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Skin Care's Big Impact

By: Karen Newman
Posted: July 15, 2008

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For Milbar, skin care really kicked up its outsourcing business. Bezas believes the skin care brands knew of his firm’s 20-year history of creating products for dermatologists and plastic surgeons, and that they gravitated toward that experience. “We’re very niche-oriented as a cosmeceutical developer, so we make products that have a meaningful benefit to the skin,” Bezas says.

For other personal care contract manufacturers, the road to success is not as niche-oriented, but they are still feeling the impact of the growth in antiaging skin care the past eight years.

GDMI, Inc. is a contract manufacturer of skin, hair, health and body care products for human and animal markets, based in Garland, Texas. “Our customer base is quite varied, so we’ve always had a solid mix of skin care with hair, health and body care products,” says Gina Ferrall, vice president and COO, GDMI, Inc. “Even still, we’ve had to evolve to meet the needs of customers wanting to differentiate their brands. The effect on our business has been a result of the faster-paced need to continually offer new, natural, organic, high-tech and exotic ingredients and formulas.”

Ferrall says that to broaden GDMI’s abilities to create the “new and efficacious” products its customers now demand, the firm expanded the breadth and depth of new raw materials it uses; sought collaboration with suppliers to be able to source and supply new ingredients from around the world; and deepened its understanding of how ingredients interact with skin structure and function.

While Milbar elected to create its own brand in M Lab, GDMI chose to concentrate on formula development and manufacturing services for others. “Although a more narrow focus and the potential margins for in-house brands can be alluring, we’ve maintained this direction as a result of acquiring attractive manufacturing accounts that felt in-house brands created a conflict of interest for allocating resources and production scheduling,” says Ferrall. “We also felt it would dilute our expertise, so we’ve simply chosen to maintain focus on custom formula development and manufacturing.”

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