Research Article
CJ Olive Young’s Creative Destruction: K-Beauty Innovation Capabilities driven by Omni Channel Strategy
Hansung University
Published: January 2024 · Vol. 28, No. 3 · pp. 1-21
DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2024.28.3.1
Full Text
Abstract
CJ Olive Young introduced the first Korean health & beauty(H&B) store in 1999. Since then, CJ Olive Young has led the distribution & e-commerce market as the first and best. This study investigated how omni-channel strategy influences the growth of Olive Young corporation. Omni-channel is a consumer commitment strategy in which a corporation gives access to its products and services to customers on all channels and platforms. This study collected primary data through semi-structured interviews with several executives and key members in distribution & e-commerce industry. This study focuses on K-beauty & K-innovation of CJ Olive Young. Omni-channel strategy grants Olive Young critical access to customers with brand position transitions. Olive Young commonly combines and shifts between different distribution channels. During the sustainable growth process, Olive Young needs to find a new innovation paradigm that adopts creative destruction, value K-beauty, and generate K-innovation paths. This paper has important contributions for practitioners. Creating business paradigm shift is a critical factors for omnichannel strategic decisions with significant implications for the innovative growth of distribution and e-commerce industries. As a result, Olive Young is stepping from No.1 health and beauty store to becoming the K-beauty community and global lifestyle platform for all people across the world. This research not only provides new business insights, but also opens future avenues for K-management innovation development on the role of industry boundary shift and omnichannel use in distribution and e-commerce growth.
