Hongdae Becomes a Beauty Battleground... Olive Young and MUSINSA Enter Round Two of the Store-Opening Race

Financial News] The beauty rivalry between CJ Olive Young Corporation and MUSINSA is spreading from Seongsu to Hongdae. With foreign tourist numbers on the rise, the contest for market leadership between Olive Young, which got an early foothold, and MUSINSA, which is playing catch-up, is seen as entering full swing.
According to industry sources on the 21st, CJ Olive Young Corporation operates 8 stores in Myeongdong and 9 in Hongdae, respectively. In Myeongdong, it has shifted toward large-format stores such as Central Myeongdong Town, reducing its store count by one compared with the first half of the year. In contrast, it opened a new store in Hongdae this month and plans to open another before the end of the year.
MUSINSA has also chosen Hongdae as the test site for its first standalone beauty store. MUSINSA Beauty Hongdae, which opened last month, recorded cumulative sales of 250 million won just three days after opening. The store brought in Beauty Onnuri Pharmacy on its basement level, strengthening its expertise in functional skincare.
The reason Olive Young and MUSINSA are stepping up their expansion in Hongdae is the sharp rise in foreign visitors. According to Cushman & Wakefield Korea, Hongdae’s monthly sales last March were up 19% from the same month a year earlier. This was the second-highest sales growth among major areas of Seoul, after Myeongdong (33%). Hongdae drew 6.46 million foreign tourists last year, the second-highest number after Myeongdong (14.27 million).
Among major tourist districts, Hongdae is considered a place where MUSINSA can readily compete with Olive Young. Most of Olive Young’s Hongdae stores are under 100 pyeong (331 sq. m.). This contrasts with Myeongdong and Seongsu, where it operates mainly large-format stores. To secure a leading position in Hongdae’s beauty market, MUSINSA has developed a large standalone beauty store spanning basement level 1 to the second floor above ground, with an area of 400 pyeong (1,322 sq. m.).
The battle for market leadership between Olive Young and MUSINSA is also fierce in Seongsu-dong. After opening its large-format Beauty Mansion store last June, Olive Young is preparing another location on Yeonmujang-gil, where crowds are heaviest. Opening it will bring the number of its stores in the Seongsu area to seven. MUSINSA currently operates 13 stores in Seongsu, including MUSINSA Megastore, MUSINSA Standard, Igu Home and Igu Kids. It plans to open another standalone beauty store next month.
Latecomers are also stepping up their push into Hongdae. Off Beauty, a beauty retailer that emphasizes value for money, opened its first Hongdae store last month, while CHICOR, the beauty select shop operated by Shinsegae Department Store, entered the Hongdae commercial district last December.
An industry official said, “Hongdae is emerging as a key commercial district for the beauty industry, with a large influx of foreign tourists and a strong base of young consumers. As latecomers, including MUSINSA, enter a market where Olive Young has established an early lead, competition among beauty retailers will intensify further, particularly in major commercial districts.”
[email protected] Kang Myung-yeon Reporter