Insufficient oversight and supervision in the cosmetics market

While the number of cosmetic brands created by influencers and the beauty salons they have opened has increased in recent years, the lack of sufficient oversight and supervision in the market brings various risks with it. Representatives of the sector, which grows by 10 percent every year, state that launching a cosmetic brand should not be this easy. Social media phenomenon Ece Ronay, who owns a beauty center bearing her own name, stated that her business has declined and public trust has diminished following the recent events.

Contract manufacturing is not the same as “under-the-counter” production

YouTuber Sebile Ölmez, founder of So Fly Kozmetik, stated that recent events have led to a perception that “influencers are producing under-the-counter cosmetic products,” and explained: “Not every contract manufacturing is under-the-counter production. 80 percent of major cosmetic brands in the world use contract manufacturing. Not everyone can build a factory. Contract manufacturing is an important line of business in many sectors, from food to detergents. There are very important factories in Turkey that contribute greatly to our country. We have our production done in these places. The factory that produces for So Fly is built on a 12 thousand m2 area, exports to 85 countries across 5 continents including Europe and America, and produces contract products for Europe's giant chain markets. You can choose two paths here, and 90 percent of producers choose this path: ordering products that the factory is already working on. That is why we see copy-paste products. The other way is to work on your own formulation externally and have the factory fill it. We produce in this way. Our formulas involve significant research and effort. When I wanted to start this business, we found many manufacturers in countries like Korea, Italy, Japan, and Germany, but with the sudden rise in foreign exchange rates, importing became a dream. When at-home skincare products exploded during the pandemic, thousands of new brands emerged. According to what my producers tell me, the majority of them are under-the-counter.”

“Oversight must be periodic”

Stating that cosmetic production in Turkey is based on ministry declarations, Ölmez said, “Even small workshops receive authorization by meeting certain standards. They even produce in basins. The Ministry of Health checks whether there are banned substances in Turkey. In other words, you only declare the content of the product. In writing. This is very problematic. They only check if there is a banned substance in the content or if a health claim is being made. Of course, producer information, microbiology tests, etc., are also requested. However, after the product approval is issued, I am the only one who knows what I actually put in the product. People look at the UTS (Cosmetic Product Tracking System) registration and think that because it is registered with the Ministry, the product is 100 percent reliable. Vitamin C serums that do not contain Vitamin C are being sold. Let's say I wrote 'contains 10 percent Vitamin C' on the product. The ministry does not check whether I put Vitamin C in it or if I put a carcinogenic substance in it. It is only checked upon complaint. Of course, oversight is great, but one-time oversight does not yield results. The Ministry needs to take products from all companies and examine them at certain intervals. More serious measures must be taken.” Doa Kozmetik General Coordinator Özcan Yılmaz, who stated that influencers create their own brands by seeing the increasing demand for the products they promote, said, “Costs are low, profits are high. Influencers also caught the wind and established cosmetics and beauty centers. There are many contract cosmetic manufacturers in Turkey. Influencers work with contract manufacturers. They can sell a lipstick they produce for 30 liras in contract manufacturing for 300 liras. You cannot sell a cosmetic product by saying 'it is ministry-approved,' but there are influencers who say this. Some even state the name of a drug in the content of their product, even though this is also prohibited.”

Production is based on price, not quality

Levent Kahrıman, President of the Cosmetic Manufacturers and Researchers Association, noted that users are turning toward adopting environmental awareness in their beauty habits by preferring products with natural ingredients that are harmless to their skin, and that the trend toward organic and natural products is increasing, which in turn gives birth to new brands. Stating that one of the most important things threatening the cosmetics sector in Turkey is under-the-counter production, Kahrıman pointed out that the informal economy also creates unfair competition, adding, “Production based on price rather than quality is coming to the fore in the sector. The lack of market surveillance is one of the weak points of the sector.”