Arcade Beauty, a global provider of end-to-end beauty solutions, and Intercos China, an OEM/ODM cosmetics company, are excited to announce a strategic partnership agreement aimed at enhancing its competitive edge to support the local Chinese market.
Terms of Agreement
Under the terms of the agreement:
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Intercos China will take on the manufacturing responsibilities for cosmetic samples previously produced by Arcade China at its Suzhou facility.
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Arcade Beauty will be exiting its manufacturing operations in Suzhou effective December 31, 2024, as part of a broader strategy to optimize its operational footprint and drive long-term growth.
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Arcade Beauty will maintain offices in Shanghai and Suzhou for its commercial sales and technical development teams in China to support the local needs of its customers and the Chinese market.
This agreement includes the transfer of Arcade China’s machines to Interfila Cosmetics in Shanghai and the outsourcing of the manufacture of products developed and sold by Arcade China.
Arcade China will benefit from the know-how and expertise of all Intercos China production sites, as part of a full-service product development process, including formulation and blending of bulk.
This partnership is expected to significantly enhance production efficiency, and capacity to serve the local Chinese market and, through collaboration efforts, explore new market opportunities and expand Arcade Beauty’s existing customer base.
“We are excited that we were able to come to this arrangement with Intercos China,” said Carl Allain, Arcade Beauty’s president and CEO.
“This agreement creates a necessary synergy that will allow us to focus on innovation and deliver superior value for both our local and international customers”.
“We are very happy that thanks to this partnership with Arcade, Intercos China will be able to offer an additional service to our Domestic and International Customers,” said Stephane Tsassis, CEO China & SEA at Intercos China.
Ceasing Its Manufacturing Operations in Suzhou
As part of this strategic realignment, Arcade China will be ceasing its manufacturing operations in Suzhou on December 31, 2024, at the latest. The decision to exit this location was made after careful consideration and is aimed at optimizing the operational efficiency and resource allocation of Arcade China.
“We understand the impact this decision has on our Chinese employees and the local community,” added Carl Allain.
“We are committed to ensuring a smooth transition and providing the necessary support to our team during this period.”
Source: Arcade Beauty