CJ Olive Young is strengthening its differentiated product competitiveness by entering the branded goods business following its private-label (PB) beauty brands. The company is expanding its brand value through its own products and experiences, rather than remaining merely a platform that distributes K-beauty products.
According to industry sources, Olive Young first introduced its brand goods in March at "Olive Young Central Myeongdong Town" in Jung-gu, Seoul. The lineup consists of a total of 10 items: two Daily Beauty Organizers, two Daily Tote Bags, three Iconic Shoulder Bags and three Iconic Flat Pouches.
The company is rapidly expanding its sales channels, centered on key stores with a high proportion of foreign tourists, such as Olive Young N Seongsu, Central Gangnam Town and the Gwangjang Market store, as well as its own global mall. At its first U.S. store, "Pasadena," which opened late last month, the company prominently displayed its brand goods to begin its overseas sales in earnest.
Foreign customers have responded enthusiastically. Sales at some stores and on the global mall increased more than 80% in the second week compared with the launch week. Of customers who bought brand goods at Central Myeongdong Town, 85% were foreign tourists. The company explained that interest is growing to the point where searching "Olive Young" on the global mall now displays "Olive Young goods" as a related search term. Cases also emerged of customers buying the same product in different colors or purchasing multiple items at once.
Olive Young plans to expand its product lineup and launch more than 20 new goods annually going forward. "As the culture of purchasing and collecting products related to one's favorite brands has recently spread, we designed these so customers can keep their Olive Young visit experience as goods," an Olive Young official said. "We will continue to introduce various brand goods that reflect seasonal concepts and brand identity."
Its growth is also notable, centered on overseas markets. Sales of seven PBs exported to Japan have grown by an annual average of about 60% over the past five years. Over the same period, the company recorded an annual average growth rate of 162% in the United States. Sales in the Southeast Asia region also surged more than 300% in the first half of last year compared with the same period a year earlier. In February, the company signed a partnership with Polish beauty distributor "Gabona," accelerating its push into Europe as well.
The tarpaulin bag that Olive Young previously introduced at stores in global tourist districts established itself as a must-have item for verifying a trip to Korea. As word spread based on its scarcity and practicality, cumulative sales surpassed 300,000 units as of last September, just eight months after its launch. It drew strong interest from foreign tourists as a way to commemorate a visit to Olive Young, considered an essential stop on a trip to Korea.
The industry views this move as an extension of the PB strategy that Olive Young has cultivated with great effort over several years. Analysts say the brand recognition and customer loyalty built up by proving product competitiveness through its PBs are now leading to goods consumption. Olive Young currently operates a total of 14 in-house beauty brands, including Biohealboh, Wakemake, Bring Green, Colorgram and Fillimilli. It recently introduced the wellness platform "Olive Better" and also launched a new PB for snacks and health foods, "All the Better."
