Crisis is a turning point, but also a business opportunity -- SOGO transformation is now

        A sudden global catastrophe has brought unprecedented crisis to the world! The novel coronavirus pneumonia not only overturned human cognition, reverse people’s thinking, but also produced unprecedented changes to habitual lives. It is appropriate that someone called the novel coronavirus pneumonia as "the Third World War".

        SOGO deals it with right ways in face of novel coronavirus pneumonia

        With the spread of the novel coronavirus pneumonia in the world, all walks of life can not stay out of it, especially the tourism, catering and retail industry, which has become the disaster area of "first row of tsunami". In the face of crisis, it reminds me of Charles Dickens's famous saying of “A Tale of Two Cities” "it was the best of times; it was the worst of times". It is also the so-called "good fortune leith with bad, bad fortune lurketh with good" in Chinese. Whether it is a blessing or a curse depends entirely on our attitude.

        The impact of the novel coronavirus pneumonia on domestic department stores is urgent and fast, and Pacific SOGO Department Store is also affected. As the leading department store in Taiwan, SOGO has a sense of crisis, but has no right to fear. We firmly believe that "one should do not rely on the enemy's failure, but on one’s right way to deal with it". Only when we regard the crisis as a turning point, can SOGO easily solve the problems and usher in business opportunities!

        SOGO’s advanced deployment, no confirmed case attracts consumers

        Novel coronavirus pneumonia has disrupted the important holidays from the lunar new year, the 228 holiday to the Qingming Festival which were expected by the department store industry. Even though SOGO had been prepared for the epidemic and adopted the "advanced deployment" strategy from the end of January, the possibility of a decrease in the number of customers had been foreseen in the early stage of the epidemic in February, but the increasing number of confirmed cases really made the consumption confidence drain like an hourglass and put the SOGO management team under huge performance pressure. By the end of April, the number of customers we used to be proud of declined by two digits compared with the same period last year. That was the most severe retail winter since SARS.

        It is not easy that the domestic epidemic situation gradually slowed down, and the consumption momentum is ready to start. However, the outbreak of the Panshi ship abruptly extinguished the consumer confidence. In the face of the most important schedule in the first half of year of the department store industry, in order to make consumers, especially VIPs who make the most contribution to the performance and main customers feel at ease to consume, SOGO launches the OMO - online and offline integration strategy. Inspired by the " + 0" for many days, SOGO finally stimulated the consumers’ purchasing power.

        In order to pay tribute to the front-line epidemic prevention heroes who have worked hard, SOGO then launched "520 thank you" - a special activity for all medical staff in Taiwan. At the same time, we also launched a large-scale app membership activity in Taiwan for the first time, which made the performance better and better. Then the following mid-year celebration, summer discount and "summer Japanese food festival" in June attracted main customers and VIPs one after another. With high-quality commodities, exquisite services and feedback that can meet the needs of consumers, we strived to recover the performance lost due to the epidemic.

        Renovation and introduction of new brands to provide a new shopping experience

        During the epidemic period, SOGO took advantage of the small number of visitors to carry out store modification and brand adjustment. As the epidemic situation slows down, a brand-new shopping experience will be provided to consumers at the right time. Among them, Zhongxiaoguan SOGO has the largest adjustment range. The 11th floor and restaurant areas on 12th floor have been modified and adjusted in terms of public space, interior decoration and brands. The exclusive "Jinze" sushi restaurant in Taiwan and the Singapore "Putian" restaurant selected by Michelin for four consecutive years have been introduced. In terms of popular clothing, SOGO's strong businesses such as children's wear and popular clothing floors also take immediate brand adjustment. With easing of lockdown of epidemic in June, we welcome consumers who stayed too long at home with a brand-new store atmosphere and usher in a "deferred consumption tide" with a brand-new commodity mix.

        Taiwan's epidemic prevention work has been deployed ahead of schedule. With the concerted efforts of the government and the public, the domestic people's livelihood and economy are operating normally. However, the whole Taiwan is still in the transitional stage of "epidemic prevention". Therefore, the basic epidemic prevention measures, such as practicing social distancing, wearing masks in public places, and taking body temperature, are still in progress. There is still a long way to go back to the previous lives. As for the department store industry, there is still a last mile to catch up with. At this moment, the urgency of digitization is beyond description.

        No time to delay digital transformation, OMO strategy takes effect

        The epidemic situation that caught everyone unprepared highlights the importance of digital transformation. In the face of the decline in the number of visitors and the rate of consuming, the mastery of consumer profile by department stores is more critical. We firmly believe that crisis is a turning point, but also our digital business opportunities! 

        First of all, we fully demonstrate the group's synergy. By using the advantages of consumption in the store with HAPPY GO card, we have accumulated complete consumption data of the customers over the years, and clearly grasped customers' consumption journey through CRM data analysis. In the past, the activity schedule can be used to successfully mobilize target customers to shop for consumption. However, the epidemic makes frequent customers, VIPs and other major customers stay at home. In the face of this unprecedented crisis, SOGO team, on the one hand, makes a review of the behavior patterns of customers, and at the same time reviews the existing sales channels and we-media, and then develops OMO strategy.

        Next, through the digital media such as Facebook, Instagram, line and app, we connect our self-employed e-commerce SOGO iStore through the IG shopping and live streaming shopping guide, so as to give full play to the dual benefits of extending the store shelves and prolonging the shopping time, so that consumers can also enjoy shopping at home during the epidemic prevention at home. At the same time, all the SOGO staff mobilized to give full play to the marketing power, and provided multiple payment methods such as mobile POS machine, so that the sales staff can still meet the shopping needs of consumers during the epidemic prevention period. According to the different needs of different customers, we adopt an all-round digital mobile strategy.

        Seamless integration with OMO consumption, multi-pronged mobile strategy

        I. optimize self-employed e-commerce, strengthen online shopping services of epidemic prevention and people's livelihood goods: SOGO iStore launched a special zone for epidemic prevention commodities, facilitating consumers to purchase online. At the beginning of February, when it was launched less than two weeks, the performance grew by more than 300% compared with the same period last year, fully reflecting the online shopping demand of consumers. In addition to continuously replenishing epidemic prevention products, we also increased food and livelihood supplies, and expanded cooperation with FET friDay shopping platform. The dual online shopping platform exerted the synergy of "1 + 1 > 2".

        2. "Store2door" happy shopping without going out: for international boutiques, beauty care products, 3C home appliances and other goods, the "store2door" service is launched. SOGO sent specially-assigned personnel to the consumers' homes for them to choose and purchase, and check out through the mobile POS machine, so that loyal customers can enjoy shopping without leaving their houses.

        3. Free distribution in Taiwan, purchased in A and claimed goods in B: SOGO is considerate to consumers, and has launched the "free delivery service". Whether sons and daughters buy epidemic prevention products for their parents or parents want to take care of their children in other places, they can deliver them free of charge.

        4. Food delivery in department stores: in cooperation with Foodpanda, a food delivery platform, all food at 45 SOGO Department stores in Taiwan can be delivered to the customers’ home through Foodpanda. If you want to eat SOGO food, just click APP!

        5. Beauty Express Station: Zhongxiaoguan SOGO created a unique "Beauty Express Station" in the square on the first floor. Consumers can pick up goods and get consultation services without entering the store, which let them fully enjoy the comfortable and convenient shopping experience. In addition, "YOU SEE WHAT YOU GET ", for cosmetics, popular accessories and other goods, SOGO also successfully created performance through live streaming shopping guide, playing a role of small soldiers in making great contributions during the epidemic.

        SOGO’s significant change in digitalization: e-coupon of APP

        The epidemic situation makes people rethink the existing behavior patterns. One of them is the urgency of digitalization. It happens in all walks of life, SOGO is no exception. The pace of our digital transformation will accelerate. At present, consumers can bind HAPPY GO Pay through SOGO App to enjoy convenient mobile payment; in the future, we will continue to expand cooperation, and use SOGO’s products to match the promotion and marketing of HAPPY GO Pay to comprehensively expand the utilization rate in the store.

        In the process of SOGO digitization, APP plays a key role. It is our primary task to continuously optimize app’s functions and enhance its convenience. SOGO's recent major digital revolution was to convert all promotional coupons into e-coupons on app. This breakthrough represents a milestone in the digital development of SOGO. It is a big step for us to be involved in the online shopping. In the future, we will continue to enrich the functions and preferential schemes of SOGO app, continuously increase consumers' satisfaction and adhesion, and expand to more and more young potential customers.

        Young customers are keen on live streaming shopping guide IG Shopping

        In terms of e-commerce channel, at present, all kinds of products of Zhongxiaoguan and Fuxingguan SOGO in Taipei can be purchased from our self-employed e-commerce platform SOGO iStore. In response to the increasing demand for live streaming, we have set up a "live streaming room" in Taipei store to continuously develop and invest in the emerging business "live streaming shopping guide".

        SOGO IG Shopping, another unique weapon of our company, is constantly bringing new ideas. Since the connection with SOGO iStore in August last year, it has continuously launched a variety of eye-catching products to facilitate consumers to choose and purchase directly. As soon as this service is launched, it has won the favor of young customers.

        In addition, SOGO's we-media development has been outstanding and successful, and it has become the leading one among Taiwan's department store industry. However, we will not be satisfied with this. We will actively optimize the content and upgrade the functions, so that SOGO Facebook, Instagram and other social media will exert their influence and penetration on their target groups, so as to create a new hot topic for SOGO.

        Winston Churchill, the former British Prime Minister, once said, "Never let a good crisis go to waste”. At time of digitalization in the world accelerated by COVID-19, it is time for SOGO to transform!