CJ Olive Young, Last Year Franchise Stores' Average Sales per Pyeong 33.17 Million KRW

CJ Olive Young Store Sales per Square Meter Twice That of Competitors

[Asia Economy Reporter Lim Hye-seon] The average sales per pyeong (3.3㎡) at CJ Olive Young stores, the number one player in the Health & Beauty (H&B) store market, were found to be nearly twice as high as those of its competitors.

According to the disclosure statement published on the Fair Trade Commission's franchise business transaction website on the 8th, the average sales per pyeong of 241 CJ Olive Young franchise stores last year was 33.17 million KRW. Considering that the average sales per pyeong of Nature Collection, a franchise brand heavily promoted by LG Household & Health Care with 415 stores, was 18.18 million KRW, CJ Olive Young's performance is at an 'unrivaled' level. Average sales per area are used as an indicator to evaluate the operational efficiency of franchise stores. CJ Olive Young's average monthly sales were also about 1.3 billion KRW, showing a significant gap compared to Nature Collection's 200 million KRW. By region, Jeju (6 stores) had the highest average sales per pyeong at 51.96 million KRW, followed by Seoul (34 stores, 42.77 million KRW), Ulsan (6 stores, 40.03 million KRW), Incheon (10 stores, 39.87 million KRW), and Busan (5 stores, 33.72 million KRW). The franchise store closure rate was also lower for CJ Olive Young at 2.1%, compared to Nature Collection's 6.2%.

Since opening its first store in December 1999, CJ Olive Young has grown independently in the domestic H&B market. As of the end of last year, the total number of stores, including directly operated and franchise stores, was 1,246, more than twice the number of competitors such as Nature Collection (486 stores), Lalavla (140 stores), and LOBS (131 stores). Since 2008, CJ Olive Young has built 'economies of scale' and, unlike single-brand shops like Innisfree and Missha, has increased experiential spaces by stocking products from various domestic and international brands. Consumers responded positively to this sales approach, and the stores became a 'playground' for young people in their teens to thirties. The differentiated product lineup also attracted customers. From 'only-one brands' (brands exclusively available at Olive Young) sourced solely from overseas to products from high-growth small and medium-sized enterprises struggling to secure distribution channels, CJ Olive Young displayed a wide range of items in its stores.

A CJ Olive Young representative explained, "While offering cost-effective products for customers, we are also leading the co-growth of small and medium-sized enterprises by nurturing emerging brands and products as a 'gateway to K-beauty.' In offline stores, we are strengthening new products, curation, and experiential content to provide differentiated experiences."