Smart evolution, Far Eastern Department Store reshapes the retail new economy.

        In recent years, in addition to the horizontal competition, the department store retail industry has to face many challenges, such as cross industry competition, business circle competition, e-commerce competition, as well as the high cost of human resources and materials, the rise of various payment tools, and so on. President Nancy Hsu will share in this "cover story" that how Far Eastern Department store takes the wing of science and technology to actively adjust and make transformation, and paves a different way for more immediate, convenient and integrated services!

        

        New business model starts transformation

        

        In the face of the change of consumption behavior brought by the progress of science and technology, as well as the rapid growth of online shopping, more and more shopping malls, outlets and other emerging retail entering the market, President Nancy Hsu said frankly that from the perspective of competition, the operating environment of the department store industry is becoming more and more complex. "Although the overall performance of the department store has grown for nine consecutive years, its trend is slowing down, especially in recent years, the situation of "big stores make ends meet, small stores have downturn" and "new stores make growth, old store have downturn " shows that the commodity supply and business model of department stores must be re-evolved to seek new living space."

        

        As a leader in Taiwan's retail industry, Far Eastern Department store not only actively develops the supply chain and brings more new products and experiences to customers with high-quality manufacturers, but also summarizes the new business model of department store industry under the fierce competition of multiple types of operation, including:

        

        1. Experiential marketing: provide customers with five senses of experience, which can let them watch, feel and entertain, and integrate consumption with enjoyment.

        

        2. Marketing suggestions with scientific and technological devices: use fitting mirror and notification and live broadcast on the Internet to promote sales.

        

        3. Multiple payment tools: increase payment tools (e.g. Happy Go Pay) and send points as gifts to attract consumers.

        

        4. Community participation: use web celebrities, live broadcast, FB, Ig and other media to shorten the distance between customers and commodities.

        

        In response to this new consumption trend and business trend, Far Eastern Department store also actively carried out transformation planning to increase its competitive advantage from different perspectives of "people, goods and market".

        

        In the part of "people", in response to the change of spread and technological innovation, Far Eastern Department Store particularly strengthened the use of digital media and community platform, attracting the attention of consumers in a lively and interesting way. At the same time, it also continued to strengthen the Far Eastern Department Store app and the official website, integrate the virtual and real channels to let customers quickly enjoy various convenient services. In addition, Far Eastern Department store will also make use of data analysis and resource utilization of Big Data, plan more flexible and diversified promotion programs, and with the help of digital technology, consumption trends and directions can be clearly grasped so as to improve customer adhesion and make consumers prefer to shop in Far Eastern Department store.

        

        According to President Nancy Hsu, "in the future, Taiwan's department store market will still present the phenomenon of "big stores can be still the leader". The new department store must have a stronger commodity power to be able to operate sustainably after the honeymoon.” Therefore, Far Eastern Department Store dare not take lightly the competitiveness of "goods". In addition to continuously introducing topic brands and popular goods, it also uses "flash stores" to create a sense of freshness and further shape the image of "shopping malls leading the fashion trend".

        

        

        As for the reconstruction of the “market”, President Nancy Hsu put emphasis on strengthening the interactivity and richness of the department stores. “In recent years, we have been following the trend of cultural and creative activities, planning a lot of cultural and creative experience, fairs, or cooperating with the government and non-governmental organizations in public welfare activities to create the shop image of the regional public welfare platform, or promoting characteristic products according to local needs, or designing the layout and activities that fit the occasion in different festivals and seasons." The diversified attempt is to improve the ability to gather customer and operate with a more interactive and experiential store atmosphere, and make each store the center of daily life in the regional business district.

        

         New digital technology makes click-and-mortar

        

        In view of the progress of digital technology and the popularization of smart phones, the shopping behavior of consumers has been greatly changed. In the past, consumers have been passively receiving the information from manufacturers, but now people become more active between brands and channels. Therefore, President Nancy Hsu attaches great importance to "click-and-mortar ". “The department store channel must integrate online and offline more actively, build a full channel environment for customers to consume more conveniently, and provide consistent consumption experience. "

        In order to meet the needs of the young generation and the new shopping habits, Far Eastern Department store has changed from the traditional investment strategy to the focus on consumers’ demand, strengthen experience and seek differences. In addition to better understanding of consumers through digital technology, it also closely links products, services and customers through intelligent technology, and connects online and offline consumption fields to provide exclusive and unique personalized services, as well as new shopping experience in line with the characteristics of Taiwan consumers. "In recent years, our capital expenditure on digital technology has grown year by year. We hope to build smart shopping malls with the help of science and technology. With the digital transformation of Far Eastern Department store, we will challenge the new retail market and lead customers to a better life of smart retail through innovative shopping experience. "President Nancy Hsu pointed out.

        

        Aiming at the three core systems of smart shopping malls - POS, App and CRM (Customer Relationship Management), Far Eastern Department store has started to improve the function of POS machine, design a new version of app, and introduce the CRM system. It is hoped that in the shopping of consumers, relevant data will be collected, and after AI calculation and analysis, customers' consumption profiles will be identified, and their consumption preferences and habits will be understood. And after the use of automatic notification and broadcast system, group resources such as Happy Go Pay can be combined to carry out click-and-mortar and mutual conductance. With the full channel shopping mode of "physical stores + e-commerce", consumers can get convenient and consistent shopping experience online / offline. President Nancy Hsu stressed that "smart technology connects online and offline customer footprints, so that we can more quickly and accurately meet customer needs, enhance the immediacy and efficiency of services, and further reshape consumers’ experience and brand awareness. "

        

        Not only that, focusing on personalized marketing is also the initiative of Far Eastern Department Store in the operation of physical department stores, hoping to strengthen the connection and trust with customers through the digitalization of consumption, and then cultivate loyalty. According to President Nancy Hsu, "personalized marketing can be expressed in four" R "s, namely, Right Time,Right Way, Right Person, Right Service. We hope to provide information, services and product discounts to every consumer at the right time through their preferred channels, such as Line, Facebook, App, etc. When you come to the Far Eastern Department store, you can experience the exclusive services beyond "shopping", including convenient intelligent parking, recommendation of popular new products on the e-board, notification of the promotion on the APP, direct payment of parking fees on the mobile phone and so on. "

        

        

        New intelligent management and innovation

        

        Making good use of digital tools to integrate and analyze big data and manage digital members has become a necessary skill in the new retail era, which not only helps to achieve "optimal customer experience", but also is an important basis for the business strategy and operation mode formulated by President Nancy Hsu. "In the future, Far Eastern Department store will master the consumption data of different platforms and channels based on big data, carry out effective information integration and consumption behavior analysis to find out customer insight and its repeated patterns, and the needs and intentions of consumers' shopping will be taken into consideration, so as to grasp the interaction behaviors and feelings between consumers and each contact point, so as to carry out overall strategic thinking, further develop or improve the supply chain, and provide differentiated goods and services. "

        

        With the development of smart technology, there are not only business opportunities, but also doubts about information security. President Nancy Hsu insisted that "Far Eastern Department store regards protection of customers’ information, privacy and data security processing as the first priority of managing digital members. All information is handled in accordance with the European and American standards, so customers must be assured to experience all new services. "

        

        It's not easy to break the tradition. However, in order to survive in the new retail era, only continuous innovation can make the enterprise sustainable. "People are usually resisted and fear to unfamiliar things. Although every company is in favor of innovation, it will still kill innovation accidentally. Therefore, how to build systematic innovation ability and bring innovation to the market within the budget are the key to a successful transformation. "In order to establish an effective innovation mechanism within the organization, President Nancy Hsu specially designed a" Empathy "training for employees," I hope that employees start from the heart, give meaning to what they do every day, and then think about how to develop the company, how to improve people's lives. Cultivate the attitude of "care" and "attentively" from small things, and gradually deepen into a part of life and corporate culture. As a result, innovative ideas can be generated naturally. "

        

        For President Nancy Hsu, the next greatest innovation of Far Eastern Department Store is not from technology, but from the way of "observing the world". How to interact with the public in a new mode, how to present the concept of physical space and experience to the public in pursuit of new ideas all need more empathy and meticulous plans to achieve. In terms of operation, setting clear objectives, paying attention to market competition gap, challenging inertia thinking framework, catering to industrial technology evolution, re-structuring business strategy and taking concrete actions for breakthrough will also be the focus of transformation of Far Eastern Department Store in the next stage.

        

        New technologies and new patterns have brought impact to the retail industry, but also injected inspiration and vitality. President Nancy Hsu firmly believes that "Taiwan's department store industry definitely has potential in the future!" In particular, Xinyi A13, which will open at the end of the year, will become the fifth generation store of Far Eastern Department store, a new shopping mall built with new technology, enriching the consumer experience and making Far Eastern Department Store stride forward into "new retail" pattern with wisdom, digitalization, integration of online / offline stores, "in addition to continuous evolution and updating of commodities in the future, we will launch innovative activities, novel flash stores, special creative products, short-term commodity shows, etc. as long as we can attract customers, we will keep thinking, putting forward and planning, so that consumers will always love Far Eastern Department Store! "