Cosmax expands its lineup of customized health functional food and cosmetics by focusing on the "multi-variety, small quantity production" system. Since more than 98% of sales are original design manufacturing (ODM), the original brand manufacturing (OBM) business is also being promoted to create additional added value.
Even in China, where the status of K-beauty is not the same as it used to be, it has been maintaining its position as the number one ODM company in the country with word-of-mouth of "the most accurate and fast."
By watching out for the rapid rise of Chinese e-commerce companies, preempting this market also made a significant impact. While responding to the trend of segmenting demands centered on these companies, it focuses on the strategy of "multi-variety, small-quantity production." The market share of online customers has increased from 35% before the COVID-19 outbreak to 70% since then.
ODM demand for cosmetics in China has expanded to health functional food. Overseas sales of Cosmax NBT, the health functional food affiliate, increased 49% in 2021 from the previous year, which is mostly from China. Based on this, the total sales increased by 8.5% compared to the previous year at KRW 289.3 billion, and the operating profit turned to a gain in two years.
