According to its records, Olive Young said the number of brands that exceeded the 10-billion mark in annual sales grew by 38% in 2022. This is a sharp increase from 2021, when it grew by 13%.
Olive Young is a major health and beauty store retail chain by the CJ Group, one of South Korea’s largest conglomerates.
The retailer said 21 brands surpassed the milestone for the first time, and 19 were small and medium-sized brands.
Among them were men’s beauty and personal care brands, Dashu and Forment. Up and coming brands Dasique and Unove attainted this achievement within a year of debuting in Olive Young.
Olive Young said that the achievement of these brands was a testament to its ability to foster and support the domestic and international growth of K-beauty brands.
It vowed that it would continue to provide “all-weather support” to new and emerging brands and said it aimed to increase the number of 10-billion-won brands by more than 30% this year.
“The fact that the number and sales of small and medium-sized brands in Korea are increasing is a positive signal for the growth of the domestic beauty market. We will support them in various ways so that they can explore opportunities.”
Olive Young had previously highlighted the importance of smaller domestic beauty brands and said that they were key to the success of the K-beauty industry globally and integral to the success of its overseas business.
According to the firm, approximately 70% of its offerings on its global e-commerce platform, as well as Amazon, Rakuten and Tmall, were from (SMEs).
Key trends and new initiatives
This year, the retailer highlighted three key trends were influencing its plans to develop its business further.
The first was feminine care, which K-beauty brands such as Aomatica and Illiyoon have tapped into.
Late last year, Olive Young had carved out a new category, W Care, to accommodate these products and the rising interest from beauty consumers.
As the lines between health, wellness and beauty continue to intertwine, Olive Young said the demand for supplements continues growing in popularity.
It highlighted that several health food brands exceeded KRW10bn (USD7.9m) in annual sales last year.
Lastly, the retailer identified slow ageing as a new trend centred on the functional cosmetics market and plans to help develop new brands that can meet this need.
Olive Young said it would continue to expand investments in Olive Young Global, promote new brands and offer them extra support.
Additionally, it would develop its marketing activities, such as its livestreaming capabilities.
The retailer announced in July 2022 that it had refreshed its livestreaming channel to secure millennials and Gen Z beauty consumers.
According to the retailer, the average conversion rate of its livestream broadcasts was 22%, higher than the industry average.
