K-Beauty ODM Leaders Cosmax and Kolmar See Sales Pain, Stocks Drop About 40%
Creatrip Team
3 months ago
Major Korean cosmetics ODMs Cosmax and Korea Kolmar have seen shares fall roughly 40% from this year’s highs after disappointing third-quarter profitability. Although Cosmax grew revenue, operating profit slipped; Korea Kolmar missed profit expectations. The decline reflects rising competition as many indie K‑Beauty brands (small, trend-driven independent brands) multiply and top-tier ODM orders disperse to smaller rivals with improving capabilities. Smaller initial production runs (1000–3000 units) to win promising indie clients have pressured margins, even as new client gains accelerate. Firms say some costs—R&D and investment to support indie brands—were expensed in Q3 and expect recovery in the key shopping season (Q4), but overseas turnarounds, especially in U.S. units, may take longer.
