Infrastructure investment in the inbound and e-commerce businesses

「In the e-commerce business, the introduction of “Staff DX,” an OMO strategy support tool that enables store sales staff to wear the company’s jewelry and post about it on the company’s online site, drove e-commerce sales up 29.9% year on year.」

「We will further strengthen the use of the "Staff DX" tool, which was rolled out in earnest in the previous fiscal year and has produced certain results, to expand EC sales and turn customers into fans.」

「In the EC business, the introduction of the "Staff DX" tool supporting the OMO strategy, through which in-store sales staff wear jewelry themselves and post about it on the company's online site, drove EC sales up 44.0% year on year and also contributed to increased visits to physical stores through the resulting synergies.」

「We introduced the CRM system "festaria Members Club," which supports the OMO (Online Merges with Offline) strategy, at stores nationwide and promoted member registration. We also introduced a "Staff DX" tool that allows sales staff to wear jewelry themselves and post about it on the online site, and began initiatives to expand EC sales and turn customers into fans by improving the customer experience.」

「We implemented the CRM (Customer Relationship Management) system "festaria Members Club," which supports the OMO (Online Merges with Offline) strategy, and proceeded with preparations for rolling it out to all stores following its initial introduction to the online shop.」

「In addition to first introducing the CRM (Customer Relationship Management) system "festaria Members Club," which supports the OMO (Online Merges with Offline) strategy, to the online shop, we also introduced it first at trial stores in order to establish operating procedures to promote member registration at stores nationwide.」

「As part of its DX initiatives and made-to-order measures, the company implemented a 3D digital customization system for jewelry. It also introduced the CRM system “festaria Members Club,” which supports its OMO (Online Merges with Offline) strategy, first in its online shop to improve customer service.」

「As an OMO (Online Merges with Offline) initiative, we proceeded with building a CRM system that integrates customer databases across physical stores, EC, and the official app, enabling centralized management.」

「To deliver a customer experience integrating online and offline operations, we proceeded with replacing our own online site and improving the convenience of the official app, while also launching Instagram Live with store staff serving as ambassadors」

「In addition, to create a customer experience integrating online and physical channels as part of efforts to recover customer traffic, the company worked to improve the convenience of its online site and official app. It also launched Instagram Live broadcasts featuring store employees as ambassadors to lift sales through both e-commerce and physical stores, conducting broadcasts focused on building a fan base rather than merely introducing new products.」

「Formation of a DX promotion team, streamlining of headquarters and stores, visualization and standardization of operations, review of the product development, production and logistics structure, and rebuilding of marketing strategies and CRM to expand LTV (lifetime customer value), among other initiatives」

「By advancing these OMO strategies, we will work to improve the EC ratio and increase revenue per store by strengthening the recruitment and training of personnel at stores.」

「The substantial 101.4% year-on-year increase in online sales also contributed to lifting revenue.」

「The EC business also grew substantially, increasing 137.1% year on year, driven by stronger online consumption.」

「Against the backdrop of stronger online consumption, the e-commerce business grew substantially, up 282.6% year on year.」

「As the foundation supporting these initiatives, we will make securing and training digital personnel, organizing customer data through more advanced CRM, strengthening social media engagement and online customer service by store personnel, expanding digital customer services for jewelry centered on ディアプリュス, rebuilding store operations, and developing the EC infrastructure, including products, systems, logistics, and personnel, our priority issues for the next period.」

「Using a smartphone-only app that allows customers to choose from more than 100 designs and carefully selected, high-quality loose diamonds for virtual fitting, the service enables personalized orders with a focus on quality, from fashion jewelry through bridal jewelry. Customers can enjoy trying on jewelry virtually while viewing it in-store or at home, and experience the pleasure of creating jewelry through their own selections. In April 2020, the service was expanded to Isetan Shinjuku, the second store,」

「We invested in the digital domain to optimize omnichannel operations and strengthen bridal-visit reservations, including by considering the renovation and integration of EC and brand sites, introducing our own app, and reviewing the CRM system.」

「In addition to rebuilding the EC business, we aim to generate tangible results in new areas under our growth strategy, including strengthening our response to consumer needs by promoting the O2O business and an omnichannel model, strengthening our acquisition of bridal demand through partnerships with wedding-related businesses and enhanced web marketing, and strengthening the inbound tourism business by pursuing differentiation.」

「Although sales in the e-commerce business, positioned as a core growth strategy, remained sluggish, the company advanced preparations for monetization by focusing on revitalizing cross-referrals with physical stores and making partial improvements to its own e-commerce site.」

「While focusing on activating reciprocal customer referrals with physical stores, we also reviewed the design and customer journey of our own EC site, thereby developing the foundation for monetization.」

「We shifted the focus of our web strategy toward activating reciprocal customer referrals with physical stores, while also reviewing the design and customer journey of our own EC site, thereby developing the foundation for monetization.」

「Although the company made aggressive investments in its e-commerce and wholesale businesses, which were positioned as new channels supporting future growth, they fell substantially short of the initial plan.」

「Meanwhile, although the company made aggressive investments in its e-commerce and wholesale businesses, which were positioned as new businesses, they fell substantially short of the initial plan.」

「In the EC business in particular, we made proactive, disproportionately weighted investments to expand sales on our own EC site. However, the business remained in a process of trial and error, requiring a fundamental review.」

「In addition to implementing aggressive promotional measures centered on social media advertising to expand sales during the December shopping season, the company shifted the focus of its web strategy toward expanding bridal reservations, strengthening O2O initiatives, and revitalizing cross-referrals by leveraging the strengths of physical stores. It also reviewed the design and user navigation of its own e-commerce site, the festaria online shop.」

「In addition to rebuilding the e-commerce business, we worked to better address consumer needs by promoting the O2O business and an omnichannel model,」

「However, following a review of its organizational structure, including stronger support from external organizations and additional personnel, site traffic and conversion rates, among other metrics, began to improve, and sales gradually rose.」

「With regard to new businesses, in the EC business, a core growth area, we expanded onto major EC marketplaces and launched our own EC site, which began full-scale operations in December 2016. Although the site got off to a strong start, partly because we simultaneously launched tie-up collections with the film "Kimi to 100-kaime no Koi" and "Wish upon a star," traffic and the conversion rate (purchase rate) subsequently declined gradually, and performance remained below the initial plan.」

「In October of the same year, the company launched its own e-commerce site and began trial operations ahead of full-scale operations in December.」

「We will strengthen head-office management functions. Specifically, having reaffirmed the importance of a frontline perspective based on direct contact with customers, we will improve head-office productivity and standardize operations from an overall optimization perspective by promoting information sharing and personnel exchanges between head-office staff and sales-floor personnel. In addition to renewing our core systems, we will accelerate efforts to rebuild chain operations capable of supporting new channels and business domains, including the wholesale business as a jewelry manufacturer, ICT-based services, and licensing, alongside our existing domains.」

「Infrastructure investment for new channels and new business domains, including the inbound tourism and e-commerce businesses」