Recently, CJ Olive Young has reported a strong financial performance for the most recent fiscal year, driven by soaring global demand for K-beauty products. The South Korean beauty retailer saw its sales surge by 24 percent, reaching KRW 4.7899 trillion ($3.3 billion), while net profit climbed 35 percent to KRW 470.2 billion ($324.5 million).
According to Business Korea, the K-beauty craze has fueled the growth of Olive Young. Last year, out of 1,371 Olive Young stores nationwide, 1,264 were visited by foreign tourists, accounting for 92% of the total. Olive Young’s foreign sales also showed a 140% increase compared to the previous year, with foreigners from 189 countries making 9.42 million transactions.
In particular, the number of European customers visiting has increased significantly. Sales of Italian and Spanish customers increased 250% and 226% year-on-year last year, respectively, while France, known as a “traditional beauty powerhouse,” also rose 184%. In addition to Europe, Mexico and Turkiye, where the Korean Wave continues, increased by 400% and 340%, respectively.
It is reported that this year, it is expected to continue its growth beyond the limits of domestic demand through overseas business. It is also accelerating its entry into the U.S. market by establishing a local subsidiary, CJ Olive Young USA, in Los Angeles, California (LA) at the beginning of the year.
The establishment of a U.S. corporation will serve as a stepping stone to find new growth engines in the global market and create a sustainable K-beauty growth environment with Olive Young’s key partner, Olive Young CEO Lee Sun-jung said. “We will do our best to play the role of a ‘K-beauty growth booster’ in overseas markets so that the growth of the K-beauty industry can continue.”
