K-Beauty and Fashion Companies Strengthen Presence in China
K-beauty and fashion companies are increasingly making inroads into the Chinese market. Once known as a graveyard for Korean enterprises due to its stringent regulations, the market has seen a shift in recent times, buoyed by improved relations between South Korea and China that have fostered a more favorable atmosphere towards Korean brands.
One notable example is Cosmecca Korea, a domestic cosmetics manufacturer and developer, which announced on the 10th that it has relocated its research and development (R&D) base for its Chinese subsidiary, Cosmecca China, from Pinghu, Zhejiang Province to Shanghai. Shanghai serves as a central hub for the cosmetics industry in China, attracting not only Korean beauty companies but also local indie brands. With the opening of its R&D center in Shanghai, Cosmecca China plans to actively secure clientele and engage in new product planning and development, local skin type and trend analysis, clinical testing, and compliance with the National Medical Products Administration (NMPA) certification requirements.
Recently, there has been a growing perception among local beauty brands in China that Korean products are superior. An industry insider noted that while C-beauty, characterized by vibrant colors and aggressive social media marketing, is making strides in the global market, concerns over safety issues, such as the detection of harmful substances, have arisen. This has led to an increasing recognition that outsourcing manufacturing to Korean ODM companies can mitigate such quality risks.
As a result, more Chinese clients are turning to Cosmax for their manufacturing needs. According to Cosmax, its consolidated revenue from its Chinese subsidiary reached 140 billion KRW in the third quarter, marking a 22% increase compared to the previous year. With a clear recovery trend in its Chinese sales, Cosmax plans to open a new headquarters in Shanghai next year that will integrate R&D, production, and marketing functions.
Fashion companies are also following suit, adapting to the evolving landscape and consumer demands in China.
One notable example is Cosmecca Korea, a domestic cosmetics manufacturer and developer, which announced on the 10th that it has relocated its research and development (R&D) base for its Chinese subsidiary, Cosmecca China, from Pinghu, Zhejiang Province to Shanghai. Shanghai serves as a central hub for the cosmetics industry in China, attracting not only Korean beauty companies but also local indie brands. With the opening of its R&D center in Shanghai, Cosmecca China plans to actively secure clientele and engage in new product planning and development, local skin type and trend analysis, clinical testing, and compliance with the National Medical Products Administration (NMPA) certification requirements.
Recently, there has been a growing perception among local beauty brands in China that Korean products are superior. An industry insider noted that while C-beauty, characterized by vibrant colors and aggressive social media marketing, is making strides in the global market, concerns over safety issues, such as the detection of harmful substances, have arisen. This has led to an increasing recognition that outsourcing manufacturing to Korean ODM companies can mitigate such quality risks.
As a result, more Chinese clients are turning to Cosmax for their manufacturing needs. According to Cosmax, its consolidated revenue from its Chinese subsidiary reached 140 billion KRW in the third quarter, marking a 22% increase compared to the previous year. With a clear recovery trend in its Chinese sales, Cosmax plans to open a new headquarters in Shanghai next year that will integrate R&D, production, and marketing functions.
Fashion companies are also following suit, adapting to the evolving landscape and consumer demands in China.
Like
0
Upvote0
- PrevUS Investors Increasingly Buy Japanese Stocks Amid Strong Market Performance
- NextKOSPI Index Rebounds Above 4000 Amid Tax Changes and Positive Market Sentiment
No comments yet.