“If Apple is the world's top corporation in smartphone supply chain management, then NextFangia will become the number one corporation in global supply chain management in the cosmetics field.”
This is the ambition of Im Dong-hoon, the representative of NextFangia. NextFangia is a startup that provides Manufacturing as a Service (MaaS) in the cosmetics field, including raw material development, production, and logistics for cosmetic brands. In simpler terms, it conducts a business that connects overseas cosmetic brands with domestic cosmetic original equipment manufacturing (OEM) corporations to produce products. Through this, domestic cosmetic OEM corporations can enter overseas markets. NextFangia also plans to launch a functional fitness cosmetic brand, “SuperNewBa.” These include sunscreen and massage cream with antioxidant effects using Anseong ginseng as a raw material.
NextFangia was founded in 2021 by Im, who previously handled overseas sales for global cosmetic brands such as L'Oréal and Sephora. Im completed the doctoral program in international logistics at university.
Im noted, “I saw an opportunity because overseas cosmetic brands struggle to find Korean cosmetic OEM corporations with global competitiveness, while domestic cosmetic OEM corporations face difficulties in exploring overseas markets.” He added, “Moreover, with the recent rise of K-beauty, the competitiveness of Korean cosmetic OEM corporations is increasing,” and “In the future, the overseas expansion of domestic cosmetic OEM corporations will continue to grow.”
Im cited NextFangia's strengths as one-stop services including optimal production design, quality control, and logistics, along with product development and raw and subsidiary material sourcing for cosmetic brands. He said, “Although Korean cosmetic OEM corporations develop and produce products, they source raw materials and containers from around the world, including China and Southeast Asia,” adding, “This allows brands to match the supply prices they desire.” He explained that “if everything is manufactured by domestic OEM corporations, the unit cost becomes too high,” and “data on global raw materials and factories for various types of cosmetics like masks and toners has been established.”
Im also pointed to a fast manufacturing schedule as a strength. He explained, “When a brand requests production from a factory, it usually takes about three months to produce samples, after which they can receive a quote that confirms the production price,” and “NextFangia has established a pre-quotation system that provides quotes within one week of production requests from brands.” This setup allows brands to make quick production decisions, and OEM corporations can quickly secure quantities to generate profits.
NextFangia recorded sales of 1.15 billion won last year, with exports amounting to 1.1 billion won. It is currently expanding into markets such as the U.S. and Europe. It supplied approximately 500 million won worth of private brand (PB) mask packs in 20 varieties to the top U.S. drugstore, Walgreens, and delivered around 1 billion won worth of PB cosmetic series, including mask packs and skincare, to the Nordic retail chain, Normal, similar to Korea's Daiso.
Im said, “It wasn't possible to supply cosmetics to overseas markets overnight,” explaining, “Since founding in 2021, we built our network and started from a small scale of around 20 million won to gain recognition for our capabilities, allowing us to increase our quantities.”
NextFangia aims for sales of 3.5 billion won this year, with exports projected to reach 3 billion won. Im stated, “Currently, the supply of cosmetics to the German market is in the final stages,” and “We plan to strengthen our business in the U.S. and Europe and continue to expand our sales.”
Im is also strengthening the Software as a Service (SaaS) business. In January of this year, it launched a cosmetic manufacturing matching platform called “CosVisor.” The strategy is to transition existing offline businesses to an online platform. Currently, domestic cosmetic OEM corporations and overseas brands are participating in CosVisor. Im said, “This year, we plan to complete the minimum viable product (MVP) verification stage and fully initiate the business next year,” adding, “We will start with factories in China and Southeast Asia and secure OEM factories in the U.S. and Europe as well.”