Far Eastern Department Stores uses AI to enable consumers to experience digital convenience

        The development of digital technology has driven significant changes in the business model of the retail industry. Through the application of AI and digital technology, customers can experience a richer, more interesting, and personalized shopping journey when shopping in department stores. Far Eastern Department Stores has proactively grasped the pulse of digital trends and established the "Digital Transformation Office" in 2019, setting up a dedicated unit and professional team to invest in research and application of smart retail. From the analysis of consumer behavior data, the existing operations, management, and service processes are re examined and adjusted to create a new shopping journey for customers, moving towards a department store operation model that better meets customer expectations and needs.

                Data analysis upgrade for precise marketing

        Smart retail is an important trend in the transformation and upgrading of the retail industry, currently mainly applied in four directions: (1) analyzing consumer data through Big Data, segmenting marketing based on customer preferences and purchase records to stimulate purchasing power and improve performance. 2 Utilize digital tools to provide the most complete shopping experience both online and offline simultaneously. 3 Through AR/VR technology, customers can try on clothes or view products in a virtual environment, enhancing the interactivity and fun of shopping. 4 Utilize social media platforms for product promotion and brand advertising, attract more young consumers, and enhance the brand's influence.

        Far Eastern Department Stores operates from locations throughout Taiwan, each with its own unique business district and consumer attributes. The direct collection of customer data has become the best foundation for Big Data analysis in Far Eastern Department Stores' digital transformation. In addition, long-term cooperation and technical support between affiliated enterprises have enabled Far Eastern Department Stores to take a leading position on the road to digital transformation. Especially in recent years, the stimulus of the epidemic has accelerated the development of digital transformation. Far Eastern Department Stores has launched a joint attack from various channels such as apps, social media, online shopping, and mobile payments, combined with its well-established segment marketing, offline experience, and always delicate physical customer service, successfully driving consumer momentum. It not only consolidates the existing customer base, but also attracts many new customer groups who are accustomed to using digital tools.

        On the road of digital transformation, Far Eastern Department Stores has been established for many years. The fifth generation stores, such as Far Eastern Department Stores Xinyi A13 and Far Eastern Department Stores Zhubei, are smart shopping malls equipped with apps, POS machines, and electronic signage applications. Among them, Far Eastern Department Stores App has achieved its target of 1.6 million members. With a significant increase in member numbers and consumption records, Far Eastern Department Stores has also increased its grasp of member consumption preferences from 25% in the past to 80% through Big Data analysis and application.

        Far Eastern Department Stores App enriches consumer life

        The mutual assistance between affiliated enterprises such as Happy Go, Happy Go Pay, Far EasTone Telecommunications, Far Eastern International Bank, etc. has always been the best support for Far Eastern Department Stores' digital transformation. This cooperation model is not only the best demonstration of the group's overall efficiency, but also the best advantage of Far Eastern Department Stores' construction of a one-stop service consumption ecosystem from physical to online, from shopping to payment.

        Due to the rapid changes in customer preferences, Far Eastern Department Stores has introduced intelligent and digital technology through its official app, with the core concept of "more commonly used, deeper use". Through membership system, point redemption, games, check-in tasks, and other interesting functions, Far Eastern Department Stores maintains close contact with customers and creates more opportunities for contact. In addition, it is supplemented with popular information such as schedule promotions, brand introductions, event calendars, real-time news, fashion highlights, etc., allowing consumers to stay in the app for a longer time through reading and searching, helping Far Eastern Department Stores' Customer Relationship Management (CRM) membership system to more accurately analyze member preferences and shopping characteristics, further accurately segment customers, and launch products that better meet customer needs. Product proposal.

        In terms of data applications, Far Eastern Department Stores App has achieved customized services that integrate online and offline. It can use digital signage and POS machines in the mall to promote suitable products and information to different consumers, serving as the main communication tool. In the future, Far Eastern Department Stores will also use an app as its core to integrate internal and external resources of the group, such as point applications, smart parking, omnichannel shopping, etc., to leverage the group's synergy and provide more diverse service applications.

                Electronic voucher convenient digital service

        To continuously meet customer consumption needs and improve service convenience, Far Eastern Department Stores continues to optimize its digital services for customers. In recent years, with the promotion of digital transformation, the coupons used by consumers in the past have gradually shifted from paper to electronic. By 2023, the number of consumers using electronic coupons has increased to 75%. The opening rate and browsing volume of apps and online DM have also been increasing year by year, indicating that consumers have become accustomed to replacing traditional paper marketing methods with smartphones.

        In addition, Far Eastern Department Stores has been promoting the "Invoice e-Up" project since October 2018, guiding customers to use mobile barcodes, credit cards, and other vehicles to store invoices at checkout, and cultivating a green consumption habit of "reducing carbon and saving paper". From October 2018 to the end of 2023, a total of over 62.76 million cloud invoices have been issued, equivalent to saving over 5.23 million A4 papers and reducing carbon emissions by over 35000 kilograms. In 2023, each branch will continue to promote electronic invoice activities, with an issuance rate of 62%, exceeding the annual target of 52% set by the Ministry of Finance.

                Mobile payment builds smart consumption

        Green consumption and technological intelligence are Far Eastern Department Stores' sustainable commitment to a better life. As the number of people using mobile payments in Taiwan continues to rise, Far Eastern Department Stores continues to optimize its mobile payment services, providing 13 diversified payment tools that allow customers to easily make payments without carrying large amounts of cash or credit cards. They only need to connect their smartphones to their bank accounts or electronic wallets, saving waiting and processing time compared to traditional card or cash payments. Combined with the electronic coupon function of Far Eastern Department Stores App, the redemption time for paper vouchers and paper product coupons is saved. Customers can shop and checkout in the mall through one mobile phone without any obstacles.

        Smart retail creates a new retail landscape

        Far Eastern Department Stores, in response to the tide of the times, constantly innovates and seeks change, and has now developed into its fifth generation of stores. Examples include Far Eastern Department Stores Xinyi A13 and Far Eastern Department Stores Zhubei, both of which are Taiwan's first experiential department stores that combine digital technology and five sensory experiences. They not only have the experiential features of the first four generations of stores in terms of products, services, entertainment, culture, education, and space, but also create five business models: "themed architecture, situational design, local products, exclusive brands, and digital marketing", allowing consumers to experience a more unique and convenient shopping experience.

        The good reputation won by the fifth generation store based smart mall has given Far Eastern Department Stores more confidence to further expand its related operational concepts to other subsidiaries. Given that the application of AI has become a digital future trend, various industries are considering how to effectively use AI to improve performance, create revenue, and reduce costs. In the future, AI computing will be introduced into CRM member management systems to improve personalized marketing accuracy by collecting store browsing trajectories and consumption records.

        In order to comply with the sustainable management concept, Far Eastern Department Stores will also expand its digital transformation direction, adding carbon reduction goals to the transformation direction. Combined with the increasingly mature Far Eastern Department Stores App, POS machines, and CRM systems after its launch, with the core goal of "energy-saving and carbon reducing shopping mall", it will gradually launch three transformation strategies including electronic member communication, precision marketing, and internal digital management, driving sustainability development with digitalization.

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