Direct Marketing
Restructuring ofDirect Marketing BusinessResponding to Customer Needs
with the Diversity of Channels
Consolidating direct marketingbusinesses into JFR Online
With the advance of information technology and thediversiﬁcation of lifestyles and shopping styles, how to deal
with direct marketing business has been becoming an
increasingly important management challenge. J. Front
Retailing Group has operated four direct marketingbusinesses including the catalog business of Daimaru
Home Shopping, Daimaru Matsuzakaya Department
Stores online cosmetics shopping site Marucollet
business, Social Net business that combines the recyclingof unnecessary items with donation, and department store
internet retail business that mainly oﬀers gift items.
Expecting direct marketing business to grow further, weconsolidated these businesses into Daimaru Home
Shopping and the company was renamed JFR Online andmade a fresh start on March 1, 2011. JFR Online will
operate the direct marketing business of the Group more
eﬃciently and concentrate management resources on
growing businesses for further development and expansion.

Changing direct marketing business model
Instead of focusing on a physical sales channel ofstores including department stores and supermarkets
as in the past, the company will use several sales
channels and diverse approaches to expand its
business. First, the company will transform its key
catalog business into a business model that adapts
to a market by creating sales channels accessible tothe elderly who are frequent users and oﬀering theproducts that meet customer needs.
With respect to the businesses using the internet,
JFR Online will review customer contact points andthe way of communicating with customers toincrease traﬃc to the websites and encouragecontinuous buying.
The company will widely collect information toprovide sales methods and channels that reﬂect thechanges of the times and will develop its businesswith a view to a tie-up with other companies. Inaddition, the company intends to actively deal in theproducts unavailable at department stores if they areappropriate to customer needs.
Besides these businesses, JFR Online will
positively consider entering new businesses
including the commissioned operation of direct
marketing business of other companies of the Groupto grow as a company that supports the growth ofthe Group.

Creating a synergy throughstandardization and commonalization
In terms of operations, JFR Online will standardize
platforms including customer information, EC systems
and logistics, which are infrastructures common toeach direct marketing business, and mutually use theknow-how and skills of each business for theoperations common to direct marketing businesses inorder to realize more eﬃcient business operations.
At the same time, all direct marketing businesses
will work together on improving customer service andresponding to diversifying methods of communication
with customers by using the latest systems to further
increase productivity.

Making internet retailing core businessOur direct marketing business has more than three
million customers. At present, catalog sales accountfor 95% of the total sales. While maintaining suchstrength of catalog sales business, JFR Online willradically strengthen internet retail business in themedium- and long-term. For this purpose, internet
retail business will vigorously promote the expansionof its item oﬀering, the improvement of its mobile
sites and alliances with other companies to increase
the sales share of businesses other than catalog
sales business to about 25% three years later in2013 and ﬁnally to about 60%.

Four business fields

Catalog business

Marucollet business

Its catalogs cover all categories of products including fashion items, household

It sells online problem-solving beauty goods such as moisturizing

goods and food. About 70% of customers live in the Kansai area and it will

and anti-aging care products, ranging from cosmetics including

reinforce the Chubu and Tokyo metropolitan areas. It will build the foundation

popular beauty essence on which beauty professionals give adviceof direct marketing business accessible to its main elderly customers.

and beauty supplements to organic cosmetics.

Social Net business

Department store internet retail businessThis new type of business promotes eco-friendly cycle (reuse and recycle) by buying

It is commissioned to operate Daimaru Matsuzakaya Department Stores shopping

unnecessary brand products from customers and selling them, and at the same time,sites. It adds the site s original attractive product lineup to its main gift market

contributes to society by donating part of the amount sold and bought. It responds tooﬀering mid-year, year-end and general gift items, which is department storesincreasing awareness of recyclable consumption and social contribution.

strength, to increase traﬃc to the sites and encourage continuous buying.

Catalog business
http://dmall.jp

Marucollet business
http://www.marucollet.jp

Department store
internet retail business
http://www.daimaru.jp
http://shop.matsuzakaya.co.jp

Social Net business
http://www.jfr-socialnet.com