Korean OEM/ODM COSMAX Gains $1.265 billion in 2021 to Develop OBM for Customers
- Chaileedo Press
- Apr 29, 2022
- 3 min read
COSMAX, a cosmetic manufacturer development and manufacturing (ODM) company, achieved sales revenue of $1.265 billion, up 15.1% year on year. COSMAX is developing an OBM business based on traditional ODM, aiming to help new customers in the beauty industry solve the initial problems in the beauty industry.
COSMAX, a Korean OEM/ODM company specializing in cosmetics, health function products and pharmaceuticals, announced its annual report showing that in 2021, COSMAX achieved sales revenue of $1.265 billion, up 15.1% year-on-year; operating profit of $85 million, up 367% year-on-year and its net income of $390 million, up 255% year-on-year.
COSMAX' sales in China were $515 million, up 39% year on year, accounting for 40.89% of total sales. Among them, COSMAX (China) Cosmetics Co., Ltd. had sales of $403 million, up 50% year-on-year, while COSMAX Guangzhou had sales of $111 million, up 9.55% year-on-year.
Founded in 1992, COSMAX has branches and factories in Korea, Shanghai and Guangzhou, Indonesia, Jakarta, Ohio, and other parts of the world, providing services for L'Oreal, Amore Pacific, LG and other global cosmetics groups, involving more than 300 brands.
According to public information, COSMAX has officially established factories in China since 2004 and currently has 2 factories in Shanghai and Guangzhou respectively. On October 29, 2021, the monthly output of the COSMAX Shanghai factory exceeded 50 million units. Together with the Guangzhou factory, the monthly output was close to 70 million units, setting a record for the highest monthly output of COSMAX Group.
In addition, COSMAX has built R&D centers in each of the two factories with a total of 350 R&D staff. On the whole, the COSMAX R&D center is divided into the skincare product R&D department and the cosmetics R&D department, which are responsible for the research and development of new formulations and new dosage forms for skincare and color cosmetics products respectively.
It is worth noting that in addition to its own continuous R&D exploration, COSMAX has also established partnerships with universities and research institutions to further enhance its own R&D strength by absorbing external research strength.
According to the introduction, COSMAX has established cooperation with Jiangnan University, Beijing Technology and Business University, Shandong University, Shanghai Institute of Technology, Southwest Minzu University and other universities. With the scientific research platform of universities, COSMAX can transform and apply the laboratory technology results, and jointly develop market competitive products for downstream brand customers.
These collaborations with universities also have their own focus. For example, in the cooperation between COSMAX and Jiangnan University, the two sides mainly cooperate extensively in the field of cosmetics and its core ingredients and set up the "COSMAX (China) Cosmetics Co. In the cooperation with Shanghai Institute of Technology, the two sides established and operated the joint laboratory of Shanghai Institute of Technology and COSMAX(China) Cosmetics Ltd. based on the Collaborative Innovation Center of the Ministry of Fragrance, Flavor and Cosmetics, aiming at comprehensive cooperation in scientific and technological innovation, product performance and efficacy evaluation, and personnel training.
It is worth noting that Zhang Liuyang, the OBM team leader of the strategic marketing department of COSMAX (China) Cosmetics Co., Ltd. said "COSMAX is developing OBM business based on traditional ODM, aiming to help new customers in the beauty industry to solve the initial problems in the beauty industry and the needs of those who have been working in the beauty industry for years and want to seek new changes. At the front end of the brand, we give our customers the greatest support."
COSMAX announced on the 11th the launch of "COSMAX Plus", a platform where cosmetic development can be sought online. Through COSMAX Plus, customers can choose to seek cosmetic development under the ODM or OBM (manufacturer brand development and production) method, and COSMAX researchers will begin product planning after receiving various questionnaire application documents from customers.
COSMAX also plans to increase opportunities for collaboration with new companies, influencers and celebrities that have not been exposed to cosmetic development through its online platform.
Through digital transformation, we will continue to ensure that our services that transcend the constraints of time and space lead in a big way," said COSMAX CEO Li Bingwan, "We will proactively respond to future market changes by providing new digital experiences for our customers and helping them stay ahead of the trends ".
It is worth mentioning that from January 1, 2022, newly recorded cosmetics must be evaluated for "cosmetic efficacy claims". To respond to customer needs in time, COSMAX has also taken several initiatives in response to this new regulation, such as building and operating an in-vitro efficacy laboratory in addition to the existing in-house clinical efficacy evaluation group, and evaluating various types of efficacy at the cellular level.
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