During the two months starting in April that major retailers across the nation were closed due to the spread of the new coronavirus, department store operator Takashimaya received numerous inquiries from customers about "randoseru" backpacks for elementary students.
The process of choosing a backpack before school starts has recently come to be referred to as "ran-katsu," an expression akin to similar catchphrases used to describe the rigors of job- and spouse-hunting.
Ran-katsu begins a year before a child begins elementary school in February or March, with purchases peaking from April to the beginning of May. This year, however, the coronavirus pandemic dealt a severe blow to the ran-katsu season.
Responding to customers' needs, Takashimaya Co. on May 24 started using the social networking app Instagram to livestream programs about their backpack lineup and tips on how to select the proper one.
"Won't a white one get dirty?" "How much does it weigh?" -- questions by shoppers posted during the broadcast were responded to in real-time.
Since a randoseru is intended to be used for six years, selecting one is no simple matter. Due to the large number of features -- including crime prevention functions, weight, fashion, and price range -- there is a big demand for consultations.
Department stores are making use of their customer service skills to provide an interactive experience not available through other online retailers.
After starting the live broadcasts, online sales of backpacks nearly doubled. "The coronavirus forced us to move," said Naoto Nonaka, 36, who works as a buyer.
[subhead] Crisis spurred online efforts
Department stores rely on customers spending a lot of time in stores to boost sales. Faced with the long-term closures, companies finally started beefing up online sales efforts.
Isetan Mitsukoshi Holdings began offering online customer service consultations for school backpacks via the Zoon videoconferencing system on May 27. The service rolled out after just one month of preparation.
"In the past, it would have taken six months, but we didn't have that much time. The whole team felt a sense of crisis that if things went on as they were, it could get bad," said Kazuhiro Shomori, 44, a department head who led the project.
The team realized they could apply their existing customer service skills to online sales. They are planning more such initiatives, such as for sales on daily necessities and special events like Christmas.
The company also plans to enlist the help of social media influencers. The illustrator Aya, 31, appeared on the company's "Live Commerce" show at the end of May to recommend "o-chugen" summer gifts.
When Daimaru Tokyo was closed at the beginning of May, sales representatives who deal directly with customers held an online meeting with some of the store's most-valued customers. Normally they would visit these customers' homes to respond to any request, even for a single carton of milk. This was the first full implementation of the online service.
[subhead] Big stores still amateurs
Department stores lag behind other retailers in their digital strategies. Convenience stores are conducting experiments on cashless checkouts, and some supermarkets have partnered with Amazon Japan G.K. to deliver products.
Online sales account for only 2% of all sales at Isetan Mitsukoshi and just a few percent at Takashimaya Co.
While the coronavirus pandemic increased demand for online services at department stores, it also exposed their unfamiliarity with this sector.
Isetan Mitsukoshi suspended applications for some online shopping services after the state of emergency was declared in April. A service that allows customers to make online orders that are then filled by a buyer and delivered was flooded by requests from people preparing to shelter in place. Yet the company suspended the service out of fear it could not respond to all orders.
Takashimaya also stopped selling some products due to inventory conditions and delivery delays.
Both companies had reduced the number of people coming into work to prevent infections from spreading. And facing the unexpected increase in demand, they were unable to secure enough workers to properly manage inventories and shipping.
One executive said: "It's like a side job for us compared to Amazon. We couldn't take advantage of the opportunity."
To strengthen their online and digital operations, department stores need to invest resources into overcoming these challenges. The question is whether they can use this crisis to nurture a new revenue source. We will see how serious they are.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
