[Seminar Report] Purchasing as a "Vote" for Brands: What Branding Achieved Through Omnichannel Means

On November 16, the 6th general meeting of the " Next-Generation Marketing Platform Research Group," hosted by Mr. Hiroto Ebata, Executive Officer CMO at IMJ and Professor at the Graduate School of Business Design, was held.

The theme was straightforward: Omni-Channel. The panel discussion featured five speakers: Takashi Okutani, who had just transferred to Oisix in October as "COCO" (Chief Omni-Channel Officer); Megumi Ogata from Tokyu Hands, involved in omni-channel at physical stores; Masanori Tsukimori from Terada Warehouse, where new ventures are proliferating from a logistics perspective; Takeshi Nitta of Showcase Gig, which develops mobile-first payment apps; and Ryohei Inoue of Yahoo, who addressed the topic from a data perspective. Takuma Uehara of Dentsu Inc. Business Creation Center served as moderator.

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Omnichannel means capturing customers through a single source

This panel discussion followed a keynote session by Takashi Okutani of Oisix and a case study presentation by Masanori Tsukimori of Terada Warehouse. Mr. Okutani, in his previous role at MUJI, developed the "MUJI passport" app and worked on integrating physical stores with online channels. Meanwhile, Mr. Tsukimori actively promotes web-based B2C business at the long-established company celebrating its 65th anniversary. Beyond the " minikura " storage service starting from one box, they also operate art storage and rental services.

At the start of the discussion, moderator Mr. Uehara of Dentsu Inc. explained the panel's purpose: "We believe omnichannel means seamlessly connecting increasing channels to view customers from a single source. This time, we invited Mr. Okutani and Mr. Tsukimori, plus a third speaker, to hear perspectives from physical stores, mobile, and data."

Megumi Ogata of Tokyu Hands, who frequently speaks on O2O topics, has been involved in e-commerce and digital marketing strategy development since 2010 and currently oversees social media and membership organization operations. Mr. Takeshi Nitta, who founded Showcase Gig after working at Mixi, operates "O:der," a mobile payment service for restaurants enabling users to pay in advance. He also supports omnichannel service development for major retailers. Mr. Ryohei Inoue of Yahoo! Japan focuses on uncovering potential customer segments by analyzing the intersection of client companies' first-party data and Yahoo!'s data, within his role handling the company's advertising solutions.

Can Physical Stores Raise the Banner of Counterattack?

The initial theme posed was "Will Omnichannel Transform Business?" Uehara first explained the connection between recent consumer behavior and data. Contacts across paid, earned, and owned media, purchase data, and external data are all accumulated in a DMP. This data then informs and refines subsequent touchpoints. All consumer behavior is mobile-first.

When asked, "We're entering a world where integrated digital marketing seems achievable, but do you feel tangible change?" Mr. Okutani responded, "In terms of enabling deeper communication with customers, change is beginning." He added, "However, the realization of omnichannel itself is still in its early stages. While stores surprisingly lack knowledge about customers, it's not as if online channels have complete understanding either. I see opportunity in the perspective of how to bridge this gap."

Mr. Ogata stated that at Tokyu Hands, "things have definitely changed," attributing much of the impetus to insights gained from customer behavior. The company observed customers naturally adopting omnichannel behaviors—such as comparing products online before buying in-store, or viewing items in-store before purchasing online—and developed convenient services aligned with these patterns. "But we're only at the starting line. The real development lies ahead. We want to raise the 'banner of counterattack' against online retailers through omnichannelization," he stated.

In response, Mr. Nitta also pointed out, "For Japanese retailers, 'omnichannel' still feels like nothing more than a buzzword." He noted that in the US, customer ID integration and seamless service provision are already commonplace, and business models bridging retailers and consumers, such as the shopping service "Instacart," are gaining momentum.

"In Japan, the challenges surrounding omnichannel are only now becoming apparent. I see this as a phase where companies, taking pioneers like you two as models, should develop long-term visions and take concrete actions, such as improving digitalization rates," said Mr. Nitta. Mr. Inoue responded, "The period of riding the buzzword wave with one-off initiatives has subsided. It feels somewhat suspended now." Even looking at examples from leading companies, omnichannel clearly has the potential to transform business. However, the key seems to be whether companies can draw up a roadmap and translate it into concrete initiatives.

The biggest challenge for omnichannel is the lack of an IT perspective

After acknowledging that challenges have become apparent, the discussion shifted to the theme: "What is the biggest challenge for omnichannel?" Mr. Okutani offered a sharp observation: "The reason retailers and bookstores are being pushed so hard by Amazon is that they haven't grasped their own business models from an IT perspective." Having transitioned from Ryohin Keikaku, where physical stores were the mainstay, to Oisix, where e-commerce is the core, he explained that the focus now is on how to translate offline actions and touchpoints back into the online space.

As long as physical goods move, offline touchpoints will inevitably occur. "Even when someone buys vegetables on the Oisix site, they receive them at home, cook them, and eat them. If we consider omni-channel strategy from an IT perspective, including how to capture those in-home touchpoints, we should find a way forward," Okutani stated.

On the other hand, while noting it comes "from a significantly different angle," Mr. Nitta points to a lack of proper pricing awareness among corporate management and companies. "Developing a high-functionality app that integrates with core systems typically costs tens of millions to hundreds of millions of yen. Yet, many mistakenly believe it can be developed as a simple extension of a basic website. Developing a sense of market value, referencing the US situation, should be a prerequisite."

When asked, "Warehousing and logistics are often perceived as industries resistant to change. Terada Warehouse's initiatives are truly impressive. What challenges did you overcome?" (Uehara), Tsukimori cited the presence of business partners like logistics firms and shippers, stating, "Few companies can create new user experiences entirely on their own."

The company is also proactive in nurturing startups. For instance, as part of this effort, it invested in Air Closet Inc., which operates the monthly subscription fashion rental service " airCloset," and also provides warehouse space as support. Tsukimori's philosophy of "forming open partnerships and growing the business together" likely leads to new proposals for consumers who freely enjoy services across channels.

Business only exists when it coexists with customers

The discussion then turned to the final theme: "Can consumers achieve self-actualization through omnichannel?" The world envisioned by Kotler's "Marketing 4.0," the central theme of the Next-Generation Marketing Platform Research Group, is said to be one where consumers can achieve self-actualization. As companies advance their omnichannel strategies, can consumers, through their interactions with these companies, move closer to the person they aspire to be or the goals they wish to achieve?

Mr. Ogata cited the trend where purchasing behavior increasingly resembles "voting" to support a company, predicting this tendency will strengthen. "If companies can increase the number of people who love their brand through service improvements and communication strategies, this voting activity will intensify. Ultimately, this could lead to consumer self-actualization. For example, just as beta versions of apps are refined together with users, creating more engaging environments in physical stores could foster greater attachment."

Mr. Okutani also pointed out that we are in an era where brands supported by customers shine. While digital tools allow companies to track customers, the human touch and qualitative connections remain crucial. "Business fundamentally exists only through its customers. I believe consumer self-actualization lies in feeling that brand ethos," he said.

Omnichannel is often seen as just about improving convenience, but mere convenience doesn't necessarily make consumers happy. If consumers can comfortably enjoy services while enriching their experience through engagement with the company, their affection for the brand will grow. "Developing niche services tailored to individual needs and branding them effectively will be crucial," stated Tsukimori. From the perspective of bridging companies and consumers, Inoue added, "Data like search queries and page views is, in a sense, close to public sentiment. We want to feed the evolving will of consumers back into corporate marketing."

Towards the end of the discussion, questions were taken from the many marketers in attendance. Koichi Shimabukuro, who is working on omnichannel at PARCO, posed a sharp question: "Should all retailers aim for omnichannel?" In response, Ogata stated, "If you mean all retailers, then no. Depending on the scale of the business, it might not be realistic. If it fits the challenges a company faces, then they should pursue it." Meanwhile, the other panelists besides Ogata answered yes. Tsukimori pointed out, "Linking customer and inventory information is essential for efficiency." Nitta stated, "I agree with Ogata's comment. However, I don't think retailers can survive in the future without leveraging digital."

Finally, Uehara commented, "As a case study for Marketing 4.0, I truly felt omnichannel is worth exploring in greater depth." Mr. Ebata Hiroto, who organized the study group, expressed his hopes: "Omnichannel expands touchpoints, which also means finding people willing to pay more for products and services. This mechanism is already realized in the US. However, Japan has a culture of price cuts but not of price increases. I hope we can discuss whether this culture might change in the future."

The expansion of omnichannel deepens engagement between companies and consumers, positioning companies as entities consumers "want to support." The discussion, led by frontline marketers, strongly impressed upon attendees the branding potential through omnichannel.

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After the Discussion

This study group regularly invites top leaders to discuss diverse themes, blending theory and practice. This time, we heard many valuable insights from Japan's leading omnichannel experts. We wanted to share these with our readers through Dentsu Inc.

After the meeting, we went to an after-party with the speakers, staff, and participants—70 people in total. Many in the audience were also incredible professionals involved in omnichannel, and the conversation heated up with candid talk that only alcohol could unlock. Mr. Ogata from Tokyu Hands passionately stated, "Omnichannel is now marketing itself and a business strategy." That's exactly right. Omnichannel truly makes you think about the very essence of business.

Omnichannel is a world that involves not just retailers and manufacturers, not just business people, but consumers themselves. For example, cutting-edge omnichannel models are exploring businesses where consumers deliver goods instead of delivery companies. It's even conceivable that consumers could make and sell things themselves. In other words, we've entered an era where consumers generate not just demand, but supply too. Thinking about omnichannel provides an opportunity to fundamentally rethink the very nature of consumption.

To readers who have followed this series, I hope you'll reconsider: "Am I involved in omnichannel too?" and join us in shaping the future of marketing.

Dentsu Inc. Business Creation Center Takuma Uehara