengthening our relationship with the haircare manufacturer in order to obtain more favorable pricing. We lowered the price (>30%) and improved payment terms (reduced deposit amount).
- Worked directly with R&D team. After hearing customer complaints about the texture of the formula, we worked directly with the factory’s R&D team to make the product less oily, while still maintaining the effectiveness of the formula for hair growth.
- Worked with new factories to develop new products. Our haircare supplier specializes in hair growth products; our client wanted to expand into other beauty and skincare products. Through extensive research and communicating with over 30 formula manufacturers, we were able to identify a high-quality skincare factory to work with, along with a haircare ancillary products factory to work with as well.
The Outcome
By launching several new products, building stronger vendor relationships, and implementing rigorous R&D improvements, we were able to:
- Successfully developed and launched hair growth product. Developed a winning formula and found the exact bottle needed based on the client’s specificity. The client was able to achieve 10X growth within the first four months and we were able to streamline production so that there was no stock out. Through monitoring their production bottlenecks, we achieved speeding up the client’s production lead time by 33%, allowing the client to free up their cashflow and avoid stockout.
- 33.23% savings on product cost over time: From the frequent meetings and relationship building, we were able to successfully reduce our clients cost per unit by a third, leading to over 400K in savings annually.
- Improved payment terms from 50/50 (deposit/completion) to 30/70. By building a relationship with the manufacturers directly, we were able to secure better payment terms, which freed up the client’s cash flow.
- Reduced customer complaints by 70% by improving product formula. By working with the factory’s R&D team directly, we were able to make the formula less oily while maintaining the effectiveness of the formula.
- Launched 4 new products for upsells. We worked with two other factories (skincare and ancillary hair product factories) to introduce 4 new products. These product launches lead to additional revenue of 50%.
Overall, we were able to help this client successfully launch their first ever customized hair-growth product, helped them reduce cost, helped reduce customer complaints, and helped launch ancillary products that generated significant additional revenue.
Other Case Studies
Cosmetics Industry
Feminine Care Products
Exercise Equipment: A Manufacturing Success Story
Launch Your Haircare Line With Confidence
FAQ
I want to create custom haircare formulas but have no manufacturing experience. Can you help?
Yes. We've helped many first-time brands develop custom formulas from scratch. We handle everything: finding factories with R&D capabilities, developing your formula, managing sampling, negotiating pricing, and overseeing production. Our bilingual team in China guides you through every step, so lack of experience isn't a barrier.
How do you find manufacturers that can actually develop custom formulas?
We research 30-50 factories and narrow down to the top 3 with proven R&D expertise in your specific product category (haircare, in this case). We visit their facilities, review their past custom projects, and test their willingness to collaborate on formulations. Only after verifying their capabilities do we recommend them to you.
After my first product succeeds, can you help me launch additional products?
Absolutely. Once we've established a relationship with your manufacturer, launching ancillary products becomes faster and cheaper. The haircare brand in this case study launched shampoos, conditioners, and other complementary products that significantly boosted their average order value.
Do I need to visit the factory in China myself?
Not required, though many clients visit once during their first launch to build relationships. Our team in China handles day-to-day oversight, sampling, and quality control. After your initial visit (if you choose to go), you can rely on our on-site team for ongoing production management.