Cosmax Inc., the South Korean cosmetics original development and manufacturer (ODM), is set to construct a new headquarters in Shanghai, capitalizing on its rapid growth in the Chinese market. The move comes as the company celebrates 20 years of operations in China, where it has seen sales skyrocket from less than 10 billion won ($7.4 million) in 2008 to over 660 billion won ($490 million) by 2021.
The new facility, slated for completion in 2026, will sprawl across 13,000 square meters in Shanghai’s Xinzhuang Industrial Park. With a total floor area of 73,000 square meters, it aims to consolidate research, production, and marketing operations under one roof.
Cosmax’s success in China is attributed to its localization strategy, which has helped it amass approximately 1,000 clients in what has become its second-largest market after South Korea. The company’s expansion reflects the growing demand for cosmetics ODM services in China’s booming beauty industry.
However, the significant investment in a new headquarters raises questions about market saturation and increased competition in China’s cosmetics sector. As Cosmax deepens its footprint, it may face challenges in maintaining its growth trajectory amidst evolving consumer preferences and potential economic headwinds.
