Japanese departmental store Shin Kong Mitsukoshi’s OMO retail media, pop-up initiatives win recognition
By Retail4Growth Team | July 03, 2024
SKM Department Store’s retail media network marks the first foray by an Asian department store into luxury Online-Merge-Offline (OMO) retail media.
Retail media is fast emerging as a strategic option for retailers and brand marketers to capture their TG’s attention and as a marketing platform with potential to generate higher revenue.
In 2023, Shin Kong Mitsukoshi (SKM) Department Store launched "SKM Media," a Retail Media Network (RMN) that marks the first foray by an Asian department store into luxury Online-Merge-Offline (OMO) retail media.
OMO as a marketing strategy is gaining traction for seamlessly combining customer interactions and shopping experiences from both the online and offline channels. It essentially merges various sales channels and unifies customer data and experience with the aim of offering a complete or integrated customer journey.
The SKM Media offers a suite of modularised advertising tools and inventory, designed to facilitate brand-led consumer journeys across online and offline platforms, enhancing brand visibility and boosting sales. The company informs that within its first year, SKM Media has dramatically increased sales and established a lucrative new revenue stream for SKM, involving 30 prestigious brand partners and achieving margins that far exceed traditional retail operations.
In another proof of its success, Shin Kong Mitsukoshi (SKM) Department Store Co., clinched awards in two prestigious categories – Digital Initiative of the Year - Taiwan and Pop-up Retail Project of the Year – Taiwan Ltd at the Retail Asia Awards 2024.
These accolades reflect SKM's approach to blending traditional retail with modern digital strategies and engaging pop-up experiences.
The SKM Media initiative leverages a sophisticated advertising system integrated with a Customer Data Platform (CDP) that collects real-time purchasing data from over 3.6 million members. This platform enables precise targeting and segmentation, allowing brands to tailor their marketing strategies effectively. The success stories include collaborations with high-profile cosmetics and boutique brands, which utilised SKM's targeted advertising and content strategies to achieve significant sales increases and customer engagement.
Looking ahead, SKM plans to further expand its initiatives, anticipating a 4.5-fold increase in RMN media revenue by 2024 for SKM Media.
