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Hello! In this installment of our e-commerce series, I want to highlight some well-known companies that are running EC operations, putting real effort into them, or trying out some unusual approaches.
E-Commerce Case Studies
■ Iris Ohyama
Iris Ohyama, famous for its home appliances, also runs an EC operation, centered mainly on appliances. I didn't actually know this myself, so it came as a surprise, but the company has posted results that can genuinely be called a success — ranking 23rd in the sales rankings of 300 companies in the "19th Online Sales White Paper" featured in the October 2019 issue of Monthly Net Sales (released September 25, 2019). Iris Ohyama also keeps its factories running at around 65% capacity, leaving roughly a 30% buffer while holding minimal finished-goods inventory. This curbs overproduction and lets the company respond to sudden events such as the COVID-19 pandemic or earthquakes.
■ Aoyama Trading
Aoyama Trading, which operates the Yofuku no Aoyama chain, is also investing heavily in EC. To expand its EC business and hit its targets, the company established the "Digital Lab." The Digital Lab is a system that maximizes the benefits of both online's abundant inventory and the in-person customer service of physical stores. Stores that adopt it are fitted with multiple touch-panel large-format signage displays and tablet terminals linked to Aoyama Trading's EC site, so visitors can browse and choose from the more than roughly 10 million items in stock on the EC site through these terminals.
■ Sow Experience
Sow Experience is an EC business that sells experiences, built around the concept "an experience is a gift that never fades." It offers a curated selection of experiences as roughly 20 series, totaling 50 gift products. There are catalog-style gifts that let the recipient choose their preferred experience, as well as gift tickets for a specific experience. The price range is broad, too, from the 3,000-yen level up to the 100,000-yen level. Examples of experiences include beauty and wellness options such as facials and oxygen capsules; meals such as French cuisine and teppanyaki; and activity-based experiences such as farming, paragliding, whale watching, and roof-tile breaking.
■ Fuji Speedway
Fuji Speedway is a famous racing circuit. The company that operates it, Fuji Speedway Co., also runs an EC business. Its products are all car-related: course driving, circuit-mastery lessons, FISCO license online courses, various goods, racing-car rental drives, and more. The racing-car rental drives come at quite a price...
■ Diamond Candles
This is an overseas EC business, but the service is so unique that I have to include it. It's an EC site that sells candles — but some are "bonus-included" products with rings worth up to $500,000 embedded inside the candle. Because the ring is buried inside the candle, you can't tell whether you've hit a "winner" until you burn the candle down. The fact that you don't find out the result unless you actually use the candle is a really clever touch!
In Closing
This time I introduced a handful of companies. As you can see, a wide range of industries are moving into EC. And unique offerings like "Diamond Candles" are on the rise, too. If you — or your company — would like to start an EC business, please feel free to reach out below!