CJ Olive Young strengthens its global expansion
CJ Olive Young has officially entered the U.S. market by establishing its local subsidiary, CJ Olive Young USA, in Los Angeles.
As a leading K-beauty retailer, CJ Olive Young is ramping up its global expansion by tapping into the U.S., a strategic hub for driving the worldwide growth of K-beauty. Leveraging its expertise in shaping South Korea’s beauty industry ecosystem, the company aims to strengthen its presence in this highly influential market.
For CJ Olive Young, the U.S. market offers a compelling opportunity in terms of size and influence. According to global market research firm Euromonitor, the U.S. beauty market was valued at 120 billion USD in 2023, while the global beauty industry reached 570 billion USD, making it the largest in the world. This figure is more than ten times the total value of K-beauty exports last year, which stood at 10.2 billion USD.
American consumers have shown a growing demand for K-beauty. Data from Korea’s Ministry of Food and Drug Safety shows that K-beauty exports to the U.S. have grown at an average annual rate of over 20% from 2020 to 2023. With approximately 40% of the U.S. population between their teens and 30s, demographics known for their trend-conscious and digital-first shopping habits, enhanced accessibility to K-beauty is expected to fuel rapid market growth.
CJ Olive Young will localize key business operations, including product sourcing, marketing, and logistics, to strengthen its global e-commerce platform as part of its U.S. expansion. The company also plans to open its first physical store in the U.S., further expanding its multi-channel strategy.
Olive Young Global, the beauty giant’s online mall, is already available in 150 countries, with North America emerging as a key market due to its young, e-commerce-savvy consumer base. The region has become a major contributor to the platform’s total sales.
To enhance the shopping experience for U.S. customers, CJ Olive Young plans to localize the global mall’s user interface, payment options and product information display. The company also plans to analyze local consumer data to refine its product curation strategy, meeting the preferences of U.S. consumers and boosting brand awareness.
CJ Olive Young is currently evaluating potential locations for its offline store by combining insights from its global e-commerce operations with its proven multi-channel strategy in South Korea, aiming to create a retail experience that showcases a diverse range of K-beauty brands and trends.
Logistics efficiency will be a priority to improve delivery reliability and customer satisfaction. In the short term, it will integrate its global e-commerce system with its South Korean headquarters for real-time inventory management. In the future, CJ Olive Young plans to collaborate with CJ Logistics America to establish a local fulfillment network for direct shipping within the country.
“The launch of our U.S. subsidiary marks a significant step in our mission to support small and medium-sized K-beauty brands in the global market and foster a sustainable growth environment for the industry,” said CJ Olive Young CEO Lee Sun-jung. “We will continue to serve as a ‘growth booster’ for K-beauty worldwide, ensuring that the industry’s upward momentum remains strong.”
