- 15:08 min

Interview

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The Power of Integrated Data for better Customer Experience

Paula Macaggi interviews Toru Koyama, the Chief Information Officer and Chief Digital Officer of H2O Retailing Group, a major player in Japan’s retail industry. H2O Retailing Group is renowned for having the first-ever integration of a department store and railway terminals by the historic Hankyu Department Store in Osaka. This store first opened in 1929, underwent extensive renovations, and reopened in 2012, focusing on enhancing customer experience and value.

Today, the group has not only department stores but also supermarkets and shopping centers. Koyama, who joined the group in 2021, has been at the forefront of steering the company’s digital and IT strategies to meet the evolving needs of modern consumers.

During the interview, Koyama delves into the challenges and opportunities of leading digital transformation in a retail group with over 25,000 employees. He highlights the company’s commitment to becoming a “communication retailer,” aiming to establish direct and meaningful interactions with customers. This vision is part of H2O Retailing’s broader strategy to integrate customer data across all its retail formats creating a unified customer experience. Koyama emphasizes the importance of understanding customer behavior and preferences, which has been crucial during the pandemic as consumer habits shifted significantly.

Koyama also discusses the group’s ambitious plans to enhance its IT and digital infrastructure. By 2030, H2O Retailing aims to have 10 million active customers, leveraging a comprehensive customer database to offer personalized services and experiences. This initiative involves significant investment in customer data infrastructure, security, and governance systems. The group’s efforts are already showing results, with 80% of the infrastructure development completed. Koyama believes that a robust digital foundation will not only improve customer satisfaction but also open up new revenue streams, such as retail media.

A key takeaway from the interview is the emphasis on collaboration within the retail industry to drive innovation and efficiency. Koyama advocates for sharing non-competitive platforms and standardizing technology across the sector. This approach, he argues, will help retailers better serve customers and adapt to the rapidly changing retail landscape. Koyama’s insights provide a valuable perspective on the future of retail in Japan, highlighting the critical role of digital transformation in enhancing customer relationships and driving business growth.

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