Retail, Consumer Products and Distribution

How can we shape consumer behavior that incorporates the new value of sustainability for the future? The consumer goods and distribution industry is facing a major paradigm shift. In addition, external factors such as the US-China conflict are forcing the restructuring of supply chains, and we must overcome a number of major management challenges. We must further deepen our research into human thought and behavior, while quickly and effectively incorporating technology into management. It's time to restructure everything.

Frontline Topics

Green Economy

An economic sphere that places more importance on decarbonization value than monetary value. The shift in value appeal requires a fundamental review of pricing methods.

The evolution of mass customization

Data analytics has significantly improved the accuracy of customer segmentation and its characteristics. This has led to improved accuracy in mass customization and optimization of the number of SKUs and production/sales volume.

Shift to the As-a-Service model

The shift to a recurring business model is moving from an exploratory phase to a full-scale phase. The difference between growing companies and struggling companies becomes clear depending on whether they can build a model that provides great value to customers from a medium- to long-term perspective.

Operational Transformation

With the rapid development of technology and improved practicality, DX departments are getting serious about efforts to reform the entire value chain. The extent to which companies can carry out these efforts will determine their competitive advantage through operational capabilities.

Issues

Creating sustainability value and passing it on to customers

How to add sustainability value to the benefits we have gained so far and monetize them? And how can we address social sustainability issues, such as health issues and food waste issues, going forward.

Securing a data collection path

How to obtain customer data from multiple sources, such as cross-service IDs, D2C (Direct to Customer), and collaboration with other companies, and how to advance personalized analysis based on that data.

Flexible and resilient supply chains

How to ensure supply chain flexibility and resilience on a global scale by building the company's own view of various risks worldwide.

Continuously catching up with the implementation of advanced technologies

How to avoid falling behind in DX when technology exploration and implementation are not our core competence. On the other hand, how to avoid becoming immersed in technology.

Cases

Development of AI for Analyzing Consumer Preferences

We promoted the planning and development of an AI engine that analyzes consumer preferences and recommends optimal dishes. We built the analysis logic based on big data and achieved new value and competitive advantage through functional expansion.

Developing New Business Opportunities Addressing Changes in People’s Values by 2030

We explored new business opportunities by understanding changes in people’s values from a long-term perspective. We identified trends from information gathered at international conferences and research institutes, developed issues and hypotheses, and created business plans in conjunction with scenario planning.

Redesigning the Brand Portfolio of a Consumer Goods Manufacturer

We redesigned the brand portfolio to enhance the efficiency of advertising investments. We successfully completed the transition to the new portfolio based on insights gained from analyzing market potential and competitive dynamics.

Pricing of Global Luxury Brand

Conduct a systematic analysis of the price elasticity of global luxury brands. Map out the relationship between product prices and quantities, derive optimal pricing strategies, and develop transition plans.

Supporting Store Opening Strategies with Data Analytics

We analyzed over 500 types of data, including statistical information and regional characteristics, to build a sales forecast model. We evaluated sales and ROI in the metropolitan area and major cities, as well as profitability in regional cities, to develop optimal store placement plans.

Promoting a Manufacturing Restructuring Strategy for a Consumer Goods Manufacturer

We thoroughly examined the product lines of household products and analyzed the costs. Based on financial performance, we narrowed down the products and reviewed the factories and logistics bases to achieve profitability. We also searched for buyers for the facilities to be closed and supported the negotiations.

Insights

Supply Chain Reform in the Retail Distribution Industry Protecting the abundance of food

The history of retail distribution industry in Japan overlaps with the history of enriching people's lives in terms of food, clothing, and shelter. However, even if we focus on one of these industries, "food," price increases have been stagnant for a long time, and growth is difficult to foresee. To change this situation, it is essential to reform the complex and partially optimized supply chain.

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The Potential for New Payment Experiences – A Comparison of Japanese and U.S. BNPL Trends

BNPL (Buy Now Pay Later: financing that allows consumers to make purchases and pay for them at a future date) is a trend that has mainly emerged in the U.S. and has spread to Japan. However, the trends seen among players and users in Japan differ from those in the United States. While BNPL is facing challenges such as regulatory tightening overseas, we examine BNPL’s potential for growth in Japan and how it can coexist with existing players. The key for this coexistence will be to create a win-win situation in which the customer experience is fundamentally improved throughout the payment process.

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“BNPL”, a New Form of Deferred Payment, and the Future of Consumption and Payment

“Deferred payments" have been around for some time. However, combined with the expansion of e-commerce and digitalization, a new type of deferred payment service called “Buy Now Pay Later (BNPL)” has emerged. In this sense, it is both old and new. BNPL meets the complex needs of diverse consumers and is said to be highly compatible with Generation Z. This article will examine how BNPL will impact the Japanese market.

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