Why are beauty retailers rushing to festivals?

As Korea’s beauty market picks up steam, festivals are emerging as a major battle ground for brands, especially among digital-first players expanding into beauty.

Once known for online-only sales playbooks and algorithm-driven marketing, these companies are now pouring resources into large-scale, in-person events to build emotional connection and brand stickiness with customers.

“We’re in an era where brands and consumers need to meet in the same space,” said one industry insider. "Beauty festivals let e-commerce players express a brand’s feel and story in ways that online can’t, while doubling as a strong marketing tool."

At beauty festivals in Korea, consumers purchase tickets for entry and receive free samples or gifts by participating in on-site activities such as skin care consultations and live makeup sessions at brand booths.

Market Kurly, one of Korea’s first grocery delivery platforms, was the latest to step into the spotlight with the second edition of its beauty event held in Seoul through Sunday.

Despite its grocery roots, Kurly has expanded into beauty in recent years. Its latest festival drew over 16,000 visitors in just four days, with 60 participating brands seeing an average ninefold increase in transactions on-year.

“We set out to create a genuine beauty experience for customers who are deeply invested in beauty,” said an official from Kurly. “By staying true to our strength in curation, we crafted a festival that embodies Kurly’s distinct identity.”

For Musinsa, where beauty is no side business, a large-scale beauty festival has become essential to seize momentum in the category.

The fashion platform and retailer hosted the second edition of its three-day beauty festival in September, where 70 percent of the 14,000 visitors were in their teens and twenties. According to the company, the beauty festival was a valuable opportunity for small and mid-sized brands to gain hands-on exposure and boost brand awareness.

Other bigger names are also joining the fray, including Coupang, Korea’s top e-commerce platform, and SSG.com, the digital retail arm of Shinsegae.

For Coupang, the festival is a way to sweeten the deal for its Wow members, with its beauty show in April offered exclusively to loyalty subscribers. The company explained that the event was positioned as a key benefit designed to boost the membership's overall appeal.

Despite ambitious moves by new players, beauty retail giant CJ Olive Young still commands the largest scale and influence as the original pioneer of Korea’s beauty festival format.

Since debuting its first event in 2019, the company has turned beauty-themed gatherings into festival-style celebrations, a model now widely copied across the industry. This year’s edition was its biggest yet, drawing a record 33,000 visitors and 3,700 industry professionals, including global buyers and influencers.

According to Olive Young, the company plans to continue evolving the festival format, offering fresh content and experiences as it enters a new phase, potentially expanding beyond domestic borders.

“As a pioneer in this domain, we want to keep reshaping the festival’s identity in a way that reflects our core values and philosophy,” an Olive Young official said.

Some industry observers believe that the rise of beauty festivals may challenge Olive Young’s dominance, especially as brand loyalty becomes more fluid among younger consumers, but few can ignore its current scale and market power.

“Olive Young still holds a level of influence in the beauty market that others have yet to match,” said one official, adding that the retailer appears likely to remain a trendsetter for the foreseeable future.