South Korea’s Cosmax building headquarters in Shanghai after sustained financial success in China
(Image credit: Cosmax)South Korea’s cosmetics original development and design manufacturer (ODM), Cosmax, is building a new headquarters in Shanghai’s Xinzhuang Industrial Park to integrate research, production and marketing for its cosmetics ODM business.
It is part of the company’s 20th anniversary celebration in China and is expected to be completed in 2026. When Cosmax first entered China in 2004 as the first South Korean cosmetics ODM, company sales were below ₩10 billion (US$7.4 million) until 2008.
However, by 2014, sales crossed ₩100 billion (US$73.6 million) and surpassed ₩660 billion (US$485.5 million) by 2021. Cosmax attributes the success to a localization strategy.
The new headquarters will be 13,000 square meters, with a total floor area of 73,000 square meters. Cosmax serves approximately 1,000 clients in China, its second-largest market after South Korea.
Korean beauty craze
K-beauty is permeating global markets. Landing International, a company helping beauty brands increase sales, recently suggested there are significant growth opportunities for Korean skin care and makeup brands in North America.
North Americans are keying into K-beauty products, with mothers driving the latest wave of growth. The Second Wave of K-Beauty report details that K-Beauty has grown 81.5% in households with kids aged 6–12, and adoption is up 66.1% in households with teenagers (aged 13–17).
K-beauty brand Melangé Korea recently released premium skin care products blending “Korean beauty traditions and modern innovation” in four collections to provide consumers with a customizable skin care routine.
Its Gaia Collection uses earth-based ingredients made for eco-conscious consumers, and the Aphrodite Collection uses hydrating formulations designed for all skin types.
