CJ OnStyle said on the 16th that it will be the first in the industry to build an "investment-type K-beauty global growth model" that spans every step from discovering and investing in K-beauty brands to their global expansion, in partnership with COSMECCA KOREA Co., a corporations specializing in global-standard manufacturing (OGM) for cosmetics.

At the central research institute of COSMECCA KOREA Co. in Seongnam, Gyeonggi Province earlier this month, Cho Im-rae (left), chairman of COSMECCA KOREA Co., and Lee Sun-young, head of the Commerce Division at CJ ENM, sign an MOU to jointly discover and nurture K-beauty brands. /Courtesy of CJ OnStyle

The companies said the agreement is significant because, among the many MOUs COSMECCA KOREA Co. has signed, this one combines strategic "investment" in a collaborative model. CJ OnStyle is the first case in which a manufacturer and a distributor jointly discover and nurture emerging brands and even make direct investments, linking them as a single growth axis.

CJ OnStyle has demonstrated its foresight in identifying early brand growth potential and its ability to drive growth based on content commerce through preemptive investments in K-beauty corporations such as APR Co. and Benow. With COSMECCA KOREA Co.'s R&D and production technologies combined, the companies have established a "closed-loop growth structure" that runs from brand planning to global expansion.

The two companies will combine their respective experience and infrastructure in brand development to discover brands with high growth potential together. They will also systemize the discover–verify–nurture process by linking COSMECCA KOREA Co.'s pool of indie brands with CJ OnStyle's Oncubating program (a health and beauty small-brand acceleration program). A beauty-only fund jointly created by the companies will provide tailored support by growth stage, including product development, marketing, content production, and global expansion.

A CJ OnStyle official said, "This collaboration will be a practical springboard for emerging K-beauty brands to grow faster and bigger in the global market," adding, "We will continue to discover and nurture K-beauty brands with global competitiveness."

An official at COSMECCA KOREA Co. said, "Based on our R&D and production capabilities recognized in the global market, we will be a strong partner to help K-beauty brands secure competitiveness globally," adding, "Through collaboration with CJ OnStyle, we will drive the sustainable growth of the K-beauty ecosystem."

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