5 Examples of Contract Manufacturing (Maklon): Business Opportunities Not Many Realize!

Have you ever thought about having your own brand but aren't sure where to start? Many people want to start a business but are limited by large capital or lack of a factory.

This is where maklon services come in as a solution. Maklon is a collaborative production system where you simply provide an idea or concept, and the factory handles the entire process, from raw materials and production to packaging. That way, you can focus on marketing and sales strategy.

Understanding Maklon Services

Maklon (contract manufacturing) is a production service performed by a third party based on the brand owner's concept and specifications. In this system, the brand owner acts as the product initiator. The maklon factory is responsible for the technical process, which includes raw material procurement, formulation, production, packaging, and legal processing.

This scheme is widely chosen because it offers a shortcut into the business world. You can have your own branded product without having to own production machinery or a factory.

What is Maklon?

According to Wikipedia, maklon (contract manufacturing) is a third-party manufacturing service where the brand owner outsources production, from material procurement to packaging, to the maklon service provider. You only need to focus on design and marketing. Some types of maklon include:

1. Cosmetic Manufacturing, a Profitable Opportunity in the Beauty World

The beauty industry continues to grow rapidly. Through cosmetic manufacturing services, you can have your own skincare or makeup brand without having to master the technical aspects of formulation.

Maklon factories will help produce products such as serums, lipsticks, cushions, facial soaps, and body lotions. They even handle permits such as BPOM (Indonesian Food and Drug Authority) and halal certification.

The advantage is, you can start from MOQ (Minimum Order Quantity)small and increase the scale of production as the business grows.

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2. Food and Beverage Manufacturing, Suitable for Culinary Entrepreneurs

Source: Istockphoto

For those interested in the F&B sector, food and beverage manufacturing could be a promising business entry point.

For example, the production of packaged chili sauce, instant spices, chips, liter-sized coffee, herbal tea, and healthy drinks such as almond milk.

With maklon services, you only need to bring a recipe or concept, then the factory will mass produce it according to industry standards.

3. Fashion Manufacturing – Create Your Own Clothing Brand Without the Hassle of Sewing

Want to have your own brand of t-shirts, hoodies, or dresses but don't know how to sew? Fashion manufacturing is the answer.

You simply prepare the design, choose the materials, and determine the size. The maklon factory will sew and ship the product according to your order.

Many local clothing brands and influencers utilize this service to present unique fashion collections.

4. Herbal and Supplement Maklon – A Fast Track into the Health Industry

Source: Istockphoto

Health awareness is growing. Through herbal and supplement manufacturing, you can produce herbal teas, packaged honey, supplements, or essential oils without having your own lab.

Suitable for low-risk businesses that are legal and ready to sell because the factory helps with the BPOM permit process and related certifications.

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5. Household Product Manufacturing, from Soap to Fabric Softeners

Household products have stable demand. Maklon services can help produce laundry soap, floor cleaner, or fabric softener according to market needs.

In fact, you can create eco-friendly products or products with a distinctive aroma that differentiates you from your competitors.again if you can offer more value such as refills or product bundling.

How a Maklon Factory Works

The way a maklon factory works is relatively simple and structured. The process typically begins with a product concept discussion. You present your idea, target market, and brand positioning. After that, the factory will:

1. Assist in the development of product formulas or specifications.
2. Prepare cost estimates and MOQ.
3. Producing samples for testing.
4. Manage permits and certification.
5. Doing mass production.
6. Packaging and preparing products ready for sale.

With this flow, you can focus on building your brand without being burdened by technical matters.

​​Products (Results) of Maklon Services

Maklon products are ready-to-sell products under your own brand. In terms of quality, maklon products can be comparable to major brands because they are produced in industrial-standard factories. The results can include:

• Retail products ready for distribution.
• Private label products.
• Custom products with special formulas.
• White label products are directly branded.

The selling value of a product still depends on the quality of the concept, packaging, and marketing strategy you develop.

Maklon Fee

Contract manufacturing costs vary depending on the product type, formula complexity, raw materials, packaging, and order quantity. Generally, contract manufacturing costs consist of:

• Research and development costs.
• Raw material costs.
• Production cost.
• Packaging costs.
• Licensing fees.

The larger the production volume, the lower the cost per unit. This is why many brands start with a small MOQ and gradually increase the scale.

10 Types of Maklon Products That Are Highly Sought After

The following types of maklon services have high market demand and large business opportunities:

1. Cosmetic and Skincare Manufacturing
   Demand is stable and continues to grow.
2. Packaged Food Manufacturing
   Suitable for chili sauce, instant spices, and frozen food.
3. Ready-to-Drink Beverage Manufacturing
   Including bottled coffee and health drinks.
4. Fashion and Apparel Manufacturing
   T-shirts, hoodies, and daily wear.
5. Herbal Product Manufacturing
   Herbal tea, modern herbal medicine, and honey.
6. Health Supplement Manufacturing
   Vitamins and products to support the immune system.
7. Household Product Manufacturing
   Soap, detergent and all-purpose cleaner.
8. Perfume and Fragrance Manufacturing
   Custom scents with strong brand identity.
9. Maklon Baby and Children's Products
   High demand with strict safety standards.
10. Environmentally Friendly Product Manufacturing
    Refill pack, eco detergent, dan sustainable product.

These types are proven to have a wide market and high repeat order potential.

Why Now Is the Right Time to Get Started with Maklon Services?

From cosmetics, food, fashion, herbal, to household products, all offer huge potential.

The key is creative ideas, market research, and the right marketing strategy. Here are the advantages of starting a business with a maklon service:

1. Lighter Capital– No need to build production facilities.
2. Legality Covered– Maklon generally helps with permits such as BPOM, HKI, and halal.
3. Easy Scalability– Want to increase your order from 1,000 to 10,000? Yes. Adjusting to the market is more flexible.
4. Focus on Branding & Marketing– You can allocate energy to promotional strategies and brand development, not to production matters.

Legal Basis for Maklon Services Companies

Now let's discuss it from the legal side. So, legally, maklon activities in Indonesia have a clear basis. Maklon collaborations are generally regulated by a written agreement between the brand owner and the maklon service provider. Some frequently cited legal bases include:

• Civil Code regarding cooperation agreements.
• Industrial Law.
• BPOM regulations for food, beverage, cosmetic, drug and supplement products.
• Halal certification provisions from BPJPH.
• Taxation provisions for maklon services as a VAT object.

With this legal basis, maklon-based businesses remain legal and safe as long as they follow applicable regulations.

FAQ (Frequently Asked Questions)

1) What is maklon service?

Third-party production services based on the brand owner's specifications. The brand owner focuses on design and marketing, not production.

2) Is maklon only for cosmetics?

No. Maklon can be for cosmetics, food, drinks, fashion, herbal remedies, supplements, and even household products.

3) What about legality?

Most maklon factories handle BPOM permits, halal, and other certifications.

4) What are the main benefits?

Small capital, flexible, operational efficiency, branding focus, and fast mass production.

5) What about maklon tax?

Maklon is a service subject to 11% VAT. Income tax may be imposed under Article 23 or Article 15 Income Tax, depending on the regulations.

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