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Shin Kong Mitsukoshi Department Store sweeps two awards at Retail Asia Awards 2023
The department store is committed to continuing to reform its digital channels and merging online and offline to meet consumers' needs for safe shopping options.
Shin Kong Mitsukoshi (SKM), the largest department store in Taiwan, has won two awards at the Retail Asia Awards 2023.
SKM received the ESG Initiative of the Year - Taiwan award for recognising its commitment to environmental, social, and governance initiatives. With a total of 15 stores and 20 buildings comprising nearly 7,000 counters currently in operation, SKM has attracted more than 130 million visits each year.
With a consumer-oriented principle upheld over the past 30 years, the company continues to innovate and create a better lifestyle with new experiences, new consumption, and new sustainability.
SKM was recognised for several environmental initiatives, including a carbon emission reduction program that has reduced emissions by 36,000 tons compared to 2018, the introduction of sales areas without packaging for plastic reduction, and the use of digital labels to reduce plastic use. It also introduced over 430 products with environmental and social certification in its products and organised 14 green activities for approximately 6,500 participants in 2021.
In addition, SKM has invested in cultural activities with more than 200 various cultural and art activities every year, making Shin Kong Mitsukoshi not just a department store but also a cultural hub. The company has established the "Shin Kong Mitsukoshi Cultural & Educational Foundation" to organise regular exhibitions and performances for craft design, image art, and children's art education.
Moreover, SKM has received the O2O Customer Experience of the Year - Taiwan award for its successful merging of online and offline channels to provide a seamless and excellent shopping experience for its customers. SKM's Loyal Customer System, APP Best Selected Products, SKM Eats, and SKM Online are some of the key strategies that have been instrumental in driving its success in this area.
The Loyal Customer System allowed SKM to execute customer service one by one with digital tools. With 25,000 clerks linked up to the system, they could recommend products through social channels based on customers' consumption habits.
Each clerk had an "owned select store," a mini online shop where they could promote products to customers. The conversion rate based on the relationship and trust between customers and clerks could reach 50%. Additionally, SKM delivered luxury products to their customers' doors based on their preferences, ensuring a seamless shopping experience.
The APP Best Selected Products strategy showed special sales and promotions based on seasons, festivals, and sale dates on the SKM APP. Customers could enjoy the no-boundary OMO shopping experience, shop online, pick up at the store, or have home delivery.
SKM Eats allowed customers to enjoy tasty food through digital channels by integrating over 250 well-known restaurants and food courts into their food delivery service. SKM Eats also built the only department store's food delivery system with Taiwan Taxi, from customers' orders on the SKM APP to food making and delivery, providing a reliable service for customers.
Finally, SKM Online set up an online shopping store, collaborating with over 3,600 brands to offer customers a shopping space with no limits. Even brands that did not have a store in SKM could sell products online to their three million members. SKM Online not only sold virtual products but also built awareness for store events through digital media channels.
Customers could book events via the APP and use the QR code for entrance. Additionally, SKM leveraged its store advantage by offering a shop online and delivery through brick-and-mortar stores strategy to save warehousing operating costs and inventory amount.
SKM's O2O strategies resulted in significant achievements, including a seven-times increase in the performance of the Loyal Customer System, a five-times increase in orders in APP Best Selected Products compared to the previous year, and a 40% growth in SKM online orders.
The Retail Asia Awards is presented by Retail Asia Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's exceptional products or initiatives in the retail industry, please contact Jane Patiag at [email protected].