Integrated Report

INVESTOR RELATIONS

Isetan Mitsukoshi Group
In order to realize our vision,
We will transform our business model from "Store business" to" Individual customer business".

Using urbanization as a means to accelerate these four transformations,
We aim to further evolve our Individual customer business business model.

Until now, our business model has been a mass-oriented business model centered on "Store," attracting customers to the "Store" and having them buy something to take home.
From now on, we will transform to Individual customer business, which aims to maximize wallet sharing and lifetime value by attracting and connecting with more customers from all over the world, deeply understanding these individual customers, and deepening the connection by being useful at various points of contact.

Message from the President and CEO

CEO Hosoya tells us about the revitalization of department stores and the transformation to "Individual customer business" that he aims to achieve beyond.

A Conversation between the CFO and an Analyst

Overseas institutional investors were invited to the event to exchange views with CFO Makino about the progress of the strategy, future goals, and the way it ought to be about financial strategy and market dialogue.

Business environment awareness

Mitsukoshi Isetan Group
Surrounding Environment
  • [Increased opportunities to go out and increased consumer confidence]
    COVID-19 infection transitions to Category 5 infectious disease and inbound tourism increases
  • [Personal consumption showing signs of recovery]
    The Bank of Japan lifts its negative interest rate policy → interest rates are raised
    Creating an environment for sustained price and wage increases, and wealth effects from rising stock prices
  • [Real wages continue to decline]
    Rising energy costs and raw material prices due to global situations and fluctuations in exchange rates
  • [Concerns over growing polarization of consumption]
    Uncertain future due to volatile stock prices and the yen's exchange rate has led some to be cautious about spending
Issues to be addressed
  • Rapid advances in digital technology
  • Intensifying natural disasters due to climate change
  • The impact of sudden exchange rate fluctuations and geopolitical risks on economic trends
  • Increasing the world's population and the increase in the number of foreign visitors to Japan
  • Increase in financial assets leads to an expansion of the wealthy

Urban and global population continue to grow

日本の人口は約1億2,400万人で、2008年をピークに減少し、30年後に1億人になるといわれています。一方、都心部人口は拡大し、東京都の人口は2040年のピークに向けて上昇。また、世界の人口は約80億人といわれており、100億人に向けて右肩上がりです。

Number of foreign visitors to Japan expected to continue to increase

訪日外国人数は、コロナ禍以前は2019年7月がピークでした。その後コロナ影響で激減し、22年10月の水際対策緩和以降伸長を続け、30年には6,000万人を目指すとされています。

The number of wealthy households and their assets are on the rise in Japan

直近の約10年で、国内の富裕層は大幅に拡大したといわれています。資産額は約10年で30%ほど増え、世帯数も20%増えています。※富裕層=保有金融資産1億円以上

Sales at department stores nationwide fell to about half of what they were in 1991

直近の約50年で、国内全体の消費額の規模は変わらないながらも、さまざまな競合(コンビニエンスストア、ショッピングセンター、アウトレット、eコマースなど)が参入してきました。1991年には約10兆円あった百貨店売上が5兆円強と約半分に減少しています。

In this increasingly complex business environment, we will identify the risks and opportunities for the Isetan Mitsukoshi Group, respond to changes in society and the business environment, anticipate customer needs, and make innovative proposals.

Individual customer business business model

To realize the vision the group aspires to, it is inevitable that we will have to transform our existing business model and shift from mass to "individual." We have therefore decided to leverage our strengths and evolve into an "individual" business that is in line with the times.

Expand value provided to identified "individual customers"

We will identify the customers we attract at our department stores and, while making use of the "linear" connections we have built with each individual customer at our department stores, we will expand our relationships with each individual customer from a "linear" connection to a "surface" connection.
Going beyond the boundaries of a traditional department store, we aim to enrich all aspects of our customers' lives by providing diverse value from an individual customer perspective, including leveraging group resources.

Relationship between three key strategies and business processes for Individual customer business

In the Individual customer business, we aim to build lifelong relationships with customers by enriching their overall lives. We attract all customers who seek high-quality and high-sensitive consumption through the charm of the store, and once they are identified through MITSUKOSHI ISETAN App and MICARD, we analyze and understand the needs and insights of each individual customer.
Furthermore, with department stores at the core of our "intra-group coordination urbanization" strategy, we will propose and provide content that goes beyond traditional value provision, tailored to each individual customer, inspiring them and encouraging them to use the Isetan Mitsukoshi Group throughout their lives.

How to provide value on Individual customer business

We will also transform the way we work in order to meet the personal needs and insights of customers who are identified and connected to us from all over the world. We will focus on each individual customer and make proposals to enrich their lives through "human-driven experiences" and "digital means such as MITSUKOSHI ISETAN App." Furthermore, by providing diverse individual value through the combination of intra-group coordination activities of our consolidated subsidiaries, we will increase the profitability of each business and achieve our long-term vision.

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