JAPAN REPORT: JFM MITSUKOSHI ISETAN CO JFM consortium revaluates brand mix
Japan Duty Free FaSoLa Mitsukoshi Isetan Co tells David Hayes that it has ambitious sales growth targets for its downtown store – once renovations are complete – and believes it could increase revenue by more than 50% by 2021.
and spread awareness about Japan’s downtown duty free shopping facilities in general. “We reinforced our marketing
strategy last year with brochures, social media adverts and advertising on airport limousine buses,” adds the source. “We still have a lot more to do with downtown duty free shopping, but for now we can only supply customers their purchases at pick-up counters in Narita and Haneda International Airports.” In addition, downtown duty free
Above: JFM Ginza Mitsukoshi downtown.
J
apan Duty Free FaSoLa Mitsukoshi
Isetan Co is
revamping its Japan Duty Free Ginza downtown store’s
assortment in order to attract more customers, after reporting sales growth of +20% in 2018 The store, which opened in January
2016, is operated by a consortium comprising Jatco (Japan’s largest duty free operator); Narita International Airport Corporation (NAA); and Mitsukoshi Isetan Department Store Co; a leading department store operator. Covering 3,300sq m in area, the JDF Ginza store occupies the entire
“We closed Time Vallée at the end of March for the same reason we have replaced three luxury fashion brands; the price point was too high.”
Japan Duty Free Ginza marketing source
eighth floor of Ginza’s Mitsukoshi department store, in the centre of Tokyo’s premier shopping, entertainment and business district. “We want to increase our sales by
about 50% more by 2021,” a Japan Duty Free Ginza marketing source tells David Hayes. “Perfume and cosmetics already are 60% of our sales, so our share target for them is 60% to 65%.” The second largest category
is Japanese souvenirs and beauty appliances. “ReFa appliances are popular now,
as well as Yaman products,” adds the source. “Beauty appliances are still growing as a category, but individual brand sales can go up and down.”
Special cosmetics area Luxury brands’ share of sales is also expected to grow following the recent changes in the store’s brand line up to appeal to younger customers. “Luxury fashion brand sales are
10% to 15% now,” reveals the Japan Duty Free Ginza marketing source. “For our target, we definitely need a
20% share.” Marketing campaigns are already
A new beauty products area hopes to attract more female customers when the renovation completes.
150 TRBUSINESS
underway in Japan and overseas, including China, to inform more people about Japan Duty Free Ginza
shops are not currently permitted to operate online shopping services due to government regulations. However, at the moment this is not something that customers are calling for. “Our customers do not complain
about there not being online shopping,” the source notes. Instead, JDF prefers to focus
on altering the product and brand assortment in order to optimise sales. This includes converting a high-
priced watches corner into a Japanese cosmetics zone, which is expected to appeal to a larger number of female customers. “We closed Time Vallée at the end
of March for the same reason we have replaced three luxury fashion brands; the price point was too high,” adds the source. “We are renovating the watches
area and will re-open it in October. Something special is coming up; a cosmetics area focusing exclusively on Japanese cosmetics products.” Interactive displays are being
installed to encourage customer interaction and will include a make- up counter where customers can try on the products. “We want customers to spend
more time in the store,” according to the source. We will include a small coffee bar in the new area and a Japanese beauty treatment area operated by a famous brand.” «
OCTOBER 2019
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