Entrepreneurship, Indie Brands, and Global Survival Strategies
Advice Shared at Seoul National University Book Concert
"We Must Be Able to Quickly Deliver What Consumers Want"
"K-Beauty has the potential to thrive for at least the next 50 years. However, to surpass our biggest competitor, France, we need to build a premium image that goes beyond just cost-effectiveness."
Kyungsoo Lee, Chairman of Cosmax Group, is answering students' questions at a book concert held at Seoul National University. Provided by Cosmax.
Kyungsoo Lee, founder and chairman of Cosmax Group, made this statement in response to a student's question about "K-Beauty's competitors and outlook" during a book concert held at the Central Library of Seoul National University in Gwanak-gu, Seoul, on the afternoon of December 15.
Chairman Lee said, "K-Beauty has transformed the market, which was once dominated by 'Made in Japan,' by leveraging high cost-effectiveness and speed to establish 'Made in Korea' as a new standard." He emphasized, "Now, to achieve export milestones of 50,000 dollars and 100,000 dollars, we must move to a stage where we can replace 'Made in France.'"
He also redefined the concept of premium. "In the past, premium was centered on brand value, as seen with companies like LVMH. Going forward, brands equipped with differentiated functions and technological prowess, such as those based on dermatological technology, will be recognized as premium," he explained. "We are entering an era where function and trust matter more than just image."
Chairman Lee cited the competitiveness of Korean cosmetics brands as the foundation for his views. Drawing from his experience in meetings with global client L'Oreal Group, he said, "What sets L'Oreal apart from Korean indie brands is speed, online presence, and Millennials & Gen Z." He added, "The biggest strength of indie brands is their ability to quickly supply products that Millennials & Gen Z want by utilizing online channels."
The book concert was held in a free Q&A format with students, with most questions focusing on practical concerns about entrepreneurship and career paths. When a student who has been running a beauty brand for four years expressed concerns about manufacturing their own products, Chairman Lee responded decisively, "In the past, brands were expected to have both their own research labs and factories, but that's no longer the case." He continued, "It's more efficient for manufacturing to be handled by specialized partners, while the brand focuses on planning, marketing, and speed. When a factory's operating rate drops, the cost burden inevitably increases."
To a student considering starting a business in men's cosmetics or beauty devices, he said, "The device business requires significant capital investment. In the early stages, it's important to create a hit in a specific product category, so start with men's cosmetics that have a clear target audience." Cosmax Vice Chairman Minho Heo, who attended the event, added, "We are no longer in an era where beauty is divided by traditional categories. The competitiveness of indie brands lies in content and solutions that precisely address consumer pain points."
Kyungsoo Lee, Chairman of Cosmax Group, is answering students' questions at a book concert held at Seoul National University. Provided by Cosmax.
When asked by President Honglim Yoo, "As a business leader, what is your dream?" Chairman Lee replied, "Speed is life, global reach is survival, and the consumer is the revolution. My dream is for Cosmax to become a beloved global company by building the competitiveness to supply exactly what consumers want, faster than anyone else."
He also revealed plans to further advance Cosmax's AI-based personalized cosmetics and small-batch, multi-product manufacturing systems, aiming to evolve Cosmax into a service-oriented company for consumers. "In ten years, the essence of Cosmax's business will be service," he said. "We will establish a consumer research center to quickly identify what products consumers need and build that competitive edge."
In closing, Chairman Lee offered some pointed advice to students preparing for entrepreneurship: "The most important preparation is to gather capable and trustworthy people around you." He emphasized, "If you genuinely help others and build trust in your daily life, those relationships will eventually return and become the driving force of your business."
Also in attendance at the event was Chairman Lee's wife, Sungseok Suh, who is also the chairwoman of Cosmax BTI, adding special significance to the occasion. Chairman Lee graduated from the College of Pharmacy at Seoul National University in 1970, worked at Dong-A Pharmaceutical and Daewoong Pharmaceutical, and founded Cosmax in 1992. His autobiography, "I Want to Dream Together," chronicles the 33-year journey and management philosophy that saw Cosmax grow into the world's leading cosmetics original design manufacturer (ODM), overcoming major milestones such as the IMF financial crisis, expansion into China, and global growth since its founding in 1992.
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