Management Strategy▶RealManagement Strategy

Digital Strategy

Connect Real and Digital with “Human Warmth”

It has become common to come and go between the digitaland real worlds in the process of buying. In this situation,customer experience provided through “people” can be said
to be exclusive additional value generated by the Group. A
crucial difference from general e-commerce is in increasing
customer satisfaction through person-to-person mutualcommunication. We will realize OMO using human attraction
by digitally reproducing our strength brushed up in the realworld.
In addition, we will create our own OMO shopping site
for art in fiscal 2022. Its beta version will be released within
this fiscal year at the earliest. These are just a few examples.
Going forward, we will develop and expand the Groupʼsunique and distinctive OMO centering on “people.”
Image of OMO shopping site DEPACO
Information delivery

Digital centering
physical storeson

thestrengthof

The COVID-19 pandemic renewed our awareness thatdepartment stores conduct business amid “time and placeconstraints.” There is no doubt that there are business
opportunities in overcoming these constraints. The point isto design department storeʼs OMO in a customer journey.
We will create a unique shopping site from which people feel“human warmth” instead of expanding so-called e-commerce.

The current COVID-19 pandemic made more apparent thevulnerability of the business models of the core Department
Store and Parco Businesses. As you may know, the Department
Store and Parco could hardly conduct sales activities whenpeople were restricted from traveling. We must say that it is
the limitation of our current retail model that overly depends
on physical stores. Therefore, we think we are required toredefine an out-of-the-box fundamental commercial modelthat does not depend only on physical stores to respond to
drastic changes like the current ones. On the other hand,
physical stores remain important “places” that increase value
through “people.” That is to say, we think it is important tocreate new experience value centering on physical stores andby merging them with digital (OMO).

OMO shopping site begins with cosmetics

Can feel excited to selectcosmetics online or in stores
anytime!

Webinar〈Brand〉〈Customer〉
Various data will be linked (FY2022 and beyond)Specifically, we are preparing to launch a cosmetics OMO
shopping site within fiscal 2021. We will create a distinctive
website that combines the real world, e-commerce and ourowned media DEPACO. We will create buying experiences sothat customers can receive consulting and other services andspecial information online like in physical stores. Customer
journey is complicated by diversified customer touch points.

Select/consider
Consult

Buy

Receive

Share

Information via media

Customer service

Payment

Delivery

Share by customers

EC payment

Receipt at homeExtemal SNS

OMO-EC payment(blog/connaissligne)

Smart locker, etc.

In-house community

Onlineconnaissligne

Remote customer service

Live streaming

Parco’s OMO

Attract customers

Customer service in stores▶

Posting of information

Attract customers

Transfer customers to EC Transfer customers to EC
Parcoʼs offline channels

Parcoʼs online channels●Theater, live streaming●Museum VR experience●PARCO CUBE
●Customer service in●POCKET PARCO●Store website●PARCO news

physical stores

Digital SC platform●PARCO online store●Tenantsʼ EC sites

Transfer customers to physical channels

Transfer customers to online channels

PARCO points

OKAZAKI Rui, Senior General Manager, DX Promotion Division, Daimaru Matsuzakaya Department Stores Co. Ltd.

Merge Real and Digital Based on Strength

Get interested

Shop blog

Parco has online channels including POCKET PARCO,
individual storesʼ websites and PARCO news and offline
channels including physical stores, a theater, video streaming,
museums and PARCO CUBE. Using their ability to attract
customers at their customer touch points, we will build adigital SC platform linking online and offline channels. We
will provide e-commerce services, which support both online
and offline channels, through the digital SC platform tailoredto the needs of the tenants that provide products online.
By giving “PARCO points” when customers buy through thedigital SC platform, we will transfer them to physical storesand serve them online again. We would like to achieve such
OMO customer transfer cycle.
Concerning Parcoʼs strong entertainment, we will
strengthen hybrid entertainment by merging live and digital
instead of depending only on physical storesʼ ability to attract
customers.

Daimaru/Matsuzakaya stores

Conceptual diagram of OMO

App/emailCan sell online andin stores alike!
Visualize contribution
to EC sales!

BuildcommunicationInterview

Extermal SNS

Onlinecustomer service

Build a digital SC platform

VR store
Personal stylist

OfflineStore signage

Customer service at store

Payment at store (POS)

Pickup at store

Customersʼ voice

DBDBDBDBDB

Our DX is business model transformation centered on our strong categories and domains.
As the first step, we are preparing for cosmetics OMO shopping site. We will renew ouronline media DEPACO and set up our own editorial department in the company to focus
on disseminating information online. As for service, we are creating a foundation using ourstrength fostered offline so that sales people in stores can well serve customers online. We
will create an EC site with these characteristics, which enable customers to buy wheneverthey want. For art, we are aiming to create one of the biggest platforms in Japan. We
conducted some PoC experiments, which achieved more results than imagined.
I am a rare person who returned to the company as a DX leader after moving to anIT company. It was a valuable experience to learn about a business model other thanretail. The entire team has come to consider not only retail that sells products but also
customer experience value and select the most appropriate business model to diversify
revenue streams. In the past, before launching projects, sometimes we were too cautious tosucceed. I think what has changed the most is our stance of trying to do first.
*DX stands for Digtal Transformation.
PoC stands for Proof of Concept.

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Integrated Report 202135