Far Eastern Department Stores builds the next generation of smart department stores with data as the engine

        As consumer trends shift from price to experience and emotional value, the role of the department store industry is facing a reshaping. It must transform from a simple commodity manager to a customer relationship operator and life experience curator, with "data mining" being a key capability. To see people through data and retain hearts through experience, only by achieving a new value positioning of "experience is king" can we occupy a place in the fierce market competition.

                In recent years, overall consumer behavior has undergone profound changes. Consumers are no longer just "buying things", but experiencing life, expressing value, and sharing emotions through shopping. This wave driven by digital technology and lifestyle changes is reshaping the competitive logic of the retail industry and redefining the value of department stores. Far Eastern Department Stores has also observed three clear development trends from customer interactions, including the transformation of consumer values, the integration of virtual and real into the norm of consumption, and the rise of diverse and personalized demands.

        Consumer values shift from material satisfaction to emotional resonance

        Although online price comparison is convenient, the key to attracting customers to visit physical stores is no longer the price, but the "experience" and "resonance". In other words, the core of consumer attitudes is shifting from functionality and price orientation to emotional and experiential value.

        Therefore, Far Eastern Department Stores redefines the department store space, making it no longer just a gathering place for goods, but a composite living scene that combines shopping, dining, culture, art, and socializing. From festival themed design, immersive activities to cross-border collaborative exhibitions, we aim to surpass price competition with "experiential value", allowing customers to experience the beauty and warmth of life while shopping.

        Digital technology connects online and offline experiences

        The modern consumer journey has crossed both online and offline, and many customers will first browse and evaluate online, and then experience the quality and service of physical department stores before deciding whether to purchase. This "virtual real interweaving" model is both a challenge and an opportunity for department stores.

        Far Eastern Department Stores leverages technological capabilities and combines official apps with mobile payments to create a convenient O2O experience, making digital technology a bridge connecting offline experiences. Customers can check parking information, receive coupons, accumulate HappyGo points in the app, and interact with the brand through immersive activities after entering the store. In addition, Far Eastern Department Stores is actively planning themed exhibitions and collaborating with web celebrity to create shareable and photographed 'topic scenes', making consumption not just a purchasing journey, but also a life experience worth recording and sharing.

        Data driven precision insights align services with people's hearts

                With the changes in social structure, consumer behavior is showing a trend of "diversification, personalization, and emotionalization". Customers hope to be understood, respected, and pursue "exclusive experiences" rather than "mass services".

        Faced with the challenges of diversified consumer demands and upgraded experiences, Far Eastern Department Stores has taken data as the core of its transformation, introducing member data analysis and digital tool applications. Through the integration of online and offline membership systems, it deeply analyzes purchasing behavior, consumption frequency, preference categories, and other data to gain real-time insights into customer needs. It transforms "data insights" into "action plans" and formulates "personalized service plans" through the App Personalized recommendations provide customers with exclusive discounts, for example, for customers who love beauty, the system automatically pushes new products or experience activity information, and introduces smart fitting, makeup testing and other technologies to enhance shopping interaction and fun. Frontline personnel can also provide more intimate services, making consumers feel "understood" and "valued", thereby creating a comprehensive smart retail experience and improving overall operational efficiency.

        From the above, it can be seen that the application of digital tools plays a key role. In the future, Far Eastern Department Stores will collaborate with Far EaseTone Telecommunications to jointly develop the CDP (Customer Data Platform) platform, which will enable marketing activities to not only be one-way broadcasts, but also dynamically adjust and accurately interact with customers based on their online and offline behavior trajectories. At the same time, by combining online community interaction with physical activities, the digital tentacles are extended to customers' living scenes, strengthening the emotional connection between the brand and customers.

        As of now, data applications have brought concrete results, including:

        The usage rate of birthday exclusive coupons and new product experience invitations for returning to the store has reached 98%.

        The "Point Plus Gold" service launched at the end of 2024 has accumulated over 10 million HappyGo points and created NTD 270 million in revenue.

        The increase in both app promotion and offline repurchase rates proves that "data-driven behavior" has become a new engine for consumption, further driving revenue growth.

        Technology and ride sharing create the next generation of smart department stores

                In the wave of technology driving retail transformation, the department store industry is facing new challenges and opportunities. Far Eastern Department Stores is committed to building a customer-centric 'next-generation smart department store', fully introducing AI and immersive applications, and upgrading from management decision-making to customer shopping journey.

        1. Smart management: Efficiency and sustainability go hand in hand

        In terms of administrative management, Far Eastern Department Stores has introduced the I-AUTO intelligent management system, combining AI and sustainable concepts to strengthen energy monitoring and equipment management. Through the electromechanical inspection app and intelligent map control platform, we can instantly monitor the energy usage status of each museum, achieving the triple goals of energy conservation, carbon reduction, and efficiency improvement.

        2. Consumer journey: the entire experience from entry to repurchase

        To meet the diverse needs of consumers, we also plan personalized consumption journeys. From checking the remaining parking spaces for customers before entering the store, to promoting discount information and in store activities after entering the store, we can use the app as a medium; After shopping, the app will also actively recommend related products and provide exclusive feedback through the gift system, making consumption more convenient, intimate, and surprising.

        3. Immersive Field: Making Shopping Entertainment and Life

        In terms of shopping experience, Far Eastern Department Stores has introduced digital technology, including AR/VR virtual try on, smart interactive display windows, and immersive exhibition areas, bringing innovative ways of shopping participation. Customers can experience virtual makeup in the beauty area and use smart mirrors to simulate dressing effects at the fashion counter, enhancing the fun and efficiency of shopping decisions. At the same time, the immersive exhibition area will recreate the department store scene with diverse themes, turning shopping into an entertainment and lifestyle experience.

        Looking ahead to AI driven sustainable retail in the future

                Far Eastern Department Stores firmly believes that only by turning technology into the language of understanding customers and using data as an extension of services can we truly realize the new retail value of 'experience first'. For example, AI can instantly analyze customer behavior and dynamically adjust interactive content. Through the synergistic effect of technology and experience, department stores will not only be shopping places, but will evolve into core venues that integrate life, entertainment, and culture. This is not only Far Eastern Department Stores' digital strategy, but also a crucial step in leading the department store industry into a new era of smart sustainability.

        In addition, we will continue to strengthen data governance and privacy protection mechanisms to ensure that the application of member information is based on legality and security; At the same time, we will deepen the integration of AI, cloud computing, and Big Data, gradually realizing the vision of smart department stores. We believe that only by standing from the perspective of customers and using technology to understand their needs can we continue to create innovative services that meet market expectations, making Far Eastern Department Stores an indispensable companion in consumers' lives.

        The future of retail will be driven by technological innovation and experience upgrades. Far Eastern Department Stores will continue to focus on data and innovation, promote the implementation of AI applications, and achieve the triple goals of improving management efficiency, enhancing customer satisfaction, and increasing brand value, leading the company towards a new era of smart department stores.

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