Establishing a production-sales-R&D triad to accelerate overseas cosmetics ODM market expansion
SEOUL, South Korea–(BUSINESS WIRE)–Kolmar Korea (KRX: 161890) is speeding up its global expansion by appointing experts in the global cosmetics industry to its North American subsidiary. With the plan to build its second U.S. plant early next year, the company has appointed a new head for its North American operations and a Global Chief Commercial Officer (GCCO). It has also set up a strategic framework that integrates production, sales, and R&D to better penetrate the local market. This plan includes creating an R&D team for North America and appointing a new manager.
“This appointment underscores our commitment to gaining new momentum in the North American market by placing industry experts at the forefront. Kolmar Korea will focus on fostering growth through the synergistic collaboration of sales, production, and R&D and expanding its influence beyond North America to Europe.”
Kolmar Korea announced that it has named President Yongchul Hur as CEO of Kolmar Laboratories and Kolmar USA, its North American subsidiaries. Philippe Warnery has been appointed as Global Chief Commercial Officer (GCCO), George Rivera as Chief Science Officer (CSO) of the North American subsidiary, and Managing Director Inki Park as head of the R&D Center for North America, responsible for bridging the Korean and North American markets.
The key part of the recent appointments is bringing in many people with vast experience in the global cosmetics market. This is expected to help the company enter the North American market successfully.
Yongchul Hur, the new CEO of Kolmar North American subsidiaries, brings a wealth of experience in the global ODM business, having overseen production of Kolmar Korea’s skincare and makeup products. He has previously served as president of Kolmar Beijing and Kolmar Wuxi, driving significant growth in Kolmar’s Chinese operations. Prior to his tenure at Kolmar Korea, he held prominent positions in the cosmetics manufacturing industry, including factory manager at Amore Pacific and CEO of Cosvision. President Hur intends to leverage his decades of industry experience to steer local business in North America.
Philippe Warnery, newly appointed as Global Chief Commercial Officer (GCCO), is an expert in the global cosmetics market. His prior roles include CEO of Intercos North America, an Italian cosmetics ODM, and President of the UK & Ireland Region and General Manager of the Canadian Affiliate at Estee Lauder. With 25 years of experience in the global cosmetics industry, spanning both brand companies and ODM companies, his extensive network is a key competitive advantage. Warnery aims to focus on securing significant sales from major global brands as well as indie brands and recruiting influencers that are gaining popularity worldwide.
George Rivera, appointed as Chief Science Officer (CSO) of Kolmar North American subsidiaries, is an expert with over 20 years of R&D experience at global cosmetics companies such as L’Oreal USA and Intercos. Most recently, he led process and technology innovation as president of Kolmar USA. CSO Rivera, in collaboration with Inki Park, head of the North American R&D Center, plans to concentrate on research and development tailored to the local market’s needs.
Center Head Park, a research expert with 18 years of experience, is responsible for adapting core technologies developed at the Kolmar R&D Complex, the Kolmar Group’s global R&D hub located in South Korea, to the local market. Utilizing data accumulated at the Complex, including color, formulation, and scent, Park’s team will analyze the needs of overseas markets and focus on developing customized formulations.
Kolmar Korea intends to leverage this strategic hires to maximize the operational capacity of its North American production facilities, including the first U.S. plant and the second plant under construction. The company aims to achieve $100 million in sales in the next five years. To this end, it plans to aggressively expand its sales network not only in North America but also in Central and South America. Moreover, with the rising popularity of K-beauty in the U.S. market through global distribution channels such as Amazon, the company plans to actively promote ODM sales that emphasize market accessibility and logistics efficiency for small and medium-sized Korean indie brands seeking entry into the U.S. market.
A representative of Kolmar Korea stated, “This appointment underscores our commitment to gaining new momentum in the North American market by placing industry experts at the forefront. Kolmar Korea will focus on fostering growth through the synergistic collaboration of sales, production, and R&D and expanding its influence beyond North America to Europe.”
Understanding the importance of the North American market, Kolmar Korea has acquired Kolmar USA (formerly known as PTP) and Kolmar Canada (formerly known as CSR) in 2016 preemptively establishing a foundation for global expansion. In 2022, Kolmar Korea acquired 100% of the ‘Kolmar’ brand trademark rights, securing exclusive rights to the brand and enabling unrestricted business operations in the U.S. and global markets. The company is expanding its sales network with the recent opening of the Kolmar Innovation Center in New Jersey, USA.
Contacts
Kolmar Holdings
Jang Woo Lee
jay.lee@kolmar.co.kr
[Seoul Economy] has recruited Betarang, who worked at a global beauty company. Through this, the company plans to increase its influence in the global market, including North America.
According to the cosmetics industry on the 13th , Kolmar Korea (161890), Korea’s leading cosmetics manufacturer, development and production ( ODM ) company , recently hired Philip Warner (pictured), former CEO of Intercos North America, as its global sales manager . General Manager Warnery will begin working at Kolmar Korea’s North American Technical Sales Center located in New Jersey, USA. Here, he is in charge of overall overseas sales, including North American regions such as the United States and Canada. An industry official said, “Recruiting prominent global figures from overseas is very effective in expanding the sales network, including attracting local customers.” General Manager Warnery is a ‘global beauty veteran’ who has been in the cosmetics industry for 25 years. He served as the UK representative and Canadian vice president of the global cosmetics company Estee Lauder. Until last month, he had been Intercos’ North American representative for four years. In addition, he has worked in the beauty industry for a long time, including L’Oréal, Louis Vuitton, Moët Hennessy ( LVMH ), and others. He reportedly revealed his reason for moving to Kolmar Korea, saying that he wanted to contribute to K-beauty brands and ODM companies because they have a high growth potential. A company official said, “General Manager Philip Wannery is an expert who has achieved results in the strategy and sales fields of the global cosmetics market,” and added, “We expect to contribute to the expansion of Kolmar Korea’s global market.” Kolmar Korea is focusing on targeting the global market, including the North American market. In 2022, the global trademark rights to ‘KOLMAR’ were acquired from Kolmar USA, the original Kolmar company . Last year, the North American Technology Sales Center was established, and a second North American factory is currently under construction. In addition, we are actively supporting the overseas expansion of domestic indie beauty brands. To this end, the ‘K Beauty Conference’ will be held with Amazon Global Selling Korea on the 27th of this month. As a co-host, Kolmar Korea plans to hold lectures and business consultations for customers. The securities industry predicts that Kolmar Korea’s North American subsidiary will record its highest performance this year. In the first quarter of this year, sales of Kolmar Korea’s North American subsidiary were 16 billion won, a slight decline compared to the same period last year, but are expected to rebound from the second quarter of this year due to the influx of new customers. Park Eun-jung, a researcher at Hana Securities, said in a recently published report, “Kolmar Korea North America subsidiary is changing the proportion of its customers to local brands.” “In the first quarter, profitability decreased as it focused on securing customers, but in the second quarter, it recorded the highest quarterly rate in line with the industry situation.” “It is estimated that we will achieve results,” he said.
Kolmar Holdings announced that it voted to appoint Kolmar Group Vice Chairman Yoon Sang-hyun as CEO in a regular board meeting on May 2. Yoon Sang-hyun is the eldest son of Kolmar Group Chairman Yoon Dong-han, the founder of Kolmar Group.
With the appointment of Yoon as CEO, Kolmar Group plans to expedite the global expansion of K-beauty. In April, the company changed the name of its holding company from Kolmar Korea Holdings to Kolmar Holdings to reflect its intention to expand its business beyond Korea.
Kolmar Group has recently accelerated its overseas expansion including the United States. Following the opening of its North American Technical Sales Center in New Jersey of the United States last year, Kolmar Korea will complete its second factory in the United States later this year. Unlike the first plant, which focuses on color cosmetics, the second plant will produce basic skincare and sun care products. This will enable the company to produce a full range of cosmetics in the United States, the world’s largest market. Kolmar Global, which is in charge of overseas business outside North America, will enter the Southeast Asian market by establishing overseas subsidiaries in Vietnam, the Philippines, and Singapore.
Vice Chairman Yoon recognized the importance of the North American market early on. In 2016, Kolmar USA (formerly known as PTP) and Kolmar Canada (formerly known as CSR), a U.S. cosmetics ODM service provider, were acquired to lay the foundation for Kolmar’s global expansion. In 2022, Yoon took the lead in the acquisition of trademark rights to the Kolmar brand. With the exclusive rights to the Kolmar brand, Kolmar Group is now free to run in global markets without trademark restrictions.
Yoon also orchestrated the acquisition of HK inno.N (formerly known as CJ Healthcare) in 2018. He began a project to take over CJ Healthcare to seek new growth engines for Kolmar Group which had a business structure centered on cosmetics and health functional foods. The acquisition of CJ Healthcare was a rare case where a mid-sized company acquired an affiliate of a large business group in Korea. The deal was worth 1.31 trillion won. In August 2021, the company successfully had an initial public offering (IPO) for HK inno.N. Kolmar Holdings plans to actively support HK inno.N’s global expansion in the pharmaceutical business.
Source: https://www.businesskorea.co.kr/news/articleView.html?idxno=216424#google_vignette
Kolmar Group’s holding company, Kolmar Korea Holdings, is changing its name to Kolmar Holdings. This change reflects its aim to expand into the global market and establish its identity as an integrated brand.
Kolmar Korea Holdings held a shareholders’ meeting on March 29 and decided to change its name to Kolmar Holdings. The new name goes into effect on April 1, and it will be officially listed as “KOLMAR HOLDINGS CO., LTD.” in English.
This name change symbolizes Kolmar Holdings’ ambition to lead Kolmar enterprises worldwide, surpassing its Korean origins. It outlines the company’s plan to spearhead the advancement of its affiliates in the cosmetics, pharmaceuticals, and health supplements sectors towards achieving global market expansion.
Previously, Kolmar Holdings acquired 100% of the global trademark rights for “KOLMAR” from the original Kolmar in the United States in 2022, proclaiming Kolmar Korea as the center of Kolmar worldwide. Gaining exclusive rights to the KOLMAR brand enables the company to quickly advance its business in the global market.
Furthermore, Kolmar Holdings has committed to solidifying the identity of the Kolmar Group under the unified KOLMAR brand. This includes reinforcing a cohesive identity among domestic corporations as well as international branches like Kolmar USA, Kolmar Canada, and Kolmar Wuxi, under the motto “One Kolmar.”
Original Article: https://www.businesskorea.co.kr/news/articleView.html?idxno=214221#google_vignette
The global rise in popularity of K-beauty brands has brought attention to Kolmar Korea, a leading cosmetics original design manufacturer that has secured a whopping 70 percent market share in the sun care sector alone here.
According to the company Sunday, its “Fitting SPF Boosting” technology has been integrated into multiple sun care items sold at home and abroad. More recently, the products are selling hot in the US through major distribution channels, including Amazon.
The Fitting SPF Boosting technology allows sunscreen particles to work both in water and oil, which means the protection remains even for sweaty skin. The technology is also designed to offer a thinner and more transparent texture while leaving no white cast.
“The US is one of the most stringent markets where sunscreen products are categorized as over-the-counter products subject to rigorous regulations,” a Kolmar official said. “Kolmar became the first Korean beauty company to enter the market by getting approval from the US Food and Drug Administration in 2013.”
Currently, the company has amassed 57 patents related to advanced ultraviolet protection and continues to pioneer discoveries, including the recent finding of “Kolmar Biome 20,” an anti-aging microbiome that is being studied to combat UV-induced skin damage.
In 2022, the company also established its own UV Tech Innovation Lab to further intensify its global market-oriented R&D efforts with a solid customer base of more than 900 corporate clients worldwide. In July last year, the firm also set up the NJ Innovation Center of HK Kolmar Laboratories in New Jersey to develop raw materials and formulations to better meet the preferences of North American consumers.
Kolmar is also ramping up efforts to beef up production. While the first plant of Kolmar USA, its US unit, continues to expand its capacity, the second plant is under construction to be completed by the year-end. Both plants are located in Pennsylvania.
The company said it will continue to tap into new markets, leveraging its global network which spans the US, China, Vietnam and Singapore. In Japan, for instance, Korea’s Laka brand using Kolmar’s technology topped lip tint sales last year.
“We are constantly spending on R&D, about 7 percent of sales annually. This R&D push has allowed us to secure a competitive edge in overseas markets,” the Kolmar official added.
Kolmar posted 2.15 trillion won ($1.59 billion) in sales and 136.58 billion won in operating profits last year, up 15.5 percent and 86.4 percent, respectively, from a year before.
Original Article: https://www.koreaherald.com/view.php?ud=20240331050091
Kolmar Korea is accelerating its market expansion into the United States with its sunscreen products, having paved the road with the country’s certification of its products and a new R&D center there to better analyze and target the local consumer market, according to the country’s biggest sunscreen technology developer, Sunday.
The company is targetting the U.S. because of the huge sunscreen product market there. It is projected to have reached $2.6 billion last year, approximately 20 percent of the country’s overall cosmetic market valued at $12.4 billion, according to the company that cited market analyzer Euromonitor.
“Unlike Korea, where sunscreens are classified as cosmetics, the U.S. categorizes them as over-the-counter (OTC) drugs, making regulatory compliance more stringent,” A company official said.
Products and brands with the company’s technologies have already begun gaining popularity in the U.S. Beauty of Joseon by Goodai Global and d’Alba by Bmonument, both developed in Korea in collaboration with Kolmar, are expanding their presences in the U.S. market “without special marketing efforts,” the official said. Relief Sun: Rice+Probiotics, the flagship sunscreen product by Beauty of Joseon, has surpassed 5 million sales worldwide, including in the U.S.
To boost the U.S. sales, the company has been expanding its R&D capability in the country. In March last year, the company opened Kolmar Laboratories in New Jersey. It worked closely with Kolmar Korea R&D Complex in Korea to accelerate its research on ingredients and formulations tailored to local consumers.
Kolmar Korea’s sunscreen sticks are being manufactured at the company’s color cosmetics factory in Bucheon, Gyeonggi Province, in this undated photo. Courtesy of Kolmar Korea
Kolmar Korea’s sunscreen sticks are being manufactured at the company’s color cosmetics factory in Bucheon, Gyeonggi Province, in this undated photo. Courtesy of Kolmar Korea
Once its second manufacturing plant in Pennsylvania is completed, the company believes it can increase its U.S. market penetration by expanding production capabilities from color cosmetics to skincare lines.
The company’s research facilities in Korea saw the latest update in 2022 when it built the UV Tech Innovation R&D Center to sharpen the edges of its UV protection products for domestic and global markets. The center, with 40 in-house researchers, subdivided their expertise into sunscreen, global UV formulation and base makeup.
“Unlike other original development manufacturing (ODM) companies, Kolmar is equipped with UV clinical testing equipment, reducing its reliance on external institutions for testing and thus allowing quicker and more accurate responses to needs from clients,” the official said.
The company’s inroad to the U.S. market began to open up in 2013 when it acquired OTC certification from the U.S. Food and Drug Adminiastration. The company then kept developing new technologies. In 2019, it developed a technology capable of blocking blue light and near-infrared rays.
It also introduced the world’s first stick-type sunscreen containing over 50 percent “moisture essence.” It now has over 50 patents in high-functionality UV protection technologies and 70 percent of the sunscreen product market share in Korea.
“A potential for growth in the North American market, including the U.S., is limitless as sunscreen functions are incorporated not only in sunscreens but also in BB creams and foundations,” the official said. “We plan to actively target the U.S., the world’s No. 1 beauty market, not content with just holding a 70 percent share in the domestic sunscreen product market.”
Original Article: https://www.koreatimes.co.kr/www/tech/2024/04/129_367746.html
Kolmar Korea’s sun care products are extending their reach worldwide. The equation “Kolmar Korea = Sun Care” is being recognized not just in Korea but globally. The critical reasons for Kolmar Korea’s sun care products achieving this world-class status lie in its technical prowess and the trust of consumers.
According to the “Sun Care Products Market Size” report by global market research agency Fortune Business Insights, the global sun care market size is expected to grow from $13.97 billion (approximately KRW 17.8545 trillion) in 2022 to $19.65 billion (KRW 25.2404 trillion) by 2030. Amidst this significant market growth, Kolmar Korea’s global orders and exports of sun care products are skyrocketing.
Kolmar Korea’s unparalleled sun care manufacturing technology results from years of accumulated work. Kolmar Korea invests 7% of its annual revenue into R&D. The company has been operating a separate sun care research division for over 20 years, and last year, for the first time in the industry, established a specialized ‘UV Tech Innovation Center’ specialized in sun care technology.
Gye Sung-bong, the director of Kolmar Korea’s UV Tech Innovation Center, states, “The competitiveness of Kolmar Korea’s sun care products stems from clinical-based evidence. UV protection products, being functional products, require approval from the Ministry of Food and Drug Safety, so proving their efficacy is crucial.”
He added, “Kolmar Korea has set up its clinical trial equipment enabling immediate study of clinical results, and leading-edge research enables rapid results. Especially the sun stick, a finicky product with high initial defect rates, was perfected to its current high quality after conducting over 300 tests annually.”
Kolmar Korea holds over 50 patents on UV protection, including △ composite powder for blocking UV, near-infrared, and/or blue light and cosmetic composition containing the same, and △ water-drop solid type cosmetic composition for blocking UV.
Kolmar Korea unveils innovative technologies every year, incorporating special emulsification techniques, high endurance SPF, and waterproof effects. In 2020, the company developed a technology that blocks blue light, near-infrared rays, and UV rays. The same year, they created a new UV protection material that prevents white cast and skin oxidation, published in an SCI-level international academic journal.
Kolmar Korea’s successful development of a novel stick-type sunscreen that maximizes UV protection and moisture supply is unparalleled and is the first in the world. To address the stickiness caused by the oil content in traditional sunscreens, Kolmar Korea developed a technology that incorporates sun care functionality into a moisture stick, achieving this breakthrough after countless experiments.
Incorporating more than 50% moisture essence intensifies hydration and freshness while ensuring robust UV protection, a first in the industry. This innovative approach began with creating a product that combines the foundational formulation and sunscreen, tailored for everyone regardless of age or gender. However, the challenge was simultaneously capturing sunscreen’s efficacy and the foundational product’s pleasant feel. The development process was not without hurdles. After extensive research, Kolmar Korea created a lightweight sunscreen formula applied thinly on the skin. As a result, they launched a best-selling product with over 4 million units sold annually.
The company’s relentless innovation and passion for sun care technology research and development have translated into trust from global businesses and consumers. Kolmar Korea occupies approximately 70% of the Korean sun care product market, a testament to the high preference among businesses and consumers.
A representative from Kolmar Korea stated, “As long as the sun shines, not only will Kolmar Korea continue to grow, but so will Kolmar Korea’s sun care products. We will not rest on our laurels of being the market leader in sun care but plan to invest in research and development continuously.
Original Article: https://www.businesskorea.co.kr/news/articleView.html?idxno=203964
May 2021 — SEOKOH, Inc., an affiliate of Kolmar Korea Co LTD, completed its acquisition of Process Technologies & Packaging.
Kolmar Korea Co LTD, South Korea’s leading cosmetics and pharmaceuticals contract manufacturer, brings an established ODM network that offers total service from product development to finished goods. Kolmar Korea’s ODM network provides a comprehensive service from market research and trend analysis to product planning, development, manufacturing, management and shipment.
Combining PTP’s development expertise and manufacturing experience in the US with the R&D-oriented, technology driven leadership of Kolmar Korea will create a successful future. The synergy with Kolmar Korea and its subsidiaries in Asia and North America will optimize PTP’s offerings and expand our innovation to bring you the best in skin care and color cosmetics product development.
The services and daily operations at our US sites will continue as normal.
Kolmar Korea has acquired the global trademark of “Kolmar,” the company said Tuesday. It is the first time that a Korean firm has acquired the original company’s brand trademark in the cosmetics industry.
The company’s original headquarters was based in the United States, where it was first established in 1921.
Through this acquisition, Kolmar Korea gained exclusive rights to the Kolmar brand in major global markets. This move will help the Korean branch to expedite business in new markets around the world by reducing the time needed to apply for trademark rights.
Kolmar Korea plans to change the name of its U.S. and Canada branches to Kolmar USA and Kolmar Canada, respectively.
It is also preparing to set up another overseas branch in Singapore, which the headquarters in Seoul will utilize as a hub to enter the Southeast Asia and the Middle East markets. Kolmar Korea will start by introducing its cosmetics business there and gradually expand to other sectors such as pharmaceuticals and functional foods for health.
In February, Kolmar Korea signed a business agreement with the International Beauty Industry Trade Association to develop and produce cosmetics exclusively for exporters to the Middle East and North Africa in order to be in the Middle East market.
“It is a symbolic case that has once again confirmed that K-beauty is the mainstay that leads the global cosmetics market. We have been setting the standards for the Korean cosmetics industry for the past 32 years and we will continue to develop our presence in the global scene based on them,” Kolmar Korea Vice Chairman Yoon Sang-hyun said.
Source: https://www.koreatimes.co.kr/www/tech/2022/05/419_329286.html?gonw
Kolmar Korea, a global cosmetics original design manufacturer (ODM), is accelerating the development of differentiated global cosmetics eco-friendly technologies.
The work that first drew attention from around the world to Kolmar Korea was its eco-friendly technology, Paper Tube. Papertube is an eco-friendly cosmetic container that reduces the amount of plastic used in packaging by 80%, excluding the cap, which inevitably requires the use of plastic.
Kolmar Korea’s eco-friendly paper tube has won all of the world’s three major design awards: IDEA, IF Design Award, and the Red Dot Design Award in September last year. Most recently, they won both the 2021 World Star Packaging Awards and the Asian Star Awards.
An official from Kolmar Korea said, “As Paper Tube, which started with the idea of protecting the Earth by reducing plastic, achieved its value at the world’s top design awards, I realized that environmental conservation is an important keyword in the world.”
This means that Kolmar Korea is not only developing one-time eco-friendly packaging, but continues to take steps to build a sustainable industrial ecosystem.
Kolmar Korea’s eco-friendly paper tube has won all of the world’s three major design awards: IDEA, IF Design Award, and the Red Dot Design Award in September last year. / Courtesy of Kolmar Korea
Meanwhile, the company is speeding up research and development by signing business agreements with Dongwon Systems, the largest comprehensive packaging material company in South Korea, and HDC Hyundai EP, a plastic material manufacturer, to develop eco-friendly cosmetic packaging materials, respectively.
In addition, Kolmar Korea is also developing eco-friendly raw materials for surfactants and thickeners that are essential components in cosmetics. Also, the company is using bio-conversion technology to make eco-friendly materials using microorganisms and enzymes rather than conventional chemical synthesis.
In particular, in August of last year, Kolmar Korea collaborated with a company specializing in eco-friendly materials to develop cosmetics containing stone cells in pear, which replace the more environmentally harmful microplastics.
Microplastics are used in cosmetics and toothpaste because they have the effect of exfoliating the skin and cleaning teeth. However, when considering environmental protection, the market has long needed an alternative.
The company expects to be a leader in global cosmetics market trends based on R&D which is focused on ESG through commercialization of this product.
Source : Korea IT Times (http://www.koreaittimes.com)
