Note: This website was automatically translated, so some terms or nuances may not be completely accurate.
Experience-Driven Showcase [29]Bring "Omotenashi" to Inbound! What is the strategy of the Isetan Mitsukoshi Group?
On September 13th, an experiential event targeting Chinese women residing in Japan was held at the Beauty Apothecary cafe on the B2 floor of Isetan Shinjuku. This event was part of the Mitsukoshi Isetan Group's inbound initiatives. Kyoko Kawaragi of Mitsukoshi Isetan Holdings interviewed Akinobu Yamamoto and Yoko Iizuka of Dentsu Inc., who planned and executed the event, about its outline. The event was well-received for its wonderful hospitality.
Interview Structure: Aki Kanahara, Dentsu Inc. Event & Space Design Bureau
Mitsukoshi Isetan Group's Inbound Initiatives
Iizuka: As the top leader among Japanese department stores, I believe Mitsukoshi Isetan is at the forefront of inbound initiatives. Today, I'd like to ask about specific details.
Kawara: As the number of foreign visitors to Japan rapidly increases, I feel the term "inbound" has taken on a life of its own. At the Mitsukoshi Isetan Group, we view all foreign customers, including both visitors and residents, as "foreign customers." After all, stores that aren't favored by resident foreigners won't attract visitors either. Various data clearly shows that visitors also enjoy their trips based on content shared by residents, such as word-of-mouth recommendations.
Yamamoto: When friends visit from China, they often ask me what I usually buy after arriving in Japan. I came to Japan in 2001, so it's been 14 years now. I really want to introduce them to truly good things, so I struggle daily with reference materials.
Kawara: Unfortunately, there isn't much data clearly showing the interests and preferences of foreign residents. Our company has also worked with businesses that provide information for foreign residents, conducting online surveys targeting email newsletter subscribers to gather data on their information sources, areas of activity, favorite retail stores, and so on, while exploring approaches.
Yamamoto: Even among foreign residents, profiles vary widely, making comprehensive surveys difficult.
Kawara: At Isetan Mitsukoshi, we don't have products specifically "for foreigners." We want our international customers to enjoy the products, services, and environment we provide just as much as our Japanese customers do. To achieve this, we believe it's crucial to understand the characteristics of our international customers, accelerate infrastructure improvements to create a comfortable shopping environment, and propose Japanese craftsmanship, hospitality, and new lifestyles that truly resonate with them.
Yamamoto: When my friends visit, I also want to recommend things that regular Japanese people like, not places that give special treatment to Chinese visitors.
Results of the Event at "Beauty Apothecary"
Kawara: The Beauty Apothecary, the stage for this initiative, is Isetan Shinjuku's independently curated floor that truly embodies Japan's unique, meticulous sensibility. While we offer outstanding products and services from around the world that support beauty and health, many are from lesser-known manufacturers. We felt a distinct foreign customer strategy was needed, setting us apart from the cosmetics sections featuring major brands already recognized by overseas customers.
Iizuka: Currently, visitors to Japan tend to be concentrated in one area, and many people are seeking the same things.
Kawaragi: That's why we asked Mr. Yamamoto to invite 30 career women from China to participate in the Beauty Apothecary event. The goals were, first, to understand their interests, and second, to share authentic, firsthand information.
Yamamoto: After it ended, there was a long line of everyone at the register.
Kawara: The assigned buyer also noted many insights afterward. We believe these can be reflected in concrete future initiatives.
Iizuka: Actually doing it, the response from the 30 participants was amazing. It's rare to see so many hands raised during Q&A, isn't it?
Yamamoto: I almost felt bad there were so many questions (laughs). One after another, specific questions about the products came up, really showing how interested people were.
Kawaragi: I also didn't expect such in-depth questions. I was especially surprised by how many asked about health aspects, materials, and quality. They were clearly trying to choose something they genuinely liked while asking questions. I was delighted that precisely those kinds of people came this time.
Yamamoto: We debated whether to invite 50-60 people or just 30. But we felt it was stronger to first let them experience the kind of attentive, one-on-one explanation Japanese customers typically receive. Once these people become fans of Mitsukoshi Isetan and Beauty Apothecary, their word-of-mouth recommendations will spread more effectively.
Kawaragi: In September, Nihonbashi Mitsukoshi Main Store requested that we promote their annual "Japan Traditional Crafts Exhibition" to foreign customers. Since inviting overseas guests directly is challenging, we placed articles in The Japan Times and Metropolis, publications read by foreigners residing in Japan. However, most explanations within the venue remain in Japanese.
Therefore, for the first time, we offered English gallery tours for two days during the exhibition period and received reservations from 12 guests. So, we started guided tours this time, and even though it was only for two days, we had 12 reservations. Beauty Apothecary also started small. While it's a steady approach, we hope to expand such initiatives not only in fashion and art but also in the fields of food and living.
Mitsukoshi Isetan Group's Mission and Inbound Marketing
Iizuka: What struck me most about Mr. Kawaragi's remarks was his reluctance to use the term "spending sprees." Ensuring customers truly understand products, becoming fans, and welcoming them over the long term—that's truly department store-style service.
Karabayashi: I'm glad you see it that way. We must also maintain a clear perspective on our target customers. While valuing our Chinese customers, who currently account for over half of our tax-free sales, it's crucial to actively engage customers from other countries as well.
Segmenting based on actual data and clarifying targets. Then executing initiatives aligned with the customer journey and customer psychology, followed by verifying results. I see my mission as executing this entire marketing process with speed.
Yamamoto: Infrastructure development to attract visitors often lags behind. Whether they're Chinese or other foreigners, I think the anxiety of visiting an unfamiliar country and the need to research things are probably the same for everyone. Inbound tourism really starts from the moment someone becomes interested in Japan.
Kawara: You're absolutely right.
Yamamoto: Fundamentally, when we propose to clients, we always discuss: How well is this sales floor or service actually accepted? What's the state of infrastructure? What goals should we set? And how can we run the optimal PDCA cycle within the budget?
Kawara: That's crucial. I believe anything that can't be verified shouldn't be sustained. Anyway, I think we're in an environment where testing and trialing is easier now. During this tailwind, or relatively favorable period, it's vital to keep trying different approaches to truly turn foreign customers into fans.
Iizuka: That's precisely the "this is japan." initiative.
Conveying "Japan's Appeal" through the Mitsukoshi Isetan Group
Kawaragi: At the start of 2015, the Mitsukoshi Isetan Group launched the corporate message "this is japan." to the world. This signifies the craftsmanship, product selection, and hospitality cultivated in Japan that engage the five senses. To welcome customers worldwide with the warmest smiles, it is vital for us to refine each sense, make new discoveries, and create.
This is a message we wish to convey equally to both Japanese and international customers.
Iizuka: Finally, looking at the long term, what initiatives will you implement for 2020 and beyond?
Kawara: Department stores are fundamentally purchasing agents. We enable customers to buy what they want, when they want it, and in the quantities they desire. We must constantly anticipate not only what customers want now, but also what they will desire in the future, and proactively propose solutions.
Regarding inbound tourism, we established a dedicated department just last year. This year, tax-free sales have exceeded 10% or even 20% of total sales at some stores. They have clearly become one of our strategic customer segments.
As mentioned earlier, with inbound tourism, we must simultaneously evolve our customer attraction efforts and our reception infrastructure. This applies to customer targeting as well; it's essential to make swift decisions while maintaining balance and implement measures promptly.
Starting in September, we began posting information primarily about Ginza Mitsukoshi on the Chinese SNS platform "WeChat." Starting in October, we will also sequentially refresh the foreign language pages on the websites of our key stores in the Tokyo metropolitan area. Furthermore, we will actively participate in overseas travel fairs and business meetings. Even in regions where we do not have stores, we will raise awareness of the Mitsukoshi Isetan Group while conveying the true appeal of Japan – the enjoyment of Japanese department stores and Japan's unique manufacturing, which blends tradition and innovation.
Was this article helpful?
Share this article
Newsletter registration is here
We select and publish important news every day
For inquiries about this article
Back Numbers
Author
Kyoko Kawaragi
Mitsukoshi Isetan Holdings Co., Ltd.
Joined Isetan (now Mitsukoshi Isetan) in 1992. After serving as a public relations officer, sales manager for the women's apparel department at Isetan Shinjuku, and buyer, she assumed responsibility for customer policy in 2009. Assumed current position in April 2015.
Yamamoto Akino
Dentsu Inc.
Born and raised in China. Came to Japan after graduating from university. After joining Dentsu Inc., worked as a marketing planner and promotion planner. In addition to handling clients both in Japan and overseas, specialized in creating business opportunities through analyzing cultural differences between Japan and China. This included developing and producing an original character with 90% recognition in Taiwan, and serving as a lecturer for promotion seminars in China on behalf of Dentsu Inc.
Yoko Iizuka
Dentsu Inc.
Joined Dentsu Inc. in 2005. Handled Mitsukoshi Isetan accounts from 2012.