Premier Anti-Aging Corporation, a cosmetics manufacturer widely known for its DUO skincare brand and other products, will open a limited-time directly managed store from April to July 2023 as part of measures to strengthen its retail business.
Gravio, a no-code integration platform that utilises camera AI and IoT sensors, was installed in the store to collect and analyse a variety of customer-related data to gain a deeper understanding of customers and valuable data that can be used to improve sales and for future business development and product development.
Premier Anti-Aging Corporation, known for its DUO skincare brand, opened a limited-time store from April to July 2023, using Gravio's no-code platform with camera AI and IoT sensors to collect and analyse customer data.
This innovative approach provided deep insights into customer behaviour and in-store conditions, leading to off-season sales comparable to peak periods and valuable data for future strategies and product development.
*Disclaimer: The interview was conducted in Japanese and translated into English
Gravio: Could you briefly introduce your company's business?
Ms. Kawahara (Retail Business Division) : Our core business focuses on anti-aging. We're expanding beyond skincare into hair care, inner care, and recovery products. Our DUO Cleansing Balm, part of our anti-aging skincare brand "DUO," has been ranked No. 1 for four consecutive years and is a favourite among customers. Recently, we've broadened our scope by launching a lifestyle brand and acquiring Venex Co., Ltd., which specialises in recovery wear, to become a leading anti-aging company that caters to a wide range of customer needs.
Gravio: Could you share why you are currently pursuing digital transformation, along with the management philosophy and vision behind it?
Mr. Saito (Corporate Planning Division): Our company slogan, "Forever vivid, Untether time" drives our efforts to digitise our entire environment and set the stage for digital transformation. Since our primary business is online sales, it's crucial to leverage digital tools to swiftly respond to customer needs and market changes.
Gravio: From April 2023, DUO will be opening its first retail shop at Mitsui Outlet Park, is that correct?
Saito: Yes, that's correct. While our business model has primarily focused on online sales, to further increase brand and company awareness, we need to explore additional sales channels. We are expanding our retail presence by wholesaling our products to major drugstores and variety shops, which then sell them in their stores. This strategy has increased our visibility, but because we don’t interact directly with customers, our ability to gain knowledge and insights is limited.
Gravio: Is that what made you think of opening your own directly managed stores?
Mr. Saito: Yes. We had previously organised pop-up stores several times, but they were short-term, one-off projects. This time, however, through our collaboration with Mitsui Outlet Park, we've decided to open a DUO directly managed store for a limited period of about three and a half months. This initiative aims to deepen our understanding of customers through detailed interactions, which will inform our future business and product development strategies.
Gravio: You recently introduced Gravio to this directly managed store. What was the purpose of introducing it?
Mr. Saito: When considering what additional insights could be gained from store operations, POS data naturally comes to mind. However, we also explored the potential of AI cameras, which have garnered attention in recent years. These cameras can automatically capture the number and demographics of store visitors without requiring staff intervention. Implementing a system like AI cameras seemed incredibly valuable as it allows our staff to concentrate more on customer service.
Gravio: Were the specific uses for the AI cameras and IoT sensors decided from the beginning?
Mr. Saito: I researched AI cameras and IoT sensors, discussed with vendors, and a vision began to form. I became convinced that by utilising AI cameras to capture customer attributes like numbers, gender, age groups, and behaviours within the store, and integrating this with POS data, we could discover valuable new insights.
Gravio: How did you select the AI camera product and solution?
Mr. Saito: One of the biggest reasons we chose Asteria's Gravio was that a wide variety of sensors could be integrated with it and it offers a flexible subscription model. Initially, we were looking for a product with AI camera functions, we saw the potential of Gravio to leverage a diverse array of on-site data, including sensors. This versatility convinced us it could serve multiple purposes in the future.
Gravio: Did the introduction of Gravio go smoothly?
Mr. Saito: One of the reasons we opted for Gravio was its ability to quickly set up and start collecting data from AI cameras and sensors. The decision to open the store was made on short notice, requiring the AI cameras and IoT sensors to be installed swiftly. Other products wouldn’t have met our tight schedule, but thanks to Asteria's cooperation, we successfully implemented Gravio within a month.
Gravio: Please describe how Gravio is being utilised in your operations.
Ms. Kawahara: We have implemented five AI cameras in the store.
One camera is positioned at the entrance to count customers and gather demographic data such as gender and age group.
There is also another camera oversees the entire store to monitor customer presence.
Additionally, three cameras are dedicated to each of our product shelves, tracking customer interaction and engagement.
To enhance and protect privacy of data, the camera footage is processed locally on an edge computer within the store and immediately discarded, while data from these analyses optimises our store operations. Furthermore, we’ve installed sensors in three areas: at the store entrance, near the cash register, and in the storeroom, measuring temperature, humidity, and CO₂ concentration.
Gravio: How is the data collected from these cameras and sensors being utilised?
Mr. Saito: The gathered data, including customer information, is aggregated and analysed using BI tools. For sensor data, we utilise the dashboard function of the Gravio Cloud service to visualise real-time measurements. This enables our company to monitor the store environment remotely from our head office, ensuring optimal conditions are maintained even from a distance.
Ms. Kawahara: For instance, AI camera data allows us to calculate the "visitor purchase ratio" by comparing the number of store visitors to the number of purchasers at the POS. Analysing changes in this ratio enables us to objectively assess how factors like customer service quality and product lineup impact purchases.
Moreover, by integrating gender and age information from the AI cameras with POS data, we can analyse whether our product lineup and promotional campaigns effectively reach our intended target audience at any given time.
Gravio: How has the implementation of Gravio improved your sales and revenue?
Ms. Kawahara: During the busy Golden Week period in May, sales typically increase, followed by a decline in June, which is considered a slower season post-Golden Week.
This pattern was evident in our recently opened store as well. Initially concerned about a significant sales drop in June compared to May, we were pleasantly surprised to find that sales remained nearly constant.
On some days, they even surpassed those during Golden Week. This achievement allowed us to achieve sales in June comparable to the busy season, which is remarkable for a slower period. We attribute this success to continuous improvements in store operations driven by insights from Gravio and Point-of-Sale data.
Mr. Saito: Operating a directly managed store like this was a new experience for us, and the knowledge and expertise gained are invaluable assets for strengthening our retail business and for planning and developing new products.
Particularly, leveraging digital data insights has been extremely beneficial in expanding our product offerings and enhancing our service capabilities.
Gravio: How do you plan to utilise the data you've gathered moving forward?
Mr. Saito: As we expand our retail operations, my goal is to leverage the insights from Gravio's data analysis to create more appealing sales areas and develop products that further delight our customers.
Ms. Kawahara: It's remarkable that we were able to implement a data utilisation system that typically takes at least a year to build, all within just one month, and utilise it to this extent. Should we have another opportunity to operate a directly managed store like this in the future, I would definitely opt to use Gravio again. I hope that next time, we can conduct more advanced data analyses, such as customer flow analysis, to further broaden our application scope.
The implementation of Gravio’s no-code, low-code connectivity platform has clearly demonstrated its ability to streamline operations, enhance customer insights, and drive sales growth even during traditionally slower periods.
By harnessing the power of real-time data and advanced analytics, our client has improved their retail strategies and customer engagement. If you are looking to revolutionise your business operations and achieve similar results, we invite you to explore how Gravio can empower your organisation with its flexible and robust IoT solutions.
Contact the Gravio team today to learn more and take the first step toward transforming your business.
