Unleashing the Power of Hospitality Commerce

Even if you are in the travel industry, it may be a waste to confine yourself to your category, such as travel agency or hospitality. The sea of ​​ever-evolving commerce may have more potential than you imagine.

Currently, Japanese department stores, which were once whispered to be on the brink, are making a comeback.

For example, the sales of Takashimaya's Shinjuku store, one of the major players, in 2022 reached 79.5 billion yen. This represents a growth of about 10% compared to the pre-COVID year of 2019.

The reason for this growth is not inside the stores but outside.

It's the 'foreign buyers' who go to the customers' locations and sell products who are driving this growth.

Major department stores like 'Sogo' are now strategically allocating half of their new hires to the foreign buying department. Furthermore, they are expanding the range of products they handle, including art products, luxury cars, and real estate sales.

The service of visiting the homes of wealthy individuals and selling products is common worldwide, but Japanese foreign buyers play a more personal role, akin to a secretary.

They visit daily, regardless of whether there are negotiations, engage in small talk and discussions, handle chores like dry cleaning, research gift selections, and take care of any requests. Sometimes they even accompany clients to travel destinations, performing tasks such as scheduling and reservations, much like travel agents.

However, this is never a master-servant relationship. Over time, they build a relationship of trust, akin to being part of the family. In other words, it's very similar to the hospitality industry.

The value of such relationships, when cultivated, can return as a golden opportunity.

As a famous episode at Bergdorf Goodman goes, a foreign buyer was invited to John Lennon's house on Christmas Eve and sold a $2.5 million fur coat. Such events are happening in Japan today. Items for sale can range from jewelry worth $1 million to large quantities of gift items.

While the brand of the department store is naturally a factor behind the close relationships foreign buyers build, in today's democratized distribution, it's not an absolute requirement.

If you have a discerning eye, are trustworthy in both personal and professional matters, then anyone can take on this role. It could be a GM of a luxury hotel or a travel agent specializing in luxury.

Japanese department stores are already starting to cater to inbound customers through foreign buyers.

It's good to collaborate with experts like them, but if you've already built a close relationship with your customers, you might consider becoming a sales channel yourself, selling a wide range of products.

This could be a desirable option for customers because what they seek is not the rational purchasing offered by Amazon but a shopping experience as a service.