Olive Young wants to sell on all channels

CJ Olive Young CEO Koo Chang-gun addresses a press conference Friday at the Dongdaemun Design Plaza in central Seoul. [CJ OLIVE YOUNG]

The health and beauty store CJ Olive Young will continue to evolve into a so-called omnichannel business next year and strengthen its online business.

“With the growth in online sales and the resumption of offline sales, we have the stepping stones to develop as an omnichannel lifestyle platform,” CEO Koo Chang-gun said at a conference. press Friday at the Dongdaemun Design Plaza (DDP) in central Seoul. .

Omnichannel is a buzzword in retail, which means that customers have multiple “channels” to choose from to buy things, including in stores, online, or on shopping apps.

The company said it expects to generate 2.4 trillion won ($ 2 billion) in revenue this year, up 13 percent from the previous year. Online sales grew 58% year-over-year in the third quarter and offline sales increased 13%. Foreign sales increased 107%.

CJ Olive Young will build more distribution centers next year, so their same day delivery service can be faster. According to the company, it currently takes about an hour to three hours for purchased items to be delivered from the nearest young olive shop.

He plans to hire more developers and digital staff next year to improve the Olive Young app’s curation algorithm. The company en masse recruited developers in July, which it said was its biggest recruiting of IT staff since launching in 1999.

A lot of its goals are related to selling online, but the company still focuses on brick and mortar stores.

“[Growth in offline stores] shows that Olive Young can continue to grow its market share and sales volume, ”Koo said.

CJ Olive Young will be redeveloping 250 of its 1,265 branches next year, more than the 99 redeveloped this year. It will offer incentives for customers to visit its branches, such as offering benefits to customers who buy on the Olive Young app but collect the items from stores.

The company said it was working with the Korea Trade and Investment Promotion Agency to expand its business overseas.

The company is preparing for an initial public offering (IPO) and has selected underwriters: Mirae Asset Securities, Morgan Stanley, KB Securities and Credit Suisse. Many details have not been decided, Koo said, but the company plans to register next year.

People line up for freebies at the booth of cosmetics company Bioheal BOH at the Olive Young Awards & Festa 2021 on December 10. [LEE TAE-HEE]

People line up for freebies at the booth of cosmetics company Bioheal BOH at the Olive Young Awards & Festa 2021 on December 10. [LEE TAE-HEE]

After the press conference, the beauty and health retailer launched its annual 2021 Olive Young Awards & Festa beauty convention at DDP.

The event took place online last year due to the pandemic, but is proceeding normally this year. Tickets for the convention sold out in 26 seconds.

A total of 80 brands are participating in the event through December 12, including Clio, Wakemake, Dr. Jart and Bioheal BOH.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]


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