At the 2021 NRF (NRF Retail's Big Show, a retail exhibition sponsored by the National Retarding Business Association), there were many cases of US retail companies that were forced to be forced by the corona and managed to achieve results.The focus of the entire NRF was what the retail operators have done in the last few years and what should we do now?From the NRF session, we will introduce Costco's initiatives, "Lowe's", which was impressive.

"Correct DX" shape that came into view in the corona.

What was impressive was MARVIN Ellison, President and CEO of the home center chain "Lowe's", "The Power of Vision to Reshape Retail And The Consumer Experience)"Power)" is the theme.Rouz's existing store sales in the third quarter of 2020 (August October) increased by 30 % year-on-year.

With the "Stay Home" of Corona, it is not a surprising number, given that many of the home centers have performed well.But Rows is outstanding.Existing store sales in the second quarter (May-July) are 34 year-on-year.Significant increase in sales increased by 2 %.For reference, sales in the second quarter of 2020 (5- July) of Home Depot, the largest, were 23 year-on-year..It increased by 4 %.

Why did Rowes have achieved a high sales rate by suppressing the maximum?In the first place, Rousse is a company that has been considerably delayed in digitalization compared to Home Depot, and has been used in 2019 in 2019, the renovation of POS and core systems that have been used for more than 10 years.In that regard, it is the same as many retail businesses, but Rousu would not have been able to respond to the "change" requested by Corona's evil unless the system renovation in 2019 was in time, and had caused a panic.

I always feel that the balance between (1) corporate profits, customer experience (experience value), and employee experience (experience value) is important as a position to support the promotion of corporate DX (digital transformation).The content that Ellison CEO said was an interesting content that could be said to be a "good example of DX promotion."

The most effective technologies are "unnoticed" simple

The contents of the digitalization of Rows include store navigation that will help customers find the necessary products, online orders and stores (BOPIS, BUY ONLINE, Pick Up in Store), curve side pip -up (receiving in the car), and usability.It is not a special new locker pickup and a 24 -hour customer center.However, the emphasis is on what they can do intuitively.

As Ellison CEO says: As follows, all services have a strong commitment to the UI (user interface).

In addition, due to the payment of smartphones to the staff, the time that was previously spent "60 % work: 60 %, service: 40 %" is "48 % work, service: 52 %".This is also a factor that affected sales.

DX = EC shift.DX means that corporate profits are firmly obtained, increased customer experience value (CX), improves LTV (lifelong customer value), and switching costs (economic + psychological costs when leaking into competition).To raise.

Then, the employee experience value (EX) enhances the pride and the sense of belonging to the company, and uses digital to increase the value of customer experiences.In order to stop these, the "parpath (purpose)", which expresses the significance of the company, is important in DX promotion.

Customer satisfaction / "Costco" ranked first in NPS

One of the most interesting sessions was the "How Retailers Win on CX NOW) by Vice President Eric Head, Vice President of Eric Head, which is based in New YorkTo win).

Mr. Head announced its own survey results on the top 25 retail companies in 2020.Costco was ranked first in customer satisfaction / NPS.The second place was Apple, the third place was Amazon, and Walmart was 13th.

Costco was sales in 2020 (August 2020) 9 the previous year..Increased 2 %, online sales 49.It is 5 % increase, and it is strong in numbers.It is said that LTV improvement by existing members was great due to the Corona evil.On the other hand, the annual membership fee due to the acquisition of new members was small.

As you may know, Costco is a large -scale supermarket that uses the annual membership fee of $ 60 (about 6,350 yen) or $ 120 (about 12,700 yen).It is a huge warehouse -type store that develops mainly in the suburbs, selling cheap products.Japan's annual membership fee is 4,400 yen or 9,000 yen.The private brand "Kirkland Signature" is also popular at its high quality and reasonable prices.

Costco features a lot of profits not from product sales, but at annual membership fees.The company has declared that it will be used for product procurement and employee salaries without using advertising costs.

Costco, like Rows, has an electronic member card function and an EC and omni -channel payment function in the app.In terms of service, BOPIS, curve side pickups, and delivery options are also available in various ways of digital cooperation.However, it was fifth in customer satisfaction surveys on "Digital Experience."

Based on the investment and functions of other companies, the ranking of the fifth place is convinced, but the design of an excellent customer experience that does not make customers feel "digital experience" may have affected the results.By the way, Costco was second in prices and full -fillments, but was ranked first in the service.

A real store that plays a major role in the corona evil

The TOP25 customer behavior was also explained from the viewpoint of "RESEARCH (pre -purchase survey)", "Purchase (purchase location/payment)", and "Fulfillment/delivery).

What we see from here is that even in 2020, which was influenced by the new Corona, the role of real stores is still strong.

Regarding "Research before purchase", 46 % of the actual stores are digital utilization.Regarding the "purchase place", the actual store has exceeded half of 52 %.Looking at the breakdown of EC, which was 40 %, the delivery was 47 %, the curved side pickup was 23 %, and the BOPIS was 20 %.

In other words, about 70 % of the stores are used in purchasing behaviors, including the actions that come to stores such as curve side pickups and BOPIS.

Returning to Costco's story, many of the users live in the suburbs, and are assumed that they are commuting and picking up (picking up) by car while paying attention to "STAY HOME".People who have a lot of opportunities to go out by car are convinced that the need for a curve side pickup that can be received while going out is safer and hassle than home delivery that needs to be at home even if you can specify time.

In addition, Costco Members have been snuggled up in their lifestyle, such as the cheaper gasoline price.It is recognized that omni -channel is not a special experience, but is used as a natural daily life.

First of all, the role that digital should be performed is defined in Research (pre -purchase survey), Purchase (purchase place / payment), and Fulfillment (logistics / delivery).It is desirable to be structured by DX so that customers can use them repeatedly.

Is curved side pickup popular in Japan, mainly in the suburbs?

Walmart's paid member service "WALMART +" started in September 2020.$ 98 per year (monthly 12).For $ 95, the same -day delivery service (excluding some products and stores) and gasoline discounts (1 gallon = about 3).Up to 5 cents per liter) and self -registry check -out "Scan & Go" can be used.

"WALMART +" creates a "connection" with a digital member centered on a smartphone app, optimizes RESEARCH (pre -purchase survey), Purchase (purchase location/payment), and Fulfillment (logistics/delivery).The mechanism (CRM) of the returning rings (CRM) is evolved not only by benefits such as points, but also by differentiation of experience."Walmart +" seems to be an essential factor in corporate competition.

Currently, the curved side pickup in Japan is that there are still few stores and users.However, if there are many commuters in Japan, there is a possibility that services will expand in the future if the convenience of "picking up luggage on the way home", mainly in the outskirts of the suburbs.Also, in Japan, where the declining birthrate and aging population are declining, I am looking forward to seeing that digitalization of suburbs and rural areas will strengthen the economy.

Face the new Corona and read the changes in customers

Even if the new Corona converges to, consumer behavior will evolve so that it does not return to "before."

"Create a New Retail World World World World World Through ExperienceS Value Produced by SAP (Create a new retailed world on the value of the customer experience".Mr. (Economist Intelligence Unit Senior Editor) introduced a survey that even if the restrictions of the corona were alleviated, new online shopping behavior would be more likely to continue.

Although it returns to a real store to some extent, about 60 % maintains online shopping habits.Not only the younger generation, but also baby boomers (generally born from 1946 to 1964), about 55 % will continue online shopping.

According to Noronya, baby boomers have shifted to online shopping most in the 2020 Corona, with 12 points online ratio from 25 % to 37 %.The overall market share has increased by 8 points from 39 % to 47 %, indicating that the use of baby boomers has rapidly advanced.

Those who have been forced to shift from conventional habits due to Corona evil shift to digital.As a result, we arrived at a more comfortable and secure shopping experience.We will continue to actively use digital shopping experiences in the future.

In addition, the purchase process has changed.Although it was talked about at CES (Consumer Electronics Show) in 2021 ( *), the sales of home appliances are strong due to the "Stay Home" caused by the corona, and many women have the right to purchase.Was announced the results of the survey.

( *) Consumers and retail stores panel surveys, NPD Group's KARYN SCHOENBART CEO's session "When CSR Aligns with Consumer Values (when CSR and consumer values match)" Than

Shanebart CEO introduces what changes are required for companies when targeting aggressive women to introduce technology products.Not only "easier and intuitive UI is preferred," 84%say, "seek more social responsibilities for companies and brands."Changes in purchasing rights and selection processes will have a significant effect on future marketing activities.

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What was generally conveyed in NRF and CES was that digitalization and sustainability were rapidly advanced by the new colona.But that means that it never returns to "Beforecorona".It is thought that only companies that have overcome this adversity will become the necessary companies in the age of "better daily life = Better Normal".