Thursday, April 11, 2024

Corporate News

Inglewood Lab strengthens its reach in the U.S. with first mover strategy

2024 Makeup in LA offers off-the-self OTC targeting indie brands


Cosmecca Korea (CEO Im-rae Cho and Eun-hee Park), which aims to become a cosmetics OGM company, is beginning to target the U.S. cosmetics market in earnest. Cosmecca Korea announced that it will strengthen its position in the U.S. cosmetics market by developing a 'First Mover' strategy through its subsidiary Inglewood Lab.


To this end, Inglewood Lab (CEO Hyun-cheol Cho) participated in 'MakeUp in Los Angeles 2024' held at the LA Convention Center in the United States on the 14th and 15th and carried out all-round activities.


This exhibition, in which about 140 global companies participated, added diversity by holding not only skin care and makeup cosmetics, but also '2024 Luxe Pack LosAngeles 2024' at the same time.


An official from Inglewood Lab said, “At this exhibition, we received a lot of interest from local indie beauty brands in the U.S. by introducing △ K-beauty skin care trend △ multi-functional makeup △ OTC cosmetics △ eco-friendly cosmetics package under the clean beauty concept.”


Inglewood Lab proposed Off the Self OTC (OTC) items and received great response from American customers.


Sunscreen and Acne products, which are classified as functional cosmetics in Korea, are classified as over-the-counter (OTC) drugs in the United States. Usually, it takes more than 1.5 to 2 years of time and money from requesting an OTC product to launching it.


Currently, OTC cosmetics account for about 20% of Inglewood Lab's sales. Recently, as the demand for sunscreen cosmetics has increased, product development projects that combine these functions are on the rise. Inglewood Lab plans to actively target this market by preemptively building an OTC product portfolio and references.


According to Euromonitor, a global market research firm, the global sunscreen market size amounts to $12.4 billion (approximately KRW 16.4548 trillion). Among these, the United States accounts for approximately 20% (USD 2.6 billion, KRW 3.45 trillion), forming the largest global sunscreen market.


At the same time, as the launch of sunscreen products by indie brands in the United States increases, the resulting growth potential is also of interest.


In June 2018, Cosmecca Korea acquired Inglewood Lab, an ODM company that has American cosmetics brands as its main customers. Inglewood Lab holds global-level manufacturing quality certifications and qualifications such as cGMP, ECOCERT, TGA, and Health Canada, including passing the U.S. FDA OTC Audit.


Hyun-cheol Cho, CEO of Inglewood Lab, said, “This exhibition showed a lot of interest from indie brands, allowing us to feel the vitality of the U.S. cosmetics market.” He added, “The cosmetics produced by our company are distributed mainly through ULTA and Sephora in the U.S. “We will focus on securing American indie brands through references and portfolios,” he said.


*Terminology: Off The Shelf (off-the-shelf product) refers to an item that has already been developed and is produced. It is different from custom products that are developed and manufactured according to orders, and has the advantage of being cheaper and easier to procure than custom products.