Olive Young, South Korea’s largest health and beauty retailer, announced last week to open an online shop on Shopee, Southeast Asia’s biggest ecommerce platform.
Available in Indonesia and Malaysia first
About 300 products under Olive Young’s six private brands, WAKEMAKE, colorgram, RoundAround, Botanic Heal boH, Bring Green and Filllimilli, will be available on Shopee.
These items will be launched in Indonesia and Malaysia first. These two countries have large number of young consumers who are interested in K-beauty products and very active on m-commerce, thus making the task of establishing Olive Young’s brand awareness relatively easier. The retailer’s plan is to expand to Taiwan in March 2021.
Part of the global expansion plan
Olive Young sold some of its shares to the domestic firm Glenwood Private Equity in December 2020. The latter became the second largest shareholder with 24% interest.
Glenwood valued Olive Young at KRW1.8tn (US$1.6bn). The health and beauty retailer plans to go public in 2022. Raising its corporate value is important as it will have to pay back money to strategic investors after listing.
Olive Young has a strong offline business within its domestic market, with 70% market share. Its online business is under great pressure from Coupang and eBay Korea. This has driven the retailer to look for opportunities in other markets.
“From now on, Olive Young will actively seize opportunities in the global market to grow and lead the globalization of Korean cosmetics,” an official from Olive Young said.
In 2019. Olive Young also signed a memorandum of understanding with Dairy Farm to launch several of its products in Guardian stores.