K-beauty is growing rapidly in the US and Japanese markets. CJ Olive Young has opened its second offline store in Los Angeles (LA), California, to expand its distribution base in the United States, while in Japan major Korean brands are increasingly entering mainstream local distribution channels such as drugstores and convenience stores.

On the 13th (local time), CJ Olive Young announced that it had opened its second offline store in the United States, the “Century City Store.” From the first day of opening, a waiting line of more than 100 meters formed in front of the store. Following the first US store in Pasadena, California, which opened on the 29th of last month, the Century City Store has also confirmed strong interest from local consumers.

The Century City Store, with a floor space of about 250㎡ (approximately 76 pyeong), is located in Westfield Century City, a leading mixed-use shopping mall in LA. Situated near Beverly Hills, a representative affluent area in the US West, and Rodeo Drive, a luxury shopping street, it is considered a commercial district with high inflows of high-income consumers and global tourists.

Olive Young has adopted a strategy of differentiating the characteristics of each local store in the US. While the Pasadena store serves as a flagship introducing the “Olive Young” brand identity to consumers in their 20s and 30s who are highly interested in K-beauty, the Century City store is positioned as an expansion-type outlet that promotes K-beauty to premium consumers and global customers. CJ Olive Young plans not only to sell products in the US market but also to strengthen its role as a platform where local consumers can compare and experience K-beauty brands in one place.

As K-beauty has recently drawn attention from global consumers, the number of Korean small and indie brands entering the US market is also increasing. In April, Landing International newly placed 17 K-beauty brands, including “COSNORI,” “MENOKIN,” and “HAIRPLUS,” on Ulta Beauty Marketplace, the online platform of US distribution chain Ulta Beauty. Through this listing, K-beauty brands will be able to reach US consumers quickly via Ulta Beauty’s online channel even before entering its offline stores.

In the Japanese market, the spread of K-beauty is also notable. Major Korean brands are strengthening their presence in Japan, backed by proven product competitiveness and local word-of-mouth.

Shinsegae International’s beauty brand VIDIVICI announced on the 14th that it has confirmed entry into 60 stores of Ainz & Tulpe, Japan’s leading premium beauty select shop; 20 stores of Shop In, a lifestyle beauty select shop; and 40 stores of Hands, a lifestyle specialty store. Following its existing presence in key distribution channels such as Loft, PLAZA, and @cosme, the brand has secured an additional 120 stores, stepping up its offline expansion in Japan. Sales are also on an upward trajectory. VIDIVICI’s sales during the second-quarter “Mega Wari,” the flagship discount promotion of Qoo10 Japan, more than doubled compared with the first-quarter event.

Tonymoly’s BONI-SEP is a case in which a value-for-money K-beauty model has expanded into the Japanese major drugstore market. BONI-SEP was launched in 2004 as a Daiso-exclusive product, and earlier this year cumulative sales surpassed 10 million units. With its April entry into more than 1,700 stores of Japanese major drugstore chain Welcia, the brand is emerging as a global player.

In Japan’s convenience store channel, the introduction of dedicated K-beauty corners is also underway. Qoo10 Japan, an open market operated by global e-commerce company eBay Japan, will introduce a dedicated K-beauty corner, “Qoo10 Pick,” at Seven-Eleven stores nationwide in Japan starting in September. This indicates that K-beauty’s distribution network is expanding beyond drugstores and online malls to convenience stores that are closely embedded in Japanese consumers’ daily routines.

The expansion of K-beauty in the US and Japan is also reflected in export performance. According to the Ministry of Food and Drug Safety, Korea’s cosmetics exports last year reached USD 11.4 billion, up 11.8% year-on-year to a record high, making Korea the world’s second-largest cosmetics exporter after France. The largest export destination for Korean cosmetics last year was the United States, followed by China and Japan.

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