CJ Olive Young Establishes U.S. Subsidiary 

 

On February 4, 2025, CJ Olive Young officially established its U.S. subsidiary, 'CJ Olive Young USA,' in Los Angeles, California. 

 

This strategic move aims to secure new growth opportunities in the world's largest beauty market. 

 

The company is reviewing multiple locations for its first offline store in the U.S.. It plans to collaborate with CJ Logistics to build a robust distribution network. 

 

CJ Olive Young's Growth Overview 

 

Despite COVID-19 challenges in the K-beauty industry, CJ Olive Young has shown steady growth over the past three years. 

 

Number of Stores: 

2023: 1,338 stores 

2022: 1,298 stores 2

021: Approximately 1,250 stores (estimated) 

 

Revenue Performance: 

2024: Expected to reach KRW 5 trillion 

2023: KRW 3.52 trillion (cumulative revenue for Q3) 

2022: Estimated at KRW 3 trillion 

 

As of Q3 2023, CJ Olive Young's revenue grew 25.8% year-over-year, with projections indicating annual revenue approaching KRW 5 trillion by 2024. 

 

Expected Strategies for U.S. Market Entry 

 

CJ Olive Young's U.S. expansion strategy encompasses: 

 

K-Lifestyle Store Positioning: The company plans to create a differentiated 'K-lifestyle' store concept beyond traditional K-beauty. 

Localization Strategy: Through partnerships with CJ Logistics and CJ ENM, the company will localize product sourcing, marketing, and logistics systems. 

Building a Logistics System: A direct delivery system will be established through CJ Logistics to optimize efficiency. 

Omnichannel Strategy: Building its successful 'Today Dream' service in Korea, the company will implement integrated online-offline shopping, real-time inventory tracking, and experiential store designs. 

UX/UI Optimization: The company will develop an intuitive interface tailored for U.S. consumers. 

Localization will include comprehensive product information, streamlined displays, and preferred payment options. 

These strategies aim to establish CJ Olive Young as a leading K-beauty platform in the U.S. market. 

 

Pros and Cons of U.S. Market Expansion 

 

Key considerations for CJ Olive Young's expansion include: 

 

Advantages: 

Strong positioning as a K-beauty platform 

Extensive experience in global e-commerce 

Expertise in merchandising and customer experience innovation 

 

Challenges: 

High operational costs 

Need to adapt to local regulations 

Strong competition from established U.S. and global beauty brands 

Past failures in overseas expansions 

 

Potential Collaboration with KCON 

A partnership with KCON appears highly likely, supported by existing joint initiatives and several key factors: 

 

Synergy Effect: Industry experts see KCON's K-pop concerts as an ideal marketing platform, combining the appeal of K-beauty and K-pop. 

 

K-Lifestyle Positioning: Success in the U.S. requires expanding beyond K-beauty to embrace broader K-lifestyle trends, which KCON naturally supports. 

 

CJ Group's Internal Collaboration: As CJ Group subsidiaries, CJ Olive Young and CJ ENM can leverage natural corporate synergies. 

 

Maximized Marketing Impact: KCON's large K-pop fan base offers direct access to potential customers and increased brand visibility. 

 

Differentiation Strategy: In the competitive U.S. H&B market, a KCON partnership would provide a unique market positioning. 

 

These factors make a CJ Olive Young-KCON partnership a compelling strategy for U.S. market entry. 

 

Final Outlook on CJ Olive Young's U.S. Expansion 

 

While CJ Olive Young's U.S. expansion could accelerate K-beauty's global reach, success hinges on effective market adaptation and strategic execution in the world's largest beauty market. 

 

A well-executed expansion could both strengthen CJ Olive Young's global market position and establish a blueprint for future international ventures.