Like Water, Like Air: The Science of Hospitality: Tatsuya Kitagawa (Part 2)

How to leverage the assets cultivated over 300 years of department store history

Kitagawa: The flagship stores (Shinjuku Isetan, Ginza Mitsukoshi, Nihonbashi Mitsukoshi) are the very essence of our culture. They embody the history of relationships built with our customers, and their 300-year legacy and tacit knowledge hold immense value.

On the other hand, as touchpoints for customers visiting from around the world, we connect them through smaller, more accessible stores like Isetan Salon, Isetan House, and Isetan Mirror (*). These are fundamentally points of contact with customers. Frankly, it's unclear whether we'll continue selling goods there in the same way as before. Since purchasing goods can also be done online, these spaces might evolve into places where customers can experience the rich, unique time available only there.

※Regarding small-to-medium-sized stores like Isetan Salon, Isetan House, and Isetan Mirror

This is part of the small-to-medium-sized store expansion strategy, leveraging Mitsukoshi Isetan HD's strength in curation to broaden customer touchpoints.
Examples include Isetan Salon, a "fashion select store" opened in Roppongi last April; Isetan Salon Men's, opened in Marunouchi in December of the same year; Isetan House, a "mid-sized select store" scheduled to open in Nagoya this April; and Isetan Mirror, a "luxury cosmetics select store" with 12 locations primarily in the Tokyo metropolitan area.

 

Ozaki: Beyond that, what does it mean for Mitsukoshi Isetan to continue upholding its core values?

What we must fundamentally pursue is consistently supporting our customers' desire to live rich, fulfilling lives. As long as we stay true to that core purpose, the specific products, services, and delivery methods can be diverse and varied. Take the example of a customer's desire to pursue beauty. We can't even be sure the same cosmetics will be sold 15 years from now. It's not about defining what we sell, but how closely we can align with the core purpose: being as close as possible to women's beauty and providing it through the most accessible means. That's something we probably shouldn't compromise on. I believe that's what we should pursue.

 

Leveraging Technology to Build "Community"

Ozaki: We must also change how we work.

Kitagawa: I believe the nature of advertising and promotion will also change dramatically. The internet era has made it possible to leverage the cloud to form specific communities that transcend physical space. A prime example might be Etsy, the American handmade goods marketplace.

Even if there are only 500 people in the Tokyo area with a niche hobby, expanding the scope nationwide might reveal 10,000 people, and globally, perhaps 100,000. Gathering all 100,000 in one place would be nearly impossible, but the internet makes it feasible. If we can provide content tailored to this community's interests, there's no marketing strategy with a higher conversion rate. I believe the future of marketing lies in creating numerous such small communities and closely aligning with customers' deep needs and highly personalized information.

Essentially, unless we design from the ground up how we communicate with society and customers—the very nature of communication itself—we won't be able to define what we place there, the spaces or products. Consider the experience of someone who comes to a department store intending to buy a coat, but ends up buying a really stylish umbrella just before leaving. That process involves such a happy communication that it changes their original intention. I want to sow the seeds for that kind of communication.

Ozaki: I want to sow them too.

 

Do those technology initiatives capture the company's "essence"?

Kitagawa: Considering that essence, a common example of technology use is providing product explanations as digital content. Speaking from experience, including lessons learned, this often doesn't work well on its own.

While customers' purchasing decisions vary widely, I believe that seeing the worldview behind the product and envisioning their own future after owning it is especially crucial when buying high-value items. Technology should be used precisely to enable this kind of marketing that sparks such future imagination.

Scientifically enhancing hospitality. If we can make it scientific, we can automate or mechanize parts, combining elements that can be scientifically proven with those that cannot. We need to properly build the digital infrastructure now to add those thrilling, time-worthy experiences that only human-to-human interaction can provide. We aim to integrate it seamlessly, like water or air, so customers don't even notice the digital technology.

Ozaki: So, once that foundation is established, the analog elements that create compelling experiences will become a kind of spatial platform where we invite specialists. That's a wonderful vision, and I'd love to help in some capacity.