Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Olive Young hits $680 mil. in foreign tourist purchases
Foreign customers line up in front of an Olive Young shop in Seongsu-dong, Seongdong District. Courtesy of CJ Olive Young
By Lee Gyu-lee
International shoppers’ share of offline sales surges past 25%
CJ Olive Young reached 1 trillion won ($680 million) in purchases by visiting foreign tourists at its offline stores nationwide from January to November, establishing itself as a global K-beauty hub.
The company announced the figure on Wednesday, noting that it is roughly 26 times its annual sales in 2022, when the market was still transitioning out of the COVID-19 pandemic. The share of offline sales by foreign customers, which hovered around 2 percent in 2022, surpassed 25 percent for the first time this year after climbing into double digits in 2023.
“Achieving 1 trillion won in purchases by visiting foreigners is especially meaningful in that small and indie brands found global customers through Olive Young to accomplish this together,” an Olive Young official said.
“We will continue to make efforts to ensure that K-beauty becomes not just a trend but a reason to revisit Korea and a core element of tourism.”
The leading beauty and skin care product retailer has become a must-visit stop for travelers to Korea, as more foreign shoppers seek the latest in K-beauty trends.
From January to November, Olive Young accounted for 88 percent of all domestic cosmetics transactions processed through tax refund service provider Global Tax Free by customers from 190 countries.
According to the company’s recent report, about 40 percent of foreigners shopping at Olive Young visit two or more stores, trying multiple locations to enjoy the locations' different layouts and product displays.
With the growing trend to visit local districts in addition to famous tourist spots, foreign visitors’ itineraries are broadening, with purchases at Olive Young shops in non-capital regions such as Jeju Island, Busan and Gwangju increasing by 86.8 times, compared to 2022.
“Building town stores that serve as landmarks in commercial districts and specialized stores that reflect regional characteristics across the country was effective in attracting customers,” the official said.
Visitors browse cosmetics at an Olive Young store in Seoul, Nov. 24. Yonhap
The range of brands for their purchases is also diversifying. More than half, about 58 percent of foreigners visiting Olive Young stores, purchased six or more types of brands, while 33 percent bought 10 or more brands.
The products for a basic skin care routine — cleansing, skin care, facial masks and sunscreen — have also seen a rise in demand. In 2019, only 12,000 customers purchased all of the related products, but the number jumped to 569,000 this year.
The purchases are expanding into K-wellness as well, with a growth in health care-related product sales. From January to October, health care-related items and wellness food increased by 45 percent and 42 percent, respectively, compared to the same period last year.
The company’s strategy to designate foreign visitor-populated areas as global tourism districts has played a key role in shaping K-beauty shopping trends.
Since reopening its Myeong-dong shop as a foreigner-friendly location in 2023, the company has been rolling out products, services and spaces tailored to satisfy global customers, establishing a dedicated team for the strategy.
Nationwide, the company expanded foreign language speaking staff, experiential beauty services, easy payment options and dedicated spaces showcasing popular items at a glance. As of last month, the number of stores in global tourism districts reached 135, more than double the 60 from the previous year.