Management Strategy▶RealManagement Strategy

Digital Strategy

Content Resonant with Customers

customers.
Shinsaibashi Neon Shokudogai on the 2nd basement floor
is unique. It has popular neo bars in Osaka and the mosttalked about, up-and-coming restaurants and bars, and inaddition, Tank Hiroba, which disseminates entertainmentand culture, is placed in the center of the floor. They provide

one and only amazing-experience-based “stimulating foodspace” unique to Parco.
In addition, SPACE 14 and PARCO EVENT HALL, which
took over the former Daimaru Shinsaibashi theater and event
hall, serve as a western hub that disseminates information
on Parcoʼs culture coming from Shibuya including theaters,movies, music, art and culture.

Increase the appeal of physical stores bystrengthening content

Shinsaibashi Neon Shokudogai on B2F (Shinsaibashi PARCO)

Grand opening of Shinsaibashi PARCO
In November 2020, Shinsaibashi PARCO, which is the 18th
PARCO store in Japan, opened in Shinsaibashi, Osaka, forthe first time in about nine years. This store, which comprises
16 floors including two basement floors and 14 floors above
the ground and a roof floor, is positioned as a flagship storein Osaka like Shibuya PARCO in Tokyo and Nagoya PARCOin Nagoya.
Its concept is “NEW COMPLEX Building.” Beyond a fashionbuilding and a department store, large specialty shops, acinema complex and a multipurpose hall and event space
were added. It was created as a complex building beyond
conventional commercial facilities. It is a new urban PARCO
store in which mode, animation, new restaurants, and art,
which are the essences of Shibuya PARCO, which opened in
2019, and luxury, high class restaurants, and golf and othersports, which are the themes of a “department store,” wereadded and “tangible and intangible goods,” “daily lives andart,” “real and technology” meet borderlessly.
For the Group, it is a building united with its adjacent mainbuilding of the Daimaru Shinsaibashi store to promote therealization of the “business model for growing with localcommunities.” It is connected to the main building of theDaimaru Shinsaibashi store with the access ways on the 2nd
to 10th aboveground floors as well as the subway concourse
and the Daihoji-dori street. Only in the Shinsaibashi store,
we provide a mutual point service using both Parcoʼs andDaimaruʼs in-house credit cards to link Parco and Daimaru.
They provide new values, intangible goods and experiences
to various customers who visit Shinsaibashi using theirrespective strengths.
Though it opened when we started to see the signs of athird wave of COVID-19, it had a better start than imagined,attracting customer expectations. In March, a cinema complex
on the 12th floor and Shinsaibashi Neon Shokudogai with36

unique restaurants on the 2nd basement floor opened anddistinctive Shinsaibashi PARCO was completed.
It generates synergy in the building united with its adjacent
Daimaru Shinsaibashi store and performs above our internal
plan. We would like to lead this merger of the Department
Store and Parco to possibilities in other areas.

Four focus themes
Precisely because we are in the period of COVID-19, weprovide or show differentiated and colorful tangible andintangible goods and art and culture that stimulate sensitivity
using technologies to people who value individuality.

Entrance on the Midosuji side on 1F (Shinsaibashi PARCO)

There is no doubt that digital and real are heading in
the direction of merging. However, we think digital cannot
function without physical storesʼ ability to disseminate
information and experience value. We need to further
improve physical stores, which are the Groupʼs strength andcustomer touch points, in order to promote digitalization.
For example, by redefining the category of cosmetics as“beauty and wellness,” the image of floor composition andzoning will be expanded. Beauty includes beauty care, antiageing and treatment. Wellness includes sleep and bath time.
We think it is important to capture changes in customersappropriately and redefine the value to be provided.
We think we will also be able to add a new appeal that
attracts customers in terms of “learning,” “entertainment” and“incubation.” They are Parcoʼs strongest areas and positioned
as a key for creating synergy to change the department store
business model and the appearance of stores.
Importantly, however, “people” are the strongest content
and the strongest media. We believe the gathered powerof people who have customer touch points including sales
people in stores, people who produce store space, peoplewho plan promotions, people who develop content andpeople who support them will become a driving force foradding an exclusive appeal to stores as media.

TechnologyTangible goods

Intangible goods

Interview▶

ANDO Ayako, Supervising Manager of Operations, Digital Promotion Department, Parco Co., Ltd.

Better Understand Customers Using Data and Provide Valuable Experiences
Art/Culture

The symbolic zone unique to Shinsaibashi is the luxury
zone on the 1st and 2nd floors. It is a zone with great
diversity combining traditional luxury with trends and theuniqueness of Parco. It is also well received by the customers
of its adjacent Daimaru Shinsaibashi store and drives synergycreation.
The 6th floor attracts attention as Japanʼs leading hub that
disseminates experience-based Japanese culture from Japanto the world. It carries internationally popular content andprovides not only goods but also experience value available
only there. It globally provides strong content that attracts

The mission of Digital Promotion Department is the promotion of DX. And we create a CRM
execution environment, develop and operate apps and online stores and implement digital
measures such as xR. I am responsible for PARCO points, which are the basic service of ParcoʼsCRM, creating the system of PARCOʼs own QR code payment service POKEPARU PAYMENT,
which can be used with our app POCKET PARCO, and analyzing and using data obtained fromthese services and customer touch points. I think the purpose of CRM is to “build high quality andgood mutual relations between customers and the company while providing corporate value ascustomer value and to achieve a stable profit over a long period.” I would like to achieve resultsfrom CRM by working with tenants in PARCO stores to provide the value and appeal of not only
shopping complexes PARCO, but also entertainment, art, culture and their combination, which
are valuable and attractive for customers. Now we need to use digital technologies and data
to create and provide value by combining different fields. We will understand customers using
data, provide valuable experiences physically and online, and furthermore, better understandcustomers using these data and change Parcoʼs services and businesses to more valuable onesfor customers. We aim for such DX.
*DX stands for Digtal Transfornation.
CRM stands for Customer Relationship Management.
xR stands for Extended Reality (generic term for technologies that combine the real world with the virtual world).
Integrated Report 2021

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