Olive Young: Gen Z’s Must-Have Beauty Destination

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K-Beauty Heats Up: Olive Young, Daiso Lead AI-Powered Hair Care Revolution

Beauty retailers in South Korea are aggressively expanding their hair care offerings, leveraging artificial intelligence and experiential retail to capture a growing market fueled by both domestic demand and surging tourist interest. The trend is transforming hair care from a niche category into a key battleground for distributors like CJ Olive Young and daiso.

The rise of “Glass Skin” and “Glass Hair” aesthetics on social media is driving a significant increase in spending, particularly among Generation Z, on hair and scalp treatments. According to a company release, sales in personal care – including hair and body care – have risen by 20% annually for the past three years.

Did you know? – South Korea’s hair care market is experiencing rapid growth, fueled by trends like “Glass Hair” and increased demand from Gen Z consumers. Sales in personal care have risen 20% annually for three years.

AI-Powered Scalp Analysis Gains Traction

Olive Young,a popular destination for foreign tourists,is at the forefront of this innovation. Its “Olive Young N Seongsu” location, which sees nearly 80% of its sales from international visitors, offers a free scalp and hair analysis service utilizing AI-powered devices. These devices, equipped with camera lenses, diagnose issues like hair loss, oil imbalances, hair density, and dead skin cell buildup.

“Depending on the diagnosis results,products and lifestyle habits that are perfect for the individual’s scalp condition are suggested,” one Olive Young official stated. Customers receive detailed analysis, including oil/moisture ratios, by scanning a QR code. The service has proven so popular that daily “open runs” were necessary, prompting Olive Young to plan the rollout of similar experience zones to 100 stores in key commercial areas by year-end.

Shinsegae Group’s beauty select shop, Chicor, is also investing heavily in AI-driven personalization. Last June,the retailer renovated its Gangnam branch to feature a service that analyzes the scalp and formulates customized shampoos and serums.

Pro tip: AI scalp analysis is becoming increasingly common in South Korean beauty retail. These services provide personalized product recommendations based on individual scalp conditions.

Affordable Luxury: Daiso Disrupts the Market

While Olive Young focuses on high-tech experiences, Daiso is taking a different approach: affordability. the retailer, also a favorite among tourists, is bolstering its “cost-effective hair care” category. Last month, LG Household & Health Care’s premium brand, Silk Therapy, launched products priced under 5,000 won (approximately $3.75 USD) through Daiso.

This strategy, employing smaller volumes and uniform pricing, reduces the cost of Silk Therapy products by as much as one-tenth of their typical retail price (ranging from 30,000 to 50,000 won).

Reader question: Why are brands like Silk Therapy partnering with Daiso? It allows them to reach a wider audience with more affordable products, leveraging Daiso’s popularity with tourists.

Pop-Up Experiences and Private Label Expansion

CJ olive Young is further solidifying its position with targeted pop-up experiences. This month, the company opened the ‘Heba Lounge‘, a specialized hair care pop-up store in the popular Hongdae district of Seoul, known for attracting a large number of foreign visitors. The company has also launched its own private label hair care brand, Luteca, capitalizing on the growing profitability of the sector.

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