Small companies and startups are the innovation engine of the cosmetics industry. However, they often lack the resources and know-how to implement new ideas. As a global trading house, PolyNeo offers access to raw materials and specialist expertise.
In terms of sales, cosmetics and personal care, along with the market for nutritional supplements and wellness products, have been among the top growth sectors in recent years. In addition to a solid basis of proven products, the industry benefits above all from new trends, mostly based on newly discovered or developed and internationally hyped active ingredients, especially those based on natural raw materials, such as plant extracts. Small and medium-sized companies and, above all, startups are proving to be driving forces, especially in the area of innovative new developments and in adapting international trends to the national market. Flexibility and willingness to take risks as well as often an unbiased approach that is not primarily oriented towards economic considerations and often the famous “sparkling idea” are the ingredients from which product innovations arise, which in turn are taken up by the large, established brands in the long term. For them, new product development is often not very attractive. Costs and effort, combined with opportunities that are often not reliably foreseeable, tend to inhibit innovation compared to concentrating on proven products. On the other hand, “jumping on” trends that have already been initiated at the right time and incorporating them into the portfolio under a popular brand name appears to be a better, because safer, strategy.
(Source: PolyNeo GmbH)
Every beginning is difficult: from the idea to the product
While the small size and the enthusiasm for new ideas and the orientation towards new trends are a driving force, startups in particular often have significant difficulties in implementation. They often lack the necessary industry know-how, often even basic technical expertise and, above all, the urgently needed access to raw material supplies. Especially when implementing innovative product ideas, startups are often dependent on ingredients that are not yet widely used and are only marketed by a limited number of suppliers. In addition, these substances are usually only required in small quantities during the development phase, which often increases already high prices. Ultimately, small, young companies usually lack the insight to be able to assess the seriousness of a provider on the one hand and the quality of their products on the other.
Knowledge transfer and low-threshold market access accelerate product development
As an international trading company for the cosmetics market with many years of experience, PolyNeo has been pursuing the vision of discovering innovative raw materials and making them accessible and usable for the cosmetics market since its founding. In recent years there has been increased interest in the possibilities of making the network that has grown over the years, the acquired know-how and the partnerships with international raw material suppliers accessible to small and medium-sized companies and startups in particular in order to provide them with meaningful support in product development .
While many large retailers tend to be dismissive of new, not yet established raw materials and substances because the sales opportunities are often not immediately apparent, PolyNeo uses its own instinct for trends to be able to meet the demand for supposedly exotic substances. PolyNeo enables low-threshold access even in small quantities, even as samples.
Within an established supply network, PolyNeo can guarantee compliance with basic standards and ensure the quality of the raw materials offered. For this purpose, the industry expert has basic know-how with regard to product-relevant certification. PolyNeo is also committed to aspects of sustainable, resource-saving raw material extraction as well as social responsibility towards the countries of origin.
In addition to raw materials, PolyNeo offers developers and contract manufacturers an additional opportunity to accelerate product development with prefabricated mixtures and proven formulations. Factors such as stability, consistency or shelf life of a product can be achieved by using sometimes even multifunctional formulations without incurring additional development effort. In addition, storage costs and losses due to overproduction are eliminated, as ingredients can be purchased just-in-time from PolyNeo as needed, even in small quantities.
“With our holistic offering, we offer developers, contract manufacturers and startups in the cosmetics and nutritional supplements sectors a safe, responsibly sustainable and economically attractive way to implement their innovative ideas,” explains PolyNeo Managing Director Eduard Albrecht. “Our work supports purchasing as well as product development. Not only do we give them opportunities to establish new trends with access to know-how and raw materials, but we also offer international raw material suppliers new sales markets.”