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CJ Olive Young set to enter Japan on K-beauty wave
CJ Olive Young's store in Korea / Courtesy of CJ Olive Young
By Ko Dong-hwan
CJ Olive Young CEO Lee Sun-jung / Courtesy of CJ Olive Young
CJ Olive Young plans to enter the Japanese retail beauty products market as Korean cosmetic products become increasingly popular in Japan, the country's largest beauty product retailer said Friday.
The beauty product arm of CJ Group will establish a subsidiary in Japan within the first half of this year to make the country a base for its global expansion.
The company said Japan was selected for its proximity to Korea and similarity in consumption trends.
Olive Young, which has been a popular destination among tourists coming to Korea, has already begun exporting its private brand (PB) products, including skin care brand Bio Heal BOH and cosmetic brand Wakemake, to Japan in 2020, confirming the potential for the company's success in the Japanese market.
The company's sales in the country have been increasing by 125 percent on average each year, with a jump of 76 percent in sales in the first quarter of this year compared to the same period the previous year.
Japan, according to the company, holds great significance for its PB business.
The PB market is one of the company's two-track strategies for its global business. The other is its online shopping platform, Olive Young Global Mall, which is currently available in 150 countries.
"The K-beauty industry recently grew with the country's small-to-medium-size (SME) companies and indie brands," a company official said. Their products are gaining attention from global consumers, most notably the United States and Japan.
"Our global market expansion will allow the SMEs and indie brands we curate and sell to promote themselves to broader global regions," the official added.
The company this weekend will set up a promotional booth for Japanese consumers around ZOZO Marine Stadium in Chiba, Japan, where KCON Japan 2024 will take place from Saturday to Sunday.