CJ Olive Young, a South Korean retailer, has experienced a significant surge in sales from international patrons at its physical locations throughout the country. According to the company, between January and November, foreign visitors contributed to a staggering 1 trillion won (about US$680 million) in sales. This represents a twenty-six-fold jump compared to the previous year.
Sales Figures Show Increasing Global Interest
The company’s data reveals that sales to international customers, which accounted for roughly 2% of overall offline revenue in 2022, increased to approximately 10% in 2023. This year, these sales have exceeded 25%, demonstrating CJ Olive Young’s mounting allure to worldwide shoppers.
The spokesperson for CJ Olive Young expressed the significance of achieving 1 trillion won in sales from international visitors. The spokesperson highlighted that it represents a collective accomplishment, achieved in partnership with small, medium-sized, and indie brands that have engaged with customers globally through CJ Olive Young.
The company expressed its dedication to ensuring that K-beauty, or Korean beauty, is more than just a trend. They see it as a compelling reason for repeat visits to Korea and an integral component of the country’s domestic inbound tourism.
High Patronage Under the Global Tax-Free Program
The retailer further revealed that under the Global Tax-Free (GTF) program, a staggering 88% of domestic cosmetic purchases were made at CJ Olive Young outlets. This figure indicates that nearly nine out of every ten foreign shoppers prefer the chain. Moreover, tax refunds were claimed by visitors from 190 distinct nationalities at the retailer’s locations.
The retailer also noted an increasing trend of foreign customers visiting multiple stores. Around 40% of these shoppers reportedly explore two or more locations to experience varying store layouts and curated product selections.
Consumers Diversifying Their Purchases
In addition to visiting multiple locations, international shoppers have also shown a growing interest in diversifying their purchases. According to company data, 58% of foreign shoppers buy products from six or more brands, and 33% make purchases from ten or more brands. This trend points towards a growing interest in a broad range of K-beauty products.
Questions & Answers
How much has CJ Olive Young’s sales to international customers increased?
Sales from international customers have seen a twenty-six-fold increase compared to the previous year, with foreign visitors contributing to a staggering 1 trillion won (about US$680 million) in sales between January and November.
What proportion of domestic cosmetic purchases under the GTF program were made at CJ Olive Young outlets?
Under the Global Tax-Free (GTF) program, a substantial 88% of domestic cosmetic purchases were made at CJ Olive Young outlets.
What shopping trends among foreign customers have been noted by CJ Olive Young?
Foreign customers are increasingly visiting multiple store locations and diversifying their purchases. Around 58% buy from six or more brands, and 33% buy from ten or more brands, demonstrating a growing interest in a broad range of K-beauty products.
