Launch of the First CJ Olive Young Cosmetics Store in Pasadena, CA - Why Is This A Key Catalyst?
The launch of the first CJ Olive Young cosmetics stores in Pasadena, California, could serve as a positive catalyst for the Korean cosmetics industry/CJ Corp for two key reasons.
First, nearly 80%+ of the cosmetic brands that are sold at the Olive Young stores will be Korean cosmetic brands (especially from SMEs).
Second, CJ Corp owns a 51.2% of CJ Olive Young. A successful expansion of Olive Young stores in the U.S. will have a major positive impact on CJ Corp.
Source: Mediheal, Olive Young
The launch of the first CJ Olive Young cosmetics stores in Pasadena, California, could serve as a positive catalyst for the Korean cosmetics industry/CJ Corp (001040 KS) for two key reasons. [Note: CJ Olive Young is the name of the company that operates the “Olive Young” health and beauty (cosmetics) stores.]
First, nearly 80%+ of the cosmetic brands that are sold at the Olive Young stores will be Korean cosmetic brands (especially from SMEs). Therefore, if Olive Young stores become popular in the U.S. and expand into many stores across the U.S., this will positive impact many Korean cosmetic companies.
Second, CJ Corp (001040 KS) is the controlling shareholder (51.2%) of CJ Olive Young. Therefore, successful expansion of Olive Young stores in the U.S. will have a major positive impact on CJ Corp.
CJ Olive Young plans to open its first US offline store (Olive Young) in Pasadena, California on 29 May.
Olive Young has about 1,400 health and beauty stores in Korea. Olive Young is the largest dominant health and beauty (H&B) store franchise in Korea. The Olive Young store in Pasadena store will carry around 5,000 products from approximately 400 cosmetics and wellness brands, featuring a mix of popular Korean beauty labels, brands already gaining traction in North America and global products tailored to local consumer preferences.
It is estimated that more than 80% of these will be filled with domestic small and medium-sized K-beauty (Korean beauty) brands. Coinciding with the store’s opening, the company will launch a dedicated US online mall as part of its omnichannel expansion strategy.
Dedicated testing zones will allow customers to try products such as cleansers, toner pads and sunscreens before purchase. Olive Young will also offer customized beauty services, including skin and scalp analysis and consultations on K-beauty skin care routines. The platform will provide free shipping on orders above $35, while delivery times will be cut roughly in half (from the current five to seven business days) through the use of a local logistics center in Bloomington, California.
Olive Young said it plans to initially focus on expanding offline stores across western US markets, including Los Angeles and broader California, before moving into major commercial districts in southern and eastern regions such as New York.
CJ Olive Young USA has committed to opening four experiential standalone stores, with locations rolling out sequentially. Pasadena, CA is the first official U.S. brick-and-mortar location. The company plans to open other stores in these locations afterwards (Westfield Century City (Los Angeles), CA, Del Amo Fashion Center (Torrance), CA, and an additional fourth site in California). CJ Olive Young wants to solidify their presence in California before expanding to East Coast markets like New York.
How Many Stores in 5 Years? Although it is a bit too early to estimate how many Olive Young stores there will be in the US in the next 5 years but I think given the strong demand for Korean cosmetics, there could be 50-100+ Olive Young stores in the United States in the next 5-7 years. This may be on the conservative side given Ulta Beauty already has 1,500 stores.
For the K-beauty products to be displayed at the first Olive Young store in Pasadena, brands that have achieved success in domestic offline stores and global distribution channels will be prominently featured. Representative brands include Mediheal, Biodance, Anua, and Torriden in skincare; Romand and Puy in color cosmetics; Mise en Scène and Anov in haircare; and Inner and Foodology in wellness.
