On February 4, Korean beauty retail giant Olive Young announced the establishment of its U.S. subsidiary, CJ Olive Young USA, in Los Angeles, California. This move marks a significant step in the company’s strategy to strengthen its foothold in the world’s largest beauty market.
A Strategic Base for U.S. Market Growth
Olive Young has revealed plans to launch its first offline store in the U.S. through its newly established subsidiary. While the exact location and opening date remain undecided, the company is conducting market research to optimize the shopping experience for local consumers. Additionally, Olive Young aims to enhance its logistics system to build a more stable and efficient supply chain.
An Olive Young official stated, “For now, global shipping is handled through our Anseong Center in Korea, which also manages our private-label brands. However, we are looking to establish a logistics center in the U.S. in the future to strengthen our market presence and improve convenience for consumers with a more stable supply chain. As we build such a direct shipping system, we plan to collaborate with CJ Logistics in the U.S.”
The Growth of K-Beauty and U.S. Consumer Demand
According to Korea’s Ministry of Food and Drug Safety, exports of Korean beauty products to the U.S. grew at an annual rate of over 20% between 2020 and 2023. With approximately 40% of the U.S. population consisting of beauty-conscious individuals in their teens to 30s, Olive Young sees immense potential for expansion in this region.
Additionally, market research firm Euromonitor International reported that the U.S. beauty market was valued at $120 billion in 2023, accounting for 21% of the global beauty industry, which reached $740 billion. This figure is more than ten times the total value of Korean beauty exports, which stood at $10.2 billion in the same year, underscoring the strong demand for K-beauty products.
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Expanding Through Both E-commerce and Offline Retail
Olive Young has been primarily focused on online sales, serving customers in over 150 countries worldwide. In particular, North America has been a key driver of growth, with younger consumers increasingly embracing e-commerce. The company’s Olive Young Global Mall has seen strong sales from U.S. and Canadian consumers, reflecting the region’s demand for K-beauty.
To strengthen its U.S. market presence, Olive Young plans to optimize payment systems and localize product information to create a more seamless online shopping experience. Additionally, the company aims to leverage data-driven insights to refine product offerings and enhance marketing strategies tailored to U.S. consumers.
Olive Young CEO Lee Sun-jung commented, “The establishment of our U.S. subsidiary marks a key milestone in our efforts to explore new growth opportunities in the global market alongside our partner brands while also fostering a sustainable environment for K-beauty’s continued expansion.”
Currently, Olive Young operates over 1,360 offline stores in South Korea. With this latest expansion, the company is set to strengthen its presence in the U.S. through a combination of offline retail and e-commerce, driving further growth in the global beauty market.