“Welcome to China! It’s been so long.” Recently, at the Spec Chem Global Customer Conference, numerous cosmetics colleagues from around the world greeted each other.
It is reported that this is the first large-scale global customer event hosted by Spec Chem in nearly 30 years. Over 80 customers from more than 30 countries came to China, including Spec Chem’s partners of over 20 years.
“A few days ago, I was anxious about whether this event would go well.” Meng Bo, Vice General Manager of Spec Chem, confessed to CHAILEEDO. CHAILEEDO learned that Spec Chem made thorough preparations in advance, taking into account the different dietary habits of customers from various countries.
A senior professional in the cosmetics industry present at the event expressed his admiration to CHAILEEDO, saying, “With diverse skin tones and a large number of overseas customers, it’s like a small ‘United Nations.’ They have crossed oceans to come to Nanjing, China, for a Chinese raw material company. This is rare in the Chinese cosmetics industry.”
Founded in 1995, Spec Chem has proactively established its “SC” brand and conquered the overseas market. With nearly 30 years of deep cultivation in the global cosmetics raw material market, its products are now available in 66 countries worldwide. Spec Chem has collaborated with numerous international beauty giants and has become a unique example of Chinese cosmetics raw materials going global and Chinese companies expanding overseas.
Currently, Chinese companies are actively expanding overseas, similar to the grand expeditions of Zheng He’s voyages to the West. Chinese companies have never ceased their desire and pace to venture into the global market and make their mark internationally.
A Brand Journey Spanning Thirty Years
A “Reunion Across Oceans”
Looking back at the journey of Chinese cosmetics raw material companies expanding overseas, it can be divided into two waves: in the late 1990s, Chinese raw material agents ventured abroad through trade; and in recent years, emerging Chinese raw material companies explored the international market. Spec Chem was the pioneering company that entered the field of cosmetics raw material exports in the 1990s.
In 1995, Zha Jiansheng, who had been engaged in foreign trade for many years, witnessed intense competition in industries such as pharmaceuticals, intermediates, and health products. He made the resolute decision to enter the relatively less competitive field of cosmetics raw materials, establishing Nanjing Arthur International Trading Co., Ltd. (the predecessor of Spec Chem) in the same year as the new starting point for his career.
At that time, there were also a group of Chinese companies that chose the cosmetics raw material track like Spec Chem. The difference was that most other companies operated as agents in the overseas market, while Spec Chem, ahead of its time, entered the market with a brand-oriented mindset, introducing the “SC” brand, which laid a solid foundation for its subsequent development.
This approach stemmed from Zha Jiansheng’s early experience living in the United States. “At that time, I saw some successful American companies often talking about reputation. My idea at the time was to let Spec Chem leave a reputation internationally, which might be what we call a brand now.”
Thus, the English brand name “SC” for Spec Chem emerged and has remained unchanged, gradually growing into a brand identity that many overseas customers trust.
A turning point for Spec Chem came around 2015. In 2015, Spec Chem acquired a controlling subsidiary, Nanjing Lion Biological Technology Co., Ltd., which became Spec Chem’s peptide synthesis base, laying the foundation for Spec Chem’s significant progress in peptide raw materials.
Subsequently, in 2017, Spec Chem established Jining Keyou New Materials Co., Ltd. as its chemical synthesis base. Occupying an area of 115 acres, it produces various popular Spec Chem products such as VC ethyl ether.
In 2021, Spec Chem established Anhui Spec Chem Biotechnology Co., Ltd. as its new bio-fermentation base, forming Spec Chem’s four major production bases today and providing strong impetus for its rapid development.
It is worth mentioning that in 2018, to facilitate business dealings with European customers and provide rapid services for their research and development work, Spec Chem established its first subsidiary in Germany, marking a new phase of Spec Chem’s overseas market entry.
Regarding the organization of this Global Customer Conference, Zha Jiansheng stated, “The original intention was for customers to gain a better understanding of Spec Chem through on-site visits, rather than relying solely on overseas exhibitions for promotion.”
During this event, several overseas customers of Spec Chem expressed their excitement to CHAILEEDO, saying, “We have been collaborating with Spec Chem for over 20 years, and it has long surpassed a regular partnership. It feels more like a gathering of friends, very warm and friendly.”
The head of a Malaysian cosmetics raw material agency, who has been partnering with Spec Chem for over 20 years and came to China with family for this event, is also a steadfast partner of the Spec Chem brand. “I have great trust in Spec Chem, and that trust comes from 20 years of collaboration and mutual understanding. Now we are more like friends with shared values.”
It is worth mentioning that during this appreciation event, Spec Chem also presented awards to partners who achieved outstanding results in the past year and recognized the management personnel who made outstanding contributions to the company. For example, Spec Chem’s German agent received the award for the Best Global Agent, and Lao Bei, a key figure in helping Spec Chem develop the German market, also received an important award in recognition of his significant contributions to Spec Chem’s development.
“Solving Problems in China’s Company“
Spec Chem Sets the Benchmark for Chinese Raw Materials Going Global
Looking at the global beauty and cosmetics market, major players in cosmetic raw materials such as BASF and Evonik occupy significant market shares due to their early advantages and research and development capabilities. So, what enables Spec Chem to break through the competition in the overseas market?
Through interviews with several Spec Chem customers, CHAILEEDO discovered that they were all deeply impressed by Spec Chem’s service capabilities, especially their quick response to customer needs.
Regarding this, Zha Jiansheng stated that since the establishment of the company, they have always prioritized customers. They have set strict rules such as “keeping problems within the national borders,” “no overnight emails,” and “delivering within 48 hours at the fastest and 7 days at the latest.”
A Taiwanese agent who has been cooperating with Spec Chem for twenty years deeply understands this. “When it comes to product-related issues, some international raw material giants often take up to a week to respond to emails. In contrast, Spec Chem’s response speed is extremely fast, and they can reply within a very short period of time.”
Supporting Spec Chem’s ability to respond quickly to customer needs is its strong hardware capability. During the Global Customer Conference, Spec Chem arranged for overseas customers to visit its recently operational factory in Chuzhou, Anhui, allowing customers to have a more intuitive experience of Spec Chem’s research and production capabilities. CHAILEEDO also took this opportunity to understand the important secret weapon for Spec Chem’s success in the overseas market—the versatile workshop.
CHAILEEDO learned that, in order to meet the diverse needs of customers from various countries around the world and ensure a rapid response, unlike many factories that have dedicated production lines, Spec Chem has established a versatile workshop that allows flexible production management. They allocate resources based on customer demands, without centralized production, breaking down the production line into smaller units. This approach allows for small-scale production and quick changeovers, providing advantages such as short delivery cycles, fast market response, and low intermediate inventory, while also meeting GMP and EHS requirements.
Furthermore, the modular production model decomposes the production process into relatively independent modules, which can adapt to diverse needs and enable rapid production of new products to meet the demands of customers from around the world as quickly as possible.
According to the staff at Spec Chem’s Chuzhou factory, they can fulfill customer requirements within 48 hours after receiving feedback.
It is understood that Spec Chem’s Anhui Chuzhou factory has a research and production platform for biotechnology fermentation, covering an area of 80 acres, supplying high-tech and high-quality biotechnology fermentation products to Spec Chem’s customers in China and around the world.
In addition, during this appreciation event, many overseas customers also visited Spec Chem’s Quality Control Center, Functional Materials Research Center, and Application Research Center, gaining a comprehensive understanding of Spec Chem’s profound research and development capabilities.
As the pioneer of Spec Chem’s market expansion in Germany, Lao Bei, shared with CHAILEEDO, “To succeed in the overseas market, you must abandon old ways of thinking and focus on service and quality, never taking shortcuts.” By strictly adhering to service and quality requirements, Spec Chem has gained steadfast trust from customers for over twenty years.
Currently, upholding the principles of integrity and quality, Spec Chem has quietly become part of the first echelon of Chinese cosmetic raw materials going global and has gained recognition from international beauty giants such as L’Oréal, Estée Lauder, and Unilever, enjoying a prestigious reputation in various locations worldwide.
A staff member from Spec Chem’s German agent company, who has worked in multiple beauty giants, shared with CHAILEEDO, “In the local cosmetic raw material circle, Spec Chem is already a symbol of quality. Many German brands, including Nivea, use Spec Chem’s raw materials.”
“We sell over 50 types of Spec Chem raw materials, and many of Malaysia’s top 10 brands are also using Spec Chem’s raw materials.” Spec Chem’s Malaysian agent also expressed this to CHAILEEDO.
When asked about the reasons for Spec Chem’s success in the fiercely competitive cosmetic raw materials market, Zha Jiansheng succinctly stated, “The key to our success today is integrity and quality, there are no other secrets.”
Star Products Released
It is worth mentioning that during this appreciation event, Spec Chem also unveiled several star products and provided overseas customers with the latest market insights and technologies.
During the event, Tong Li, Vice General Manager of Spec Chem, presented an introduction to Spec Chem’s super star products, including SpecWhite® VCE, TanBest® DHB, SpecBio® Ectoin, SpecPed® BT1HG, and a series of products developed around them. These introductions were based on the 2024 trends in the cosmetics market, such as personalized formulas and green sustainable development.
For example, SpecWhite® VCE is a stable and effective amphiphilic (hydrophilic and lipophilic) derivative of vitamin C. It is easily soluble in water, structurally stable, and does not easily change color. It can inhibit the activity of tyrosinase, prevent melanin synthesis, and due to its strong research and development capabilities, Spec Chem has consistently ranked among the top five global suppliers of VCE.
In addition, Professor Chang Kuan from the School of Chemistry and Materials Engineering at Jiangnan University showcased the latest application achievements of Spec Chem’s sophorolipid raw materials in the field of cleaning and activity.
According to Professor Chang, SpecBio® SL is a multifunctional green biosurfactant that belongs to the category of sophorolipids, a microbial biosurfactant derived from yeast using sugars and plant oils as carbon sources through a fermentation process under certain conditions. The entire production process does not involve chemical reactions or the addition of chemical components, ensuring a green and sustainable process that is 100% biodegradable with a low carbon footprint.
It is worth mentioning that in August of last year, Spec Chem initiated a collaboration with the well-known Jiangnan University and established the Spec Chem-Jiangnan University Joint Laboratory, conducting a series of collaborations in the areas of basic materials and applied research and development.
It can be foreseen that the above-mentioned heavyweight products will undoubtedly further contribute to Spec Chem’s development in the cosmetics raw materials market.
Looking back at Spec Chem’s development journey, Zha Jiansheng remains level-headed and holds even greater ambitions. “There are many century-old enterprises in Europe and America, but there are still too few in China. Looking to the future, becoming a century-old enterprise will always be Spec Chem’s goal,” Zha Jiansheng confidently stated to CHAILEEDO.
The Global Customer Conference is not only a gathering of business activities but also a cross-border celebration of friendship. It witnesses the deep bond and shared determination between Spec Chem and its overseas customers that goes beyond commercial interests. Spec Chem’s success story demonstrates the strength of Chinese raw material brands and provides valuable experiences and inspiration for other Chinese companies to expand into the global market.
