CJ Olive Young is strengthening its independent product competitiveness by expanding into branded goods, following its private-label (PB) beauty brands. The move is seen as a strategy to monetize accumulated brand assets as the company evolves beyond a simple K-beauty distribution platform into a seller of its own products and experiences.
According to industry sources Wednesday, Olive Young has been expanding its sales channels after launching branded goods such as shoulder bags and pouches in March at "Olive Young Central Myeongdong Town" in Jung-gu, Seoul. The goods are currently sold at stores with a high proportion of foreign tourists, including Olive Young N Seongsu, Central Gangnam Town and the Gwangjang Market store, as well as on the company's global online mall.
The company also began full-scale overseas sales by introducing branded goods at its first U.S. store, the Pasadena location, which opened late last month. The product lineup totals 10 items: two Daily Beauty Organizers, two Daily Tote Bags, three Iconic Shoulder Bags and three Iconic Flat Pouches.
The response among foreign customers has been strong. Sales at some stores and on the global mall increased more than 80% in the second week compared with the launch week. The company explained that interest has grown to the point where searching "Olive Young" on the global mall surfaces "Olive Young goods" as a related search term. Cases of customers buying the same product in different colors or purchasing multiple items at once have also emerged.
Olive Young plans to expand its product lineup and release more than 20 new goods annually. "As the culture of purchasing and collecting products related to one's favorite brands has spread recently, we designed the goods so that customers can keep the differentiated Olive Young visit experience as collectibles," an Olive Young official said. "We will continue to introduce a variety of branded goods reflecting seasonal concepts and brand identity."
This is analyzed as an extension of the PB strategy that Olive Young has carefully cultivated over several years. The brand awareness and customer loyalty built up by proving product competitiveness through PB are now translating into goods consumption. Olive Young currently operates a total of 14 private beauty brands, including Biohealboh, Wakemake, Bring Green, Colorgram and Fillimilli. It recently introduced the wellness platform "Olive Better" and also launched a new snack and health-food PB called "All the Better."
Olive Young's PB brands are delivering visible results, mainly overseas. Sales of seven PB brands exported to Japan have grown by an annual average of about 60% over the past five years. During the same period, they recorded an annual average growth rate of 162% in the United States. Sales in Southeast Asia also surged more than 300% year-on-year as of the first half of last year. In February, the company signed a partnership with Polish beauty distributor "Gabona," accelerating its push into Europe.
