✅ The true meaning of ODM and why Cosmax is No.1

The invisible hand shaping the global beauty industry and driving the remarkable growth of K-Beauty is none other than ODM (Original Development Manufacturing) companies. At the very center stands Cosmax, the world’s No.1 ODM, which has now announced its full-scale entry into India, the nation of 1.5 billion people—once again capturing the spotlight of the industry.

Many people confuse ODM with OEM, but the difference is clear.

OEM (Original Equipment Manufacturing) is essentially a “manufacturing service.” The brand brings in completed product designs and formulations, and the OEM simply produces them as instructed. In other words, if a brand says, “Please make this product exactly like this,” the OEM carries out the production accordingly.

ODM, on the other hand, is more like a “partner” that brings a brand’s idea to life. It goes beyond merely producing on request: it reads the latest trends, plans the products, develops unique formulations with proprietary technology, and delivers the product in packaging as a finished good. From the brand’s perspective, this means saving tremendous amounts of time and cost while still bringing high-quality products to market quickly. In short, ODM is the ultimate partner.

ⓒ Cosmax

Armed with unmatched technology and global strategy, Cosmax has now set its sights on the future: India. By diversifying its client base, which has so far been concentrated in Korea and China, Cosmax is taking strategic steps to cement its overwhelming No.1 position worldwide.

To this end, Cosmax will establish a local subsidiary in Mumbai by the end of this year, becoming the first K-Beauty company to create a solid foothold in India. With annual growth of 2 trillion KRW and a market size now reaching about 42 trillion KRW, India is emerging as the “next battleground for beauty.” Fueled by the popularity of K-Content, consumer interest in K-Beauty has never been hotter.

Cosmax is already deeply embedded in the Indian market. As a manufacturer for L’Oréal and Estée Lauder, it has earned strong recognition, and collaborations with local companies are pouring in. Through its new subsidiary, Cosmax envisions serving not only Indian domestic brands but also global beauty companies seeking to use India as a launchpad for growth.

As shown in the graph, imports of Korean cosmetics to India (based on shipment counts) have been steadily increasing overall.
In particular, September 2024 marked a peak with 666 shipments, bringing the total annual imports to 5,214 shipments (up 53% year-on-year).

At LBG (Luxury Business Group), we believe Cosmax’s entry into India goes far beyond territorial expansion—it marks a critical turning point that could reshape the future landscape of the global beauty industry. By establishing local R&D and production bases, Cosmax is essentially providing countless beauty brands searching for the “next China” with a new formula for growth in the Indian market. Brands will now have an optimal environment to execute hyper-localization strategies tailored to the skin and culture of Indian consumers.

Of course, realizing this massive opportunity will ultimately depend on people and knowledge. Securing “hybrid talent” who deeply understand both the strengths of K-Beauty and the nuances of the Indian business environment will be crucial. Just as the saying goes, “You see only as much as you know,” investing in deep learning of Indian consumers’ beauty habits and cultural particularities is the surest way to reduce costly trial and error.

Therefore, this bold move by Cosmax is not just about expanding K-Beauty’s territory. It will serve as an important barometer for how the future of the global beauty industry will unfold in the Indian market.

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