Cosmetics manufacturer original development manufacturing (ODM) Cosmax has reported record high results for 2015, which has been pushed upwards by a stellar performance by the company in the Chinese market.
The South Korea-based company reported operating profit jumped 25.5 percent to 35.9 blilion won, while sales hit an all-time high of 533.3 billion won, a rise of 37.3 percent. In its domestic market, the company made headway thanks to expanding its distribution channels, including brand shops and TV shopping networks.
With the company’s sales growing more than 20 percent year on year for nine consecutive years since 2007, it is the Chinese market that seems to have been the catalyst for the exponential growth. Indeed, such is the appetite from Chinese consumers that revenue in the beauty market last year achieved a massive 64 percent increase to 202.5 million won.
Since entering the Chinese market in the early 2000s the company has grown at a pace of 40 percent every year. And despite many of its competitors falling foul to the economic slowdown in the country, Cosmax has held strong thanks to its two-track strategy on focusing on Shanghai and Guangzhou and expanding in the color cosmetics market.
The company is now expecting a growth rate of 20 percent for 2016, with investment planned for domestic and global product development.