Source: Eye Future; Editor: Bai XiaofeiReprint requirements: Can be reprinted 24 hours after the first publication, source must be credited.
Recently, the cosmetic contact lens supply chain solution providerDeepShenzhen Dashicheng Optical Technology Co., Ltd. (hereinafter referred to as "DSC Optical")CompletedTens of Millions of Yuan in A+ Round Financing, this round of financing was led by Shenzhen Capital Group. The proceeds willFor accelerating the expansion of colored contact lens production lines, R&D of new products and materials, and the layout of global compliance markets.Previously, the company had received investments from Nut Capital and Jiupai Capital.
DSC Optical Technology was jointly established by senior elite professionals from the cosmetic contact lens industry in China and South Korea. It is aA medical device company specializing in the research, development, and production of colored contact lenses。In 2023, DSC Optical Technology obtainedThe first and only one in ChinaFDA Registration and Certification for Soft Hydrophilic Contact Lens Products in the United StatesThe only cosmetic contact lens manufacturing enterprise in mainland China holding FDA registration certificate。# Overview of the Billion-Dollar Colored Contact Lens MarketDriven by the "appearance economy," the colored contact lens industry has rapidly expanded its market space.In 2004, Johnson & Johnson was the first to add a pigment layer to the outer ring of contact lenses, which led to the birth of the "Acuvue Beauty" product. Over the next decade, Acuvue Beauty went through chaotic and disordered stages such as micro-commerce and proxy purchasing.Gradually transitioning from medical supplies to beauty consumer goods, the industry has also reached a transformative point.。In 2015, China opened official online sales channels, with a compound annual growth rate of 40.1% from 2016 to 2020. In 2020, the market size of cosmetic contact lenses in China was 22.5 billion yuan.It is estimated that by 2025, the market size of cosmetic contact lenses in China will reach 58 billion yuan.The compound annual growth rate from 2020 to 2025 will continue to grow at approximately 17.1%.The rapid growth is mainly attributed toThe continuous expansion of the consumer base, the gradual increase in market penetration, and the growing customer value。China has a large population base, but compared with other countries,Low penetration rate of cosmetic contact lenses。The penetration rate of cosmetic contact lenses among the myopic population in mainland China is 4.5%, compared to 22.9% in South Korea and 20.2% in Japan, which meansChina's cosmetic contact lens industry is in a blue ocean market, with significant room for development.。iiMedia Research data shows that the consumers in China's cosmetic contact lens industry are mainly young and middle-aged adults.The largest group of consumers are from the post-90s generation,Accounting for 57.8%，Mainly distributed in first- and second-tier cities，Accounting for up to 84.6%，And mostly women。As a flow under the background of consumption upgradeNon-complianceEssential items: The main consumers of cosmetic contact lenses are social groups with relatively high economic power, more leisure time, and greater attention to appearance.
▲Originated fromiiMedia Research
In 2022, the average annual spending of Chinese consumers on cosmetic contact lensesOver 60% (66.0%) of consumers are willing to spend an average of 501-1000 yuan annually on cosmetic contact lenses., with an average monthly spending of 41.75-83.33 yuan. In addition, more than six out of ten (64.5%) consumers are willing to accept the highest unit price of cosmetic contact lens products in the range of 101-400 yuan.
▲ Originated fromiiMedia Research
# Insufficient Supply and Demand Needs Urgent ResolutionThe demand has been verified, but the supply from compliant domestic manufacturers is far from sufficient.. Although seemingly a thin and light piece of cosmetic contact lens, it is indeed an industry with a "bottleneck" problem.From the perspective of the supply chain, currentlyIn China, many beauty lens market brands adopt the OEM model., The majority of cosmetic contact lens brands have made upgrades in design and production processes.Dependent on the support of cosmetic contact lens OEM factories, the upstream foundries are mainly from Taiwan, China, as well as South Korea and Europe.
▲Originated fromiiMedia Research
Current Status of Cosmetic Contact Lenses in Mainland ChinaHeavy reliance on imports，As high as nearly 90%，In ChinaTaiwan, China occupies approximately 68% of the market share in mainland China due to its production capacity and scale advantages.The distribution of China's colored contact lens production areas is shown in the figure below.
▲Originated fromiiMedia Research
From the regulatory perspective,In 2012, cosmetic contact lenses were categorized as Class III medical devices under strict regulation, alongside high-risk medical devices such as artificial heart valves, intraocular lenses, and implantable cardiac pacemakers.. In the e-commerce field, the online sales of cosmetic contact lenses have been strictly regulated, and it wasn't until 2015 that they gained legal sales qualifications on platforms like Tmall. According to the latest advertising law, cosmetic contact lens products are not allowed to feature celebrity endorsements.The dual attributes of "fashion" and "medical" have put the colored contact lens industry in a dilemma of being "qualified but not fashionable enough, or fashionable yet not necessarily compliant."The "regular army" that can satisfy both the FDA and consumers is particularly scarce., while cosmetic contact lens brands must possess the ability to iterate quickly in order to stand out in the market competition. When local brands rely excessively on foreign supply chains, it is difficult for brand owners to mobilize the supply chain to respond rapidly, leading to supply shortages and price fluctuations,Therefore, the supply chain has become the "critical point" for Chinese-produced colored contact lenses.。# Integration + Layout Development StrategyDSC Optical Technology is a Sino-Korean joint venture in the colored contact lens supply chain, and itsThe main business can be simply divided into two parts., one of which isIntegrate Global Production Capacity, through the digital layout of the supply chain, achieve flexible production with full-process compliance; the second isEmpower brand owners through channel layout, achieving a two-way drive of manufacturing + brand.As of now,DSC Optical Technology and its system factories break through 10 million pieces of monthly production capacity, with long-term cooperative clients including world-class brands such as Bausch + Lomb, O-lens, and Candy Magic.
▲Some Brands Collaborated with DSC Optical Technology
In fact,DSC Optical Technology almost perfectly aligns with the supply and demand changes occurring in the cosmetic contact lens industry in the aforementioned two areas of business.。In terms of demandDue to the impact of the pandemic, products "above the mask" such as colored contact lenses, eye makeup, and hair styling have become more popular than "below the mask" products like lip makeup and facial cosmetics. Moreover, as the younger generation, who constantly seek new experiences, gradually becomes the main consumer force, the use of colored contact lenses will also become normalized.
▲DSC Optical Technology's Cosmetic Contact Lenses
The increase in demand has also driven the upgrading and iteration of the supply side, because in ChinaIn the Chinese marketIn the early days, the production of cosmetic contact lenses was not only difficult but also had limited distribution channels.In terms of production, although it has always been considered a part of makeup, its essence is,Colored contact lenses, however, belong to the strictly regulated Class III medical device products, which are the highest risk category and subject to the most stringent supervision among all medical device products., Licenses and qualifications, core processes, dyeing technology, raw materials, etc., will all be competitive thresholds in the colored contact lens supply chain;InChannel AspectFor a long time, Asia's color contact lens factories were mainly concentrated in South Korea and Taiwan. In the past decade, the purchasing channels were mostly through proxy purchasing models. It wasn't until 2014, when the cosmetic contact lens market gradually underwent rectification, that vertical e-commerce platforms and online stores specializing in cosmetic contacts began to rise.Based on this,DSC Optical Technology starts from the product end.，Adopting the most advanced third-generation full mold pressing process in KoreaCompared with the second-generation semi-molded and semi-turned process, it has more advantages in color performance and wearing experience;At the same time, the production flexibility of the full compression molding process is stronger, which canSignificantly reduce the minimum order quantity for a single SKU, while shortening the delivery cycle by more than 30%, making it more suitable for small-batch, multi-style order requirements.。Building on Korean technology, DSC Optical Technology creatively optimized the production process by breaking down production steps to achieve...Mutually Independent Scheduling and Production, Increase the efficiency by adding robotic arms in the automatable parts,Yield Rate Significantly IncreasedHigh。
▲Inside DSC Optical Technology Factory
In fact,Flexible batch, short lead time, and customizable services are a more suitable model for colored contact lens production., these "quasi-cosmetic" products inherently possess the attributes of fast-moving consumer goods (FMCG). If they canWith well-established production capacity, rapidly respond to global market demands, trends, customization, and delivery., will be able to build a bridge for the above-mentioned supply and demand changes.Currently, DSC Optical Technology is committed to building a digital system platform.Connect the front end (user demand) - mid end (brand procurement) - back end (supply chain support). The platform can grant customers access, and after customers select their needs, the platform will provide automated solutions, generate standard work orders, and offer a series of services such as online coordination with factories.Customers can complete the ordering process in a few minutes, which traditionally takes several days.。At the same time, by serving different customers and order demands from different countries and regions, the factory can use data visualization BI tools within the platform to determine current popular trends and regional preference differences, thereby better serving different types of customers.Truly achieve user demand-driven production and manufacturing。After the supply chain and delivery环节, the next step is channel selection. Due to the current development of overseas DTC, brand channels have become increasingly diversified. DSC Optical Technology has also broken the traditional new retail channels in China.Focus on entering cross-border e-commerce and other cross-category channels with a high degree of user overlap., among whichNearly 50% of the clients are Chinese cross-border e-commerce DTC brands., covering markets in Europe, America, Southeast Asia, the Middle East, and South America, with products sold to various parts of the globe.Compared to brands that are closer to consumersFor the production process and market demand, DSC Optical Technology has a better understanding of the achievable balance.。In productionDSC Optical Technology has obtained medical device certifications from multiple countries worldwide and holds several core patents for the production and manufacturing of contact lenses. With the combination of self-operated local factories and outsourced production capacity from factories in Korea,Achieve Global Layout of Flexible Production Capacity；In the channel, Due to the long-term cooperation with brand parties and leading comprehensive cross-border e-commerce platforms, DSC Optical Technology also has its own insights into C-end demands and the possibilities for product iteration, all of which areDSC Optical Technology Has Established a Manufacturing Closed Loop for the Rapidly Growing Category of Cosmetic Contact Lenses。
Shenzhen Dashicheng Optical Technology Co., Ltd. was established in 2009 as a Sino-Korean joint venture that integrates production and sales.Professional隐形眼镜Manufacturing Enterprise, possessing advanced production equipment and R&D support for medical optical technology introduced from South Korea, and obtained the National Medical Device Production License (Guangdong Food and Drug Administration Medical Device Production 20203526) in 2020.In early March 2021, the company secured tens of millions of yuan in financing from a listed company in the same industry. Committed to ensuring excellent product performance through continuous innovation capabilities, guaranteeing high technological content with advanced production techniques, and prioritizing service principles.From lens design, formulation materials packaging, to license applicationin various aspects, providing a diversified range of products and professional quality contact lenses to meet the diverse requirements of the market and the multifaceted needs of customers.As of the date of this report, the following is a partial record of the company's financing history:
As of the date of this report, the following partial patent information of the company has been queried:
