Cosmetics supply chain transparency means the whole supply chain is visible, from raw materials, production, and packaging to delivery to retailers and, ultimately, consumers. A lack of transparency in complex supply chains that move billions of products can cause significant risks to both consumer and product owner. Transparency results from creating a full, shareable, fact-based profile of every aspect of the supply chain.
It is a means for companies to support its claims e. Traceability most often concerns individual products and aggregations e. Indeed, there are signs the market is booming. The other leading cosmetics brands also did well in We all know about the supply chain weaknesses revealed during the pandemic, including overreliance on manufacturing hubs and shipping bottlenecks, not to mention changes in consumer expectations and the way they want to buy and interact with cosmetics.
In a rapidly evolving landscape of tougher regulations, ongoing supply chain uncertainty, increased consumer expectations, and brand risk, transparency has become foundational for success. Regulatory compliance. Cosmetics regulations vary around the world. For instance, laws in the EU are much broader than in the United States. Generally, however, companies are responsible for making sure their cosmetics are safe, properly labeled, and comply with the regulations that apply to them.
Furthermore, more and more regulatory bodies are calling for modernization via the adoption of digital technologies to ensure products are safe and that companies are able to remain compliant as regulations evolve. Cosmetics supply chain transparency and traceability is crucial to compliance. Counterfeits and fakes. They can contain toxic substances such bacteria, animal waste, and carcinogenic substances e.
Counterfeits and fakes also damage profits. Brand reputations are also jeopardized by counterfeits. One bad or very bad experience can send customers to your competitors and tarnish your image, especially as consumers broadcast their opinions online. Our brand protection series talks more about counterfeits.
