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Manufacturing model

OEM / ODM Contract Manufacturing

In the ODM (Original Design Manufacturing) model the product idea and formula are developed by the manufacturer, and the brand owner sells it under their own name. KCM Pharma evaluates market trends and category gaps to propose a product concept, develops the formula, and advises on packaging and positioning. In the OEM model, the product the brand owner defines is manufactured to their specification.

Cosmetic samples in petri dishes
Cosmetic samples in petri dishes

Who this model suits

  • Brands that have not yet decided what to produce and want direction
  • Retailers and chains looking for a category gap
  • Companies without an R&D team that still want an innovative product
  • Established brands widening their portfolio quickly

What's included

Concept proposal
Developing a product concept around category, audience and price band.
Formula development
Building the formula from scratch to fit the concept, with sampling.
Packaging direction
Recommending packaging and design that match the product's positioning.
Production and filling
Series production of the approved concept under GMP conditions.
Regulatory
All statutory notification, registration and documentation.

The difference between OEM and ODM

In OEM you define the product and we manufacture it. In ODM we design and develop the product and you sell it under your brand. Choosing between them depends on whether your team has product development capacity and how quickly you want to reach market.

How concept work proceeds

We start from target audience, sales channel and shelf price. Our R&D team prepares two or three concept proposals within that frame; the selected concept is then formulated and sampled. Changing direction at concept stage is far cheaper than changing it in production.

Intellectual property

In the ODM model, the terms of use for the developed formula are set contractually. Whether you want the formula to be exclusively yours directly affects commercial terms, so we settle it at the outset.

The four models side by side

Choosing the right model is the decision that most affects a project's timeline and cost. The table below compares all four against the same criteria.

The four models side by side
CriterionContractPrivate LabelDermocosmeticsOEM / ODM
Formula sourceYour formula, or developed exclusively for youReady formula libraryBespoke, active-led developmentConcept developed by our R&D team
Typical timeline8–12 weeks6–10 weeks4–6 months3–5 months
What we need from youA formula or a clear product definitionCategory and brand directionTarget concern and claimTarget audience and price band
DistinctivenessHighMediumVery highHigh
Best suited toBrands with a settled product seeking capacityA fast, low-risk first launchPharmacy and clinical channels, scientific claimsBrands seeking direction without R&D capacity
  1. 01Brief & feasibilityWe align on concept, audience, target shelf price and volume. The technical team returns a feasibility read.2–5 days
  2. 02Formulation developmentR&D develops the formula — or adapts an existing one — to the target efficacy, texture and ingredient profile.2–4 weeks
  3. 03Sample & revisionA lab sample is produced, evaluated and revised until it is signed off.1–3 weeks
  4. 04Stability & safety testingStability, microbiology and packaging compatibility testing; the product safety report is prepared.4–12 weeks

Questions about this model

Will the formula belong to me in the ODM model?

This is set contractually. You can ask for the formula to be exclusively yours, in which case it is never offered to another client. Exclusivity affects commercial terms, so it is discussed at the outset.

Is concept work charged?

Terms for concept work vary with project scope and are agreed at quotation. For projects with a serious volume outlook, concept work is usually treated as part of the process.

How many concepts do you present?

Usually two or three. The aim is not to maximise options but to offer meaningfully different directions, so you can see clearly which way you want to go.

Get a quote for oem / odm.

We respond to quote requests within 24 hours.

Briefs and formulas you share are handled under a confidentiality agreement.

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