“The era of the consumer revolution… Preparing for a new leap forward with AI-tailored cosmetics”
[Silicon Valley, USA] “A company that started with just one sample has now grown into a company that produces 2.9 billion cosmetics per year.”
Chairman Lee Kyung-soo of Cosmax Group, a global cosmetics ODM company, revealed his 30-year entrepreneurial journey at the UKF 2025 Startup Summit on the 10th. Cosmax, which established its first factory just before the IMF in 1997, has now grown into the world’s largest cosmetics ODM company with 24 production bases around the world.
Chairman Lee Kyung-soo recalled the survival strategy during the IMF crisis and explained, “We overcame the crisis with three policies: sharing the price pain, abolishing minimum production limits, and introducing a weekend production system.” At the time, the exchange rate soared from the 800 won range to 1,800 won, but we held on with existing raw materials and refrained from raising prices, which became the foundation for building customer trust.
When the era of one-brand shops began with Missha in 2003, Cosmax made a bold decision. “We developed and supplied 250 items to The Face Shop in just three months,” he said, emphasizing that “we maintained the principle of never compromising on content and quality.”
The strategy for entering China was also different. At the time, when competitors were building factories in free export zones, Cosmax built a production base in Shanghai targeting the Chinese domestic market. This led to the start of a deal with L'Oréal, and secured global competitiveness by accepting the rigorous quality audit for three years as 'free consulting.'
Investment in innovation was also not neglected. After moving to Pangyo in 2011, excellent research personnel were secured and the research institute organization was reorganized into more than 10 specialized labs. The result is a cushion product that has surpassed 500 million units in cumulative production. It is currently being supplied to global brands such as L'Oréal, Estee Lauder, Shiseido, and LVMH.
The president offered a unique insight into the future of K-beauty. “For a country to have beauty in its name, the country must be beautiful, the people must be beautiful, and the products they use must be beautiful. Now, Korea, rather than France, is more suited to that position.”
For future strategies, we have presented three key tasks: building a world-class R&I center, securing a global supply chain, and developing an AI-based customized cosmetics system. To this end, we are collaborating with 23 universities, including Seoul National University and Harvard University. Through the 3WAAU system, we can produce 12.6 million types of shampoo and 3,500 types of essence customized products.
In particular, he reaffirmed his will to strengthen his business in China. He said, “We are currently constructing a new headquarters in Shanghai with the concept of ‘the center of Chinese beauty,’” and emphasized, “Just as 800 employees lived in the factory for 43 days during the COVID-19 lockdown and continued production, the Chinese market is a key market that we cannot give up.”
Chairman Lee Kyung-soo said, “This is an era where consumers are the revolutionaries,” and predicted, “In the future, the market will be reorganized from being led by brands to being led by consumers.” He presented the slogan for 2025, “The world is one, Cosmax is one,” and solidified his commitment to global integrated management.
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