District draws business as the land of promise
The demonstration center of Interfila in Fengxian district. CHINA DAILY
Fengxian district in south Shanghai has become a cradle of first-class companies thanks to its strong industrial development foundation and improving business environment.
Shen Yingjie, assistant general manager of Cosmax China, said Fengxian is the "land of promise "because the group reported strong sales revenue growth in China after settling down in the district.
The company has been one of the largest cosmetics producers specializing in providing OEM or original equipment manufacturer services in the world since 2015.
According to Shen, South Korea-based Cosmax built a factory in Fengxian in 2004, which marked the start of its global expansion. In 2018, the company reported 2.8 billion yuan ($409.46 million) in sales revenue in China. Their products are supplied to cosmetics brands including L'Oreal, Shiseido, Coty, Jala and Jahwa.
"China has become one of the most important overseas markets for Cosmax," he said. "Over the past 16 years, the average sales revenue growth rate of Cosmax China was 40 percent year-on-year."
Shen said strong support from the Fengxian government has secured the company's success in China.
"We were provided with large parcels of industrial land and personalized government services, which laid a solid foundation for Cosmax's development in China," he said.
Shen gave a thumbs-up to Fengxian's Oriental Beauty Valley construction project, which is set to create a world-class cosmetics and health industrial cluster in the region that composed of global leading companies.
"The project has lured a great number of leading cosmetics and health companies to the region. Cosmax enjoys strong market demand and a complete industrial chain in Fengxian," he said.
Cosmax reports strong sales revenue growth in China over the past few years. CHINA DAILY
As part of its upgrading plans, Cosmax will promote concepts of automation and smart technology in its Fengxian factory during the upcoming years.
"Fengxian will play an irreplaceable role in promoting Cosmax's globalization and talent recruitment," Shen said.
The company will also help international brands enter the Chinese market and help more domestic companies seek overseas expansion opportunities, he said.
Cosmax is not the only business that has expressed satisfaction with Fengxian's investment environment.
Interfila, a subsidiary of Italian Intercos Group, specializes in cosmetic pencil production. Interfila was impressed with Fengxian's commitment to modernizing the system and capacity for governance, while improving its business environment and regional competitiveness.
The company has been operating two production sites in Fengxian and achieved an annual production output value of 300 million yuan over the past few years.
"Fengxian launched a program (in 2018) to cultivate 100 leading industrial enterprises, 100 high-growth enterprises and 100 high-tech companies," said Frank Ji, Chinese affairs representative and human resources director of Interfila. "We plan to take every opportunity to expand the operations."
Interfila will build an innovation center in Fengxian to strengthen research and development. It has partnered with the Shanghai Institute of Technology to launch a cosmetics-centered postgraduate program aiming to support new product development and cultivate more industry professionals as well, Ji said.
Apart from foreign investors, domestic companies are also reaping the benefits of Fengxian's continuously improving business environment.
Zhao Baihui, general manager of Shanghai BioGerm Medical Technology, said the local government is eager to give all necessary support to businesses to deal with difficulties. There are also programs to strengthen communication between government and businesses.
Looking ahead, businesses in Fengxian are positive about their development. They expect to achieve better results by taking advantages of the ongoing OBV project.
"In my opinion, the Oriental Beauty Valley should boast the most influential industrial players, the most cutting-edge technologies and equipment, a complete industrial chain, and professionals from different sectors," Shen said.