A guide to cosmetics industry terminology from experts (1)

 Specialised terms used
by cosmetics industry experts—
understanding these terms is
the first step in the beauty business.
In this article,
we will provide a simple and clear summary
of essential cosmetics industry terminology
for those who are starting
or interested in the beauty business.

An introductory guide
to the beauty business,
starting with terminology

Product Development
and Planning:
Launching a cosmetics brand requires
collaboration with experts in various fields,
from product planning to quality control,
production, and import/export.
— collaboration with experts
in various fields is essential.

As such, industry-specific terminology
is frequently used.
Accurately understanding
this terminology is the first step
in setting up a beauty business.

This time,
we have compiled a list of frequently used
brand management terms
in an easy-to-understand format.

This guide is intended for anyone interested
in entering the cosmetics industry,
from aspiring entrepreneurs
to current brand managers.

This guide has been carefully curated
to include core terms
that will be of practical use to everyone,
and we hope you find it useful.

Product Development Brief
This document is used
to request a formulation
from a researcher and acts
as a design document
for product development.

The more specific the details provided regarding
the target formulation, color,
fragrance, and key active ingredients,
the more accurately the desired needs
can be reflected in the formulation.
As this document is the starting point and
reference point for product development, 

it is very important to write it as clearly
and in as much detail as possible.

Product types by format:
Main product (Product):
A product created for regular sale.
It refers to products that consumers generally purchase.

Sachet :
A product made for promotional activities.
It is usually 1–7 ml in size and designed
for one-time use as a sample.
It can be used for promotions
or product experience events.

Miniature :
A product made
for multiple use with a capacity of 5~20 ml.
It is mainly used to collect
several mini products
and make a set so that consumers
can experience several products
at a relatively low cost,
and then induce the purchase
of the main product.

Stock Keeping Unit (SKU) :
It is generally used as an abbreviation
of 'SKU' and means 'Stock Keeping Unit'.

It's the minimum unit
for distinguishing products
and systematically managing inventory.

Even if it is the same cream,
if the capacity is different,
each is considered a different SKU.

When operating a cosmetics brand,
determining the number of SKUs is
a very important strategic decision
because it is directly related to production,
inventory, and operational efficiency.

If the number of SKUs is too large,
management becomes complicated,
and if it is too small, it becomes difficult
to meet the diverse needs of consumers.

Formulation :
It refers to the specific combination
of ingredients and mixing ratio used
when making cosmetics,
and it's a term that indicates the physical form
and texture of the resulting product.

In practice, this term is expressed
in many different situations.

When referring to the physical form,
specific terms such as toner, cream, lotion,
gel, and emulsion are used.

When expressing the texture,
terms such as spreadability,
absorption, moisture, rolling,
and adhesion are used.
When referring to the combination of ingredients, 

it is also used to express the product's goal,
such as vegan, natural, and organic.

This term is the most commonly used, 

but it carries various meanings,
so it is recommended to express
it in specific terms whenever possible.

Ingredient Standard Name 
(INCI, International Nomenclature
of Cosmetic Ingredients)

INCI is a standard naming system
for cosmetic ingredients
that is used worldwide.
For example,
the INCI for Green Tea Extract is
‘Camellia Sinensis Leaf Extract’.

INCI is primarily used
to reduce confusion in ingredient names
between countries and
simplify export procedures,
and to allow consumers
to easily identify ingredients
that do not suit their skin.

In addition,
each country defines
the cosmetic ingredients
that can be used in their country based
on the INCI standard,
so it is essential to check
the regulations of the target country
through INCI during
the product development stage.

Ingredient List
This is a list of all ingredients
included in the product.
This is an item that must be listed
according to the cosmetics law,
and can generally be found on the package
or product sales page.

There are detailed regulations related to this,
such as the order of ingredient listing,
font size, and exceptions
to listing all ingredients,
so a sufficient understanding
of this is necessary
during the package design process.

Leading cosmetics
OEM, ODM company in Korea
farmer’s Co., Ltd.
CEO SHIN Sook Ja (Mrs.)
cosmeticsoemodm@gmail.com 

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