Why CJ Olive Young Chose FedEx as Its US Logistics Partner

When CJ Olive Young, at the forefront of the K-beauty reverse cross-border shopping boom, decided to seriously tackle the world's largest market—the United States—their strategic logistics partner wasn't their group affiliate CJ Logistics. Instead, they chose to partner with FedEx, headquartered in Memphis, Tennessee, the heart of America's logistics infrastructure. This wasn't just a simple last-mile delivery contract, but rather selecting FedEx as the first piece of an integrated supply chain design that includes local fulfillment, inventory management, and delivery experience in the US.

This decision represents more than just logistics partner selection—it symbolizes that K-beauty D2C supply chain strategy has entered a completely new phase.

Logistics & Supply Chain Strategy Brief

STREAMLINE: Why CJ Olive Young Chose FedEx as Its US Logistics Partner

(July 21, 2025)

❶ Point of View | Behind the Global Mall's Revenue Surge: A 'Delivery Strategy'

CJ Olive Young's reverse cross-border platform 'Olive Young Global Mall' achieved record-breaking results in the first half of 2025, with revenue growing 70% year-over-year and order volume increasing by 60%. Remarkably, over half of total revenue came from the US market, and even looking at just the growth portion, the US was responsible for over 40% of it. The US truly became the 'growth engine'.

However, the global delivery infrastructure needed to support such rapidly growing demand was still in its early stages. That's why the strategic partnership between Olive Young and FedEx wasn't just a simple choice, but rather an inevitable step to sustain growth.

❷ Inside the Move | Dedicated 'Middle Mile to Last Mile' Contract in the US

On July 1, 2025, CJ Olive Young and FedEx signed an MOU at the FedEx World Hub in Memphis, Tennessee. According to FedEx's newsroom and official announcements, the key partnership details include:

Dedicated last-mile delivery within the US
Middle-mile transportation + inventory management collaboration
Introduction of FedEx Delivery Manager®-based delivery options(Real-time delivery tracking, proof of delivery photos (POD), customizable delivery dates, etc.)

🗂 Source: FedEx Official Press Release, July 14, 2025

Following the establishment of CJ Olive Young USA in Los Angeles in February 2025, Olive Young is also preparing to launch offline stores. This means this partnership isn't a short-term delivery contract, but rather a supply chain design strategy directly linked to global fulfillment capability expansion.

❸ Business Playbook | CJ Olive Young's Global Supply Chain Roadmap

Timeline	Strategic Initiative
Aug 2024	Opening of Anseong Global-dedicated Distribution Center (PB + reverse cross-border dedicated)
Feb 2025	Establishment of US LA Corporation (CJ Olive Young USA)
Jul 2025	North American logistics partnership with FedEx
Future	Pursuing US offline store launches

These moves can be summarized as a 'centralized manufacturing + regionally distributed logistics partner model'. In fact, Japan-bound volumes are handled by LX Pantos, Southeast Asian volumes by local network-based partners, creating a structure that seeks market-optimized logistics infrastructure.

❹ Market Impact | Why FedEx Instead of CJ Logistics?

Despite having group affiliate CJ Logistics, Olive Young chose FedEx for the North American market. The reason is simple: the absence of "last-mile delivery networks within the US".

CJ Logistics has built its logistics network centered on CBEC (reverse cross-border) shipments
They don't have direct delivery infrastructure in North America

In contrast, FedEx is a company with full-stack ownership of transportation networks, inventory centers, delivery networks, and systems across the United States. CJ Olive Young appears to have chosen FedEx by prioritizing customer experience and reliability over delivery costs.

❺ Competitor Matrix | Major K-Beauty US Market Entry Companies Comparison

Company	US Market Entry Status	Main Logistics Partner	Last-Mile Capability	Middle-Mile / Inventory Management
Olive Young	LA corporation established, store preparation	FedEx	Nationwide network	Self-managed capability
Round Lab	D2C focused	CJ Logistics	Third-party partner integration	Domestic shipment focused
AmorePacific	Direct purchase + wholesale mix	Local 3PLs (multiple)	Fragmented	Distributed inventory model
Coupang	US retail expansion	Self-logistics (Rocket Delivery)	Partially self-managed	Localizing inventory

❻ Beyond the Numbers | Delivery Experience Equals Customer Experience

Olive Young created the formula delivery innovation = customer loyalty enhancement in Korea through same-day and next-day delivery services like 'Today Dream'. Now they're trying to transplant this successful formula to global customers.

Global mall membership surpassed 3 million
Operating vending machine-based membership registration system for international tourists (over 30% conversion rate)
Synchronizing domestic promotions like 'Summer Sale' with global customers

The completion of these initiatives ultimately depends on "how well products are delivered".

❼ Summary Insight | "Logistics Determines the Future of D2C"

CJ Olive Young is no longer just an H&B store. They're transforming into K-beauty brands' global expansion infrastructure and a customer experience-focused D2C platform. The key here isn't the product but the experience, and the completion of that experience ultimately comes down to 'delivery'.

The partnership with FedEx is an attempt to build a supply chain that takes full responsibility for customer experience, and they're likely to expand similar local strategic partner structures in other countries beyond the US. While it may be disappointing for CJ Logistics, logistics is now judged by market capability, not group synergy.