This is an important step as it aims to leverage the rapidly growing market for K-Beauty products in the US.
On February 4th, major K-Beatty retailer CJ Olive Young announced that it had founded CJ Olive Young USA, a local company based in Los Angeles, California.
The purpose of the subsidiary is to spearhead the expansion in the US and use it as a launchpad to secure its position in the new market.
As part of that strategy, the company confirmed it plans to launch a physical retailer in the US.
The retailer said it is currently assessing multiple potential locations in its offline stores.
Currently, Olive Young has reached its US consumer base through Olive Young Global, an international e-commerce site launched in 2019 and serving 150 countries.
The retailer said the “important” portion of Olive Young Global business was produced by young, digitally savvy consumers in the US, particularly the market.
Global Ambition
The company identifies the United States as a key market in its global ambitions.
“The establishment of a US company together with Olive Young’s key partner, small and medium-sized brands, will serve as a stepping stone to find new growth engines in the global market and create a sustainable K-Beatty growth environment.” CJ Olive Young said Lee Sun-Jung, CEO of the company.
“We will do our best to function as a ‘K-Beauty Growth Booster’ overseas to ensure continued growth in the industry. ”
The US has emerged as a key market for many K-Beauty in recent years, including Laneige, Corsx and Axis-Y, and has achieved great success among beauty enthusiasts.
The US is currently ranked as the second largest cosmetics export market in Korea, after China, ahead of Japan.
South Korea’s Ministry of Food and Drug Safety (MFDS) recently released data confirming K-Beauty’s exports rose 57% last year to USD 190 million.
Localization initiatives
In addition to the new store, Olive Young is working to strengthen its operations in the world’s largest beauty market by “localizing core features.”
First, we will move to improve logistics and delivery in the US.
Starting this year, Global Mall System will be integrated with headquarters to manage inventory in real time.
In the future, we aim to work with CJ Logistics’ US operations to establish a local logistics network by shipping products directly within the region.
It also localizes US consumer-based platforms that optimize user experience and user interfaces and localize payment methods.
Additionally, the company will now use the data it currently has to source products that meet the needs of its American customers.
Retailers believe these steps will further strengthen their online presence in the US.
