Client-Engagement-Creator - New concept of sales associate of luxury brand in Japan / Luxury Retail Excellence In Japan

The Impact of the Digital Transformation (DX) on Us

Due to the coronavirus pandemic, in the fashion and apparel industry, which had been said to be lagging behind, many companies have finally been forced to take a serious step in Japan.

Some of them are even cutting back on the number of stores and shifting their resources to strengthen EC and OMO (Online Merges with Offline), based on the belief that physical stores will not be as necessary in the near future. This major trend of the times is finally becoming inevitable, and the consolidation of physical stores and the resulting shakeout of the sales associate is becoming a reality.

Unlike in the past, when the number of customers was increased by opening new stores, physical stores of the future will be more competitive in terms of "quality" than ever before.

However, the "quality" of these stores' services is gradually reaching the limit of what can be achieved through efforts to refine the existing framework of "pleasant service," "thorough explanation of products," and "beautiful displays. " This is because "it is a matter of course".   The number of things that can be completed without going all the way to a store continues to increase, such as "a wider selection of products," "virtual coordination," and "avatar customer service" on smartphones. If you just want to see and touch the actual product, you can order it, try it on, buy it or return it. There is a possibility that the core functions of physical stores will be replaced by digital technology. At the same time, robots and other devices will make operations more efficient, so naturally, in terms of productivity, so physical stores will no longer need as many staff as they did in the past. It is no exaggeration to say that the shakeout is finally becoming a reality.

What are the reasons for going to physical stores?

Looking back, before the development of digital technology, the concept of "self-service" was often taken for granted: "We will cut services and make them cheaper by reducing costs. In supermarkets, restaurants, hotels, etc., it was common knowledge that cutting back on staff = inconvenience, which in turn leads to discounts.

That is why the more upscale establishments have focused their efforts on "never leaving a customer alone" and "providing hospitality through people," by placing more staff in their establishments, even at the expense of money. However, this concept is now undergoing a major change.

Being able to complete a task on one's own means that one is "free," able to achieve one's goals without being bothered by anyone, and this leads to satisfaction. This is especially true for the younger generation, the Millennium Generation. In this age, it is rather bothersome to have to pass through a "person" in order to fulfill one's objective. If there is a "person" there, he or she will give you a quick hand when you need some help, or lead you to your goal quickly, otherwise, it is not so necessary.


Going to a store is "to have an unusual and meaningful experience" 

(you can buy things online if you just want to buy things)

An "unusual and meaningful experience" for a customer is one in which you don't have to worry that a salesperson will come up to you and try to sell you something, but rather can experience, for example, the following.

(1) Experience the brand's worldview in the entire store space

(2) Try on clothes of your choice freely and easily in 3D on digital signage to broaden your image.

(3) Try on the actual clothes to check the size, texture, self-image, and other aspects of comfort

(4) If you are not sure which clothes suit you best, the professional sales associates will ask you, based on your personal information, "What kind of occasions can you wear these clothes for? What kind of image do you want to project? They will make friendly suggestions based on "natural conversation" such as "What kind of image do you want to convey? ". They also make use of their sensitivity to offer suggestions that may surprise you with fresh surprises and discoveries. Through such experiences, you can feel yourself becoming more beautiful after entering the store than before. This is what we are trying to achieve.

Future-oriented, new challenges!

To achieve this, the design and operation of the physical store will change in terms of what kind of space it can provide and how it can offer an enjoyable experience without confusing the customer.

At the same time, the role required of sales associates will also change.

Chatbots can play a role if all they do is answer questions politely, as they have in the past.

However, if we consider what kind of added value can be created by having a "human" at that stage, we will be able to find the answer. When we think down to the bottom of the question, we can find the following

(1) "Suggestions" utilizing "sensitivity" that surpasses AI

(2) Personal, emotional and empathetic interaction

(3) "Creativity" to think and act on customers' reactions 

(4) "Communication" to attract people by making the most of one's individuality

Nowadays, through social networking sites, it is possible to connect with many invisible people through word-of-mouth communication with the customers in front of you.


By honing the above skills, it will lead to the centripetal force of "If I am going to go to that store anyway," "There is a person named Mrs. XX at that store," and "I want to see that person". Since this leads to engagement, it is necessary to rethink our activities based on the concept of "Client-Engagement-Creators", and based on this concept, it is necessary to research and improve our skills in the following matters.

What are the challenges of evolving the level of client engagement?

What are the opportunities to evolve the level of client engagement?

What are effective tools to evolve the level of client engagement?

What are the effective ways to use tools to evolve the level of client engagement?

What is the best way to serve customers by using tools that evolve the level of client engagement?

What will happen with AI? It is becoming more and more important to be curious and try to carve out our own future, rather than being anxious about what will happen when AI comes along.


Profile of Contributor (Yasuko Fukuroi)

Consultant, Service Design Institute, Tokyo Japan.

Through consulting and training for various luxury brands in Japan, she has seen the transition of brands business, "creating brand value" and "how to create brands worldview.

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