CJ Olive Young, a leading player in South Korea’s beauty and wellness sector, is taking significant steps to launch its first physical store in the United States. On February 4, the company unveiled its plans to establish a local subsidiary, CJ Olive Young USA, which will be based in Los Angeles, California. This new venture marks a pivotal move in the company’s strategy to broaden its footprint in the American market and explore opportunities in other regions worldwide.
Expansion into the US Market
With aspirations to open its doors in the US, CJ Olive Young is currently evaluating multiple potential locations for this new store, signaling an exciting expansion beyond its home country.
Since 2019, the retailer has been connecting with American consumers through its international e-commerce site, Olive Young Global, which serves customers across 150 countries. Notably, a large portion of its sales stems from the US market, especially among younger shoppers who are adept at online shopping.
Commitment to K-beauty and Local Operations
Understanding the significance of the US in its global strategy, the CEO of CJ Olive Young shared that launching the local subsidiary is a crucial step towards exploring new growth opportunities. The CEO also highlighted the company’s dedication to collaborating with small and medium-sized brands, fostering a supportive ecosystem for K-beauty. CJ Olive Young is eager to play a key role in advancing the presence of K-beauty internationally.
In recent years, the United States has blossomed into a vital market for various K-beauty brands, including Laneige, CORSX, and AXIS-Y, which have gained a loyal following among beauty lovers. Currently, the US ranks as South Korea’s second-largest cosmetics export market, following China and surpassing Japan. The Ministry of Food and Drug Safety (MFDS) in South Korea has noted a remarkable 57% surge in K-beauty exports to the US, totaling USD 1.9 billion last year.
Enhancing Online Presence and Logistics
Alongside plans for a storefront, Olive Young is also committed to enhancing its operations within the competitive landscape of the US beauty market. Localization plays a crucial role in this strategy; the company is focused on optimizing logistics and delivery services. This year, they plan to align their global mall system with their headquarters for real-time inventory management. Future endeavors include building a local logistics network in partnership with CJ Logistics to facilitate direct regional shipping.
To better cater to American customers, the retailer aims to refine its online platform. This includes improving user experience, adapting the interface, and localizing payment options. By leveraging data insights, CJ Olive Young intends to curate a product lineup that resonates with the tastes and needs of US consumers, ultimately strengthening its online presence across the American market.
Source: Cosmeticsdesign-asia.com