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Navigating the Digital Shift: OBM Business Model in the Era of Digital Transformation

In: Original Brand Manufacturing Business Model

Author

Listed:
  • Young Won Park

    (Saitama University)

  • Geon-Cheol Shin

    (aSSIST University
    Kyung Hee University)

  • Kyung-Soo Lee

    (COSMAX)

Abstract

This chapter explores how digital transformation is reshaping Original Brand Manufacturing (OBM) in the cosmetics industry, turning traditional value chains into dynamic, consumer-driven ecosystems. Leveraging tools like AI, IoT, data analytics, and e-commerce, OBM firms now engage directly with consumers, accelerate product innovation, and scale globally with unprecedented speed. Through five case studies—COSMAX, Anua, APR, Manyo Factory, and Olive Young—the chapter illustrates diverse digital strategies: from AI-powered R&D and agile product iteration to omnichannel marketing and discovery-based retail. COSMAX positions itself as a digital OBM enabler; Anua builds emotional resonance through real-time customer feedback; APR fuses beauty with smart devices; Manyo evolves from D2C virality to retail dominance; and Olive Young empowers OBMs through data-rich retail platforms. These cases highlight four strategic pillars for digital OBM: speed to market, customer intimacy, operational agility, and brand equity. Success in the digital era demands integrated digital infrastructure, data-driven culture, co-creation with consumers, and ecosystem partnerships. OBM firms must invest not just in technologies but in organizational capabilities, cybersecurity, and regulatory readiness. Ultimately, digital OBM is about orchestrating experiences—not just products—through agile, data-informed, and emotionally resonant engagement across global platforms.

Suggested Citation

  • Young Won Park & Geon-Cheol Shin & Kyung-Soo Lee, 2025. "Navigating the Digital Shift: OBM Business Model in the Era of Digital Transformation," Springer Books, in: Original Brand Manufacturing Business Model, chapter 0, pages 25-40, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-0253-0_2
    DOI: 10.1007/978-981-95-0253-0_2
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