Latest Japanese E-Commerce Case Study 2025: Nishimatsuya
- あゆみ 佐藤
- 2 days ago
- 4 min read
1. Background of Nishimatsuya and Initial Challenges
Since its founding in 1985, Nishimatsuya has been a leading retailer of affordable and high-quality baby and children’s products. Its core customer base consists of families who continue purchasing from pregnancy through early elementary school—often over a span of nearly ten years.
1.1 Limitations of a Brick-and-Mortar-Centered Business Model
Although Nishimatsuya began selling on EC malls such as au PAY Market in the late 2000s, several structural issues emerged:
Rising promotional and platform fees squeezed gross margins
Inability to access customer data, making CRM impossible
Dependence on mall-specific page formats and promotion rules, limiting branding and UX improvements
A mismatch between business model and data access—despite having long-term repeat customers, the company could not see individual purchasing behavior
For a retailer whose strength lies in long-term customer relationships, the lack of customer data was a critical strategic weakness.
2. Strategic Rationale Behind Launching the Official E-Commerce Site
To tackle these issues, Nishimatsuya launched its official e-commerce site, “Nishimatsuya Online Store,” in November 2021.
2.1 Core Objectives of the E-Commerce Launch
Improve cost structure by reducing dependence on EC malls
Build CRM capabilities through the collection and use of first-party data
Maximize LTV by tailoring offers to the customer’s life stage
Clarify the role of each sales channel and optimize the synergy between stores and e-commerce
Management clearly recognized that “long-term growth requires data-driven operations centered on our own EC channel.”
2.2 Primary Target Segments
Urban families in areas where store expansion is difficult
Expecting parents with high future purchasing potential
Busy caregivers who do not have time to visit stores
These segments became the foundation for Nishimatsuya’s EC UX and service design.
3. Building an Omnichannel Strategy Linking Stores and E-Commerce
3.1 Store Pickup: Establishing an Effective O2O Experience
One of the first services implemented with the EC launch was store pickup, enabling customers to order online and collect items in-store.
Benefits included:
Free shipping from a single item when using store pickup
Customers can receive items faster than home delivery
Increased chances of additional in-store purchases upon pickup
Seamless migration between online and offline channels
This service effectively encouraged EC users to visit physical stores, creating reciprocal traffic between channels.
3.2 Inventory Optimization Through EC Integration
Children’s apparel has many variations in size and color, making it difficult for stores to hold all inventory.
With EC integration:
Supplemental stock could be held at EC warehouses
Customers could search online when stores lacked a size
Lost sales opportunities were significantly reduced
This established a complementary model where stores and EC act as mutual backstops.
4. Centralized Customer Data and Advanced CRM for LTV Growth
The shift to owned e-commerce allowed Nishimatsuya to consolidate customer data and execute CRM strategies effectively.
4.1 Multi-Channel Touchpoints via App, LINE, and Email
Integrated point system: Store, app, and EC points were unified, promoting cross-channel usage
LINE messaging: Follow-up messages, coupons, and campaign notices boosted revisit and repurchase rates
Age-specific content delivery: Automated messaging based on expected due date and child’s age offered relevant information and product suggestions
4.2 Life-Stage Personalization
Customer needs change dramatically by stage:
Pregnancy: maternity wear
Newborn: diapers, basic clothing
Ages 1–3: apparel, dining items
Preschool ages: bags, school supplies
Elementary ages: junior apparel and study goods
EC data enabled Nishimatsuya to propose the right products at the right time, significantly increasing LTV.
4.3 Clarifying the Role of Each Channel
A clear division emerged:
EC malls → bargain and promotional items
Official EC → standard assortment and curated shopping
App → brand experience and personalized communication
Stores → fitting, product trial, and immediate needs
This channel ecosystem improved customer convenience and increased cross-channel engagement.
5. Results After EC Launch
5.1 Growth in E-Commerce Sales and User Engagement
Revenue steadily increased after launching the official EC site, supported by mutual reinforcement between stores and the online channel.
5.2 KPIs Directly Connected to LTV Improvement
Significant increases in revisit and repurchase rates via LINE
Higher repeat purchase rates on the official EC site
Ability to track and optimize the repurchase window after first purchase
5.3 Improved Operational Efficiency
Reduced mall dependency and internalization of EC know-how
Faster decision-making for promotions and customer engagement
Expanded touchpoints across store, EC, app, LINE, and email
6. Operational Challenges and Solutions in Omnichannel Implementation
6.1 UX Prioritization for Parenting Customers
Given the customer base, Nishimatsuya emphasized:
Stress-free navigation for “short, interrupted” smartphone sessions during childcare
Easy-to-understand categorization based on child’s age
Multiple payment options including carrier billing
6.2 Migrating Existing Customers to Official EC
Priority announcements to app members
EC-exclusive promotions
Higher point rewards on the official EC site
These steps eased the transition from mall users to direct EC customers.
7. Life-Stage Optimization of Long-Tail Customer Value
The new EC platform allowed the company to visualize and activate its largest untapped asset: long-tail customers with 10+ years of purchasing behavior.
Customer growth paths became measurable
Personalized product recommendations increased purchase frequency
LTV continued to rise across all stages
8. Industry Implications
Nishimatsuya’s case offers valuable lessons for retailers transitioning from physical-centered operations to digital hybrid models:
Implement EC in stages, starting with store pickup
Prioritize customer data utilization over simply expanding channels
Build CRM strategies around life-stage customer journeys
The company aims for “EC ratio of 5% and ¥25 billion in EC sales,” indicating strong expectations for continued digital growth.
Conclusion
Nishimatsuya’s omnichannel transformation demonstrates how a brick-and-mortar retailer can successfully integrate digital channels to enhance customer value and drive business growth.
By combining:
Store–EC integration
Data-driven CRM
Long-term customer journey optimization
User-centric service design
Nishimatsuya provides a blueprint for Japanese retailers seeking sustainable EC and omnichannel expansion.
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