Lotte Home Shopping Signs MOU for Joint Product Development with Cosmax Group

Lotte Homeshopping signed a business agreement on the 22nd to jointly develop products and conduct marketing with Cosmax Group. Lee Kyung-soo, Chairman of Cosmax Group (left), and Lee Wan-shin, CEO of Lotte Homeshopping, are posing for a commemorative photo. (Photo by Lotte Homeshopping)

[Asia Economy Reporter Seungjin Lee] Lotte Homeshopping announced on the 23rd that it has signed a memorandum of understanding (MOU) with Cosmax Group, a cosmetics and health functional food ODM (Original Design Manufacturer) company, to jointly develop products and conduct marketing activities.

The signing ceremony held on the 22nd at the headquarters in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, was attended by Lotte Homeshopping CEO Wanshin Lee, Cosmax Group Chairman Kyungsoo Lee, Research Director Myungsam Park, Cosmax Bio Vice President Hojung Jin, and other officials. Both companies agreed on ▲research on health food and beauty trends ▲development of private brands ▲launch of planned products ▲joint marketing activities.

Due to the impact of the novel coronavirus disease (COVID-19), demand for health foods and functional cosmetics has increased. Lotte Homeshopping is strengthening product competitiveness through collaboration with the world’s number one ODM specialist company. From March, when COVID-19 began to spread in earnest, to October 21, Lotte Homeshopping’s health food sales (based on order amount) increased by 54% compared to the same period last year, and functional cosmetics sales increased by 41%.

The two companies will develop premium products by combining Lotte Homeshopping’s product planning expertise and diverse sales channels with Cosmax’s manufacturing technology. First, following the launch of the first health food private brand ‘Daily Balance French Collagen’ introduced with Cosmax in May, the second product will be launched early next year.

‘French Collagen’ contains 5,000 mg of collagen, the highest amount in the industry, and has gained popularity by achieving a cumulative order amount of 5 billion KRW within five months of its launch. The second product will also offer high-content, high-quality health foods at reasonable prices by reducing distribution stages, continuing the success of ‘French Collagen.’ Additionally, various functional beauty planned products will be introduced.

Yongju Yoo, Head of Product Division at Lotte Homeshopping, said, “As demand for health foods and functional cosmetics has surged, we have signed an MOU with Cosmax, which has global capabilities. We plan to strengthen competitiveness in health foods and beauty by offering premium products at reasonable prices.”