In the increasingly dynamic and diverse cosmetics market, Thai Ho Biotechnology stands out as one of the few with a genuine focus on R&D and innovation. Thai Ho has distinguished itself as a world-class cosmetics manufacturer and global R&D powerhouse. Since its launch in Taiwan in 1980, Thai Ho has expanded into mainland China with its subsidiaries, Lai Xin Biotechnology Cosmetics (Shanghai) Co., Ltd. and Shanghai Lufan West Cosmetics Co., Ltd.
Rapid Breakthroughs Driven by Innovation and R&D
With 37 years in the cosmetics industry, Thai Ho subsidiary, Li Xin offered the following analysis, “The international cosmetics market is mature with major cosmetics groups dominating major beachheads. In this environment, new products and new entrants have difficulty gaining a foothold. But in China, traditional channels are no longer the only routes into the market with the Internet era opening endless new opportunities. This means that innovation and new channels can enable rapid market breakthroughs.”
China’s overall cosmetics sector still lags behind US and European markets. In the past, some Chinese brands relied on low prices, aggressive advertising, and multi-level marketing to gain an advantage. In the past two years, consumers have become more conscious of product safety. Online information has made global cosmetics information readily accessible. Chinese brands have shifted from low price as the primary criteria for selecting OEM suppliers to gradually focusing on material safety and product innovation to choose ODMs. Therefore, in recent years, ODM and processing suppliers, such as Thai Ho, that have strong R&D and innovation capabilities have a significant advantage.
Strong Technology Background Combined with Multiple Core Technologies
In mainland China, Taiwan, Japan, Korea, and France, Thai Ho Biotechnology Group has expert R&D teams and centers. The company’s Japan and Korea centers were established in 2016 to drive new product development and innovation. Currently, Thai Ho has more than 10,000 of the most advanced formulations. The company’s products have obtain FDA, EEC, SGS, and GMP certifications. Thai Ho has also received similar approvals from Japan, Finland, Germany, Switzerland, and Australia. In addition, Thai Ho factories are using AI technology and robotics to increase precision, production capacity, and delivery speed.
In make-up and skin care categories, Thai Ho has a number of core technologies. Thai Ho’s film make up technology enables make up to create a protective film over the skin. In skin care, the company’s medical quality transient muscle permeability is the world’s sole AI technology in this area. The technology’s targeted, controlled release, and active capabilities are the three elements of the intelligence transdermal technology. This technology makes skin care products effective within one to three minutes. In addition, Thai Ho has developed the application of patented film-making technology, night make-up, instant eye cream, whitening and other core products.
Today, Thai Ho has built strategic partnerships with the world’s top 5 beauty brands. including Estee Lauder, L'Oreal, Coty, Revlon, Avon, and leading national brands.
Global Reach to Build a Global Business'
Thai Ho grew by nearly 30% in 2016 and completed its global footprint. The company added a Tokyo R&D center and Japan manufacturing base to its original France, US, and Shanghai facilities. Thai Ho’s Dr. Guo indicated that the Japanese production facility should be open by late 2018 while the US production base will be completed by late 2019. These facilities complete Thai Ho’s global organization and reduce transportation costs and delivery times.
Although China’s cosmetics market is large, price remains an important competitive factor. To reduce costs, Thai Ho has implemented measures such as factory automation, centralized procurement, and excellent and experienced management team. The company expects these advantages to enable it to compete in high quality, mid-price product segments.
See Thai Ho at China Beauty Expo 2017
The growth in big data and shifting channel and advertising dynamics have shifted more power to consumers and put more focus on “product strength”. Products, themselves, including features, technology, and safety have become key competitive variables. With technology and innovation as its strong suits, Thai Ho is now poised to expand globally.
From 23-25 May, Thai Ho Biotechnology Group will join China Beauty Expo for the eighth consecutive year. This year is certain to bring new breakthroughs in make-up, skin care, and other core product categories. Register today to meet Thai Ho and thousands of other leading beauty suppliers at China Beauty Expo 2017!