Cosmetic Service GmbH

Successful, medium-sized companies

- Cosmetic Service GmbH -

In the interview:

Cosmetic Service GmbH has been a reliable contract manufacturer for high-quality cosmetic products - Made in Germany - since 1976. Its long-standing customers include top cosmetics and health brands that value innovative products, trendy concepts, flexible structures, high quality standards and short delivery times. The company is a contract manufacturer with strong development expertise.

Cosmetic Service was founded back in 1976, but the current situation in the Corona crisis is presenting even experienced companies with new challenges. How did the pandemic affect your company?

Due to the Corona pandemic, we were able to generate 110% growth compared to the previous year. We have achieved this by winning new customers, whom we have also convinced of our products besides disinfectants. Thus, this growth will bring us 2 years forward in our plan.

What problems did you have to deal with when switching to hygiene articles and disinfectants?

Hygiene and disinfection products have been part of our product range for X years and can therefore draw on many years of experience in this area. No changeover was necessary here.

In the cosmetics industry, hygiene concepts are also very important in your own company. How do you protect your employees and which processes did you have to change?

In our company, very high hygiene standards apply as a matter of principle; this entails the production of cosmetics and hygiene products. For some of our biggest customers, such as Disney, Mattel, Sebamed, Fressnapf and Esprit, these standards have been raised again. Gloves, face masks and a distance of 2m between employees have therefore already been standard for us. Further additional measures according to the Association of the Chemical Industry were then added.

How do you assess the Chinese medical market? Will there be protracted consequences here due to the pandemic?

"Man is a creature of habit" already said Gustac Freytag in the 19th century. We only source our material in Europe, but we have been registering products for our customers in Asia for 30 years. Therefore, I do not believe that the established trade relations between China and the rest of the world will be damaged by this pandemic. We are already seeing no disadvantage. Our customers are still buying and catching up on the consumption they missed. In my opinion, the effort will be completely forgotten in 1-2 years.

What alternative financing options do you use within your financial structure to increase your production and optimise your working capital?

Growth is of great importance to us. We want to continue to expand the success of our company. But growth requires capital. Capital for larger orders of materials, higher production costs, additional equipment purchases and human resources. Here we rely on a balanced financial structure of private deposits and purchase financing for our goods.