Free skin scans are boosting customer loyalty outside of Korea.
CJ Olive Young Corp., a South Korean beauty retailer, is broadening its self-operated operations.
skin analyser machines
nationally as it aims to attract international visitors interested in K-beauty’s sought-after “glass skin.”
The complimentary skin analysis service became immensely popular on social media platforms and boosted customer interaction, as approximately 72% of international store patrons utilized this feature, according to Se-Hoon Jin, who serves as the executive vice president of global platform business at CJ Olive Young.
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“International visitors typically start by exploring different product categories on social media platforms before making further purchasing choices following in-store advice provided by employees,” he explained.
The outlets of CJ Olive Young located in global tourist areas such as Myeong-dong in Seoul include bilingual signs, digital price tags, and special sections like “K-Beauty Now” and “Global Trends.”
“As increasing numbers of international visitors get acquainted with local trends, the distinction between domestic and foreign consumers becomes progressively less defined,” Jin stated.
In 2022, the worldwide market for K-beauty products reached $91.99 billion, with an expected annual growth rate of 9.3% up until 2030, as estimated by Grand View Research based in California.
CJ Olive Young intends to boost the count of locations equipped with skin analyzer devices, offering complimentary personalized skincare guidance, up to approximately 100 by year-end from the current 36 stores, as mentioned by Jin.
He further explained that this plan isn’t just for our international clientele; it’s designed to improve the entire shopping experience for K-beauty enthusiasts, even those based in Korea.
Employees utilize CJ Olive Young’s proprietary app called SELLY to suggest items tailored to each client’s specific skin type, preferred texture, and required ingredients.
In its main branch located in Seoul’s Seongsu neighborhood, patrons utilizing the Skin Scan Pro service exhibited a purchase conversion rate of 78%, whereas this figure stood at 43% for other visitors.
In an effort to maintain customer interaction post-departure from South Korea, several prominent retail locations such as those found in Gwangbok Town and Myeongdong Station have installed vending machines. These machines assist visitors in enrolling in the Olive Young Global Mall’s online platform. In 2023 alone, approximately 330,000 international members registered through this method.
The Olive Young Global Mall boasts 2.46 million international members and provides over 10,000 products, featuring the newest K-beauty items, wellness products, and K-pop memorabilia.
During the company’s major sale event in March of last year, online orders more than doubled, largely due to international tourists who kept purchasing items online even after they had returned to their home countries.
The firm provided customized consultations in Korean, English, Japanese, and Chinese to clients at its Gangnam location in March, with intentions to broaden this service to additional outlets.
In the previous year, CJ Olive Young experienced a 26.7% annual increase in revenue, reaching $3.43 billion (KRW4.79 trillion), up from 2020 levels. Offline sales accounted for approximately 70% of their overall earnings.
Earlier this year, they established a unit in the United States with intentions to launch their first overseas branch there.
“Recognizing the specific preferences of beauty customers in each nation and tailoring localized product offerings are crucial steps, as well as setting apart from current local distribution channels,” Jin stated.
“He noted that since K-beauty trends cross international boundaries, there is significant potential for Olive Young’s business model to be integrated successfully into foreign markets.”
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