CJ Olive Young (hereinafter referred to as Olive Young) announced on the 4th that it will establish a local corporation, 'CJ Olive Young USA,' in Los Angeles, California, USA. This move is interpreted as a step to solidify its entry into the U.S. market, which is known as the 'world's largest beauty market.'
The U.S. market is regarded as an attractive market. According to the global market research firm Euromonitor, the global beauty market size is estimated to be $570 billion (740 trillion won) in 2023. The U.S. market is the largest in the world at $120 billion (156 trillion won). Exports of K-beauty products to the U.S. have increased by more than 20% annually on average from 2020 to 2023.
Olive Young is promoting the opening of its first offline store in the U.S. along with the establishment of the local corporation. The company is currently reviewing several candidate locations for the offline store. The plan is to combine the accumulated local data through the global mall with the success formula of the domestic omnichannel to showcase stores that incorporate various K-beauty brands and trends. Additionally, there are plans to enhance the capabilities of the global mall.
Olive Young is focusing on the global mall business, where K-beauty products can be purchased directly in 150 countries. As a result, in May of last year, Olive Young established a Japanese corporation and distributed its own brand products locally.
Olive Young aims to evolve into a localized K-beauty platform equipped with the optimal user environment, payment methods, and ways to expose product information for local customers. The company will also improve logistics stability and delivery satisfaction. This year, it plans to link the global mall and Olive Young's headquarters system in Korea to manage inventory in real time. In the future, it is expected to establish a logistics network to directly ship products locally in collaboration with CJ Logistics.
Lee Sun-jeong, the CEO of Olive Young, noted, 'The establishment of the U.S. corporation is a stepping stone for finding new growth engines in the global market together with small and medium-sized brands, which are Olive Young's core partners, and creating a sustainable K-beauty growth environment.' She added, 'We will do our utmost to serve as a 'K-beauty growth booster' in overseas markets so that the growth momentum of the K-beauty industry can continue.'