Innovation at the Core: R&D Strategies for OBM

Young Won Park (), Geon-Cheol Shin () and Kyung-Soo Lee ()
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Young Won Park: Saitama University
Geon-Cheol Shin: aSSIST University
Kyung-Soo Lee: COSMAX

Chapter Chapter 4 in Original Brand Manufacturing Business Model, 2025, pp 57-70 from Springer

Abstract: Abstract This chapter explores how research and development (R&D) serves as a strategic engine for Original Brand Manufacturing (OBM) firms, particularly within the global cosmetics industry. As OBMs evolve from the OEM/ODM model, R&D becomes central not only to product innovation but to brand differentiation, regulatory alignment, and sustainable growth. Through the case of COSMAX, a leading K-beauty firm, the chapter illustrates how R&D has shifted from a support function to a core platform for global OBM enablement. COSMAX’s integrated R&D system combines advanced formulation science, regulatory foresight, and open innovation partnerships. Its proactive, suggestion-based innovation model enables both multinational and indie brands to access scalable, compliant, and trend-responsive product platforms. The firm’s embrace of AI, ESG integration, and global compliance frameworks (e.g., MoCRA, Halal) demonstrates how R&D can align commercial strategy with ethical imperatives. Drawing on frameworks of dynamic capabilities and knowledge integration, the chapter reframes R&D as the connective tissue linking technology, sustainability, and consumer insight. COSMAX’s platform-based approach offers a blueprint for OBM firms seeking to lead in a fast-changing, purpose-driven market. In the OBM era, innovation is no longer optional—it is the infrastructure of future competitiveness.

Date: 2025
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DOI: 10.1007/978-981-95-0253-0_4

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