The cosmetic contact lenses industry is still in a rapid growth stage
Shenzhen Dashicheng Optical Technology (DSC)(Chinese: 大仕城光学科技), a supply chain provider for cosmetic contact lenses, received tens of millions of CNY in Series A2 funding from CapitalNuts (Chinese: 坚果资本).
The money will be used to expand the new factory, construct a "cloud factory" for contacts, upgrade product lines and develop new products.
DSC is a China-Korea joint venture in the supply chain of contacts, and its main business can be divided into two parts. The first is integrating global production capacity to achieve full process compliance and flexible production through a digital supply chain layout. The second is the two-way drive of manufacturing and branding through channel placement.
Due to the impact of COVID-19, products "above the mask," such as contacts and eye makeup, are more popular than products "below the mask," such as lipsticks and facial cosmetics. According to Google, over the past five years, the compound annual growth rate of contacts has reached 7.93%.
When demand rises, it encourages suppliers to upgrade and iterate.
Color contacts are strictly regulated Class III medical devices, the highest risk category and the most strictly regulated of all medical devices. License qualifications, core technologies, dyeing techniques, and raw materials are all competitive thresholds for the supplier of contacts. In terms of channels, because the leading Asian contacts factories are located in South Korea and Taiwan, Chinese consumers could only buy contacts overseas in the previous decade. Until 2014 when the contacts market was gradually reorganized, contacts pendant e-commerce and online shopping malls gradually began to rise.
This "cosmetic-like" product has the characteristics of a fast-moving consumer product. Therefore, the flexibility of batch sizes and short delivery times make it more suitable for the manufacturing model of contacts.