Future Customer Relationships and Value of Physical Stores Envisioned by D2C Brands (Part 1)

A new business model called D2C (Direct to Consumer) is spreading. This customer-oriented model, which maximizes the use of customer feedback in all processes such as product development, distribution, sales promotion, and product improvement, is now bringing about major changes in many industries that have accumulated sales-type business. I'm trying to

In addition, recently, some famous overseas apparel brands have decided to close large-scale stores and withdraw from Japan. We are accelerating. This movement seems to suggest that the role of brick-and-mortar stores itself is changing along with changes in consumer behavior styles and corporate business models.

What is a D2C brand?
D2C (direct-to-consumer) brands refer to companies that use a business model that bypasses intermediaries and provides products directly to customers using social media or their own e-commerce platform. This technique is particularly well-suited to the fashion industry and began in the early 2000s. Recently, the D2C model has been adopted in a wide variety of fields such as cosmetics, health foods, and clothing. The main advantage of D2C is that it enables direct communication, delivering unique value to customers that is difficult to provide through traditional sales channels. Because there are no intermediaries, costs can be reduced, making it easier to sell products that meet specific niche demands, even in small quantities, and maintain business continuity.

Thinking together about the shape of the “future space business”

This article is based on the theme of "the future of the spatial business", and through interviews with pioneers and challengers and the transmission of their own ideas, we are planning to redefine the future value of space and consider the possibilities of the spatial business.

In this second interview, we take a closer look at the new business "STAMP" of Japan's leading D2C company FABRIC TOKYO. Mr. Tomoyo Takeuchi of the New Business Planning Office, who leads this business, will tell us about the development background from the start of the business to the release, service development across offline and online, and future prospects based on the use of physical stores. I asked.

What is “STAMP”?

FABRIC TOKYO's new brand service that delivers personalized products based on 3D scan data.
In November 2019, we will release “Custom-made Jeans Service” with the brand message of Stamp = engraving yourself on the product.

The STAMP experience begins with a full-body scan at the store. A high-precision 3D scanner capable of scanning 5 million locations on the whole body in a few seconds converts the body shape of the whole body into 3D data. Scanned data is stored in the cloud, and users can easily order products that fit perfectly online at any time.

In 2020, the first anniversary of the official release, the user-participation product development project "STAMP_dev" will be launched, and the collaboration model "STAMP by" with Japan's leading creative workers will be announced, further accelerating its development.

The world of D2C brands spun by technology

Our aim is
An updated fashion service that makes the future a half step ahead

Ex B
Mr. Takeuchi, thank you very much for your time today.
First of all, please tell us about the vision of STAMP and the background to starting the business.

Takeuchi
yes. Originally, FABRIC TOKYO started business in the area of business wear based on the vision of "creating an open society where everyone can freely design their own lifestyle."
We have expanded our business by optimizing the inefficient structure of the traditional apparel industry for modern society through technology. It was decided to develop a new business for those who do not wear it, and STAMP was launched there.

At STAMP, we set the target as a creative worker, ``people who work in a way that really suits them''. Specifically, it is a form that targets IT companies, startups, and people in creative positions as strategic targets.

Personal products tailored to individual lifestyles that can only be achieved through D2C apparel

While making use of the custom-made wear know-how cultivated at FABRIC TOKYO, we set services and prices that are lighter and more casual than FABRIC TOKYO so that more people can experience it. Aiming for an updated fashion experience that will make the future a half step ahead, we have released a service that delivers personalized products based on 3D scan data based on the concept of "More than Fit."

Ex B
I think there are various kinds of clothes for creative workers. Speaking of STAMP, the image of "jeans" comes to mind.

Takeuchi
After conducting repeated interviews with the target creative workers, we found that many of them were dressed casually, such as jeans with T-shirts and hoodies, and chinos with shirts. And from that, the awareness of the problem that "it's actually hard to find jeans that fit me perfectly" emerged.

Originally, we thought that the first item to be released should be a brand icon, and we also want to develop basic items that everyone has at least one. We decided to start developing a jeans order service that overlaps our ideas and consumer needs.

Ex B
I see, there was a solid latent need of consumers in the background. I got the impression that you value listening to consumers.
Also, were the hearings focused on FABRIC TOKYO users?

Takeuchi
I think hearing is very important. It took about nine months from the launch of STAMP to its release, half of which was devoted to hearings. We also interviewed existing users, but we wanted to hear the voices of a different layer from FABRIC TOKYO users who usually don't wear suits, so we asked various people, including employees' acquaintances and their own acquaintances. I actively listened to the story.

There are many suggestions that can be obtained by analyzing quantitative data, and there is also information that can be obtained from questionnaires, but there are many realizations that can not be obtained from direct voices through interviews.
In particular, STAMP offers a kind of surreal experience that you have never experienced before, so I think that in the process, various positive and negative emotions come out. Such real intentions are difficult to come out in a standard questionnaire form, so in that sense, I believe that communication through interviews is extremely important.

*Extract consumer insights through face-to-face and SNS interviews

Achieving fully unmanned stores through self-scanning attempted at D2C stores

Ex B
STAMP stores are currently operated completely unmanned. On the other hand, FABRIC TOKYO is based on face-to-face customer service. The human intervention method is completely different, but what was the reason why STAMP changed the method here so much?

Takeuchi
As for the thinking of creative workers that emerged from the interviews, there was a lot of awareness that they want to get what they want in a stress-free and rational way. From that point of view, communication with people was not a must, but rather a barrier.
In that case, we hypothesized that a self-scanning system that can be completed by one's own operation and a self-ordering system after that would be suitable.
To be honest, I didn't know if they would be able to scan it without the staff, and if they would really order it after that, so I set up a test period before the release to see it. .

In terms of specific timelines,
First, in September 2019, we released a prototype in the form of a two-week pop-up shop on the 1st floor of the Shinjuku Marui Main Building. While testing the self-scanning system there, we assigned one staff member to support the operation. It's an operation where if you have a problem, you can talk to me.

* A pop-up shop on the 1st floor of the Shinjuku Marui Main Building

And in November 2019, it was officially released as a real store on the 7th floor of the Shinjuku Marui Main Building.
Based on the feedback obtained at the pop-up shop, the system has been significantly improved and a self-scanning box has been implemented. In March 2020, we updated the scanning system and realized a store experience that can be completed by self.

*A real store on the 7th floor of the Shinjuku Marui Main Building

Also, as a new challenge, in August 2020, b8ta Yurakucho released in parallel.
While adopting a box format of about 1.5 tsubo, which is more minimal than the store development mentioned above, based on the feedback obtained at the Shinjuku store, the three NOs "NO-STAFF (staffless), NO-TOUCH (touchless)" , NO-STOCK.

*A physical store being developed at b8ta Yurakucho

In our daily SNS communication with users, we may update it every week. Based on the feedback obtained from daily verification and verification, such as regular review of guidance contents and optimization of store visit reservation method, we have gradually reached the current form.

The store experience is the beginning of the relationship with the customer｜
A customer relationship building approach that is the exact opposite of conventional apparel brands

Ex B
I see, so you've been tuning while searching for the image of a completely unmanned store that customers need.
One thing that struck me as unique when using STAMP was that the level of communication between the store (offline) and SNS (online) was the complete opposite of that of a regular apparel store. .

The STAMP store is completely unmanned, and while there is no shadow of people there and it gives a very smart impression, on the other hand, in the exchanges on SNS before and after the purchase, there are frequent contacts and requests for product feedback. , Rather, the communication design is closer to people. Isn't this approach the exact opposite of the conventional apparel model, which assumes customer service and sales at stores?

Takeuchi
At STAMP, the goal of our service is not simply the sale of goods. We value the future that is half a step ahead of the purchase of goods, in other words, how much we can stay close to our customers in their daily lives. Therefore, I think that communication after the scanning experience at the store or after the online purchase is emphasized, and the result has led to the impression you have.

Also, STAMP is a new service that was released two years ago, so there are still many things to improve. In order to face this and make improvements, I believe that it is extremely important to create continuous contact points and communication after purchase.

* Actively create continuous contact points with users, such as contacting them on SNS and holding events at actual stores.

We provide services, not products

Ex B
Listening to Mr. Takeuchi, you say that STAMP is not a "product" but a "service". Normally, I think that apparel provides products, but is STAMP strongly conscious of providing services?

Takeuchi
Yes, I am very conscious of that. In my previous job, I experienced the traditional apparel industry, and I feel that the custom of "developing products to sell" from the perspective of the seller is deeply rooted in this industry. It is a style that sells products that companies want to sell based on the premise of seasonal collections in spring, summer, and autumn/winter.
I began to question this one-sided relationship with the customer, and because fashion is for the customer, I wanted to create things from the customer's point of view, and I began to think that I wanted to solve this problem in a different way than before. rice field.

Create services together with users as a D2C brand

At STAMP, we would like to make it something that can be used continuously by having people feel its appeal through the use of the service. Under that idea, communication whose goal is to sell is not essential.
We will continue to create services together with users while constantly checking the satisfaction of our services. As customers' lifestyles update, so do our products. In this way, we aim to always deliver everyday life that is half a step ahead of our users.

*[\JEANS ver.2.0] Like software, products are constantly being updated.

Ex B
Previously, I saw in an article by FABRIC TOKYO that instead of placing sales and profits as store KPIs, they placed customer retention rates and store repeat rates. What kind of KPIs does STAMP set for physical stores?

Takeuchi
Since the service has just started, we are currently focusing on "how many people have experienced scanning". As we expand our services in the future, the retention rate will also become a very important indicator.

On the other hand, although it is not a KPI at a physical store, it is important for the service as a whole to see how many times the "fit check (a service that gives feedback on the fit of the product)" that is provided when the product arrives is performed. I'm watching In other words, it is an indicator of how well we were able to ensure the user's first successful experience.
Even if the product arrives, does it really fit me? If you use it with doubts, you will not be truly satisfied. By providing a service that allows you to evaluate the fitting both subjectively and objectively from a third party, we would like to provide a satisfying service, and use it for continued use and product updates. thinking about.

Ex B
STAMP started as an orderware service for creative workers.
Although it is a cutting-edge service, behind it lies the idea of working together with users to constantly develop the service.

Now that the world's working styles have begun to change significantly, and remote work and office casuals have become established, I think that fashion needs are also changing. In such a turbulent era, I'm more and more curious about what kind of movement STAMP is doing.

---

In the second part of the next installment, we will continue to ask Mr. Takeuchi about the outlook for STAMP, and with Mr. Takahashi, who is in charge of public relations at FABRIC TOKYO, we will dig deeper into the value and role of the space that the D2C brand envisions, based on our business development and experience so far. I would like to continue