For skin care products OEM, should we use mature formulas or customize them from scratch?

1. First distinguish between mature, semi-customized and developed from scratch

Mature formulas are usually basic solutions that already exist in the factory and have been accumulated through production or testing. The brand chooses from the dosage form, fragrance, skin feel, color and packaging; semi-customization is to adjust part of the oil phase, activity, fragrance, viscosity or use feeling on the mature system; development from scratch starts from product goals, mechanism assumptions, raw material systems and processes.

The so-called "mature" does not mean that it is suitable for all packaging materials, markets and claims; the so-called "from scratch" does not mean that all raw materials and technologies are exclusive. When enquiring, the factory should be asked to describe the basic system, adjustable boundaries, existing tests, verification that needs to be supplemented and the scope of rights.

2. Which brands are suitable for mature formulas?

Mature formulas are suitable for teams that are verifying channels for the first time, have clear time windows, have limited R&D budgets, or need to test-market on a small scale. It reduces formulation direction debates and leverages existing process and production experience to improve first-run sample proximity.

Limitations are modifiable scope, homogeneity, and ownership. Brands still need to evaluate the target customer group, fragrance, skin feel, packaging materials and labels to confirm whether the factory will provide the same or similar solutions to other customers. Mature formulas are more suitable for validating business models and should not be misunderstood as testing-free or evaluation-free.

• Advantages: fast start-up, fewer development rounds, predictable costs, more production experience
• Limitations: Limited differentiation, narrow exclusive scope, optional raw materials and dosage forms are restricted by the basic system
• Suitable for: channel test marketing, gift boxes, quick replenishment categories and first minimum viable products

3. Why semi-customization is often a more realistic intermediate solution

Semi-customization retains proven emulsification, thickening and preservation systems and tailors key activity, skin feel, scent, color or viscosity to brand objectives. Compared with just changing the fragrance, it can establish a clearer experience difference; compared with developing from scratch, it can reduce system instability and repetition.

The key to semi-customization is limiting variables. It’s best to adjust only a few clear variables each run and record version, addition, pH, viscosity, appearance and sensory changes. Replacing multiple raw materials at once makes it difficult to determine the source of the problem and increases stability and compatibility work.

4. What conditions are suitable for customization from scratch?

Developing from scratch is suitable for brands that already have clear technical goals, evidence of differentiation, long-term sales plans and R&D budgets, such as those that require a specific skin feel structure, special dosage forms, a clear combination of raw materials or synergy with exclusive packaging materials. Brands prepare product briefs, target specifications, ban preferences, price bands, target markets and evidence plans.

Developing from scratch is not about adding hot ingredients together. Formulators must balance ingredient dissolution, pH, ions, electrolytes, emulsification, thickening, preservatives, odor, color, packaging materials and processes. Quality by design research shows that key quality attributes such as structure, droplets, and viscosity should be included in risk assessments, rather than judging stability based on ingredient lists alone.

5. How to estimate development rounds and time

A mature formula may start with one round of selection and one or two rounds of experience adjustments; semi-customization usually requires basic samples, directional samples, optimized samples and final signed samples; development from scratch may also include raw material screening, system establishment, small trials, pilot trials and packaging material adaptation. The actual rounds are determined by whether the requirements are clear, feedback speed and test results.

Separate "prototype time" and "time to market." After the final sample is signed, stability, compatibility, safety assessment, label review, bulk packaging materials, production scheduling and inspection may still be required. Any scheme that promises a very short time to market needs to ask which verification is omitted, which uses existing evidence, and who bears the risk.

6. Why can’t testing costs only be calculated on one report?

Formulation development may involve physical and chemical, microbiological, stability, packaging material compatibility, efficacy claims, safety assessment and target market requirements. Product directions, claims, packaging materials and sales areas are different, and the test combinations are different. Existing historical data for mature formulas can only be referenced when the formula, process and packaging materials are comparable.

Stability studies are used to observe changes in products under time, temperature, light and transportation conditions; packaging material compatibility focuses on the interaction between the contents and direct contact materials; sensory evaluation is used to establish usage experience standards. The three solve different problems and cannot replace each other.

7. Formula ownership must be broken down into six questions

First, who owns the original basic formula; second, whether the brand has obtained the right to produce and use the designated product; third, whether there is a market, channel, category or period of exclusivity; fourth, whether the factory can provide similar solutions to other customers; fifth, whether the brand can transfer to another factory after the cooperation is terminated; sixth, to what extent the process, suppliers and safety data have been delivered.

Mature formulas are usually not suitable for requiring complete ownership; semi-customization can talk about key adjustments and a certain range of exclusivity; development from scratch also requires distinguishing between brand creativity, factory common technology and third-party raw material intellectual property rights. A high fee does not automatically create ownership and must be written into the contract.

8. Comparison of three paths with the same caliber

Mature recipes usually have advantages in development expenses, rounds and speed; semi-customization balances differentiation, cost and risk; development from scratch is stronger in target control and potential barriers, but requires more time, testing and project management. When comparing, use the same packaging materials, the same quantities, the same testing and the same scope of rights.

If a mature formula quotation includes existing tests, but the scratch solution has not yet included verification costs, the two are not of the same caliber; if the scratch solution promises exclusivity but does not have a clear market and period, it cannot be directly regarded as a brand asset.

• Mature: suitable for verifying the market first, focusing on checking existing evidence and homogeneity
• Semi-customization: suitable for establishing perceptible differences, focusing on controlling variables and versions
• From scratch: suitable for long-term core products, focusing on managing verification, ownership and failure budgets

9. Use stage gates to decide whether to continue investing

The project can set up four stage gates: the concept gate confirms the customer base, channels, price and efficacy; the formula gate confirms the technical feasibility and first-round experience; the verification gate confirms stability, packaging materials and evidence plans; the mass production gate confirms signatures, specifications, labels, materials and release standards. Pause when conditions are not met at each stage, rather than continuing because money has been spent.

Brands don’t have to choose a permanent path from the start. You can first use mature or semi-customized products to verify categories and channels, and then upgrade the products with the highest repurchases and clearest feedback to exclusive development.