In mid-January, Cosmax officially opened its major new make-up facility in Shanghai’s Fengxian District. The launch of this new plant allows Cosmax to separate its skincare-based production facility and its new, make-up OEM plant. Cosmax’s Cui Jing called the new plant a “specialized make-up factory”, noting, “although it’s a new plant within Cosmax’s global network, it’s a very unique production facility for the China market.”
650 million Product Capacity, 95% Korean Materials
Cosmax’s new Shanghai plant boasts a design capacity of 350 million units of make-up and 1 billion units of film per year. When added to Cosmax’s existing plant capacity, this means that the company will be able to deliver 650 million products to the market in 2017. This production capacity not only allows Cosmax to help drive Chinese market trends, but it will also enable many local cosmetic brands to upgrade their brands.
Cosmax has its own technology and formulations, and many local Chinese plants also use Cosmax technology and materials. According to Cosmax’s R&D team, 95% of its China materials come from Korea. Therefore, among Cosmax products, there is already no difference between those made in China and those originally made in Korea. However, China and Korean consumer needs are different. For example, the weight of cosmetics desired by Chinese and Korean purchasers is not the same. As a result, Cosmax has adjusted some of its China formulations to better meet local market preferences.
Currently, Cosmax serves over 600 brands. In the production supply chain and production and independent product development segments, Cosmax has already emerged as the leader in Asia’s OEM/ODM market. China Beauty Expo has been an important partner for Cosmax. Since 2009, Cosmax has used China Beauty Expo as a major channel for developing its presence in China. As Cosmax enters its 9th year with the 2017 edition of China Beauty Expo, Cui Jing noted, “Each edition of the show has been very smooth. Each year that we’ve exhibited in the VIP hall we’ve been able to attract many clients and suppliers.” And, Cosmax is continuing to expand. With two companies focused on health food products, New Jersey Biotechnology (Shanghai) Co., Ltd. and Cosmax (Shanghai) Biotechnology Co., Ltd., Cosmax is planning to further expand its footprint in China.
More Growth on the Horizon
2017 means more growth for the cosmetics industry and for Cosmax. The Kay Consumer Index indicates that cosmetics continued to lead the other FMCG segment in 2016. Although China’s cosmetics category growth had slowed by 3% at the middle of 2016, the category’s overall growth was still on track for a 13% year-on-year rise. 2016 was also the year that market the breakout of local cosmetic brands. Coupled with recent tax reductions on cosmetic products, the industry has spawned a rich set of new opportunities.
To help capture these opportunities, China Beauty Expo is also adding innovations. The 22nd edition of the show in May will mark the opening of the “Color Make-up Hall” in hall N5. The hall’s theme is “Color Burst” – creating not only a feast for the eyes but for multiple senses.
At this inflexion point in China’s beauty industry, COSCO Group Chairman, Li Qingxiu, highlighted three key words, “Lead. Connect, and Focus”. Leadership is needed in development and production to generate breakthroughs in innovation. Connection means connecting across Shanghai, Guangzhou, Korea, the US, Indonesia, and beyond. And, focus means focus on each product and each customer.
Learn about how Cosmax will continue to help drive the next phase of change and development in the cosmetics industry in the VIP Hall of China Beauty Expo 2017, May 23-25.