One of the most visited areas by foreign tourists is Myeongdong, a vibrant shopping district filled with everything from cosmetics to fashion and flagship stores. Myeongdong, which once saw an influx of Chinese tourists, is now dominated by Japanese tourists along with visitors from other nations. This shift highlights the growing international interest in South Korean culture, fueled by K-pop and K-beauty.
Despite Myeongdong’s appeal to tourists, locals often prefer the convenience of Olive Young stores closer to home or online shopping, which offers next-day delivery. I’ve also noticed how easy it is to find beauty products in South Korea compared to other countries. For instance, during my travels in Spain, I had to travel far just to get the cosmetics I wanted. In South Korea, thanks to the vast number of Olive Young stores, purchasing beauty products is incredibly convenient.
This convenience is not by chance but the result of several factors, including South Korea’s zoning policies, the rise of K-beauty. Let’s dive deeper into why Olive Young has become such a dominant force in South Korea’s retail landscape.
The Rise of Beauty Trends and Olive Young’s Revenue Boom
One of the primary reasons for Olive Young’s dominance is its ability to tap into the ever-growing K-beauty trend. As K-beauty products gain popularity both domestically and internationally, Olive Young has positioned itself as a prime destination for the latest skincare and cosmetics. The brand’s strategy of adapting quickly to consumer demands has driven significant growth.
In 2023, Olive Young’s revenue surged to 3.86 trillion won (approximately $2.88 billion), surpassing major competitors like Amorepacific and LG Household & Health Care for the first time.
This growth is attributed to a diverse product lineup, including emerging brands and health supplements, ensuring customers have access to the latest beauty trends.
Moreover, Olive Young’s appeal extends beyond South Korean borders, attracting a substantial number of foreign tourists. Stores in popular areas such as Myeongdong and Gangnam are frequented by international visitors eager to experience K-beauty. In fact, the number of foreign customers nearly doubled in 2023 further contributing to the chain’s success.
Key facts about Olive Young stores
1. Number of Stores:
- As of 2023, Olive Young operates 1,338 physical stores across South Korea. These stores are strategically located in both high-traffic areas such as Myeongdong and Gangnam.
2. Global Reach:
- Olive Young has expanded beyond South Korea through its global online mall, launched in 2019. As of 2023, Olive Young ships to over 150 countries, including major markets like the United States, Japan, Mexico, and the United Arab Emirates.
3. Tourist and Foreign Customer Base:
- Olive Young stores in tourist hotspots such as Myeongdong, Dongdaemun, and Gangnam are particularly popular with foreign customers. In 2023, the company reported a nearly two-fold increase in foreign customers compared to the previous year. These stores are equipped with multilingual services and product information in various languages, catering to international visitors.
4. Revenue:
- Olive Young’s revenue has seen consistent growth, with 3.86 trillion won (approximately $2.88 billion) in revenue for 2023, marking a 39% increase compared to the previous year.
5. Products and Offerings:
- Olive Young is a comprehensive health and beauty store, offering over 1,000 brands. The product mix includes popular K-beauty skincare, cosmetics, hair care, health supplements, and personal care products. They regularly feature new and trending brands, such as Round Lab, Torriden, and Numbuzin, which are favored by both local and international customers.
6. Innovation in Services:
- Olive Young has also enhanced its omnichannel services by offering same-day delivery and in-store pickup options for online orders. This has significantly contributed to its growth, especially during the COVID-19 pandemic when online shopping became a crucial sales channel.
South Korea’s “Near Living Facility” System and Its Role
A significant factor behind Olive Young’s widespread presence is South Korea’s unique zoning system, known as Near Living Facility. This system allows small commercial businesses like convenience stores, cafes, and beauty shops to operate close to residential areas, providing easy access to everyday products.
In South Korea, Near Living Facility includes a wide range of small businesses such as supermarkets, convenience stores, pharmacies, cafes, and salons. These facilities are designed to enhance convenience in densely populated areas, allowing residents to meet their daily needs within walking distance. Convenience stores in particular play a major role, many of which operate 24/7, making it easy for people to access goods at any time. This setup contrasts sharply with many Western countries.
In Europe or North America, for example, commercial areas are often more separated from residential zones. Large supermarkets or shopping centers tend to be located outside residential areas, meaning residents often need to drive to make routine purchases. In contrast, South Korea’s Near Living Facility zoning allows for a much higher density of small commercial outlets, ensuring that people can easily access essential services near their homes.
Japan is one country that shares a similar system with South Korea. Convenience stores are equally prevalent, offering quick access to a wide range of products.
Jake