Salmon rises to TikTok challenge at global cosmetics business

Cheshire-based family business Amelia Knight has opened a new 24,500sqm factory in China, described as a pivotal moment for the company, still run by the Salmon family who founded the business in 1998.

TheBusinessDesk.com spoke to David Salmon about a £5m strategic investment into infrastructure and manufacturing capabilities, that will ramp up output to over 425 million units, with the business targeted to double overall revenue by 2028.

What are the different trends that have most affected the cosmetics business in the last five years and how has that influenced the choices to manufacture in China.

The rise of TikTok, viral products and social trends means customers want new products, and they want them now. Therefore, speed to market is incredibly important, and a demand that’s answered by the increased capacity of our new China site across skincare and colour cosmetics. What Amelia Knight customers don’t lose out on is quality. It’s always been a key pillar for the business, and despite answering the viral demand for products at speed, the quality remains.

The increasing demand for quality from our customers – whether high end or high street – is another reason we invested in the new infrastructure in China, including human resources and equipment. With more efficient infrastructure and higher output values, we can reach the demand of the market across skincare, colour cosmetics, haircare, fragrance and body without compromising on quality.

How big an issue is ethical purchasing, especially amongst younger consumers?

The need for sustainable products with a social conscience has also only risen in the last 5 years and is a key pillar of the AK strategy. Thanks to our vertically integrated business model, we can answer this demand through packaging, supply chain, ingredients and design. Amelia Knight doesn’t lose sight of sensorial and aesthetic aspects, or the quality of the product underneath, which ultimately is the most important part. Meeting the high standard and QC requirements of our high street retailers is another reason to move into that bigger state of the art factory in China.

What are the major brands you deal with looking for in a partner like Amelia Knight?
Innovation. Speed to market, a dynamic solution led approach, quality product, this is what comes to mind when I’m asked about what makes Amelia Knight special and it’s this, along with our competitive and commercial pricing, that appeals to our major brand partners.

With our vertically integrated business model we offer a complete concept to shelf service – from consultancy and design to bespoke formulas and packaging, QC, manufacturing and fulfilment options worldwide. Some of our customers don’t necessarily have a beauty department, so they rely on us to cover all the bases.

Do you still think of Amelia Knight as a British business?

We combine the expertise of Far East Manufacturing with Made in the UK capabilities, providing a fully bespoke service across a multitude of packaging, formulas and beauty categories (skin, body, cosmetics, fragrance and haircare). As a result, we can offer high quality products at an incredibly competitive and commercial price point, all with speed. And of course, our UK factory means we can make Made in the UK.

How does being a family owned business influence how you operate?

As a family run business, we also combine a personal touch with impressive ambition, growing alongside and with our partners. In fact, we’ve been working with one of the UK’s best known and loved high-street retailers as a key partner for over 20 years, we kickstarted their beauty department, and we’ve both grown together, as has the partnership.

What new markets and products are of most interest to the business right now?
A business model that’s ever evolving, AK has just entered the mass brand market, with AOC (Academy of Colour.) Thanks to the opening of the new China factory and our unique business model that combines private label expertise and strategic brand development, we’ve been able to offer a new, fast to market and trend-led mass brand opportunity for our customers.  Moving with agility, reacting to viral trends and responding to consumer demand for accessible and desirable products, these brands will cover skincare, colour cosmetics, bath & body and fragrance. These products are already developed, tested to the highest of standards, and have stock ready to order, giving our customers an even quicker, fast-to-market product offering, reacting to that consumer demand.

What are the projected numbers as a result of the investment?

Having completed 2024 with 12% growth, our target for 2025 is to grow by a further 15%. Approximately 52% of that will be export compared to 48% UK sales.

What was driving the desire to develop the own brand business? 

After developing products for leading beauty retailers worldwide, and with the knowledge, skill and manufacturing capabilities (after acquiring our UK factory in Stoke in 2019) to help develop and grow brands at speed, it was a strategic business decision to open Amelia Knight into a previously untapped-for-us direct-to-consumer category. The key focus being Glow Hub – a range of fun, aspirational and educational skincare created for gen z and alpha.

By developing our own brand offering with an agile and adaptable business model, we could bring products to market even quicker, not only reacting to market trends, but helping create them. By launching with ASOS and partnering with TikTok as one of their first official beauty clients, we’ve seen incredible growth for the brand (#GlowHub has 85m views on the platform). We’re now available in over 38 countries, including the like of Sephora, Selfridges, Harrods, and Look Fantastic.

Is there a risk that you will be competing with customers’ brands? 

We don’t see our own-brand division as competing with our customers brands, it’s an incredible case study to build trust with our partners: not only are we experts in manufacturing but in strategic brand incubation, creating products and branding that resonates with a previously untapped market (gen z and alpha) and showcases our ability to tap into global trends, creating high demand, social viral products in the beauty sphere.

Close