CJ Group is accelerating the expansion of its local business again, using the U.S. entry of its health and beauty (H&B) store Olive Young as a starting point. Beginning with the opening of its first store in California next month, the strategy is to solidify its foothold in the North American market by pooling the capabilities of major affiliates such as food and entertainment.
According to the industry on the 29th, Olive Young plans to open its first store in Pasadena, California, at the end of next month. Olive Young formalized its North American push early last year by establishing the U.S. subsidiary CJ Olive Young USA. In March, it built its first logistics center in Bloomington, completing full-scale preparations for store openings.
Starting with the first Pasadena store, Olive Young plans to add four more locations this year in key commercial districts such as Los Angeles (LA). The plan is to expand its footprint in high-foot-traffic areas such as Westfield Century City in LA and Del Amo Fashion Center in Torrance.
Within CJ Group, discussions are heating up on ways to create synergy among affiliates ahead of Olive Young's entry into the U.S. With years of steady earnings growth elevating Olive Young to a core affiliate within the group, and with this seen as a renewed attempt following the liquidation of its New York unit in 2020 and withdrawal from China, attention is intensifying.
CJ aims to build a so-called K-lifestyle value chain that combines food and content centered on Olive Young's beauty business. As it has already developed major businesses in the United States such as food, bakery, and entertainment, it is expected to pursue synergy maximization by organically consolidation them.
CJ CheilJedang is expanding its North American food business with Bibigo at the center. Bibigo dumplings have secured more than a 40% share in the U.S. consumer (B2C) dumpling market, becoming the No. 1 brand. Bibigo frozen kimbap, first introduced in 2023, is recording an annual sales growth rate exceeding 130%.
In particular, the 2019 acquisition of frozen food company Schwan's is viewed as a catalyst that rapidly expanded its food distribution network in the United States. Led by Schwan's, CJ CheilJedang is building a plant in Sioux Falls, South Dakota, slated for completion in 2027. The plant will be the largest Asian food manufacturing facility in North America and is expected to serve as a production hub for the central United States.
CJ Foodville has built competitiveness in the U.S. market with its bakery franchise Tous les Jours at the forefront. After opening the first Tous les Jours store in the United States in 2004, CJ Foodville's U.S. unit became the first overseas entity to turn a profit in 2018. The company has increased infrastructure investments, including building a baking plant, with the goal of operating 1,000 local stores by 2030.
In the entertainment institutional sector, CJ ENM is expanding its content-based influence by hosting the global K-pop festival KCON locally. In 2022, it also acquired the U.S. film production company Fifth Season, securing capabilities in drama and film production.
This year, following KCON Japan 2026 in May, KCON LA 2026 is set to be held in LA in August. First held in Irvine, U.S., in 2012, KCON has since taken place in 14 regions worldwide, including Asia, the Middle East, and Europe. The cumulative number of attendees to date exceeds 2.2 million.
CJ Group Chairman Lee Jay-hyun is strengthening on-site management ahead of Olive Young's U.S. entry. Last month, Lee visited Olive Young Central Myeong-dong Town, which opened in Seoul's Myeong-dong, to review the in-store shopping flow and key products. Olive Young Myeong-dong logs about 95% of its sales from foreigners, and the visit was seen as a move to pre-check a global strategy targeting foreign customers.
Reviewing the sheet mask display, Lee said, "We must build a sustainable K-beauty ecosystem in the U.S. market," and added, "Olive Young must serve as a bridgehead so that brands with annual sales of more than 100 billion won at Olive Young can grow in global markets."