36Kr Exclusive: Smart Manufacturing Supply Chain for Colored Contact Lenses, Dashi Cheng Optics, Secures Tens of Millions in Series A2 Funding from Jianguo Capital

Text｜Gao Ya

Editor｜Xiaoqiu Peng

36Kr learned that,One-stop colored contact lens supply chain solution provider Shenzhen Dashicheng Optical Technology Co., Ltd. (hereinafter referred to as "DSC Optical Technology"), securing a multi-million yuan A2 round of financing from Capital Nuts. This round of financing will mainly be used in four aspects: factory expansion, cosmetic contact lenses "Cloud Factory"Construction, production line upgrades, and product development.

"DSC Optical Technology" is a Sino-Korean joint venture in the colored contact lens supply chain industry. Its main business can be simply divided into two parts: one is to integrate global production capacity and achieve flexible production with full-process compliance through a digitalized supply chain layout; the other is to empower brand owners through channel deployment, achieving a two-way drive of manufacturing + branding. To date, "DSC Optical Technology" and its affiliated factories have exceeded a monthly production capacity of 10 million pieces, with long-term cooperative clients including globally leading brands such as Bausch + Lomb, O-lens, and Candy Magic.

DSC Optical Technology

In fact,"DSC Optical Technology" The above two aspects of business almost perfectly align with the supply and demand changes happening in the cosmetic contact lens industry.As demand suggests, due 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. Additionally, as Generation Z, who constantly seek new experiences, gradually becomes the main consumer group, the use of colored contact lenses will become commonplace. According to Google data, over the past five years, the annual compound growth rate of colored contact lenses has reached 7.93%. From 2018 to 2021, the average search growth was 7.69%, far higher than the 4.46% average search growth for facial cosmetics.

The increase in demand has also driven the upgrading and iteration of the supply side, because in the Chinese market, the early production of cosmetic contact lenses was not only difficult but also had limited channels.

In production, although colored contact lenses are often considered part of cosmetics, their essence belongs to the strictly regulated Class III medical device products — the highest risk category in medical devices with the most stringent supervision. Licenses, core technology, dyeing techniques, raw materials, etc., all serve as competitive thresholds in the supply chain for cosmetic lenses. In terms of distribution channels, due to the long-term concentration of Asian color lens factories mainly in South Korea and Taiwan, purchasing channels were predominantly through proxy buying in the past decade. It wasn’t until 2014, when the cosmetic lens market gradually underwent rectification, that vertical e-commerce platforms and online stores specializing in cosmetic lenses began to emerge.

Based on this,"DSC Optical Technology" first starts from the product end, adopting the most advanced third-generation full mold pressing process in Korea,Compared with the second-generation semi-molded and semi-machined process, the fully molded process products have more advantages in color performance and wearing experience; at the same time, the fully molded process has stronger production flexibility, which can significantly reduce the minimum order quantity for a single SKU and shorten the delivery cycle by more than 30%, making it more suitable for small-batch, multi-style order requirements. Based on Korean technology,"DSC Optical Technology"Further creatively optimized the production process, breaking down production steps to achieve independent scheduling and production. Increased efficiency by adding robotic arms in automatable sections, significantly improving the yield rate.

Inside the "DSC Optical Technology" factory

In fact,Flexible batch, short lead time for flexible customization services is a model more suitable for colored contact lens production.This "quasi-cosmetic" product inherently possesses the attributes of a fast-moving consumer good. If it can, under well-established production capacity, quickly respond to trends, customize, and deliver according to global market demands, it will be able to bridge the aforementioned supply and demand fluctuations.

Currently,"DSC Optical Technology" is committed to building a digital system platform to connect the front end (user demand) - mid end (brand procurement) - back end (supply chain support).The platform can grant customers access rights. 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 minutes, which traditionally would take several days. Meanwhile, by serving different customers and fulfilling order demands from various regions and countries, factories can use data visualization BI tools within the platform to identify current trends and regional preferences, thereby better serving different types of customers and truly achieving user demand-driven production.

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.The focus is on entering cross-border e-commerce and other cross-category channels with a high degree of user overlap, where nearly 50% of the clients are Chinese cross-border e-commerce DTC brands. These brands cover markets in Europe, America, Southeast Asia, the Middle East, and South America, with products being sold to various parts of the globe.

Compared to brand owners who are closer to consumers, "DSC Optical Technology" has a better understanding of the feasibility between production processes and market demands.In production, "DSC Optical Technology" possesses certifications for medical device qualifications from various countries worldwide and holds several core patents for the manufacturing of contact lenses. With the combination of self-operated local factories and outsourced capacity from factories in Korea, it achieves a flexible global production layout. In terms of channels, due to long-term cooperation with brand owners and leading comprehensive cross-border e-commerce platforms, "DSC Optical Technology" has gained deeper insights into end-user demands and possibilities for product iteration. These factors form a manufacturing closed-loop that "DSC Optical Technology" has established for the rapidly growing category of cosmetic contact lenses.

"Lenses manufactured by DSC Optical Technology"

Currently, Shenzhen DSC Optical Technology has been approved for the FDA certification issued by the U.S. Food and Drug Administration. As the world's most authoritative and high-standard medical device certification system, the FDA imposes higher requirements on product shipment standards, product quality, material performance, and more. With FDA-certified products exported to the United States and other FDA-recognized countries, "DSC Optical Technology" can ensure full compliance across the entire chain from production qualifications → sales and export → product clearance → product launch → sales and after-sales service, making the entire transaction chain traceable. This allows brand owners to sell with greater peace of mind and consumers to purchase with confidence.

In terms of the team, founder Li Jiayi has extensive experience in the production and manufacturing of color contact lenses as well as qualification certification, and possesses global industrial integration capabilities. Additionally, she has a deep understanding and insight into brand building and user needs, having been deeply involved in incubating an online color contact lens brand with annual sales exceeding 25 million yuan. Co-founder Kim Sang-ho, a leading figure in South Korea's color contact lens industry, has 23 years of experience in the production and manufacturing of color contact lenses. He founded G&G Contact Lens Company, DUEBA, Maxlook, and other color contact lens factories, laying a solid foundation for DSC Optical Technology’s global development.