Abstract

Purpose : This study examines the transformation of South Korea’s Health & Beauty (H&B) market, focusing on CJ Olive Young’s role in digital retail innovation. The research explores how digital transformation and O2O (online-to-offline) strategies have reshaped offline store operations and enhanced consumer experiences. Additionally, it analyzes the key factors necessary for establishing a dominant K-beauty distribution platform. Data & Methods : Using a case study approach, this research evaluates corporate reports, industry data, and market trends to assess Olive Young’s strategic initiatives. Findings : Findings highlight the company’s success in leveraging digital transformation for personalized marketing, integrating O2O strategies, and optimizing private brand (PB) and Direct-to-Consumer (DTC) models for profitability. These efforts have propelled Olive Young from a conventional retailer to a leading force in the H&B industry. Through this, Olive Young has evolved beyond a mere retail company, establishing itself as a comprehensive K-beauty platform. Furthermore, its digital-driven approach has strengthened collaborations with global K-beauty brands, facilitating their expansion into international markets. Results & Implications : This study underscores the importance of digital transformation and omnichannel strategies for long-term competitiveness. It offers strategic insights for retailers seeking to enhance customer engagement, streamline supply chains, and adapt to an increasingly digitalized market.