beauty products

beauty products

For beauty products to get to the retailers, they have to get them from local wholesalers, who get them from exclusive distributors. These distributors get beauty products from an overseas wholesaler who deals with different brands making beauty products.

This means that the product has passed through four businesses before it gets to you as the retailer. And all these businesses have to earn a profit since they act as the middle persons between the manufacturer and retailer. This is what we call beauty supply.

Let’s define this in a better way.

What Is Beauty Supply?

A beauty supply path is a chain of intermediaries or businesses through which goods or services passes from brands (manufacturer) to the end consumer.

It includes wholesalers, distributors, retailers, and even the internet. The supply path can be short or long, depending on the number of intermediaries needed to deliver a service or product. This process can sometimes be long, thereby making supply management complex. A longer supply path can also mean less profits for the retailer as each intermediary is adding up the cost.

You may ask, why has it always been like this? Must the beauty supply process be this long? And is there a way to shorten it as a retailer?

Well, to answer the first two questions, we will discuss the beauty supply chain for beauty products from, let’s say, for the Korean Market, popularly known as K-Beauty products. In this case, we will use Umma, a renowned wholesaler for K-Beauty products.

Chain of Distribution for Beauty Products

While a beauty supply channel may seem an endless process at times, there are majorly three players that come in between manufacturer and end consumer- wholesaler, distributor, and retailers.

Let’s discuss the distribution channels

Overseas Wholesalers Work with Manufacturers

An overseas wholesaler for Korean beauty products, who in this case is Umma, has a strong business relationship with beauty products manufacturers in Korea.

For most of them, we have exclusive buying agreements, which means that we are the only ones allowed to get products from some producers.

However, even when producers do not give exclusive rights to overseas wholesalers to buy their products, rarely do they sell products to retailers or consumers.

This leaves overseas wholesalers (Umma) the only group of businesses that work with Korean beauty products manufacturers. They will buy in large quantities and sell the products to exclusive distributors.

Sometimes, though, overseas wholesalers work directly with retailers, thereby helping them to speed up the process of receiving goods and cutting back on cost, but we will discuss this later on.

Roles of the overseas wholesaler in the beauty supply chain

• Acts as the link between manufacturers and distributors or even retailers
• Purchases good in bulk and resells in small quantities
• Assembles goods
• Communicates market information to brands and manufacturer
• Stores goods awaiting resell

Exclusive Distributors Work with Overseas Wholesaler to Deliver Products to Local Wholesalers

Local wholesalers buy large quantities of products from distributors. Distributors get products from overseas wholesalers in large quantities and distribute them to local wholesalers.

They often give discounts to help promote the sale of certain products. Distributors deals with a specific type of merchandise from specific wholesalers. The products they deliver are often destined for retailers or online e-commerce enterprises.

Roles of exclusive distributors in beauty supply

• They deliver the right products at the right time and in the right conditions to local wholesalers
• Provide product information
• They anticipate needs
• They provide an assortment of segment-based beauty products

Local Wholesalers Deliver to Retailers

After getting beauty products from different distributors, local wholesalers sell goods to retailers, who are known to be the direct link between manufacturers and consumers. This means retailers get goods after they have passed from four parties.

Role of Local Wholesalers in Beauty Products Supply

• They acquire products from distributors
• Stores products for retailers
• They market brands to consumers
• They also distribute goods to retailers

Retailers to Consumers

Retailers are small and large businesses that sell beauty products directly to consumers.

Generally, they buy products in small quantities from wholesalers and divide them further so as to meet consumers’ needs.

Now, as a retailer for beauty products, you understand that before you get products to sell to consumers, they will have passed through four parties. This means that they are costlier and have taken time.

Now imagine shortening the distribution channel whereby you obtain products directly from an overseas wholesaler?

This is the dream Umma wants to actualize- Umma wants to connect with retailers so that you can buy beauty products from the Korean market with ease.

Why Would You Want To Work With UMMA As A Retailer?

UMMA plays different roles in the beauty supply channel for K-beauty products. It can act as a distributor and wholesaler.

What we do is that we buy beauty products in bulk from different manufacturers in Korea and sell them in different quantities to other wholesalers, distributors, and retailers, at discounted prices. This means that as a retailer, dealing with us means not only more profits but also more convenience.

Let’s talk about the benefits you get by dealing with us and cutting intermediaries;

1. Get products at competitive prices

One of the greatest benefits of buying goods directly from UMMA is that it lowers the costs of items. This is because you have reduced the distribution channel by a greater margin.

When beauty products follow the usual distribution channel, as we discussed above, they get to you as the retailer at a higher price since every intermediary has added their profit.

Therefore, by dealing with us, you will get beauty products at lower prices, which means more profit on your end. You can decide to pass this discount to your consumers so as to sell more.

2. More convenience

This is quite obvious, but it is good we mention it. When you shorten the distribution channel by dealing with an overseas retailer (Umma), you get products at a faster rate. This helps to cut delivery cost, which in turn means more profits for you

This also means that products will come before they near their expiry date, and thus you can stock in bulk.

3. Wide selection range

When dealing with an overseas wholesaler, as a retailer, you get access to a wider range of products than you would have got from your local wholesaler.

This means your business will stock a wider variety of beauty products and thus sell more.

Bottom Line

The benefits of dealing with Umma, an overseas wholesaler for K-beauty products, are quite clear. With more profits, faster product delivery, and more varieties purchasing K-beauty products from Umma makes more sense.

Umma is one of the leading distributors and wholesalers of K-beauty products in Korea and overseas. Talk to us so that we can talk