OLIVE YOUNG Sees First SME Brand Surpass KRW 100 Billion in Annual Sales, Led by K-Beauty SMEs

press release

OLIVE YOUNG Sees First SME Brand Surpass KRW 100 Billion in Annual Sales, Led by K-Beauty SMEs

2024.02.06

5min

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OLIVE YOUNG reported that its KRW 10 Billion Club grew 30% year over year in 2023, with Korean SMEs accounting for 51% of member brands. CLIO and ROUND LAB reached the KRW 100 billion annual sales milestone, while seven Korean SMEs ranked among its top 10 brands by sales; the retailer also plans to invest approximately KRW 300 billion over three years to support emerging brands and overseas expansion.

OLIVE YOUNG is reaffirming its role as a K-beauty incubator, helping emerging Korean beauty brands and small and medium-sized enterprises (SMEs) grow into successful businesses.

CJ OLIVE YOUNG announced that the number of brands sold through its platform that generated annual sales of at least KRW 10 billion in 2023—a group known as the “KRW 10 Billion Club”—increased by 30% year over year. Last year also marked the first time an SME brand surpassed KRW 100 billion in annual sales at OLIVE YOUNG. The two brands to reach this milestone were CLIO, known for its color cosmetics, and ROUND LAB, recognized for its sunscreens.

Notably, domestic SME brands accounted for more than half of the KRW 10 Billion Club. In 2023, Korean SMEs represented 51% of brands generating at least KRW 10 billion in annual sales at OLIVE YOUNG, up significantly from 39% in 2020, the first year of the pandemic.

SME brands have also gained a larger share of sales at OLIVE YOUNG. In 2020, only four of the retailer’s top 10 brands by sales were Korean SMEs. By last year, that number had risen to seven, with emerging and small to mid-sized K-beauty brands including CLIO, Dr.G, MEDIHEAL, numbuzin, rom&nd, ROUND LAB, and Torriden (listed alphabetically) outperforming major domestic and international brands to rank among OLIVE YOUNG’s bestsellers.

These brands have grown by leveraging OLIVE YOUNG’s extensive retail network of more than 1,300 offline stores nationwide, alongside its online shopping platform and same-day delivery service. OLIVE YOUNG also helps shape K-beauty trends through seasonal campaigns and its flagship O.Y Sale, held every March, June, September, and December. As a result, securing a place at OLIVE YOUNG is widely regarded in Korea’s cosmetics industry as an important milestone, not only for building brand awareness and driving sales but also for making an entry into global markets.

Torriden, a skincare brand that joined OLIVE YOUNG in 2019, achieved rapid growth by building consumer awareness as part of the retailer’s OLIVE YOUNG Clean Beauty initiative, which highlights products formulated without ingredients considered harmful to human health. After joining the KRW 10 Billion Club for the first time in 2022, Torriden quadrupled its sales at OLIVE YOUNG last year. numbuzin, which entered the platform in 2021, has also grown rapidly by expanding its product categories and launching curated product sets. Its sales at OLIVE YOUNG more than tripled over the past year.

New additions to the KRW 10 Billion Club included REJURAN, MEDIPEEL, Ariul, and ilso in skincare, and COSNORI, fwee, and hince in color cosmetics. In the men's care and personal care categories, which include hair and body care, OBgE and Healingbird, respectively, also joined the group.

OLIVE YOUNG aims to continue shaping beauty trends and expanding the K-beauty industry this year. The retailer plans to introduce more consumers to slow-aging, a functional skincare category it highlighted last year, while broadening its selection of brands and products in inner beauty, which includes ingestible beauty supplements such as collagen and glutathione.

OLIVE YOUNG recently announced that it would invest approximately KRW 300 billion over the next three years, beginning this year, in a shared-growth initiative to build a sustainable and healthy K-beauty industry ecosystem. Through the initiative, the company plans to provide step-by-step support throughout the business process—from product planning and research and development (R&D) to sales and marketing—helping emerging brands get their start and expand into overseas markets.

“OLIVE YOUNG will further strengthen its commitment to shared growth by providing multifaceted support to help emerging brands build on their success at OLIVE YOUNG, grow their businesses, and expand into overseas markets, where they can further strengthen their competitiveness,” an OLIVE YOUNG spokesperson said.

OLIVE YOUNG is reaffirming its role as a K-beauty incubator, helping emerging Korean beauty brands and small and medium-sized enterprises (SMEs) grow into successful businesses. CJ OLIVE YOUNG announced that the number of brands sold through its platform that generated annual sales of at least KRW 10 billion in 2023—a group known as the “KRW 10 Billion Club”—increased by 30% year over year. Last year also marked the first time an SME brand surpassed KRW 100 billion in annual sales at OLIVE YOUNG. The two brands to reach this milestone were CLIO, known for its color cosmetics, and ROUND LAB, recognized for its sunscreens. Notably, domestic SME brands accounted for more than half of the KRW 10 Billion Club. In 2023, Korean SMEs represented 51% of brands generating at least KRW 10 billion in annual sales at OLIVE YOUNG, up significantly from 39% in 2020, the first year of the pandemic. SME brands have also gained a larger share of sales at OLIVE YOUNG. In 2020, only four of the retailer’s top 10 brands by sales were Korean SMEs. By last year, that number had risen to seven, with emerging and small to mid-sized K-beauty brands including CLIO, Dr.G, MEDIHEAL, numbuzin, rom&nd, ROUND LAB, and Torriden (listed alphabetically) outperforming major domestic and international brands to rank among OLIVE YOUNG’s bestsellers. These brands have grown by leveraging OLIVE YOUNG’s extensive retail network of more than 1,300 offline stores nationwide, alongside its online shopping platform and same-day delivery service. OLIVE YOUNG also helps shape K-beauty trends through seasonal campaigns and its flagship O.Y Sale, held every March, June, September, and December. As a result, securing a place at OLIVE YOUNG is widely regarded in Korea’s cosmetics industry as an important milestone, not only for building brand awareness and driving sales but also for making an entry into global markets. Torriden, a skincare brand that joined OLIVE YOUNG in 2019, achieved rapid growth by building consumer awareness as part of the retailer’s OLIVE YOUNG Clean Beauty initiative, which highlights products formulated without ingredients considered harmful to human health. After joining the KRW 10 Billion Club for the first time in 2022, Torriden quadrupled its sales at OLIVE YOUNG last year. numbuzin, which entered the platform in 2021, has also grown rapidly by expanding its product categories and launching curated product sets. Its sales at OLIVE YOUNG more than tripled over the past year. New additions to the KRW 10 Billion Club included REJURAN, MEDIPEEL, Ariul, and ilso in skincare, and COSNORI, fwee, and hince in color cosmetics. In the men's care and personal care categories, which include hair and body care, OBgE and Healingbird, respectively, also joined the group. OLIVE YOUNG aims to continue shaping beauty trends and expanding the K-beauty industry this year. The retailer plans to introduce more consumers to slow-aging, a functional skincare category it highlighted last year, while broadening its selection of brands and products in inner beauty, which includes ingestible beauty supplements such as collagen and glutathione. OLIVE YOUNG recently announced that it would invest approximately KRW 300 billion over the next three years, beginning this year, in a shared-growth initiative to build a sustainable and healthy K-beauty industry ecosystem. Through the initiative, the company plans to provide step-by-step support throughout the business process—from product planning and research and development (R&D) to sales and marketing—helping emerging brands get their start and expand into overseas markets. “OLIVE YOUNG will further strengthen its commitment to shared growth by providing multifaceted support to help emerging brands build on their success at OLIVE YOUNG, grow their businesses, and expand into overseas markets, where they can further strengthen their competitiveness,” an OLIVE YOUNG spokesperson said.