According to the firm, sales of premium products at Olive Young have grown at an average annual rate of 36% from 2021 to 2022.
The sales were driven by younger consumers, namely millennials and Gen Zs, who are emerging as the driving force of the luxury market, said the firm.
Previously, CosmeticsDesign-Asia has reported that economic fears were not deterring young Korean consumers from purchasing high-end niche fragrances.
South Korean retailer Shinsegae reported that 80% of consumers purchasing luxury fragrances such as Byredo and Diptyque were millennials and generation Z.
A new beauty destination
Luxe Edit will retail over 30 domestic and foreign brands, including Hera, Estee Lauder, and THREE.
The introduction of Luxe Edit will also mark the debut of seven brands, including care brands such as BeginS, Olaplex, and Philip B.
The company said it was aiming to find emerging brands in the high-end segment from the domestic and international markets to further capitalise on this opportunity.
It also said it was looking for brands in all categories, from skin care and makeup to hair and fragrances.
“Olive Young aims to provide newness by further expanding its premium cosmetics line-up in response to the demand of millennials and Gen Z customers who want to find various brands in one place.”
The company, which operates the leading health and beauty retail brand Olive Young, marked announced the launch of Luxe Edit on July 17.
It debuted Luxe Edit online and has plans to unveil physical touchpoints at “major stores” nationwide.
Tapping into tourism
This news comes as tourism returns to South Korea.
In addition to traditional tourists locations like Myeong-dong, Dongdaemun, and Hongdae, Olive Young has noted rising potential in areas such as Seongsu and Apgujeong-dong.
The latter two are considered Gen Z hotspots for beauty, fashion and food.
In line with this, the company has partnered with national airline Korean Air to create a limited-edition beauty set to promote the launch of Luxe Edit.
Limited to 10,000 units, the set contains travel goods such as a sleep mask, and vouchers from Luxe Edit and Korean Air.
The company partnered with Korean Air to reach millennials and Gen Zs, who have a growing interest in travel.
It added that it plans to collaborate with Korean Air to develop products.
In addition to this campaign, the brand has pushed online marketing activities, including a mobile live broadcast with special promotions and giveaways.
