K-Beauty Shifts Strategy as China Market Slows, ODMs Take the Lead
As China’s beauty market continues to slow, the structure of the K-beauty industry is undergoing a significant shift.
While Korean beauty brands once dominated major trade shows in China, their presence has recently declined amid weakening sales in the region. In contrast, OEM/ODM (original design manufacturing) companies—firms that develop and manufacture products for brands—are emerging as key players.
This transition was evident at the China Beauty Expo (CBE) in Shanghai, where Korean manufacturers such as Cosmax and Cosmecca Korea focused on technology, production capability, and localized execution rather than brand expansion.
■ From Brand Power to Manufacturing Strength
The reduced presence of K-beauty brands reflects broader challenges in the Chinese market, which has been a core export destination for years.
Meanwhile, ODM companies have maintained visibility, leveraging formulation expertise and flexible production systems to adapt to shifting demand.Industry observers view this as a fundamental shift in the K-beauty business model, moving away from brand-led growth toward a structure driven by manufacturing competitiveness and technological capability.
■ Cosmax Highlights Formulation Innovation and Global Capabilities
Cosmax structured its exhibition around three themes—Innovation, Global, and Value Plus—emphasizing formulation technology and cross-market adaptability.
The company showcased its capabilities across key categories, including sunscreen formulations, makeup applications, and functional skincare solutions, highlighting its comprehensive formulation expertise.
It also introduced integrated solutions combining cosmetics with dietary supplements, reflecting the growing convergence of beauty and wellness markets.
In particular, Cosmax presented advanced technologies such as multi-layer film systems used in cushion foundations, alongside formulation strategies tailored to local consumer preferences.
■ Cosmecca Focuses on China’s Live Commerce Ecosystem
Cosmecca Korea’s Chinese subsidiary, Cosmecca China, took a different approach—focusing on China’s unique retail environment.
The company recreated a live commerce studio at its booth, reflecting the growing importance of video-driven e-commerce in China.
Products were displayed in a format optimized for digital sales, especially cushion foundations, where visual performance is critical.
Interactive demonstrations were also used to highlight core formulation technologies, particularly powder dispersion and advanced emulsification systems, offering visitors a clearer understanding of how these processes contribute to product performance.
In the suncare segment, formulations designed to reduce whitening effects and stickiness were introduced, along with high-protection products tailored for hot and outdoor environments.
■ Global Supply Chain Is Being Reshaped
The growing role of ODM companies highlights a deeper shift in the global beauty supply chain.
As brand expansion slows in key markets like China, manufacturers are taking on a larger role in driving innovation and market entry.
This reflects a broader industry trend in which technical capability, production efficiency, and localization are becoming increasingly important, outweighing brand visibility alone as key drivers of competitiveness.
■ Policy Shift Signals Reduced Dependence on China
Policy changes in Korea are reinforcing this transition.
According to the Korea Cosmetic Association’s 2026 overseas exhibition support plan, major Chinese trade events—including the Shanghai Beauty Expo and Guangzhou Beauty Expo—have been excluded from next year’s government-backed support programs.
The decision is widely interpreted as an effort to reduce reliance on China, diversify export markets, and place greater emphasis on measurable outcomes in overseas expansion strategies.
At this year’s China Beauty Expo in Shanghai, brand participation showed signs of slowdown, while ODM companies stood out more prominently.
■ Conclusion: A New Phase for K-Beauty
The developments at CBE highlight a turning point for the K-beauty industry.
China is no longer the primary growth driver it once was, and companies are adjusting accordingly.
As brands scale back, manufacturers are stepping forward, reshaping the foundation of the industry, marking a transition from brand expansion to system-driven capability, and from product-focused growth to a production-driven strategy.
Going forward, K-beauty’s global competitiveness will depend not only on brand power, but on the ability to deliver scalable, localized, and technology-driven solutions across markets.
댓글
0