International Strategies for Cosmetics Companies

Kolmar Korea

Janghyun Kim , Ilhyun Bae

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208796.0068
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Abstract

Founded in 1990 and headquartered in Sejong, South Korea, Kolmar Korea Co. Ltd is Korea’s largest beauty and health ODM company. In 2017, the company reported revenue of US$ 575 million with a three-year average sales growth of 18 percent. Kolmar Korea engages in both original equipment manufacturing (OEM) and original design/development manufacturing (ODM). With their ODM production methods of manufacturing of cosmetics (skin care, make-up, haircare, and body care products), Kolmar Korea designs, develops, and produces products according to specifications provided by a brand. Due to the Korean Wave (Hallyu), the popularity of Korean-branded cosmetics and concurrent growth in consumer demand for cosmetics in China, Kolmar Korea became established in China (Kolmar Beijing) in 2007 and built a second factory in 2016. Students will analyze the ODM business model for cosmetics and Kolmar Korea’s success in the global cosmetics industry using this business model. Students will also analyze strategies for successful expansion into international markets, particularly China.


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