Developing and producing cosmetics for dm: What a drugstore retail listing really requires
Developing and producing cosmetics for dm: What a drugstore retail listing really requires
12 min read
CEO & Founder at Labtree GmbH
Getting listed at dm is the strategic goal for many cosmetics brands, and at the same time one of the most demanding sales channels. What matters: product, documentation, and scalability.
The topic is short and compact
dm requires: complete documentation, scalability, delivery reliability, market-ready product quality.
Typical path: PoC with small batches → Pitch → Scaling within 3 months → retail listing.
Success factor: Think about the scaling path during the PoC phase, rather than starting from scratch after a successful pitch.
Full regulatory documentation: PIF, CPNP notification, safety assessment according to the EU Cosmetics Regulation
Quality certificates: Stability data, skin compatibility tests, proof of efficacy if applicable
Consistent batch quality: Reproducibility across batches, defined specifications
Delivery reliability: Multiannual security of supply, defined response times
EDI connection: Logistic and administrative integration into dm systems
Concrete retail listing requirements vary depending on the product category and the negotiation situation. However, the points mentioned are practically always a prerequisite.
What dm structurally requires
Full regulatory documentation: PIF, CPNP notification, safety assessment according to the EU Cosmetics Regulation
Quality certificates: Stability data, skin compatibility tests, proof of efficacy if applicable
Consistent batch quality: Reproducibility across batches, defined specifications
Delivery reliability: Multiannual security of supply, defined response times
EDI connection: Logistic and administrative integration into dm systems
Concrete retail listing requirements vary depending on the product category and the negotiation situation. However, the points mentioned are practically always a prerequisite.
The typical way: Proof of Concept first
For most brands, a direct entry with full volume is not realistic. The proven path is via:
Proof of Concept: Small batches (~2,000 units) for market validation and pitch preparation
Pitch Phase: Presentation to procurement, negotiation of listing terms
Scaling: Upon successful pitch, build-up of industrial production, typically within 3 months
retail listing: Placement in the assortment, start of continuous delivery
Practical example: Skincare series with 10 products
A supplement brand wanted to launch an additional skincare line. Target: drugstore retail listing. The path:
Ten products designed as a complete, launch-ready series, with raw materials, packaging, production, documentation, and regulatory data jointly planned
Small batches of approx. 2,000 units per product including packaging for proof of concept and pitch
Scaling within three months after winning the pitch
Placement in the drugstore
Success factor: Scalability was taken into account from the very beginning, so that no new setup was necessary after the successful pitch.
What brands should prepare
Clear brand positioning: What does the brand stand for, what gap does it fill in the dm range?
Product argument: What differentiates the product from already listed competitors?
Sales figures from PoC: If the product has already been successful elsewhere, figures are important
Delivery commitment: Who is the production partner, what capacities are available?
Pricing: Realistic for the dm price segment, with sufficient margin for everyone involved
Where things typically go wrong
Late Scaling Planning: After winning a pitch, the manufacturer must be able to switch quickly to industrial batches, otherwise delays will occur
Incomplete Documentation: If the PIF or safety assessment is incomplete, a retail listing may fail or be delayed
Packaging: If the PoC packaging is not scalable (e.g. special limited-edition containers), it must be redesigned
Marketing Lead Time: Listings typically require defined launch dates; without marketing support, placement is rarely worthwhile
In-depth Sources: The legal basis for all cosmetic products marketed in the EU is the EU Cosmetics Regulation (EC) No. 1223/2009. In Germany, the health assessment of ingredients is the responsibility of the Federal Institute for Risk Assessment (BfR). Industry information and market data are published by the German Association of Cosmetic, Toiletry, Perfumery and Detergent Association (IKW).
What Labtree does for dm projects
Small batches from approx. 2,000 pieces per product for Proof of Concept
Complete series from a single source including raw materials, packaging, production, documentation, and approval data
Scaling path considered right from the start; fillability, batch sizes, and process parameters are already prepared for industrial scale in the PoC
Regulatory documentation is part of the standard process
Experience with dm retail listings from previous projects
Related articles: Retail listing requirements in retail · White Label Cosmetics · Private Label Cosmetics
Developing cosmetics for dm is a strategic task that goes far beyond product quality. Those who plan scalability, documentation, and delivery reliability in a structured way from the very beginning have better chances and react faster to volume growth after a successful pitch.
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FAQ
Does Labtree have its own laboratory?
Yes. Labtree has its own development expertise, including a laboratory. This means that formulations can not only be selected, but specifically developed, tested, and adjusted. Additionally, smaller test batches can be produced in-house in order to validate products early on in real conditions and safely transfer them to production.
How does a cosmetics brand get a dm retail listing?
Typically via a pitch to procurement, often with a proof of concept from small batches, clear brand positioning, product USP, delivery assurance, and realistic pricing within the dm segment.
What are the minimum order quantities required by dm?
Depending on the category and negotiation situation. For initial retail listings, typical batches are in the thousands, and significantly more for established products. The ability to scale after a successful listing is important.
How long does the journey from the idea to the dm retail listing take?
Realistically 6 to 12 months from concept to retail listing, development, proof of concept, pitch phase, scaling. For trend-driven products, this can be shorter; for complex products, it can be longer.
How much does a dm retail listing cost?
Listing fees and commercial terms are negotiated with dm. In addition, there are development and scaling costs on the brand side. Specific figures vary widely.
What happens if the retail listing does not work?
If sales figures fall below expectations, there is a risk of de-listing. Structurally important: Realistic sales planning, a clear marketing plan, and regular coordination with dm purchasing regarding product range development.
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