Korean Manufacturers Thriving in Chinese Market

Korean manufacturers have seen rapid growth within China on the back of the boom in K-beauty and K-pop culture, along with advances in the production technology they utilise to make their products and their use of innovative ingredients, such as in their popular snail extract creams, according to industry insiders. Chinese cosmetics brands have worked to expand upon their partnerships with Korean original design manufacturers (ODMs), a type of company that provides brands with whitelabel products. Cosmax Co., the leading ODM in Korea, has produced cosmetics within China and have so far supplied the products that they manufacturer to at least 150 domestic Chinese brands. Sales from the company’s Chinese unit rose to 215 billion won ($182 million USD) last year, growing 40% year-on-year over the past 11 years, according to their latest financial filings. “Out of 10 Chinese cosmetic brands, 7-8 companies are doing business with us,” said a spokesperson for Cosmax. “We are marketing new brands with tags like ‘Made in Cosmax’ and ‘Made in Korea’ to attract customers who prefer products made with advanced Korean technology.” The company also announced plans to increase it’s annual production capacity from 200 million units to 550 million before the end of this year, thanks to the scheduled August opening of it’s latest factory in Shanghai.