Create a more valuable customer experience

        The retail environment is constantly changing, especially in the face of the rise of e-commerce and changes in customer preferences. Physical retailers must rethink their strategies, embrace digitization, make good use of data analysis, provide more practical and tailored services, and regard "improving customer experience" as the most important weapon in order to stand out in competition. In addition, as consumers increasingly value sustainability, accelerating investment in sustainable transformation will be the key to the flourishing development of retail in the future.

                Sustainable performance awarded as national model for retail enterprises

        Far Eastern Department Stores is committed to promoting ESG Sustainability Development, and its outstanding performance in all aspects has won 32 awards in 2024. It has also been awarded the "National Model of Retail Enterprises" award by the Asia Pacific Retail Alliance (FAPRA). This is the first time Far Eastern Department Stores has won the "Best Corporate Social Responsibility" award in 2019, becoming the only department store in Taiwan to have won both the "National Model of Retail Enterprises" and "Best Corporate Social Responsibility" championship awards from the Asia Pacific Retail Alliance.

        Low carbon economy focuses on two major challenges: carbon cost and energy

        Taiwan has shown its determination to move towards net zero emissions, and will begin collecting carbon fees in 2026. Initially, the fees will be levied on high carbon emitting manufacturing industries, and in the future, the plan is to gradually expand to the service industry and gradually increase them in stages. At the same time, the Executive Yuan has revealed an energy transition plan, which is expected to increase the proportion of green energy to 30% by 2030. At the same time, it requires large electricity users to install green electricity, purchase green electricity, or set up energy storage systems. It can be foreseen that energy costs will continue to rise, and companies should prepare response plans towards low-carbon transformation and development.

        AI empowers customers to experience digital convenience

        AI technology is redefining the operation of the retail industry by analyzing customer data and personalized recommendation systems, which can enhance the shopping experience and allow customers to enjoy tailored services. As for the use of chatbots and automated checkout counters, it further improves service efficiency, allowing customers to feel convenient and smooth during the shopping process. Faced with changes in customer behavior, the retail industry must quickly adapt to digitization, meet customers' needs for personalized and instant services, in order to avoid the risk of customer churn and maintain market share.

        Talent management cultivates future human capital

        It is important for enterprises to continuously innovate and grow, and to construct a talent management model that combines quality and quantity and is systematic. At the leadership level, by promoting potential internal cadres and introducing outstanding external talents, select leaders who meet the needs of the company's future development. At the management level, it is important to cultivate versatile individuals with diverse abilities, including strategic thinking, organizational management, and human resource development. In the working class, we are committed to cultivating personal professional abilities and improving the overall quality of employees.

        If a company does not advance, it will fall behind. To cope with the complex and rapidly changing world, Far Eastern Department Stores continues to invest in the future, with a sustainable strategy closely keeping up with environmental changes. It actively promotes transformation and change in areas such as AI application, net zero transformation, organizational transformation, and talent development, accumulates growth momentum for the company, and lays the foundation for sustainable operation.

        As retail anthropologist Paco Underhill once said, "Retail is no longer just about selling products, but creating experiences." In the future retail industry, Far Eastern Department Stores must constantly innovate and adapt to dynamic environments, empower with AI technology, promote experiential retail, and implement sustainable development to stand undefeated in the ever-changing market and create more valuable customer experiences. (This article is reprinted from Far Eastern Department Stores' sustainability report 'Chairman's Words')

        #