Interview: What are the Advantages of China's Cosmetics OEM/ODM?

Win in efficacy, welcome the future. On September 22, The 5th CHAILEEDO Conference on China’s Cosmetic Trends hosted by CHAILEEDO was held in Hangzhou.

CENKONG is one of the leading OEM/ODM factories in China. We invited Zhu Hong, General Manager of CENKONG, to discuss the market trend of efficacy products in China with us.

Q: We are very honored to invite Mr. Zhu Hong, General Manager of CENKON, to share with us about the trends in the Chinese cosmetics market. First we would like to discuss that as the efficacy skincare has become a hot topic in the last two years, what do you think are the trends in the efficacy market?

A: Thanks to CHAILEEDO for the invitation, Actually, in the cosmetic field, everyone has always wanted to do something different including moisturizing, anti-wrinkle and repairing etc. These functions are actually a dream that our major and international beauty brands have been pursuing. In fact, the meaning of the existence of cosmetics is to improve the quality of life of people and let them stay young forever. This is a dream that we all pursue.

Therefore, efficacy has always been a long-standing topic. But for the past two years what is the future trend of efficacy? In fact, there are several stages in the iteration of efficacy including the earliest we used mineral oil later it became an emulsification system and then became a plant extract. Now the latest version is the efficacy version 4.0.We are now into the era of biological fermentation, including biosynthesis.

Q: Involution is the new normal in all walks of life. In what ways can cosmetics OEM/ODM break through?

A: For OEMs, we have always followed a few standards. Doing a OEM/ODM is not just to do a product producer. You have to become a partner of your brand. In terms of this partner, it actually has many aspects. That is, a product is built on the basis of the compliance of the OEM/ODMs standard to represent your ability.

The ability of the product is actually a kind of business ability. But a company's compliance ability is the most important foundation of a company. Then we can do a good job on the basis of compliance to reach the pass line. Let's talk about the whole product capability. No matter a company has black technology or unique skills it is necessary to assess the entire product's operational capabilities. This operational capability is different for each enterprise. So we CENKON have been working on the efficacy cosmetics.

We have a long-term basic research team and an efficacy product implementation team. In that case, So we take this sector and this category as a focus of our development. I think that as long as we persist in the same category, we will have opportunities. Not all companies have to be big and comprehensive, but we want to be the top company in the category that we can afford or that we have specialties or that we are interested in. We make a TOP of our category .This is our overall business strategy.

Q: At present, there are three major competition groups in the Chinese cosmetic OEM and ODM market, namely, the foreign, Taiwan and mainland China. How do you see the competition among the three groups?

A: This question is interesting. Let's say, I think the international OEMs are like the air force, just like high spike from high set. Taiwan-funded OEMs belongs to the navy Taiwan's relationship with China is relatively close. They came here by swimming and by boat. So I think they are navy.

These OEM companies in our mainland China, I think it's the Army. So these three services and three systems have their own different characteristics and their own different approaches. The strongest part of the Navy is the Marine Corps which can fight on land and at sea. The army's strength is the army's multi-terrain, multi-channel distribution, including the development of channels, products and customer.

The OEMs in mainland China are more in line with understanding the Chinese market. I think such an analogy and understanding may be a little more intuitive and simple.

Q: We would also like to ask what are the advantages of Chinese cosmetic OEMs compared to some international OEMs, such as those in Japan, Korea, Europe and America?

A: In fact, the advantage is not great. For example, when the international OEMs we just mentioned, Taiwanese OEMs may not know much about China when they first entered the country. But with a few years of their deep cultivation of the market and slowly adapt to the localization, the advantages slowly highlighted. The advantage of a company is that you need to focus on the important nodes.

In fact, if you do it slowly, your advantages will come out. If you are impetuous to do something you can not actually build anything advantageous. Advantage is to rely on capriciousness and endurance. You also have tirelessly to study and invest time, energy and financial resources. Then your advantage can be revealed. All advantages do not come in one day.

Foreign companies neither. They are also slowly accumulated day by day. So that the advantage does not lie in your present, the advantage lies in your future. It depends on whether you can power up in the key nodes. Then you also need to keep your mind sober, and be persistent to do this thing. The industry is the same. Every business is the same.

In fact, every person is the same. Actually, the reason is the same. The advantage we build is not just today's advantage, but your ability to maintain your advantage for a long time and your ability to move from no advantage to strong advantage in the long run.