press conference on commerce/logistics€¦ · yutaka nagao. dual values. dual values. reduce....
TRANSCRIPT
Z Holdings CorporationMarch 24, 2020
Press Conference on
Commerce/Logistics
Z Holdings Corporation
President and Representative Director, CEO
Kentaro Kawabe
Growing well above market growth rate
Over 3X
Shopping BusinessTransaction Value
FY2013 FY2018
Shopping
Users get what they want, when they want it
Strengthen logistics/delivery
Strengthen logistics/delivery
1. Use of group assets (ZOZO/ASKUL)
2. MOU on business alliance with
Yamato Holdings
3. Linkage with physical stores
1. Use of group assets (ZOZO/ASKUL)
2. MOU on business alliance with
Yamato Holdings
3. Linkage with physical stores Today
Strengthen logistics/delivery
Linkage with physical stores
MOU on business alliance with Yamato
Holdings
Strengthen logistics/delivery
Yamato Holdings
MOU on business alliance with
Yamato Holdings
Business alliance – Effects
Significant improvement in logistics quality
・Higher rate of next day delivery
Burden on tenants reduced
Shopping Mall
Yamato Holdings
Yamato Holdings Co., Ltd.
Representative Director,
President and Executive Officer
Yutaka Nagao
12/
Yamato Holdings Co., Ltd.Representative Director,President and Executive Officer
Yutaka Nagao
Dual values
Dual values
Reducelogistics burden
dramatically
EnhanceCX through better delivery service
Expansion of EC
Expansion of EC
EC expanding across
industries
Expansion of EC
2015 2018 2020(Estimate)
JPY20T
2010
Approx. JPY13.8T
Approx. JPY7.8T
Approx. JPY18T
Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey )
Expansion of EC
2015 2018 2020 (Estimate)
JPY20T
2010
Approx.
JPY13.8T
Approx.
JPY7.8T
Approx.
JPY18T
4.8B(Estimate)4.3B
3.7B
3.2B
Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)Ministry of Land, Infrastructure, Transport and Tourism: Statistics on Package Delivery Business
Parcels
Taking EC logistics to the next stage
Yamato Group’s logistics network
Adding convenient
EC functions
Taking EC logistics to the next stage
Taking EC logistics to the next stage
70Logistics terminals
5,400PUDO
(Pick Up & Drop Off stations)
3,700Sales offices
180,000Distributors
Physicalnetwork
120Logistics
warehouses
Taking EC logistics to the next stage
38 mil
Kuroneko Members Digitalnetwork 1.2 mil
Yamato Business Members
Taking EC logistics to the next stage
Building a data-poweredEC ecosystem
Available to all store operators
Phase 1
Leave it all to usReceiveorders
Downloaddata
Batchpicking Issue slips
Singlepicking Packing Delivery
Receiveorders
Downloaddata
Batchpicking Issue slips Single
picking Packing Delivery
Handled by YAMATO
Fulfillment
Pick &Delivery
Schedule
StartacceptingMarch 24
Start of services
nationwideJune 30
Let’s create the future together
Exclusively for buyers who purchased from tenants that use Yamato’s new services
Get your shipping virtually free campaign
PayPay Bonus Lite equivalent to shipping fee givenJune 30, 2020 – December 2020 (plan)
※Details to be announced
Shopping Mall
Strengthen logistics/delivery
Linkage withphysical stores
MOU on businessalliance with
Yamato Holdings
Z Holdings Corporation
Director, Senior Managing Corporate Officer
Takao Ozawa
Deliver
Pick up
Removing the barrier between online & offline shopping
X Shopping
Cross
Before
Warehouse
Inventory just for e-commerce
Limited line-up(Type/size/color)
Warehouse
X ShoppingAble to search &
purchase items available in physical stores
Know if items are in stock before
you visit the store
EC inventoryPhysical store
inventory
Extensive line-up
倉庫Warehouse
Search items on map
Illustrative purpose only
Store/inventory/price displayed for searched item, and can be purchased right away
Takoyaki maker: In stock (9)¥1,999 -
Go to store / Call / Purchase
B Store Shinjuku (5th floor)X-XX-X Shinjuku, Tokyo
Takoyaki maker: In stock
EC 9兆 兆EC
(EC ratio: 6.22%)
Source: Ministry of Economy, Trade and Industry: FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey )
Size of BtoC merchandising market
X Shopping – Targeted market
X Shopping
Approx. JPY 9 T
Approx. JPY 141 T
Approx. JPY 141T
Approx. JPY 150 T Expand market
EC
Physical store
EC
Physical store
Approx. JPY 9 T
Able to search & purchase items available in physical
stores
PayPay Mall
How the service will be used
# Illustrative purpose only
Purchase/pick up(From around Fall 2020)2
Order
Just pick up at stores
Search physical store inventory
1
Inventory in physical stores
Check physical stores with inventory (11 stores)
TokyoPayPay Store Akasaka
Experimenting display of physical stores’ inventory
(Display only)
Starting in March 2020
※Brand names shown above are registered trademarks or trademarks of companies providing the services
Search physical store inventory
1
Inventory in physical stores
Check physical stores with inventory (11 stores)
ZOZO, Inc.
President and Representative Director, CEO
Kotaro Sawada
PayPay Mall ShopGrand opening
on December 17, 2019
Since its grand opening on December 17th, the gross merchandise value continues to increase
ZOZOTOWN is the strongest shop within the Fashion Category
1W2W
3W
4W
5W
6WZOZO
Merchant A
Merchant B Merchant
CMerchant
DMerchant
EMerchant
FMerchant
G
*Results of PayPay Mall + Yahoo! Shopping (December 17, 2019 – January 26, 2020)* Based on weekly results (cumulative)
Quick launch by applying ZOZO’s assetsZOZOTOWN and
PayPay Mall Shop strategy
ZOZOTOWN PayPay Mall Shop
Opened 1100 shops all at once
Bilateralgrowth
Sharing brick and mortar inventory data
ZOZOTOWN PayPay Mall Shop
Receive brick and mortar inventory data from
ZOZOTOWN
Considering ways to apply brick and mortar inventory data of brands that
contribute to 50% of salesExperimenting ways to display brick and mortar inventory data
Bilateralgrowth
ZOZOTOWN and PayPay Mall Shop strategy
Visitors’ trendZOZO seeks to meet the expectations of users who browse ZOZOTOWN just as they would browse through a catalogue
Frequent visitors who do not make purchases
Which store carries this item in stock?If they have it in stock, maybe I should
go to the store?
Many users browse ZOZOTOWN as they would browse through a catalogue
Users’ behavior
Visit website
Search for products
Read product details
Add item to cart
Purchase item
In addition to PayPay Mall Shop, aiming to send traffic from ZOZOTOWN to brick and mortar
ZOZO will also contribute to increasing sales of brick and mortar through ZOZOTOWN
Before
After
ZOZOTOWN
ZOZOTOWN
After verification in PayPay Mall
Display brick and mortar inventory data
Increase sales
Brand shops
Brand shops
Online Offline
Both companies will continue to find effective solutions to create more synergy
ZOZO and ZHD will work together closely and implement various solutions
PaymentUSED
LogisticsMedia
PayPay MallEngineering
support
Providing new shopping experience to many more users
50/
Yahoo! JAPAN‘s shopping engine will be released to external operators
XS(Cross-Shopping)
Engine
Operators’ challenges
51/25
・System investment・Continuous updates and additional developments・Risk of information leakage・Customer attraction
Need to make endless efforts to secure a continuous EC growth
Centralized operation of own EC site &
store in mall Able to operate own website, Yahoo! JAPAN Shopping,
PayPay Mall
├Payment methods: credit cards, PayPay, etc.
├ Linking with Yahoo! JAPAN ID, various sales promotional functions (e.g. coupon,
online magazine, etc.)
├Available also in apps
X Shopping function(Linking with inventories of physical stores)
CRM/personalization/
recommendation using AI
XS Engine
Outline of XS(Cross-Shopping)Engine
XS Engine
Seamless linkage with Yamato’s new logistics services
XS Engine New logistics services
First case: LOHACO
※LOHACO is a registered trademark or trademark of ASKUL Corporation.
ASKUL Corporation
President & CEO
Akira Yoshioka
※ With the opening of Store in PayPay Mall in October 16, 2019, transferred LOHACO Yahoo! JAPAN Shopping Store to LOHACO PayPay Mall Store
Revenue of LOHACO PayPay Mall Store
Shopping Mall
Growing steadily
Logistics CRMProductPaymentAttract customers
Construction/operation of website
Challenges encountered in own EC site
・Continuous service investment・Response to security risks→Increase in personnel/depreciation cost
Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain
Logistics CRMProductPaymentAttract customers
Construction/operation of website
Use of shopping engine
※Operated by ASKUL
XS Engine
Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain
Logistics CRMProductPaymentAttract customers
Construction/operation of website
Effect of using shopping engine
・High quality service・Continuous response to security risks→Low cost structure
Strength fortified
※Operated by ASKUL
Red: Yahoo! JAPANBlue: ASKULFunctional role of Supply Chain
Continuous growth
※ With the opening of Store in PayPay Mall in October 16, 2019, transferred LOHACO Yahoo! JAPAN Shopping Store to LOHACO PayPay Mall Store
Revenue of LOHACO PayPay Mall Store
Shopping Mall
Today’s announcement・Strengthen logistics/delivery through
collaborations with Yamato
・Strengthen linkage with physical stores
・Offer shopping engine to external
operators
Virtually free
shipping
XShopping
XSEngine
Users get what they want, when they want it