Adopting the motto, 'let's start, let's connect, let's concentrate', Cosmax is focusing its efforts on building strong brand loyal relationships with its consumers in a bid to achieve greater success.
Striving to reach number 1
Cosmax is surrounded by the phenomenal impact of the K Beauty trend, born from its native Korea. And so this year, it plans to become an innovative name in this field by establishing a global business system that supports its goal to become a pioneer of the evolving trend.
To emphasise its firm commitment to original design manufacturing (ODM), the importer also intends to extend its reach beyond global cosmetics into other relevant industries including pharmaceutical research, development and production, and health functional food.
As the company prepares to celebrate its 25th anniversary, this push is centred around its drive towards a new path that fosters greater innovation.
“Last year's group sales performance led to a 20% growth for the 10th consecutive year. This year, we must take a new path ahead of others with responsibility in the framework of innovation,” said Lee Kyung-soo, Chairman, Cosmax.
2016: The positioning year
Cosmax looks set to forge ahead with unexplored marketing methods to become thoughts leaders of industry: "We need innovation that breaks the existing notion by taking examples of success strategies such as Amazon, Xiaomi, and Tiffany."
In a recent press release, Cosmax revealed that it pledges “to make the leap into [the] global No.1 beauty ODM company”. As a result, 2016 saw the brand execute three major projects to help position itself to achieve this vision. The starting point centred on maximising quality control and productivity systems to ensure the objectives set out can be met effectively.
Last year, Cosmax explored further opportunities in the Chinese market, sought ways to appeal to the emerging export market and enhanced its ability to compete with US ODM and cosmetics providers.
2017: The achievement year
Cosmax BTIA, the holding company of Cosmax, will provide a solid foundation for Cosmax to grow through expanding its sustainable base, communicating updated development strategies and building processes and relationships.
As the use of natural materials and formulations and research into anti-ageing are heavily demanded by consumers in APAC seeking innovative cosmetics solutions, Cosmax set up a research and innovation institute. It has been divided into five centres: skin care, make-up, advanced technology, safety efficacy, overseas, to bring these products to the end-consumer quicker.
"Cosmax BTIA is a business holding company that connects and integrates Korea, China, and US laboratories. We will create synergies by sharing the existing infrastructure of each division, We will carry out a coherent management strategy by integrating domestic and foreign countries," Kyung-soo added.
Using existing infrastructure and technology, the company plans to build a mass production system that can compete with global cosmetics competition in countries such as China and the US.
Marking 25th anniversary
“Our mid to long-term goal for the new 25th anniversary is to become the world's No.1 ODM company that combines the growth potential and profitability of health functional foods and cosmetics,” said Kyung Su.
“We are committed to creating new domestic demand and strengthening our overseas growth potential. I will tilt. We will continue to develop our own competitiveness through constant change and innovation.”
To support its objective to become the frontrunner in ODM, Cosmax aims to encourage growth by focusing on full-scale operations in its colour factory in Shanghai and focus on halal cosmetics production at its Indonesian subsidiary.
Kyung-soo concluded by stating his hopes to achieve a high growth rate that tips over the 30% rate this year: “We will build a new growth engine and continue to write a new history of Cosmax through constant change and innovation. It is essential that a culture of creativity and innovation that can share the speed, flexibility and breakthrough ideas can be shared.”
On 20th January, this year, Cosmax announced the official opening of its third factory in China, signifying its priority to achieve its 2017 vision. Located in Fengxian District, Shanghai, China, the new production plant is capable of churning out 200 mn beauty products per year.