CJ Olive Young is making a bold move to capture a slice of the world’s largest beauty market by establishing its first U.S. subsidiary, “CJ Olive Young USA,” in Los Angeles, California, the company announced on Feb. 4.
The U.S. market holds significant potential for growth. According to global market research firm Euromonitor, the global beauty industry was valued at $570 billion in 2023, with the U.S. accounting for $120 billion — the largest share worldwide. Exports of Korean beauty products to the U.S. grew by more than 20% annually between 2020 and 2023.
To strengthen its presence, CJ Olive Young is preparing to open its first brick-and-mortar store in the U.S. The company is reviewing several potential locations. It plans to design a store that blends local consumer data from its global e-commerce platform with the successful omnichannel strategies it developed in Korea. The store will feature a variety of K-beauty brands and trends tailored to local preferences.
The company also plans to bolster its global e-commerce operations. CJ Olive Young’s online platform currently allows consumers in 150 countries to purchase K-beauty products directly. Building on its international expansion, CJ Olive Young established a Japanese subsidiary in May 2024, distributing its in-house brands directly to local consumers.
To better serve U.S. consumers, CJ Olive Young intends to localize its platform by optimizing user experiences, payment systems, and product information. The company also aims to enhance logistics stability and delivery efficiency. This year, it plans to integrate its global e-commerce platform with its Korean headquarters’ system for real-time inventory management. Additionally, it is exploring collaboration with CJ Logistics’ U.S. subsidiary to build a local distribution network for direct product shipments.
“The establishment of our U.S. subsidiary is a key step toward discovering new growth opportunities in the global market alongside our small- and medium-sized brand partners,” said CJ Olive Young CEO Lee Sun-jung. “We will continue working to serve as a growth booster for the K-beauty industry in overseas markets.”
