Following the establishment of a legal person in Tokyo in March 2021, COSMAX, a Korean professional cosmetics OEM and ODM company, has established a factory in Japan with a planned construction area of 16,000 square meters. It is worth mentioning that COSMAX currently has 2 factories and logistics centers in Shanghai, China (the second factory is under construction), and 1 factory in Guangzhou.
On June 6, BST (all times in this article are Beijing time), the site selection of the Japanese branch of COSMAX Group, a Korean professional cosmetics OEM and ODM company, was also officially signed. The construction area is 16,000 square meters. It is expected to start construction in the first half of next year and put into use in 2025.
Founded in 1992, COSMAX has branches and factories in South Korea, China, Indonesia, the United States, Japan, and other countries around the world. It researches and develops cosmetics products for the world’s largest cosmetics group L’Oreal, Amorepacific, LG Life and Health, and other cosmetics brands.
COSMAX has been established for 30 years and has been rooted in China for 18 years. Today, China is the second largest cosmetics consumer market in the world, and the Chinese market has become the most important overseas market for COSMAX.
According to the official website of COSMAX (China), COSMAX currently has 2 factories and logistics centers in Shanghai (the second factory is under construction), and 1 factory in Guangzhou. In October 2021, the monthly output of the COSMAX Shanghai factory exceeded 50 million pieces. Together with the Guangzhou factory, the monthly output has approached 70 million pieces, setting a record for the highest monthly output of the COSMAX Group.
In addition, in these factories, COSMAX has established R&D centers respectively. The R&D center of COSMAX is mainly divided into the R&D department of skin care products and the R&D department of make-up products, which are responsible for the research and development of new formulations and dosage forms of skin care and make-up products respectively.
In addition, with the ability to control market trends and respond quickly, COSMAX has also built a powerful formula library that covers most of the popular products on the market. Taking 2021 as an example, COSMAX’s new formulas will reach 15,000; in the 2021 618 makeup promotion list, almost all lip glaze product formulas come from the COSMAX R&D center.
2021 is also a year of rapid growth for COSMAX, and the growth of its sales is mainly due to the strong sales in the Korean market and the Chinese market, which in turn also drives the growth of operating profit.
According to the financial report, in 2021, COSMAX achieved record sales of approximately $1.273 billion, a year-on-year increase of 15.1%; operating profit was approximately $98 million, an increase of 84% year-on-year; net profit was approximately $27 million, a year-on-year increase of 218%.
During the reporting period, the sales of COSMAX (China) Cosmetics Co., Ltd. were approximately $407 million, a year-on-year increase of 50%; the sales of Guangzhou COSMAX Co., Ltd. were approximately $112 million, a year-on-year increase of 9.55%. The total revenue of the two companies accounts for 40.8% of the group’s total annual revenue, which shows the importance of the Chinese market to COSMAX.
It is worth mentioning that at the end of last year, COSMAX also established the Asian Foundation Research Institute in Shanghai with MISTINE, a professional sunscreen brand in Thailand. It is reported that the institute is the first professional base makeup research institute customized for Asian women based on the skin of Asian women, and is committed to creating makeup products that are more suitable for Asian women.