Thriving Amid Tariffs: Innovative Manufacturing and Growth Tactics for Beauty and Fragrance Brands
Recent higher tariffs on imports can significantly impact costs for globally sourced ingredients, packaging, and finished goods. Emerging beauty and fragrance brands, with less financial flexibility, are particularly vulnerable to these changes. However, there are several strategies that can help these businesses adapt their contract manufacturing and packaging needs and find opportunities to creatively grow their beauty or fragrance brands in a challenging economy.
Diversify Supply Chains
- Source Locally: Whenever possible, brands should explore a shift to domestic US manufacturers and suppliers to reduce dependency on international imports and ease tariff impacts. For instance, Orlandi, a reputable domestic contract packager, has manufacturing facilities in the United States. As a US-based manufacturer, Orlandi offers a reliable alternative to some overseas manufacturers, helping brands avoid some of the complexities and costs associated with international tariffs.
- Multiple Suppliers: Establish relationships with multiple business sources to avoid disruptions and negotiate better deals. Diversifying suppliers ensures that brands are not overly reliant on any single source, which can be crucial in times of tariff changes or supply chain disruptions.
Optimize Packaging
Cost-Effective Materials: Explore various cost-effective packaging materials that maintain quality while reducing costs. Orlandi specializes in a wide range of packaging and product sampling solutions, including vial and container filling with low MOQs and a variety of sizes and styles available, folding cartons and displays, flow-wrap packaging, and fragrance and cosmetics sampling options. Their expertise enables them to provide customized solutions that meet both functional and environmental needs, helping brands optimize their packaging without compromising on quality.
Sustainable Options: Invest in sustainable packaging solutions that can appeal to eco-conscious consumers. Orlandi offers eco-friendly solutions for product sampling and packaging that resonate with today's consumers.
Grow Your Brand by Increasing Your Value Proposition
Incorporate Product Samples: Distributing samples allows consumers to experience your products firsthand before committing to a purchase. This strategy reduces the perceived risk of trying new products and boosts consumer confidence. When consumers enjoy the product sample, they are more likely to make a full-sized purchase and become loyal customers. With Orlandi’s fast production times and low MOQ requirements, beauty and personal care brands can quickly get their products into the hands of enthusiastic consumers.
Connect with Consumers Through Community Engagement
Loyalty Programs: Develop loyalty programs that reward repeat customers with exclusive discounts, early access to try new products via cost-effective samples, and special promotions. These programs can incentivize continued purchases and foster a sense of belonging among consumers.
Exclusive Experiences: Offer exclusive experiences such as virtual beauty consultations that include access to product samples, personalized skincare routines, or VIP access to events. These unique interactions can create memorable experiences and deepen consumer engagement.
Product Samples: Use product samples to engage with consumers. Encourage them to share their feedback, post reviews, and participate in social media campaigns. This interaction can build a sense of community and connection with the brand.
By implementing these strategies, emerging beauty and fragrance brands can better navigate the challenges posed by higher tariffs and grow their competitive edge. Partnering with reputable US-based manufacturers like Orlandi can provide the customized, cost-effective solutions needed to succeed in today's market.
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