Producing Cosmetics with the '153 Ballpoint Pen' DNA
Targeting a Turnaround in the Beauty Business Amid Declining Sales
Performance Rebound Expected After 2026
Monami, famous for the '153 National Ballpoint Pen,' is making a desperate effort to transform into a 'color cosmetics company.' As its core stationery business shrinks due to low birth rates, declining school-age population, and the widespread use of digital devices, the company has chosen the cosmetics business as a breakthrough. Although losses from initial investments remain, it is currently assessed that the potential has been confirmed.
According to the industry on the 9th, Monami's cosmetics specialized subsidiary, 'Monami Cosmetic,' established about two years ago, recorded consolidated sales of 2 billion KRW last year, a 566.7% increase compared to the previous year. During the same period, net loss widened by 40.6%, from 3.2 billion KRW to 4.5 billion KRW. The deficit trend continues due to accumulated costs such as research and development (R&D) and facility investments.
Monami entered the cosmetics business by establishing Monami Cosmetic in January 2023. The background behind Monami’s challenge in a completely different field was the crisis caused by the shrinking core stationery market. Monami’s consolidated sales decreased from 143 billion KRW in 2015 to 127.8 billion KRW in 2020, declining at an average annual rate of 2.3% over five years.
Subsequently, due to the COVID-19 pandemic, remote work and non-face-to-face classes expanded, temporarily increasing demand for stationery in 2021 (132.2 billion KRW) and 2022 (149.5 billion KRW), leading to a rebound in performance. However, after the endemic phase, sales declined again to 133 billion KRW last year. This was insufficient to reverse the fundamental market contraction trend, and Monami chose the cosmetics business as a countermeasure to this situation.
Monami Cosmetic is currently focusing on producing color cosmetics such as eyeliners, lips, and foundations through Original Design Manufacturing (ODM) and Original Equipment Manufacturing (OEM) methods. The domestic ODM and OEM market is dominated by the 'Big 3'?Korea Kolmar, Cosmax, and Cosmecca Korea. Although a newcomer in the color cosmetics market, Monami believes it can secure competitiveness based on its color formulation and injection mold technology accumulated from over 65 years of expertise in writing instrument manufacturing.
A Monami official said, "As a latecomer, we aim to leap forward as a differentiated color cosmetics company by developing competitive new formulations in the eyeliner and lip categories." The official added, "To this end, product planning and R&D personnel are focusing on new formulation research, and we are preparing diversely to introduce new products to various clients in the second half of this year."
Monami Cosmetic is currently concentrating on strengthening its business foundation primarily in the domestic market. It is conducting or preparing projects with about 20 domestic brand companies and is simultaneously working on more than 10 projects in countries such as the United States and Australia to expand its overseas presence in the future.
Monami’s move draws attention inside and outside the industry as an attempt by a company in a traditional industry sector, whose position is narrowing due to rapid changes in demographic structure and industrial conditions, to seek new opportunities and reestablish its roots in the market based on them.
Last year, Monami additionally invested 3 billion KRW in Monami Cosmetic. It recognized impairment losses of 2.47 billion KRW, equivalent to 82% of the book investment. This reflects the judgment that it will take more time to recover performance. A Monami official said, "We will make phased efforts from a mid- to long-term perspective to achieve the break-even point (BEP)."
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