Values and Vision

Value Creation

Management Strategy

Sustainability

Governance

Data

Management Strategy
Department Store Business_02 RealDigital Strategy

The Key Is the Digitalization of Touch Points>>Raku-Rich

App at the gateway to evolution

Raku-Rich, a subscription service for frozen gourmet home delivery carefully
selected by food connoisseur buyers, was launched. This service allows customers
to enjoy “luxury gourmet” foods of department store basement food floor quality at
any time.
In recent years, when consumer lifestyles have changed significantly, the needfor “food delivery” has increased because the culture of enjoying food at home
has taken root. On the other hand, due to the diversification of work styles andthe increase in dual-income households, time performance for household chores
has come to be emphasized. In addition, the spread of COVID-19 has led to rapid
growth in demand for food delivery, and it is expected to become an essential
service for daily life in the future.
Based on this background, this project is a new initiative that embodies thepillars of Daimaru Matsuzakaya Department Stores in the Medium-term Business
Plan: Real × Digital Strategy = “human power” to provide new experience value
and overcome the constraints of time and place.

Smartphone penetration rate among mobile phone owners
in Japan is already estimated to be over 96%. In the post-digitalera, the digitalization of touch points with customers is furtheraccelerating. We believe that the boundary between online andoffline is becoming increasingly blurred, and that we are in theprocess of further evolving a customer experience that allows
customers to move freely between online and offline. It can besaid that smartphones as touch points are now indispensablefor deeper communication with customers.
Therefore, Daimaru Matsuzakaya Department Stores has
issued the Daimaru Matsuzakaya App, a service that responds
to the ICT era, and is working to further improve customer
satisfaction and enhance customer service using digital>> DEPACO

technology. The app has an “electronic membership card
function” that allows its users to earn and use points like aphysical card, an “upgrading function” that provides different
services according to the user’s number of visits to the storeand purchase amount, an “alert function” that provides
timely information on special offers, and a “store information
function” that allows its users to check events, topics, floor
guides, etc. at their favorite stores anytime they want.
Changes in sales via the app

Changes in the number of active app users(¥100 mn)
2,500

2,371

(1,000 people)
2,000

1,770
1,538

2,010

2,000
1,750

More unique websites are now available

1,305

1,877

1,123

Department store cosmetics information media DEPACO, which has been wellreceived so far, was renewed as “media commerce” for department store cosmetics
in 2023. It has been transformed into an attractive site that combines the functionsof physical stores, e-commerce, and owned media. It is a media commerce that isjust like a cosmetic counter, where customers can receive a thorough consultation
just like in a physical store, even online.
The editors of DEPACO and the beauty advisors of cosmetics brands send out
more than 100 original articles and information on department store cosmetics
every month. The lineup includes more than 140 brands, ranging from popular
brands that are familiar in e-commerce to brands not available in physicalstores. In addition, to meet the needs of customers who want to consult acrossbrands, DEPACO’s dedicated cross-brand beauty advisors, who take advantageof the strengths of the Department Store, provide online services ranging fromconsultations on skincare, makeup, gift suggestions, and other key points tocomprehensive consultations that allow customers to discuss their needs in detail.

1,000>> ARToVILLA

1,500

The art market in Japan exceeded 250.0 billion yen and department stores are

its second largest sales channel behind art dealers (approximately 20% in 2019).
1,000

Aug 31, 2021

Feb 28, 2022

Aug 30, 2022

Feb 28, 2023

Indispensable tool for the evolution of CRM

The quality of communication has evolved dramaticallythrough the digitalization of touch points, or the use of the app.
We are now able to communicate with each of our customers
in a more personalized manner and aim to increase lifetime
value by building better relationships than ever before.
The results of utilizing the app are showing up in tangible
numbers. In fiscal 2022, Daimaru Matsuzakaya Department
Stores sales via the app totaled 237.1 billion yen (up 26.3%
year on year) and the number of active app members reached1.77 million (up 35.6% year on year). The average spend per

46

0Particularly, the contemporary art market is expanding and contemporary art isAug 31, 2021

Feb 28, 2022

Aug 30, 2022

Feb 28, 2023

customer was 1.9 times higher for those who signed up for theapp versus those who did not, indicating that signing up forthe app contributes to the increase in the average spend per
customer.
As an example of the use of data obtained from the appand others, we initiated a model for predicting purchases tobe made by potential customers based on logistic regression
analysis, which resulted in sales of 2.2 billion yen in categories
such as luxury items, art, and watches in fiscal 2022. In thefuture, we intend to further enhance CRM by expanding thescope.

popular among young collectors in particular. This trend is expected to continue inthe future. In this situation, ARToVILLA, our first art media that communicates theappeal of art and buying art, was launched in January 2022.
ARToVILLA is a project in collaboration with people from #DOORS who open thedoors of art in their individual ways of living and are active in cultural occasions.
Its concept is that people who create art and people who receive art work together
to increase the perspectives of enjoying art. It provides content that lowers thehurdles to owning art online and in physical stores and delivers experience until
owning art. People who “view” art are increasing but still a few people “buy (own)”
art. Given this current situation, we would like to normalize buying art using uniqueapproaches linked to daily life and make a fulfilling life with art possible for all.

47