ENTREPRENEURSHIP

What's With All The Secrecy About The Relationship Between Beauty Manufacturers And Brands?

Traditionally in the beauty industry, brands have kept their contract manufacturers under wraps and vice versa, and the main tool to enforce secrecy has been a non-disclosure agreement. There are reasons to believe that greater candidness is creeping into the relationship between contract manufacturers and brands, including the Modernization of Cosmetics Regulation …
Rachel Brown·February 14, 2024·1 min read
The 30-second read
Traditionally in the beauty industry, brands have kept their contract manufacturers under wraps and vice versa, and the main tool to enforce secrecy has been a non-disclosure agreement.

There are reasons to believe that greater candidness is creeping into the relationship between contract manufacturers and brands, including the Modernization of Cosmetics Regulation Act of 2022 (MoCRA), which requires brands to register their manufacturing facilities, although it has an exemption for those that generated less than $1 million in the last three years, and consumer interest in openness.

In light of the shifting regulatory environment and contemporary consumer preferences, we were wondering what contract manufacturers thought about the role NDAs play today and the possibility of increased transparency in the relationship between brands and manufacturers.

So, for the latest edition of our ongoing series posing question relevant to indie beauty, we asked 12 of them the following questions: What’s the importance of an NDA between a manufacturer and a brand to both parties? Are there ways you think these agreements should evolve? Do you think brands should be more open about the contract manufacturers that work on their goods? What are the advantages and disadvantages of more transparency?

The players

1 mentioned
Brand

AS Beauty

Founded2019
HQNew York, New York, United States
Revenue Range$150M+