Successfully Selling in
the Japanese Market
Hankyu Hanshin
Department Stores
Tuesday, October 17, 2023

https://Invest.Hawaii.Gov/exporting/histep/https://MadeIn.Hawaii.Gov/

H2O Retailing Group & Hankyu Hanshin Department Stores（Railway, development）

Hankyu Hanshin
Holdings※ As of 2022

H2O Retailing
Corporation

Hankyu Hanshin Toho Group¥979.7 bil ($6.32 bil)

Toho
（Cinema, entertainment）

Department Store Business

Food Business

Real EstateBusiness Real estatedevelopment SC operation
 Others

OtherSubsidiaries
 Hotel management
 Restaurantmanagement
 Others

101 stores 77 stores Supermarket 242 locations
 Food manufacturing 515 stores ¥491.8bil ($3.33bil)companies Food delivery 1 company※ Hankyu Umeda Main Store・ Building： 〈Main Bldg.〉 B2－13F, sales floor 80,000㎡, 〈Men’s〉B1－5F, sales floor 16,000㎡
・ Annual sales ： ¥ 261.1 billion ($1.77 billion, #1 in Western Region）
・ Customer visits： 40 million （weekday 100,000; weekend/holiday 150,000）※ Equivalent to Ala Moana Center

Hankyu Umeda Main Store Concept and “Hawaiʻi Fair”＜Hankyu Customer Mentality＞＜Hankyu Umeda Main Store Concept＞① Their interest

Item (functional value) ＜ Story (lifestyle culture)
Stories that emotionally stimulate and enrich spiritually Consumer habits, lifestyle, how to spend time History and tradition of items and way of living
 Creator’s passion and background Art and design
 Sustainability② Motive for the store visit

Purchase items ＜ Experience lifestyleculture

Know, learn, and try lifestyle
Stimulating 5 senses (sight, sound, smell, taste, touch)
Conversation with creators and people of different
culture③ Standard for selection of items
Appraisal by others (famous brands, “same”
as others) ＜ Love yourself or not

Individuality (made-to-order, customization, only one)Self-improvement, self-investment, new me

Theater type department store as information“retailer”#1 department store bringing in bright and exciting
futureInformation retailer
Customers makepurchases as they
resonate with the story(listed on left)

Theater styledepartment store

× Convey story in a fun way•••

Learning, discovery
Experiences, touch
Communication

9th Floor (approx. 6,000m2) is the space which
symbolizes this concept.
150 events per year, aiming for #1 department store forfun and pleasure

The most important event on the 9th Floor

World Fair
Spiritually rich lifestyle learned from the world「Britain」「Italy」「France」「New York」「Scandinavia」｢Hawaiʻi Fair｣Hankyu Hawaiʻi Fair: Transitioning to Future Opportunities○ Ver.1.0：Growth into the largest in-store summer event at Hankyu Umeda Main Store2023

2019

2014300㎡¥ 60 mil.

•Annual event
Expansion of the event
space
Enriched specials
Popular areas toLifestyles

2,100 ㎡
¥ 250 milAfter COVID••

2,000 ㎡
¥ 290 mil

○ Ver.2.0： Taking on the challenge of “ONLINE HAWAIʻI FAIR”
2020～23

HankyuUmeda
Main
Store 9FEC,socialmedia

Pilot project online shopping and events＊2023: achieved ¥11 mil EC sales along with online events○ Ver.3.0： Provide Hawaiʻi lifestyle experience opportunities throughout the year via digital channels;
hold fairs in other store locations and cultivate new customers and make Hankyu fans2022～24
In-store →Digital →HankyuUmeda
Main
Store 9FTokyo

HakataNagoyaHankyuUmeda
Main
Store 9F

Introduce Hawaii lifestyle experience opportunities throughout the year, shopping opportunities,
and provide venues for fans to meet and interact (Instagram, Website, EC site)

The Value of Hosting the Hawaiʻi Fair throughout the year
【Hankyu Hawaiʻi Fair issue ①】

Current customers’ dissatisfaction
・Can shop only once a year
・Timing not good to visit【 Hankyu Hawaiʻi Fair issue ②】

Hawaiʻi lovers’ dissatisfaction
・Aware of event but too far to visit
・Not enough information【Hankyu Issue】

Expanding sales areas via specialty
contents
・Acquire more customers
・Increase online sales

Hosting the Hawaiʻi Fair throughout the year and nationwide via online and in-store shopping
Growing passionate fans by providing Hawaiʻi lifestyle experience throughout the year, with high frequency① Hawaiʻi Fairs at stores nationwide to acquire Hawaiʻi fans ⇒ ② Growing SNS “Hawaiʻi Life” fans ⇒③ Leads to increase in customers and sales at Hankyu Umeda, both EC and 9F “Hawaiʻi Fair”■ The Development of「＃Hawaiʻi Life」③ Gather customers
and increase sales atHankyu Umeda① Hawaiʻi Fair at② Nurture fans via
social media

Sharing charm of Hawaiʻionline all year long・Life, culture
・Send out Hawaiʻi productinformation online
・Engage fans by holding inperson events

・Attract customers from allover Japan to Hankyu
Umeda 9th Floor “HawaiʻiFair” ⇒ Make it central spot
・All year Hawaiʻi online
shopping for all over Japan

Department store # goals
2023: 3 stores
2024: 5 stores

Followers goals
2023: 10,000
2024: 30,000

Sales goals
2023: 302,000,000 yen
2024: 350,000,000 yen

department storesnationwide
・Making Hawaiʻi fan tofollowers of “Hawaiʻi Life”
Instagram⇒ lead to increase in sales

① Hosting Hawaii Fairs at Department Stores around Japan

Granduo Tachikawa, Tachikawa City, Tokyo
July 26 to August 1, 2023 (7 days)
Sales: ¥14 million

Daiwa Korinbo, Kanazawa City, Ishikawa Pref
August 17 to 22, 2023 (6 days)
Sales: ¥18.5 million

② Growth of, engagement with fans on social media"Hawaiʻi Life" Instagram Channel

Followers: 2,500 at March 2023 ⇒ 5,930 at August 2023 ⇒ 10,000 goal at March-end 2024

9th Floor: Theater-Style Floor – the Symbol of Umeda Dept. Store150 events are held
annually on the6,000 ㎡ 9th Floor• World Fairs• Japanese Regional Fairs
Event Space• Communicating newlifestyle information bycombining products,
decoration, themed events

FestivalSpace（4-storied atrium,16 m tall）

ArtStage• Discovering
new, younger
artists

Hankyu Umeda
Gallery
HankyuUmeda Hall• Fine art and handicraft
exhibits• Fashion Shows• Exhibitions• Movies and theatricalshows

Festival Space 16-meter-high atrium

Festival Space Amphitheater

③ Hankyu Umeda Main Store: attracting customers, increased sales
Hankyu Umeda Main Store, Osaka
July 5 – 10, 2023 (6 days)
Total sales: ¥290 million

写真チラシOnline Hawaiʻi Life Store E-Commerce
June 20 – August 31, 2023 (2.25 months)
Target: ¥11 million

■Returning to Normal post-COVID – Current Japanese Consumer Trends
Changes in Consumer Behavior

Increased spending for travel andlodging (Japan domestic)

Increase in demand for skincare Promising sales of high-ticket items
and cosmetics due to decrease in(many consumers buy as assets)
facemask usage

Changes in Consumer Mindsets

Increased usage of online services(medical care, schooling), where time
performance is prioritized

Subscription services have diversified,leading to increased users, where trial
pricing is prioritized

Increased attention to mind andbody health (choosing sports,organic food, more naturalproducts)

■ Ideas for the 2024 Hawaiʻi Fair
The aim of the Fair is not just to be a product sales event for
consumers, but to have Fair attendees better know theHawaiian culture, history, craftsmanship, and people. Thus, bybetter understanding Hawaiʻi, they can add the essence of theHawaiian lifestyle into their own lives.
① Knowing the abundant spirituality of the people of Hawaiʻi, to be ableto include that in their daily lives② Continued support for Maui
③ Direct communication between Hawaiʻi companies and Japaneseconsumers●The Hankyu buyer visit to Hawaiʻi will be November 2 – 13, 2023

Success Stories
Banan

Ola Tropical Apothecary

Kanemitsu Bakery

First appearance in Japan atHawaiʻi Fair

Yokohama and Osaka shops
openedProducts introduced at spasand boutiques of• Halekulani in Okinawa and• THE KAHALA HOTEL,
Yokohama

First appearance in Japan at HawaiʻiFair• Home delivery by supermarkets• Expected to open shops in Japan
since they have licensed theirbrandBenefits of participating in the Hankyu Hawaiʻi Fair
1.

Engaging with Japanese customers• Attendees of the Hankyu Hawaiʻi Fair are Hawaiʻi lovers, who would love to have••2.

friends in Hawaiʻi.
Once they engage with Hawaiʻi businesses at the Fair, there is a high chance thosecustomers will visit the businesses in Hawaiʻi and purchase again.
This leads to opportunities for companies to continue promoting their Hawaiʻi brands
and products for repeat purchase and word-of-mouth promotion

Validating products and gathering customer feedback• Hawaiʻi exhibitors can test and sell their products and gather all kinds of customer
feedback to improve existing products or create new ones for the following year3.

Conducting market research in Japan• Hawaiʻi exhibitors can visit other floors of the Hankyu Umeda Main Store to conduct•

4.

market research.
They can visit other floors and other retailers in the area to study regional trends
and consumer preferences.

Hawaiʻi businesses may find new partnerships in Japan• Success at the Hankyu Hawaiʻi Fair can attract new importers and distributors
seeking new products to represent.

Questions and Answers

Next Steps•

Please visit here for updates:
https://invest.hawaii.gov/exporting/histep/hawaii-pavilions-histep-hp/hankyuhawaiifair/.

•A 2024 interest form will be posted soon.

•The HiSTEP Registration form will be
uploaded the week of October 23.

•Questions?
Email lyle.h.fujikawa@hawaii.gov