The Transition from ODM to OBM: The Case of Cosmax
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This study shows the firm’s strategy to shift from Original Development Manufacturing (ODM) to Original Brand Manufacturing (OBM) through a case study of Cosmax, which has the upper hand in the saturated cosmetics manufacturing industry. Existing cosmetics manufacturers have simply been producing cosmetics on consignment. However, to gain a sustainable competitive advantage in the saturated cosmetics manufacturing industry, Cosmax created its brand throughout the company’s value chain through R&D and actively created a market through marketing strategies. However, there is an issue that consumers’ awareness of Cosmax is insufficient to switch from the existing business-to-business (B2B) method to a business-to-customer (B2C) strategy. Through the analysis, we present solutions that Cosmax can take.
Abstract
This study shows the firm’s strategy to shift from Original Development Manufacturing (ODM) to Original Brand Manufacturing (OBM) through a case study of Cosmax, which has the upper hand in the saturated cosmetics manufacturing industry. Existing cosmetics manufacturers have simply been producing cosmetics on consignment. However, to gain a sustainable competitive advantage in the saturated cosmetics manufacturing industry, Cosmax created its brand throughout the company’s value chain through R&D and actively created a market through marketing strategies. However, there is an issue that consumers’ awareness of Cosmax is insufficient to switch from the existing business-to-business (B2B) method to a business-to-customer (B2C) strategy. Through the analysis, we present solutions that Cosmax can take.
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