Cosmecca is strengthening its position as one of the “top 3” korean companies specialized in full service
Probably one of the most successful companies in recent years in this segment! USD 100 million in sales, with a regular increase of 30% each year, 270 employees, two factories in Korea, Cosmecca, the Korean company will post again this year a record turnover. Its leaders have already announced the start of a new production unit by the end of 2013, but this time located in China. Explanations by John Kwon, Senior Sales Manager, International Development Department.
MakeUp in : Most people do not always know that you are one of the companies behind the development, production and marketing of the famous BB Cream!
John Kwon: Absolutely! We can even say that we were probably among the first. A huge success, as you know. So much so that it now represents about 30% of the company’s turnover. It weighs as much as our make-up activity and a little less than our activity in the skin care segment (40%).
MakeUp in : Obviously your company did not lose any time. You indeed understood how to perfectly cope with this need in “full service” in the cosmetics niche?
John Kwon: We did more than merely cope! We mostly anticipated needs and provided not only an industrial tool proportionate to demand but, above all, offered innovative and quality products. It does not concern only cosmetics as we are also active in perfumes, baby products, hair care and some health-related products.
MakeUp in : We can still say that you are a young company! 1999, it is not so far away?
John Kwon: It was in May 10, 1999 that our CEO and still the owner, Mr. Im-Rea Cho, created Cosmecca Korea Co., Ltd. On June 3 the following year, the company acquired the license for manufacturing activities in facilities under CGMP standards (All Products) NO.142 (KFDA) and on December 5 2000, it was the start of the fully-fledged OEM & ODM cosmetics activity.
On May 15, 2001, the auxiliary Central Research Institute acquired approval as a research institute accredited by the Government (Korea Industrial Technology Association). On June 12 we are selected as a venture company (Patent, technology development evaluation) (Small & Medium Business Administration). At the same time, we sign a school-industry cooperation agreement with the Cell Activation Research Centre, an excellent venture company within Kunkuk University.
And the story goes on. On March 23, 2002, we obtain the ISO9001 Quality System Certification (Certification System for International Certification Institute of Management System). At the same time we sign a School-Industry cooperation agreement with Taejon Health Science University. Which we will do again in 2003 by signing another School-Industry cooperation agreement with Chung Bok University. On 25 May 2005 we buy a plot in the Jin chon industrial area (3,300). And on November 18, our new factory in Jin chon dedicated to make-up is build from the ground up. A factory that we have continued to expand since then. At the same time, we haven’t stopped, during these months receiving awards from the authorities rewarding the best Korean exporting companies.
MakeUp in : Today, what is the production capacity of Cosmecca?
John Kwon: What I wish to tell you first is that our company continually strives to improve its automatic machine system. For the time being, the production capacity is of around 500,000 pcs/day, or10,000,000 pcs/month, taking into account that a working day is of 8 hours and that we work 20 days per month. That our factory is equipped with a clean room installation. This means we can condition pharmaceutical type products and eye products. That we comply with ISO GMP Standards. And that we work with a bacteria-free filling equipment and with an eco-friendly packing system.
MakeUp in : What is your policy in terms of export strategy?
John Kwon: The reality today is that Korea remains our main market in absorbing about 70% of our production, followed by the United States and Europe who share the remaining 30%. What is important is that we are progressing strongly in these two regions.
MakeUp in : Finally, you often put forward two of your strong points, innovation and, as a consequence, the number of patents you file every year!
John Kwon: That’s right! To date our portfolio of patents is consistent and in our R&D department some 80 people are fully dedicated to innovation.