Last year, CJ Olive Young did not hold its annual offline experience event, "Olive Young Awards & Festa," for the first time since it started in 2019. They decided to separate the awards ceremony from the festival, conducting only the awards that recognize popular products. The festival, being Olive Young's iconic event, drew considerable attention from the industry.
Olive Young plans to conduct the institutional sector for the festival this year in the first half with a new format different from the previous one. While Olive Young has not officially announced it, industry reports suggest it will resemble a type of "beauty concert" that strengthens experiential and cultural elements.
What is the reason behind Olive Young, a leading entity in K-beauty that exceeded 4 trillion won in sales last year and is thriving, not hosting its iconic event called "Beauty Festa"? Industry insiders explain that as competitors flood the market with copycat events, differentiation has become essential.
Initially, when Olive Young started its first event, there were no similar events, and consumer responses were enthusiastic. It was considered a must-attend event for K-beauty enthusiasts, as they could experience various brands in one place and receive samples. However, competition intensified as e-commerce platforms like Kurly, Coupang, and Musinsa launched similar beauty events one after another.
Coupang held its first offline beauty event similar to Olive Young's in 2023 and hosted events for two consecutive years. Last year, Musinsa also conducted its first offline beauty festa in Seoul's Seongsu-dong in September. Kurly held its first offline beauty event, "Kurly Beauty Festa 2024," at the Dongdaemun Design Plaza (DDP) in October. The venue for Kurly's event even overlaps with Olive Young's.
Currently, most beauty festivals operate using brand booths, employing a uniform approach of distributing samples through events. It is fair to say that competitors have imitated Olive Young's model. This has led to a situation where, despite slight differences in organizers and participating booth brands, the event configurations are generally the same, making it difficult for consumers to find significant differentiation. As events multiplied, Olive Young faced complaints about its interference with competing brands participating in other events.
The decision by Olive Young to boldly forgo last year's festa event also stems from assessing that such formats find it increasingly difficult to attract consumer interest. They believed that the effectiveness of promoting the Olive Young brand had run its course.
In response, Olive Young has begun to distinguish itself from competitors as a leading corporation in K-beauty. The industry is closely watching how Olive Young will transform the festival. An Olive Young representative noted, "We will approach customers in a new way that further enhances experiential and festive elements."