Six years after its exit, Olive Young may be preparing to re-enter the Chinese market.
CHAILEEDO has noted that recent reports from overseas media suggest the South Korean government may strongly support Olive Young in reopening offline stores in China, with the intention of positioning it as a “platform-style container.” This would allow a large number of small and mid-sized Korean beauty brands to enter the Chinese market collectively and collaboratively, thereby reducing the overall cost for individual brands to expand into China.
If Olive Young does return to China, however, can it still secure a foothold in the offline retail market today?
Recently, media reports indicated that at the “2026 Economic Growth Strategy—The First Year of a Leap for the Korean Economy” national briefing held at the Blue House, several Korean officials explicitly stated during discussions that it is necessary to reinvigorate Korea’s beauty industry presence in the Chinese market. Whether Olive Young—the country’s largest health and beauty retail platform—would re-enter China was singled out as one of the key topics.
At the briefing, South Korea’s Minister of Trade, Industry and Energy, Kim Jung-kwan, shared insights from his recent visit to China, noting that he had held discussions with multiple parties regarding expansion strategies for Korean companies in the Chinese market. During these exchanges, companies consistently highlighted three major challenges: first, difficulties in adapting marketing and distribution channels to the Chinese market; second, high barriers related to product registration and certification; and third, the lack of a comprehensive platform capable of supporting the collective entry of small and mid-sized beauty brands into China.
Against this backdrop, Kim stated directly during the briefing that he hoped retail platforms like Olive Young would enter the Chinese market. Compared with individual brands entering China independently, he argued that the market is in greater need of a “platform-style container” that can support the collective participation and coordinated advancement of numerous Korean SMEs, thereby effectively lowering the overall cost of market entry for individual brands.
Kim further emphasized that China remains an unavoidable and critical overseas market for Korean consumer goods—particularly beauty and food—given its scale, which now rivals major overseas markets such as Germany and Japan. “What is needed is a platform capable of carrying Korean small and mid-sized brands overseas together,” he said.
He also expressed hope that leading retail platforms like Olive Young would take a more proactive role in expanding into emerging and developing markets in the future—such as recommitting to China—rather than focusing overseas expansion primarily on relatively mature markets like the United States.
Kim’s remarks also referenced another Korean fashion e-commerce platform, Musinsa, which has already entered the Chinese market. Following an on-site inspection, he noted that the entry of comprehensive platforms like Musinsa into China can significantly enhance Korean companies’ participation and activity in the local market.
At the same briefing, Han Sung-sook, Minister of SMEs and Startups, shared successful cases of promoting K-Beauty brands in China. She pointed out that hosting K-Beauty pop-up stores and on-site sales events not only increased brand exposure but also generated immediate sales feedback. Such direct-to-consumer engagement models were seen as highly meaningful for brand internationalization and further underscored the considerable potential that the Chinese market still holds.
Notably, Olive Young CEO Lee Sun-jung (transliteration) formally proposed during the event that the government establish a more efficient, integrated support system to help small and mid-sized K-Beauty brands overcome multiple overseas expansion challenges, including exports, certification, marketing, and channel development. She emphasized that approximately 80% of Olive Young’s platform sales come from SME brands, which commonly face systemic barriers and fragmented resources when expanding abroad, making coordinated support from both public and private sectors urgently necessary.
Taken together, these statements suggest that the South Korean government is reassessing the importance of the Chinese market and attempting to further intensify its beauty industry’s presence there through collaboration between platform companies and public institutions. As a “national-level” beauty retailer in Korea, whether Olive Young will choose to return to China in the near or medium term has clearly entered the policy discussion agenda.
Looking back at Olive Young itself, its growth trajectory is deeply intertwined with the rise of Korea’s beauty industry. As early as 1999, CJ Group opened the first Olive Young offline store in Sinsa-dong, Gangnam, Seoul, marking the brand’s official debut.
At the time, Korea’s beauty industry was transitioning from a department-store-counter-driven premium market toward mass-market beauty. Centered on the philosophy “All live young with Olive Young,” the brand introduced the “H&B store” (health and beauty store) concept to Korea for the first time, breaking down the previously fragmented consumption scenarios between pharmacies, beauty stores, and supermarkets. This innovation created a new retail model and provided emerging local brands—such as Dr.Jart+ and CNP, which later became international brands—with a platform to reach consumers.
Over nearly 30 years of development, Olive Young has evolved beyond a simple sales channel, gradually forming a channel-centric, brand-growth-oriented operating system, earning it the reputation of a “brand incubator.” Around 2010, as major conglomerates such as Amorepacific and LG Household & Health Care reduced or withdrew their supply, Olive Young faced structural pressure from an imbalanced shelf mix. Against this backdrop, its systematic discovery and support of domestic SME brands shifted from a stopgap measure to a core competency.
By continuously adapting to market changes, Olive Young’s growth momentum has been particularly notable in recent years. Public data show that its sales surpassed KRW 1 trillion as early as 2016, reached KRW 2 trillion in 2021, approached KRW 3.8 trillion in 2023, and further grew to approximately KRW 4.8 trillion in 2024—up about 24% year-on-year and marking a record high.
Importantly, this growth has not been driven by a small number of international giants. According to Olive Young, in 2025, a total of 116 K-Beauty brands across its offline stores and online platforms each recorded annual sales exceeding KRW 10 billion, compared with only 36 such brands in 2020. In just five years, the number of “KRW 10 billion brands” has more than tripled, forming the core support of Olive Young’s sales structure.
At the same time, brand tiering within the platform has become increasingly clear. In 2025, six brands achieved annual sales exceeding KRW 100 billion: Dr.G, d’Alba, Round Lab, MEDIHEAL, CLIO, and Torriden (listed alphabetically). Among them, MEDIHEAL became the first brand within the Olive Young ecosystem to surpass KRW 200 billion in annual sales, while expanding its product portfolio from sheet masks to multiple skincare subcategories such as toner pads.
In the domestic offline market, as of the first half of 2025, Olive Young operated 1,393 stores across South Korea, including 122 officially designated “tourist stores” located in high-traffic areas for foreign visitors such as Myeong-dong, Seongsu, Hongdae, and Apgujeong. These stores are equipped with multilingual staff, instant tax refunds, and dedicated tourist zones.
While consolidating its home market, Olive Young has also extended its channel capabilities to broader overseas markets. Financial data show that from January to November 2025, overseas tourists’ spending at Olive Young’s offline stores in Korea exceeded KRW 1 trillion (approximately RMB 4.82 billion), accounting for more than 25% for the first time, making cross-border consumption a key growth driver.
On the overseas online front, Olive Young launched its Global Mall in 2019, offering cross-border e-commerce services to more than 150 countries and regions. By the first half of 2025, overseas online sales had grown by about 70% year-on-year, with the United States becoming its largest single market.
In terms of overseas offline expansion, Olive Young entered the Middle Eastern Life Pharmacy network in 2023 and plans to open its first physical stores in Los Angeles in 2026, aiming to replicate its proven Korean retail model abroad.
However, compared with its performance in Korea and some overseas markets, Olive Young’s operations in China have been far less successful. According to China’s National Enterprise Credit Information Publicity System, one of its main operating entities in China—CJ Olive Young (Shanghai) Trading Co., Ltd.—has already been deregistered.
Public information shows that Olive Young officially entered mainland China in 2013 and once operated around 12 offline stores. From 2016 onward, however, its offline business in China gradually contracted, with stores closing one after another. CHAILEEDO’s review of the registry indicates that all offline stores previously registered under CJ Olive Young (Shanghai) Trading Co., Ltd. have been deregistered, with the last one—the Wuxi Renmin Road store—closing in 2020.
Even during its offline operations in mainland China, industry observers had pointed out that Olive Young’s China strategy neither fully replicated its successful Korean model nor sufficiently adapted to local consumer conditions, planting hidden risks for its subsequent development.
After withdrawing from offline retail in China, Olive Young maintained limited operations through select online channels. It previously operated an official flagship store on Tmall, which was closed in 2024. Currently, it still maintains brand flagship stores and JD self-operated stores on platforms such as JD.com and Pinduoduo, while selling its private-label brand BIOHEAL through a WeChat mini-program.
CHAILEEDO has learned that BIOHEAL is currently the only brand available on Olive Young’s official WeChat mini-program. The brand is Olive Young’s private label, with technical and operational support provided by Youzan. In response to CHAILEEDO’s inquiry, a Youzan representative confirmed that “Olive Young has partnered with Youzan for four years, with Youzan currently responsible mainly for after-sales service and routine system maintenance.”
This suggests that although Olive Young exited China’s offline market, it has not fully abandoned its online presence. Nevertheless, its financial performance in China remains concerning. According to overseas media reports, CJ Olive Young (Shanghai) Trading Co., Ltd. recorded a sharp year-on-year decline in sales in 2023 and has remained loss-making for several consecutive years, with cumulative net losses of approximately KRW 16 billion. During the same period, its total assets and liabilities stood at KRW 3.4 billion and KRW 10.5 billion, respectively, resulting in negative equity of KRW 7.1 billion.
It should be noted that in addition to the deregistered CJ Olive Young (Shanghai) Trading Co., Ltd., another entity—CJ (Shanghai) Cosmetics Trading Co., Ltd.—is still in operation.
According to overseas media, CJ (Shanghai) Cosmetics Trading Co., Ltd., established in 2023, recorded losses in its first year, with sales of KRW 2.1 billion and a net loss of KRW 500 million. At the time, an Olive Young representative stated that “the company’s business in China is still at an early stage, but overall sales have already improved.”
Despite supportive signals from the Korean government, re-entering China will not be easy for Olive Young. Multiple industry sources told CHAILEEDO that “compared with Olive Young’s previous attempts in China, returning now would actually be more difficult.”
A veteran industry insider specializing in K-Beauty noted that Olive Young’s earlier exit from China had already exposed a degree of “misalignment” when competing with local Chinese retail chains.
The insider added that China’s consumer environment has changed significantly since then. While many retail markets still appear vibrant on the surface, operational data are under pressure, and consumption structures are undergoing rapid adjustment—objectively raising the threshold for foreign retail platforms seeking to re-enter the market.
This trend is particularly evident in the performance of beauty retail chains. In recent years, brands such as Mannings and Sa Sa have exited the Chinese market, widely viewed as clear signals of offline retail stress. Meanwhile, Watsons has continued to downsize its store network in China. According to CK Hutchison Holdings’ 2025 interim report, Watsons Group recorded a net reduction of 145 stores in mainland China in the first half of last year, primarily due to the closure of low-traffic and underperforming locations, with its store count significantly lower than in 2021.
Against this pressured retail environment, K-Beauty brands have also struggled overall in China. Approximately 80% of Olive Young’s store sales come from SME brands, yet many small and mid-sized Korean beauty brands in China have faced slowing growth and channel contraction in recent years. Based on CHAILEEDO’s incomplete statistics, at least 10 K-Beauty brands have closed stores or reduced channels in China in recent years.
This reality further amplifies the challenges Olive Young faces as a platform-style retailer seeking to expand in China.
At the same time, regulatory requirements related to registration, inspection, and ingredient compliance for imported cosmetics have increased both the time and cost for K-Beauty brands entering China. An industry veteran with over 20 years of offline retail experience noted that “even if Korean beauty brands have mature experience and supply chain advantages in their home market, failure to adapt to China’s complex regulatory system will still significantly constrain their market entry pace.”
That said, Olive Young is not a traditional single-brand operator. As a platform retailer, it still warrants attention. “Much like Sa Sa in Hong Kong or Ulta Beauty in the U.S., the growth of such retail platforms is built on a long-term understanding of local consumption structures and retail logic, rather than simple channel expansion,” an anonymous distribution executive told CHAILEEDO.
From a consumer perspective, Olive Young still retains a certain level of brand awareness in China. On social platforms such as Xiaohongshu, Olive Young-related content continues to attract high engagement, with numerous “must-buy lists” generating strong interaction. A beauty brand distributor told CHAILEEDO candidly that “if Olive Young can avoid simply copying its Korean model and instead localize its product mix, channel strategy, and digital operations, there is still room for exploration in the Chinese market.”
In short, returning to China represents both an opportunity and a formidable challenge for Olive Young. Whether it can truly establish itself will depend not on policy-level support signals, but on the depth of its understanding of China’s retail landscape and consumer realities, as well as the patience and discipline of its strategic execution.
